Austral Gold Reports Encouraging Results at Casposo

Sydney, July 27, 2022 - Austral Gold Ltd. (ASX: AGD) (TSXV: AGLD) (the "Company" or "Austral") is pleased to announce exploration results at its Casposo-Manantiales project in Argentina.

Highlights:

• At the Manantiales vein, the follow-up drilling program intercepted high gold grades for the first time, opening the upside at depth and indicating the continuity of mineralisation in the south ore-shoot.
  • − MDH-02-63: 4.40 meters @ 18.65 g/t gold and 58 g/t silver
    • - including: 3.12 meters @ 26.04 g/t gold and 37 g/t silver
    • - sub-including: 0.75 meters @ 76.26 g/t gold and 75 g/t silver
  • − MDH-02-64: 2.35 meters @ 15.61 g/t gold and 81 g/t silver
    • - including: 1.58 meters @ 22.30 g/t gold and 116 g/t silver
  • − MDH-02-60: 2.50 meters @ 9.73 g/t gold and 49 g/t silver
    • - including: 0.90 meters @ 25.48 g/t gold and 125 g/t silver
    • - sub-including: 0.45 meters @ 48.16 g/t gold and 192 g/t silver

• At the Cerro Amarillo project, the delineation process continued with rock-chip sampling providing gold grades up to 149.74 grams per tonne ("g/t") Au and 622 g/t Ag at the La Puerta, Awada and Fabiola targets. Subsequent follow-up with channel sampling indicates high-grade mineralisation associated with intense silicification and the presence of multiple minor veining. The channels with the best results by area are:
  • − La Puerta: 6.20 m @ 11.22 g/t gold and 76 g/t silver
  • − Awada: 2.60 m @ 19.62 g/t gold and 54 g/t silver
  • − Fabiola: 1.50 m @ 19.70 g/t gold and 12 g/t silver

The first phase of drill testing in La Puerta, Awada and Fabiola were completed. At La Puerta, the three holes drilled had no significant results, while the results from the three holes in Fabiola and one in Awada have not yet been received.

• To date, a total of 2,321.3 meters were drilled in 12 diamond drill holes and assays from 8 drill holes have been received to date.

• We plan to resume the drilling program in September 2022 when weather conditions improve, which we expect to include the following:

  • (i) infill drilling program at the Manantiales vein;
  • (ii) follow-up drilling program at the best targets at the Cerro Amarillo project;
  • (iii) revisit of remaining mineral resources in the Casposo mine

Chief Executive Officer, Stabro Kasaneva, commented: "We are encouraged with the latest assay results from our exploration program at the Casposo-Manantiales cluster. These results indicate that we are on the path towards achieving our strategic objective of re-starting mining operations at Casposo. We will keep our shareholders informed on further drill results and our next drilling campaign starting during September 2022."

Manantiales Vein

The phase II drilling campaign commenced in 2022 as announced in the Company's press release dated 28 April 2022. The drill campaign covered 1,273 meters in 5 holes with 4 holes oriented to define the southern ore-shoot extensions and a fifth hole to explore the continuity of mineralisation in the northern ore-shoot at the lower contact of the flat intrusive.

The best result obtained to date is drill hole MDH-22-063, which intercepted a high-grade gold structure with a width of more than 4 meters. This intercept indicates that the best mineralisation control in Manantiales vein is related to the lower contact of the dacitic intrusive opening the potential along this discontinuity and at depth.

Results from the drill holes MDH-22-060 and MDH-22-064 confirmed the continuity of the blind ore-shoot previously intercepted by drill holes MDH-22-057/058. Drill hole MDH-22-060 opens the mineralisation to depth, while drill hole MDH-22-64 indicates mineralisation closer to the surface. Drill hole MDH-0061 intercepted a post mineral dyke using the same space of the structure in that segment and did not show veins or mineralised structure.

The next drilling campaign is being planned to define the upside of the northern and southern ore-shoots and to explore the potential to the South and North at the protected blocks related to the Vallecito reverse faulting.

Casposo - Manantiales District: Targeting and Location Map

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Manantiales Vein: Drilling results at longitudinal section

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Cerro Amarillo - Exploration Update

At Cerro Amarillo, the delineation process continued with rock chip sampling showing high gold values in the La Puerta, Awada and Fabiola sectors.

These results are related to multiple centimeter veinlets in at least three main directions, all predominantly hosted in a complex of exogenous rhyolitic domes. The largest known structures appear to be controlled by the N-S oriented fault contacts of the domes with an andesitic tuff (Oveja Negra Fm). Their formation is related to a low sulphidation system, likely developed as sheeted veinlets and stockwork of millimeter to centimeter veinlets of quartz and quartz-adularia with the presence of ginguro.

