Ausgold : AUC Regional Drilling Intersects High-Grade Gold

ASX Release

26 April 2022

AUC Regional Drilling Intersects High‐Grade Gold

Highlights:

•  New drilling at Ausgold's regional Duggan prospect has identified two high‐grade mineralised shoots extending 430m along strike which remain open, with significant results including:

  • ‐ 7m @ 4.05 g/t Au from 19m including 5m @ 5.50 g/t Au from 19m in DUGRC015

  • ‐ 4m @ 5.48 g/t Au from 72m including 3m @ 7.17 g/t Au from 72m in DUGRC019

  • ‐ 3m @ 2.29 g/t Au from 111m including 2m @ 3.21 g/t Au from 111m in DUGRC001

•  The discovery extends the known footprint of the primary lode along strike, up‐ and down‐dip and down‐plunge identifying and confirming additional stacked lodes south of the primary lode

•  Follow‐up RC drilling is planned with 1,600m to commence in early May and will include a downhole EM program to target high‐grade gold mineralisation down‐dip and along strike.

Ausgold Limited (ASX: AUC) (Ausgold or the Company) is pleased to provide positive results from new drilling at the Company's 100%‐owned Duggan prospect (Figure 1 & 2).

Duggan Regional Prospect

The Duggan gold prospect is located 50km northeast of Ausgold's existing 1.84 Moz flagship Katanning Gold Project (KGP). A program of 3,540m aircore (AC) and 2,184m of reverse circulation (RC) drilling has identified an extensive zone of gold mineralisation, which was designed to follow up on historical exploration which included RC results such as 11m @ 3.40 g/t Au from 24m including 4m @ 7.78 g/t Au from 24m in TP17.

New drilling at Duggan has intersected significant gold mineralisation at surface and has identified a further two high grade shoots which extend into fresh rock with strike length of over 430m. Gold mineralisation remains open both along strike and down dip, and significant results include:

• ‐ 7m @ 4.05 g/t Au from 19m including 5m @ 5.50 g/t Au from 19m in DUGRC015

• ‐ 4m @ 5.48 g/t Au from 72m including 3m @ 7.17 g/t Au from 72m in DUGRC019

• ‐ 3m @ 2.29 g/t Au from 111m including 2m @ 3.21 g/t Au from 111m in DUGRC001

Gold mineralisation is associated with a zone of sulphide alteration with extensive pyrite and pyrrhotite within a sequence of gneissic rocks. Drilling has targeted mineralisation dipping 60° towards the northeast and a moderate plunge towards the south (Figure 6). Further exploration drilling is planned with the aim of extending the known footprint of the primary lode along strike (Figure 3), up‐ and down‐dip (Figure 4 and 5) and down‐plunge (Figure 6), and to identify and confirm additional stacked lodes south of the primary lode.

The Company is encouraged by the extent of near‐surface gold mineralisation intersected in initial drilling at Duggan. Significant potential exists considering gold mineralisation at Duggan remains open along strike (Figure 3), up‐ and down‐dip (Figures 4 and 5) and down‐plunge (Figure 6). Ausgold plans to immediately commence a program of follow‐up RC drilling with an additional 1,600m RC planned for early May and a program of downhole EM.

ABN 67 140 164 496

Level 4, 251 St Georges Terrace, Perth WA 6000

T: 08 9220 9890 F: 08 9220 9820 E:[e-mail] W: www.ausgoldlimited.com

Management Comment

Ausgold Managing Director, Matthew Greentree, commented:

"New drill results at Duggan further highlight the potential for near surface high‐grade gold mineralisation within Ausgold's 5,500km2 of regional tenure at Katanning. The region has had relatively little past exploration, and with systematic exploration now underway, we continue to add optionality to our pathway to unlock the potential of the broader Katanning district."

Work Program

At present one RC rig is operating at the KGP drilling in both the Central and Southern Zones testing Resource extensions to be followed up by a diamond rig in mid‐May.

•  Resource Drilling - Resource upgrade to be announced early May 2022 following receipt of remaining assay results.

•  Rifle Range Drilling - RC drilling has been completed along the eastern edge of the Rifle Range area targeting the down‐dip portions of the Dingo deposit. Further drilling is planned for the Rifle Range area, further expanding the Resource potential over 2.5km of strike length for the Southern Zone.

•  Jinkas Deeps - Planned deep drilling targeting the down‐plunge gold mineralisation at the Jinkas lode within the Central Zone. This new drilling is supported by several untested down hole EM plates at 400m vertical depth extending a further 800m north along strike.

The Prefeasibility Study (PFS) is rapidly advancing with completion late Q2 CY2022

•  Mine Development Studies ‐ Work is underway to support studies for the KGP, which will assess potential mine development scenarios. GR Engineering Services Limited has been engaged to lead the engineering and cost estimate aspects of the PFS and the Company anticipates that the PFS for the initial stage of development at the KGP will be completed in Q2 2022.

•  Geotechnical, hydrogeology and metallurgical drilling is planned in the Central Zone and Dingo Resource areas to support future open pit and underground mining studies. This follows recent diamond drilling to collect geotechnical data, supported by down‐hole televiewer programs in RC and diamond holes. Additional diamond drill holes will follow to collect samples for metallurgical optimisation testwork. Furthermore, additional groundwater monitoring wells will be installed to complement existing groundwater monitoring data.

•  Metallurgical test work - ongoing test work is now focused on optimisation of the comminution flow sheet and leach test work on fresh composites. Initial waste rock and tailings characterisation test work continues.

•  Community and environmental studies - stakeholder engagement is underway along with development of the approvals pathway.

Figure 1 Location of Duggan prospect within Ausgold's regional tenements

Figure 2 - Regional geological map showing location of the Duggan Project

Figure 3 - Prospect scale plan map of the Duggan Project

Figure 4 - Cross‐section A‐A'