Austral Gold Intersects 95 m at 1.10 g/t AuEq at Guanaco

Austral Gold Limited (AGLD) has released the first results from a brownfield exploration and infill reverse circulation (RC) drilling programme at the Los Nanos sector of its 100%-owned Guanaco Mine in Chile. The programme consisted of 23 RC holes, designated RC-1182 to RC-1204, totaling 1,128 metres. Drilling was conducted between the second and third quarters of 2026 on a nominal 25 m x 25 m pattern by a local contractor.

Twenty of the 23 holes returned significant intervals above a 0.3 g/t AuEq cutoff, with a maximum internal dilution of 1 m and a minimum interval of 1 m. Holes RC-1194, RC-1203, and RC-1204 returned no significant results but were tabulated for completeness. All reported intervals represent downhole lengths; true widths have not been determined.

Key intervals as reported include: - RC-1186: 1-96 m, 95 m @ 1.10 g/t AuEq (0.97 g/t Au, 11.99 g/t Ag), including 5-16 m (11 m @ 1.23), 47-52 m (5 m @ 2.01), 78-84 m (6 m @ 2.57), 88-90 m (2 m @ 1.93), and 92-95 m (3 m @ 8.11 g/t AuEq, 7.78 g/t Au, 30.47 g/t Ag) - RC-1197: 0-20 m, 20 m @ 3.12 g/t AuEq (2.98 g/t Au, 12.90 g/t Ag), including 1-4 m (3 m @ 5.00) and 8-13 m (5 m @ 5.22); plus 26-28 m, 2 m @ 1.39 - RC-1196: 3-18 m, 15 m @ 3.33 g/t AuEq (1.90 g/t Au, 129.97 g/t Ag), including 6-8 m (2 m @ 16.01 g/t AuEq, 5.73 g/t Au, 934.50 g/t Ag) - RC-1199: 11-37 m, 26 m @ 1.82 g/t AuEq (1.30 g/t Au, 46.56 g/t Ag), including 17-24 m (7 m @ 3.85); plus 45-63 m, 18 m @ 1.02 - RC-1188: 1-32 m, 31 m @ 1.14 g/t AuEq (1.07 g/t Au, 6.03 g/t Ag) - RC-1198: 63-90 m, 27 m @ 1.13 g/t AuEq (0.99 g/t Au, 12.89 g/t Ag), including 82-88 m (6 m @ 2.07) - RC-1192: 14-20 m, 6 m @ 3.93 g/t AuEq - RC-1184: 40-52 m, 12 m @ 1.82 g/t AuEq (including 1 m @ 13.71) - RC-1182: 43-48 m, 5 m @ 2.69 g/t AuEq plus 20-22 m (2 m @ 6.52) - RC-1185: 7-11 m, 4 m @ 1.13 - RC-1191: 2-17 m, 15 m @ 0.85 - RC-1193: 7-17 m, 10 m @ 0.77 - RC-1202: 15-24 m, 9 m @ 0.93 - RC-1187 and RC-1201 returned multiple sub-1 g/t intervals.

Gold equivalent (AuEq) is calculated as Au (g/t) + Ag (g/t)/90.91 at US$2,500/oz Au and US$27.5/oz Ag, with metallurgical recoveries not applied. Assays were conducted by the company’s internal laboratory at the Guanaco Mine site, incorporating CRM, blank, and duplicate QA/QC protocols. The Competent Person is Marcos Valencia (FAusIMM), an employee of the company and not independent. Copper (4-172 g/t) and lead (15-385 g/t) were also analysed and deemed immaterial.

The next phase of exploration is expected to begin in the fourth quarter of 2026, comprising up to 8,000 metres in more than 40 holes, including 600-800 metres of diamond drilling.

According to the Guanaco Technical Report effective 31 May 2026, the Los Nanos sector contains Measured and Indicated resources of 54 kt @ 5.06 g/t Au and 6.62 g/t Ag for 9 koz Au, plus Inferred resources of 378 kt @ 1.54 g/t Au and 11.13 g/t Ag for 19 koz Au. These resources are not included in the Mineral Reserve estimate or the life-of-mine plan. The deposit is located 2.5 km from the processing plant within existing concessions, subject to a 3% ENAMI royalty on 188 of the 211 Guanaco concessions.

Austral Gold Limited (AGLD) reported half-year results for the period ending 30 June 2026, with revenue of US$66.6 million, gross profit of US$33.3 million, and net profit after tax of US$15.5 million. The company held cash of US$20.3 million and net financial debt of US$1.7 million. Its Guanaco mine operates under a 14-year life of mine plan, with a Technical Report net present value (NPV) of US$192.1 million.

The company’s recent drill results at the Los Nanos satellite deposit host 432 kt of resources, comprising 9 koz of Measured and Indicated (M&I) and 19 koz of Inferred material, totaling 28 koz of gold. This represents approximately 2% of the Company’s 19 Mt M&I and Inferred resource base and effectively 0% of reserves and the life-of-mine plan. The release does not alter resource, reserve, tonnage, mine life, or NPV figures; any such changes would require a separate resource update and technical study.

