Ausgold Limited provided an update on activities at the Company's 100% owned 2.16 Moz Katanning Gold Project (KGP), located 275km south-east of Perth, Western Australia. After the completion of the recent 30,000m large-scale drilling program and 2.16Moz Resource upgrade in May, the Company undertook a follow-up drilling program which was designed to further test high-value and near-surface mineralisation on the Jackson and Jinkas lodes - along strike and down plunge from current Resource areas. A further 5,000m RC drill program has now been completed with results pending.

Of this RC program 1,500m was completed to test high grade gold mineralisation down-plunge of the Jinkas lode within the Central Zone to a vertical depth of 200m below surface. Drilling has shown semi-massive pyrrhotite in several recent holes which is consistent with high-grade gold mineralization. In addition, diamond drilling targeting extensions to the high-grade gold mineralisation along strike and down plunge extending beneath the currently reported Resource is currently underway.

Jinkas Deeps drilling aims to demonstrate the scalability of a potential underground Resource. This diamond drill hole steps out a further 800m north along strike from the current Resource. This high-grade gold mineralization will further add to the open ­ pit studies being assessed in the current PFS and shows potential to extend the high-grade underground mineralisation in the Central Zone.

Regional exploration has focused on targets in the northeast KGP building on recent results from the Duggan prospect with an additional 1,200m of RC drilling completed to test along strike and down plunge from recently announced high-grade mineralisation (including 7m at 4.05 g/t Au from 19m in DUGRC015 and 4m at 5.48 g/t Au from 72m in DUGRC019). This area continues to show significant potential, a follow-up program of downhole EM is planned to assist future drill targeting. Additional results are also awaited from exploration drilling at Rifle Range targeting the down-dip portions of the Dingo deposit.

A Prefeasibility Study (PFS) and maiden Ore Reserve for the KGP is nearing completion. The Company expects to be in a position to announce both shortly.