Austral Gold Limited: Austral Provides Exploration Update

Sydney, Australia--(Newsfile Corp. - April 27, 2022) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (the "Company" or "Austral") is pleased to provide an update on its on-going exploration programs in Argentina and Chile during Q1 2022. Exploration expenditures during Q1 2022 were US$1.3 million (CY21: US$8.4 million).

The Company continued with its exploration strategy that focused on:

1. The Chilean Paleocene Belt targeting Tier 1 or 2 projects including the Morros Blancos and Cerro Blanco prospective projects to further extend the life of mine of our flagship Guanaco-Amancaya mine complex;
   
   
2. The Argentine mining clusters targeting to re-start the Casposo-Manantiales mine complex and the development of the Sierra Blanca- Pinguino project;
   
   
3. The Argentine Indio Belt targeting Tier 1 or 2 projects as part of the planned strategic alliance with Mexplort Exploraciones Mineras SA ("Mexplort").

Exploration Highlights Chile

• Morros Blancos: Completed four of the five drillholes planned for phase 1 of our drilling campaign at the Rosario del Alto target, totaling 1,020 meters. In addition, at the Morro Colorado target, delineation confirmed the high-sulfidation features on the eastern block, where advanced argillic altered phreatomagmatic rocks outcrop.
  
  
• Pampa Metals Corp. Option Agreement: Expenses incurred on the Morros Blancos and Cerro Blanco projects were US$0.7 million in Q1 2022. The first-year expenditure commitment was met as total expenses incurred were US$1.2 million. An additional US$1.8 million is required to be expended prior to the end of Q3 2023 to obtain an initial 60% interest in the properties.

Exploration Highlights Argentina

• Casposo-Manantiales: Launched a second drilling campaign supported by detailed geological mapping and systematic channel sampling over the main mineralized corridors in La Puerta, Awada and Fabiola targets.
  
  
• The first drill hole was in La Puerta Oeste following the high gold grades identified through surface geochemistry announced in Q4 2021. During Q1 2022, 224 meters were drilled (CY 2021: 2,799 meters).
  
  
• Sierra Blanca-Pinguino: Activities were focused on the southwestern area of the property following anomalies and indicators of potential mineralisation in the Vetarron area.
  
  
• Mexplort Option Agreement: Field work and surface mapping commenced on the Jaguelito project as part of the agreement signed in February 2022.

Chile

Paleocene Belt High Sulfidation District Exploration

At the Morros Blancos project, the Company completed four of the five drillholes planned for the Rosario del Alto target and continued surface studies at the Morro Colorado target.

During Q1 2022, four diamond drill holes totaling 1,020 meters were completed in three main phreatomagmatic complexes (Maar Austral, Maar Central, Maar Oriental) identified in the delineation stage at Rosario del Alto. All drill holes intercepted large columns of phreatomagmatic rocks, confirming a high degree of preservation and continuity of the systems at depth. No significant gold intercepts were obtained. The phreatomagmatic facies show a progression from crater-fill environments towards the edges of the complexes. All recognized geological features such as breccia rock type, hydrothermal alteration, and oxidation level allow for vectoring towards the mineralised center of the system in the next phase of drilling.

At the Morro Colorado target, delineation is progressing where a ~2x1 km area with phreatomagmatic breccias affected by high-level high sulfidation alteration was identified, developed in volcanic sequences that include domes and blocks and ash deposits. This structural block is in contact to the west with a domain characterized by lavas and numerous intrusive bodies, some of them with evidence of porphyry-style alteration.

MORROS BLANCOS

Rosario del Alto Target

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Argentina

Casposo - Manantiales

Phase l drilling was completed in five vein targets including 14 holes in 2,800 meters in 2021 as disclosed in the Company's press release 26 October 2021. At the Manantiales vein, a blind ore-shoot was intercepted opening the upside to the south and the exploration potential to the north in the preserved block related to Vallecito reverse fault.

