Mr. Stabro Kasaneva reports

AUSTRAL GOLD REPORTS NEW DRILLING RESULTS FROM JAGUELITO

Austral Gold Ltd. has completed the first stage of drilling at the Jaguelito project in Argentina's prolific El Indio gold belt.

At the Sagitario target at Jaguelito Sur, drill hole DJS-001A intersected 14 metres at 0.7 gram per tonne (g/t) gold (Au) and 17 g/t silver (Ag) starting at 133 m, including 4.4 m at 1.44 g/t Au and 30 g/t Ag from 143 m. The hole reached a significant depth of over 400 m, marking the largest phreatomagmatic column encountered in the project to date. The results indicate that one of the five surface-identified centres at Jaguelito Sur is similar to the dimensions and intensity of high-sulphidation deposits in this metallogenic belt.

Gold and silver mineralization, in line with the company's exploratory model, is high-sulphidation and hosted predominantly in phreatomagmatic rocks. Gold is associated with grey silica flooding in vuggy silica and quartz-alunite-jarosite hydrothermal alteration.

Austral drilled a total of 4,331 m across two sectors at the Jaguelito project: Jaguelito Norte and Jaguelito Sur.

In accordance with the company's agreement with Mexplort Perforaciones Mineras SA, Austral intends to exercise its option to acquire 50 per cent of the project by drilling additional 700 m to satisfy the 5,000 m drilling commitment under stage 1 of the agreement. The 700 m are expected to be drilled in a new program to be jointly developed with Mexplort later this year. As of Aug. 31, 2023, drilling campaign costs totalled approximately $4.7-million (U.S.).

Stabro Kasaneva, Austral Gold's chief executive officer, said: "We are pleased initial drilling at Jaguelito has confirmed northwest structural mineralization controls, which are crucial for HS-type epithermal deposits during the Miocene era in the region. Based on the results obtained to date, we are planning a new drill program."

Competent person

Technical information in this media release that relates to exploration results is based on work supervised by, or compiled on behalf of, Robert Trzebski, a director of the company. Dr. Trzebski, a member of the Australasian Institute of Mining and Metallurgy (AusIMM), 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, and consents to the inclusion of the technical information that he has reviewed and approved, or has been compiled on his behalf.

About Jaguelito

The Jaguelito project is an advanced-exploration-stage project located in one of the main districts of precious metals worldwide -- the El Indio-Pascua Lama district in the province of San Juan, Argentina. Its deposits, of the high-sulphidation epithermal-type of Miocene age, include mines in production, construction and exploration.

The Jaguelito project covers an area of approximately 11,000 hectares, and over 150 holes (approximately 30,000 m) were drilled by previous owners (Minera Penoles, Minera IRL) between 1996 and 2009. It is located approximately 225 km northwest of the city of San Juan in Valle del Cura, Iglesias department, San Juan province, Argentina. Its central co-ordinates are 29 degrees 46 feet 20 inches west latitude, 69 degrees 38 feet 15 inches south longitude, and a variable altitude between 3,600 metres and 4,300 metres above sea level. Jaguelito is a high-sulphidation epithermal deposit related to a Miocene volcanism hosted in basement of Permo-Triassic age. Its mineralization is related to a hydrothermal system controlled by northeast-southwest-oriented faults and hosted in porouspermeable volcaniclastic units. These rocks allowed the circulation of precursor acidic hydrothermal fluids that strongly altered the rocks through which they circulated, generating a secondary porosity, or vuggy silica, in the alteration cores. The high-porosity product of the alteration served as a conduit for the posthumous hydrothermal fluids responsible for the mineralization of gold and silver.

About Austral Gold Ltd.

Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the Americas. Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets.

Operations:

• Guanaco and Amancaya mines, Antofagasta province, Chile (100-per-cent interest):
  • Open pit and underground;
  • 2022 production: 27,686 gold equivalent ounces;
  • 2023 forecast: 32,000 to 36,000 gold equivalent ounces.
• Casposo/Manantiales mine complex, San Juan province, Argentina (100-per-cent interest):
  • Gold and silver mine currently in care and maintenance -- strategy is to restart profitable mining operations.

Exploration:

• Chile:
  • Paleocene belt, Chile;
  • Guanaco district;
  • Amancaya district;
  • Las Pampa district.
• Argentina:
  • Triassic Choiyoi belt;
  • Indio belt;
  • Deseado massif.

Equity investments:

• Unico Silver Ltd., an Australian Securities Exchange-listed company (17-per-cent interest);
• Rawhide mine, private vehicle, Fallon, Nev., United States (24-per-cent interest);
• Ensign Minerals Inc., private vehicle, Utah, U.S. (12-per-cent interest);
• Pampa Metals Corp., a Canadian Securities Exchange-listed company (5.5-per-cent interest).

We seek Safe Harbor.