The results shift the perceived geometry of the deposit from a discrete, spatially restricted ledge model to a 95 m continuous interval within a broader breccia and structural system extending beyond the current block model. Located 2.5 km from an operating plant with established haul roads, power, and water, this structural continuity is viewed as a scale-positive signal.

The Los Nanos resource model consists of 54 kt @ 5.06 g/t Au M&I and 378 kt @ 1.54 g/t Au Inferred. The Guanaco Technical Report, published on 22 July 2026, identified Los Nanos as one of two priority areas for resource expansion. No prior drill results have been released under this specific programme.

Austral Gold’s shares moved from approximately C$0.04 in late September 2025 to C$0.23 by late January 2026, driven by the Casposo restart, the FY2025 profit turnaround, the Casposo reserve and NPV update, and a February placement. The stock subsequently round-tripped to C$0.15, which is approximately 35% below its 52-week high and near the lower end of its March-to-September range. The current share price reflects production cash flow and operating risks in Chile and Argentina, rather than pricing in a Los Nanos discovery.

Austral Gold Limited (ASX: AGD; TSXV: AGLD; OTCQB: AGLDF) is a gold and silver producer headquartered in Sydney, with operations and exploration activities in Chile and Argentina organized around three pillars: production, exploration, and equity investments.

The company’s core asset is the Guanaco mine in Chile, located 100% owned and situated 2.5 km from Los Nanos. The facility utilizes heap leach and agitation leach circuits with CIC-ADR/Merrill-Crowe recovery. According to the NI 43-101 Technical Report effective 31 May 2026, Guanaco holds Proven and Probable reserves of 18.1 Mt @ 0.84 g/t Au and 5.43 g/t Ag, containing approximately 352 koz Au and 1.493 moz Ag. Measured and Indicated resources stand at 17.0 Mt @ 0.94 g/t Au and 6.11 g/t Ag, containing about 511 koz Au, while Inferred resources total 2.03 Mt @ 1.17 g/t Au. The mine has a life of mine of approximately 14 years, running from January 2026 to February 2040, with an after-tax NPV of US$192.1 million at a 10% discount rate. Average annual sustaining cost (AISC) is US$2,114/oz AuEq, with life of mine recoveries of 71.9% Au and 47.2% Ag. The Inesperada and Dumbo deposits account for about 32% of reserve tonnes and 53% of reserve gold, though they remain subject to outstanding permits. A 3% ENAMI royalty applies to 188 of the 211 concessions.

In Argentina, the Casposo mine, also 100% owned, restarted commercial production in October 2025 following a US$7 million refurbishment loan. A technical report from October 2026 lists Proven and Probable reserves of 2.149 Mt @ 1.31 g/t Au and 58.52 g/t Ag, containing about 80 koz Au and 3.276 moz Ag. The project features an after-tax NPV of US$72.7 million at an 11.8% discount rate, a 74-month mine life, and an AISC of US$1,695/oz. An 8,500 m drilling programme covering infill, brownfield, and greenfield targets commenced in May 2026. During May-June 2026, Casposo processed 39,342 t of third-party Hualilan material at over 85% recovery under a toll agreement with Challenger Gold, which is currently being renegotiated into a purchase arrangement.

The Juncal project in Chile is a 100% owned, 2,100 ha silver-gold asset located in the Paleocene belt, approximately 70 km south of Guanaco. The project is subject to a 1% NSR to Elemental Royalty. Phase 1 channel sampling returned a length-weighted 183 g/t AgEq over 0.7 m on the approximately 1,400 m Javiera vein. A 10,000 m RC programme is scheduled from Q3 2026.

Regarding equity investments, Austral Gold holds shares in ASX-listed Unico Silver, plus options. Shares were sold for US$4.7 million post-year-end, with US$2.7 million redeployed into 15 million Unico options at A$0.26.

Prior-period financial context, based on the as-reported statement for the six months to 30 June 2025, shows revenue of US$18,567,000, cost of sales of US$14,281,000, and a gross profit of US$4,286,000. The period resulted in a net loss of US$1,292,000, with cash holdings of US$1,052,000, total debt of US$27,667,000, and total equity of US$13,030,000. Book value per share was US$0.02, with 612,311,353 shares outstanding. For contrast, the Company's own releases describe HY2026 (six months to 30 June 2026) revenue of US$66.6 million, gross profit of US$33.3 million, and net profit after tax of US$15.5 million. Cash stood at US$20.3 million, net financial debt at US$1.7 million, and net assets at US$50.6 million. FY2025 delivered a US$14.7 million net profit on 15,392 GEO, while FY2026 guidance is set at 26,000-30,000 GEO. A February 2026 placement raised A$8.456 million at A$0.18 per share.