The results of reconnaissance sampling in veinlets and veins from 2 to 60 cm obtained the following results:

• − La Puerta:
  • - Sample 9935 - 149.74 g/t gold and 622 g/t silver
  • - Sample 10098 - 106.39 g/t gold and 1,110 g/t silver
  • - Sample 9959 - 89.11 g/t gold and 441 g/t silver
  • - Sample 9897 - 68.11 g/t gold and 200 g/t silver
• − Awada:
  • - Sample 0122 - 38.22 g/t gold and 65 g/t silver
  • - Sample 10124 - 27.36 g/t gold and 65 g/t silver
  • - Sample 10125 - 6.61 g/t gold and 12 g/t silver
  • - Sample 9411 - 6.52 g/t gold and 12 g/t silver
• − Fabiola:
  • - Sample 9207 - 5.12 g/t gold and 11 g/t silver
  • - Sample 9589 - 1.03 g/t gold and 201g/t silver

Subsequent follow-up channel sampling confirmed high-grade mineralisation associated with intense silicification and the presence of veining. Highlights of the results from the channels are as follows:

• − La Puerta:
  • - Channel LP04 - 6.20 m @ 11.22 g/t gold and 76 g/t silver
    • - Including 5.10 m @ 13.47 g/t gold and 91 g/t silver
    • - sub-including: 2.90 meters @ 20.06 g/t gold and 127 g/t silver
  • - Channel LP17 - 0.80 m @ 45.07 g/t gold and 206 g/t silver
    • - Including 0.40 m @ 83.45 g/t gold and 353 g/t silver
• − Awada:
  • - Channel AW07 - 2.6 m @ 19.62 g/t gold and 54 g/t silver
    • - Including 2.30 m @ 21.95 g/t gold and 60 g/t silver
    • - sub-including: 1.05 meters @ 40.85 g/t gold and 118 g/t silver
  • - Channel AW09 - 1.60 m @ 20.36 g/t gold and 62 g/t silver
    • - Including 0.50 m @ 27.51 g/t gold and 61 g/t silver
• − Fabiola:
  • - Channel FA03 - 1.50 m @ 19.70 g/t gold and 12 g/t silver
    • - Including 0.65 m @ 34.61 g/t gold and 21 g/t silver

At La Puerta, the first phase of drilling was completed including 3 holes without significant results. The drill testing program was completed in Fabiola and the results are pending. The three holes intercepted a structure with widths that do not exceed one meter.

At Awada, one follow-up hole was drilled to the high grade AW07 channel, intercepting the sheeted quartz veinlets with apparent presence of ginguro, continuing 50 meters below surface. We expect to receive the results from this drill hole shortly.

Upcoming work program priorities are focused on drilling the second phase in Fabiola and Awada, with the goal of finding the vertical continuity of high-grade mineralisation. In addition, the second drilling phase at La Puerta is being designed.

Cerro Amarillo: Channel and rock chip sampling results

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Competent Person

Technical information in this press release that relates to Exploration Results is based on work supervised, or compiled on behalf of Robert Trzebski, a Director of the Company. Dr. Trzebski, who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and qualifies as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' consents to the inclusion of the technical information that he has reviewed and approved or has been compiled on his behalf.

Austral Gold Ltd. is listed on the TSX Venture Exchange (TSXV: AGLD) and the Australian Securities Exchange. (ASX: AGD). For more information, please consult Austral's website at www.australgold.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Release approved by the Chief Executive Officer of Austral Gold, Stabro Kasaneva.

For additional information please contact:

Jose Bordogna
Chief Financial Officer
Austral Gold Ltd.
Jose.bordogna@australgold.com
+61 4666 892 307

Ben Jarvis
Director
Austral Gold Ltd.
info@australgold.com
+61 413 150 448

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements are statements that are not historical, and consist primarily of projections - statements regarding future plans, expectations and developments. Words such as "expects", "intends", "plans", "may", "could", "potential", "should", "anticipates", "likely", "believes" and words of similar import tend to identify forward-looking statements. Forward-looking statements in this news release include future exploration activities including resumption of the drilling program in September 2022 and detailed plans for the program, latest assay results indicate that we are on the path towards achieving our strategic objective of re-starting mining operations at Casposo, planning of next drilling campaign at the Manantiales vein and receipt of outstanding drilling results.

All of these forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied, including, without limitation, business integration risks; uncertainty of production, development plans and cost estimates, commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations, the state of the capital markets especially in light of the effects of the novel coronavirus,, uncertainty in the measurement of mineral reserves and resource estimates, Austral's ability to attract and retain qualified personnel and management, potential labour unrest, reclamation and closure requirements for mineral properties; unpredictable risks and hazards related to the development and operation of a mine or mineral property that are beyond the Company's control, the availability of capital to fund all of the Company's projects and other risks and uncertainties identified under the heading "Risk Factors" in the Company's continuous disclosure documents filed on the ASX and on SEDAR. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Austral cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. Austral's forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and Austral does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.

Austral Gold Ltd. ABN 30 075 860 472 (ASX: AGD) (TSXV: AGLD)
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | info@australgold.com | www.australgold.com

Table 1: Manantiales and Cerro Amarillo Drill hole Results

Table 2: Cerro Amarillo Channel sampling results

Table 3: Cerro Amarillo Rock chip sampling results

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