Ausgold : AUC Significantly Expands Tenement Position at Katanning

ASX Release

13 April 2022

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AUC Significantly Expands Tenement Position at Katanning

Highlights:

•  Ausgold signs farm-in agreement with Cygnus Gold Ltd to acquire a majority interest in the Stanley Gold Project located 25km northeast of the Katanning Gold Project (KGP)

•  The Project covers a 233km2 land position along 24km strike length of highly prospective greenstone belt that contains the same sequence that hosts the KGP

•  Under the agreement Ausgold can earn an 85% interest in the Project by expending $750,000 over 3 years

Ausgold Limited (ASX: AUC) (Ausgold or the Company) is pleased to announce that it has entered into a Farm-in Agreement (Agreement) with ASX-listed mineral exploration company Cygnus Gold Limited (ASX:CY5) (Cygnus) in respect of the Stanley Gold Project (the Project), located 25km northeast of Ausgold's 100%-owned Katanning Gold Project.

The Stanley Gold Project comprises two exploration licences E70/5131 and E70/4787 covering approximately 233km2 of the northern Katanning Greenstone Belt (Figure 1). Past drilling at the Project has intersected significant gold grades over a total strike length of 24km (Figure 2), including:

• - 8.5m @ 33.00g/t Au from 37.7m inc 2.4m @ 114.62g/t Au in BNDD001

• - 8.6m @ 19.27g/t Au from 24.7m inc 5.7m @ 28.60g/t Au in BNDD003

• - 7m @ 12.56 g/t from 21m in 09KUAC164

• - 16m @ 4.99 g/t from 30m in 09KUAC009

• - 9m @ 6.87 g/t from 24m in 09KUAC012

• - 27m @ 2.26 g/t from 21m in 09KUAC008

• - 15m @ 3.96 g/t from 24m in 08KUAC075

• - 9m @ 5.01 g/t from 22m in 09KUAC158

Management Comments

Ausgold Managing Director, Matthew Greentree, commented:

"The Farm-in Agreement with Cygnus adds a district-scale option that supports our ambition to establish a multi-million-ounce Resource position at Katanning. The greater Katanning area is under-explored and based on previous work, we see no reason why the region cannot host additional Katanning central zone high-grade style discoveries.

Ausgold has already established a 1.84Moz Resource at Katanning and is well funded to leverage this experience to unlock the potential of the broader Katanning district.

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

Stanley Gold Project Farm-In Terms

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Under the terms of the Agreement, Ausgold has the right to earn up to an 85% interest in the Project over three years by expending:

•  $500,000 over 24 months to earn 51%; and

•  A further $250,000 in the final 12 month period to earn an additional 34% interest.

Upon Ausgold meeting the expenditure milestone, Cygnus will retain a 15% free-carried interest in the Project up until a decision to mine, with the right to convert their interest to a 1.5% net smelter royalty.

Stanley Gold Project Overview

The Stanley Gold Project comprises a significant landholding of 233 km2 with two 100%-owned tenements: E70/5131 and E70/4787 positioned along 24km of highly prospective greenstone belt (Figure 1). The greenstone belt has potential for gold and Ni-PGE mineralisation with abundant mafic to ultramafic rocks located along the intersection ofthe Kukerin and Pingarning Shear Zones and cross-structures such as the Burong fault (Figure 2). The geological setting, coupled with highly anomalous surface geochemistry and the following significant near surface gold intercepts, highlight the prospectivity of the area:

• - 8.5m @ 33.00g/t Au from 37.7m inc 2.4m @ 114.62g/t Au in BNDD001 (Figure 3)

• - 8.6m @ 19.27g/t Au from 24.7m inc 5.7m @ 28.60g/t Au in BNDD003 (Figure 4)

• - 7m @ 12.56 g/t from 21m in 09KUAC164

• - 16m @ 4.99 g/t from 30m in 09KUAC009

• - 9m @ 6.87 g/t from 24m in 09KUAC012

• - 27m @ 2.26 g/t from 21m in 09KUAC008

• - 15m @ 3.96 g/t from 24m in 08KUAC075

• - 9m @ 5.01 g/t from 22m in 09KUAC158

• - 3m @ 6.77 g/t from 42m in 09KUAC011

• - 8m @ 1.83 g/t from 37m in PRRB119

• - 2m @ 5.49 g/t from 81m in STRC0020

• - 3m @ 3.26 g/t from 42m in 08KUAC075

• - 12m @ 0.63 g/t from 21m in 11KUAC003

• - 6m @ 1.25 g/t from 33m in 09KUAC007

Six advanced drill-ready targets, including those adjacent to Ausgold's extensive ground position, have been identified in recently collected geophysics, geochemistry and drilling. With a large, mineralised strike length, the Project demonstrates the potential for large scale discovery in a relatively underexplored region.

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Figure 1 - Regional geological map showing Ausgold and the Cygnus JV tenements

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Figure 2 - Prospect scale plan map of the Stanley Gold Project

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Figure 3 - Cross-section 'A-A' at Bottleneck prospect

Figure 4 - Cross-section 'B-B' Bottleneck prospect

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