Austral Gold Limited has encountered gold and silver mineralisation in drilling at the Jaguelito Project, within Argentina's prolific El Indio Gold Belt. In accordance with its option agreement with Mexplort Perforaciones Mineras SA ("Mexplort"), Austral has completed 3,744m over 14 holes of its 5,000m diamond drilling campaign since December 2022 to acquire 50% of the advanced exploration project, which has a high-potential for high-sulfidation epithermal gold and silver deposits. Up to eight targets have been identified across two zones, Norte and Sur.

Further drilling is underway at La Cuña Norte (Norte) and Sagitario (Sur) targets. Five drilling targets were identified and three targets were tested, Alcatraz, La Cuña Norte, and La Cuña Sur. The program prioritises the Capote - Alcatraz sector under a new concept of gold ore controlled northwest direction and drilling of the La Cuña maar-diatreme complex, which the company recently identified as the major control of the hydrothermal system in the region.

The third target corresponds to the satellite body of the Guanaco Breccia. Alcatraz target: This target consists of a 120 x 80m mineralised body controlled by the contact between phreatomagmatic breccias and a dacite dome, developed mainly in the dacitic rocks. Results from drill hole DJN-003 validate Au mineralisation (< 1gpt) in the phreatomagmatic breccia, vectoring eastward towards the high-grade shell hosted on dacitic rocks.

Drillhole DJN-004 intercepted mineralisation associated to strongly advanced argillic alteration (vuggy silica ± quartz-alunite + Jar/Hem), confirming the presence of mineralisation hosted in dacites in the contact zone with phreatomagmatic breccias and the continuity of the Alcatraz >1gpt Au mineralisation to the Northwest. La Cuña Norte target: Drill holes DJN-006 and DJN-010 intersected extensive columns of phreatomagmatic rocks from surface, with mineralised intercepts associated with the contact between the dacite domes and the basement (Choiyoi), similar to the structural control validated in the Capote-Alcatraz targets. Drill holes DJN-008 and DJN-009 intersected several intervals of phreatomagmatic tuff breccias with intermittent alteration to vuggy silica ± quartz-alunite and silicification.

The Company interprets this as peripheral facies of a larger phreatomagmatic system located to the southeast (Cerro Jaguelito), and also limits the southward extension of the La Cuña Norte phreatomagmatic complex. La Cuña Sur target: Drill holes DJN-011 and DJN-012, aimed to intercept diatremes associated with crater facies identified on the surface at elevations greater than 4,500 m.a.s.l., traversed thick columns of dacitic rocks, suggesting the presence of post-phreatomagmatic domes emplaced within the ducts. Guanaco Breccia target: Drill hole DJN-005 confirmed the existence of a concealed phreatomagmatic system.

At least two brecciation events where identified which imply a multistage evolution. Both the strong illite-smectite-pyrite alteration and the lack of fertile advanced argillic alteration in the expected mineralisation level (3,915 to 3,990 m.a.s.l.) suggests an extension towards the La Cuña target in the East. Preliminary work identified five structures related to phreatomagmatic activity that suggest alteration and potential mineralisation in the sector.

Three targets will be tested by approximately 1,500m of drilling. Sagitario target: Sagitario target shows, in outcrops and historical drillings, conduit facies of a phreatomagmatic complex with intense silicification and coincident geochemical anomalies of gold, silver and toxic elements. Initial drilling is currently underway.

Alumbre target: Alumbre target is located in the central part of Jaguelito Sur and consists of at least three phreatomagmatic breccia conduits that cut the andesitic basement. Five historic drill holes (1,777m) only superficially tested the edges of the area. Brecha Siete target: Brecha Siete, located on the eastern slope of Jaguelito Sur, is an early-stage target characterised by strongly altered phreatomagmatic breccias that cut through the basement following a NW structural control.