Mr. Jose Bordogna of Austral Gold reports

AUSTRAL COMMENCES DRILLING AT MORROS BLANCOS, CHILE

Austral Gold Ltd. has commenced the first phase of the drilling program at the Morros Blancos project located in the Paleocene mineral belt in northern Chile and close to the Guanaco/Amancaya operating mines.

The drilling program is pursuant to the option agreement with Pampa Metals Corp. as announced on July 28, 2021. The agreement with Pampa entitles Austral to acquire up to an 80-per-cent interest in Pampas' Morros Blancos and Cerro Blanco properties which comprise approximately 7,300 and approximately 6,500 hectares, respectively. Since signing the agreement, the company has incurred approximately $500,000 (U.S.) in exploration expenditure on both properties. To acquire the first 60-per-cent interest in both properties, exploration expenses of $1-million (U.S.) must be incurred in year one and $2-million (U.S.) in year two.

Drilling program

The first phase of the drilling activities will involve approximately 2,000 metres of diamond drilling (DD) in five holes at the delineated target of Rosario del Alto. The targeting process from a semi-regional exploration program was based on the definition of the structural framework and remote sensing reprocess. Three prospective areas identified at the intersection of first order northeast and northwest striking, thick skinned faults and a 15-kilometre by three-kilometre northeast favourable alteration corridor.

Delineation has been completed at Rosario del Alto, where key elements of high-sulphidation systems have been field validated, including four maar-diatreme structures, multiplicity of phreatomagmatic breccias extending approximately two by one km and a preserved structural block based on shallow volcanic features and high-level alteration.

Systematic surface geochemistry prospection with 297 rock chip samples and over 450 spectrometry measurements validated extensive advanced argillic alteration (approximately four by three km) with preserved shallow levels. Low gold values were detected corresponding with the exposure level of the system. A pathfinder anomaly is concentrated on the central zone and apparently controlled by the border of suggested crater.

Newly acquired high-resolution ground magnetic data collected on 38 north-south-oriented lines (100-metre spacing) is being processed by an external consultant. Preliminary results show demagnetized areas, presumably due to an acidic hydrothermal alteration with spatially matching phreatomagmatic features. Five east-west-oriented CSAMT lines (totalling 12 km) were surveyed over favourably altered centres and confirmed subvertical cone-shaped resistors over 10,000 ohms per m in one-dimensional and two-dimensional inversions.

Competent person

Technical Information in this press release has been reviewed by Robert 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. Mr. Trzebski consents to the inclusion of the technical information that he has reviewed and approved.

Mr. Trzebski has sufficient experience which is relevant to the style of mineralization and types of deposits under consideration and to the activity which he has undertaken to qualify as a competent person as defined in the JORC Code 2012.

About Morros Blancos

The project is located along the Paleocene mineral belt of northern Chile, south of the prominent El Penon gold-silver mining district. The project is prospective for high-sulphidation epithermal gold-silver (plus/minus copper) and possibly deep porphyry copper (plus/minus gold, plus/minus molybdenum) deposits. The project is characterized by a relatively small-scale outcropping hill displaying lithocap, spatially coincident with a significant magnetic high and surrounded by extensive post-mineral cover materials.

About Austral Gold Ltd.

Austral Gold is a growing gold and silver mining, development and exploration company whose strategy is to expand the life of its cash-generating assets in Chile, restart its Casposo mine in Argentina and build a portfolio of quality assets in Chile, the United States and Argentina organically through a Tier 1 or 2 exploration strategy and via acquisitions and strategic partnerships. Austral owns a 100-per-cent interest in the Guanaco/Amancaya mine in Chile and the Casposo mine (currently on care and maintenance) in Argentina, a non-controlling interest in the Rawhide mine in Nevada, U.S., and a non-controlling interest in Ensign Gold which holds the Mercur project in Utah, U.S. In addition, Austral owns an attractive portfolio of exploration projects in the Paleocene belt in Chile (including those acquired in the recent acquisition of Revelo Resources Corp.), a non-controlling interest in Pampa Metals and a 100-per-cent interest in the Pinguino project in Santa Cruz, Argentina. Austral Gold is listed on the TSX Venture Exchange and the Australian Securities Exchange.

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