Phase II drilling commenced in 2022 and drill hole LPO-22-001 of the "La Puerta Oeste" was completed in April 2022 at 224 meters. Final results are expected to be received in Q2 2022.

Several metric intervals with high to very high pervasive silicification were intercepted, affecting the host rock (rhyolitic tuff) in the first 75 meters drilled in drillhole LPO-22-001. In addition, despite not having intercepted vein structures larger than 20 cm, many millimetric veinlets up to 12 cm were intercepted and were comprised of white and gray cryptocrystalline and saccharoidal silica. In addition, cryptocrystalline gray silica veinlets with black bands associated with adularia were intercepted between 67-69 meters and from 110.0 meters, tufisite dikes and polymictic supported breccia were intercepted.

New geological interpretations confirmed diatreme with preserved maar facies, migrating to polymictic breccias at depth opening potential for new ore controls. The program has been redefined and aimed to test for this new conceptual target.

As part of the Phase II drilling program, two more holes are to be drilled at Puerta Oeste, while five follow-up holes are to be drilled at Manantiales Vein and another three holes are to be drilled at Fabiola and Awada, where recent surface sampling has returned high-grade values.

CASPOSO-MANANTIALES

Cerro Amarillo and La Puerta Oeste Geological Map

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Jaguelito

During Q1 2022, we acquired an earn-in option from Mexplort, where we may acquire a 50% interest in the Jaguelito project, located in the Province of San Juan, Argentina, which is a High Sulfidation deposit that has had 30,000 meters drilled.

The preliminary structural mapping highlighted the presence of first order structures generating a triangular zone, defined by the lift of basement of the Paleozoic Choiyoi Group in both sides and protecting the units of the Vacas Heladas Formation in the central zone affected by high sulfidation alteration and mineralisation assigned to Miocene age.

In the Jaguelito Norte area, in progress detailed mapping preliminarily confirmed phreatomagmatic activity controlled by reverse fault movement, generating a contact between the Paleozoic basement and the Miocene flat intrusive complex (Infiernillo Unit - 13,65 Ma).

Much of the steam-heated alteration is preserved in Jaguelito Norte, and most of the vuggy silica and mineralisation is related to phreatomagmatic products suggesting similarities with observations in Veladero and Alturas, both which are very close to the project.

Sierra Blanca-Pingüino

During Q1 2022, the main exploration activities focused on to the southwestern area of the property following Aster anomalies and geological indicators of potential mineralisation in the Vetarron area.

Preliminary studies confirm the presence of a dome-diatreme system controlling a large zone of argillic alteration of the same age and characteristics of the Cerro Vanguardia and Cerro Negro endowment. Detailed mapping identified vuggy silica and quartz-alunite alterations confirmed by petrography studies, which precede a low sulfidation type alteration.

SIERRA BLANCA-PINGÜINO

Sierra Blanca Geological Map

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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. Mr. 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.

About Austral Gold

Austral Gold Limited 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 USA and Argentina organically through a Tier 1 or 2 exploration strategy and via acquisitions and strategic partnerships. Austral owns a 100% 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, USA and a non-controlling interest in Ensign Gold which holds the Mercur project in Utah, USA.

In addition, Austral owns an attractive portfolio of exploration projects in the Paleocene Belt in Chile (including those acquired in the 2021 acquisition of Revelo Resources Corp), a non-controlling interest in Pampa Metals and a 100% interest in the Pingüino project and a 51% interest in the Sierra Blanca project, both in Santa Cruz, Argentina. Austral Gold Limited 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:

David Hwang
Company Secretary
Austral Gold Limited
[e-mail]
[phone]

Ben Jarvis
Director
Austral Gold Limited
[e-mail]
[phone]

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 the planned strategic alliance with Mexplort, drilling results expected to be received in Q2 2022, future drill targets, and future exploration activities.

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.

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