Ausgold : June 2022 Quarterly Report and Appendix 5B

ASX Release

18 July 2022

Quarterly Report for period ending 30 June 2022

Highlights:

 JORC Resource at KGP has increased to 56 Mt at 1.21 g/t for 2,160,000 oz gold following the completion of

only	- 26,700m of new RC and diamond drilling within Resource areas adding further 320,000 oz (17% increase)
	with 957,000 ounces added over the last 12 months
use	- Increase in high confidence Measured and Indicated Resource categories now 1.78 Moz gold (33% increase)
-	Best-in-class discovery economics of ~$11 per Resource ounce
 New drilling has identified near surface high-grade gold mineralisation at the KGP, with results including:
		- 13m @ 2.62 g/t Au from 9m including 3m @ 9.64 g/t Au in BSRC1441 (Jackson)
		- 8m @ 4.19 g/t Au from 53m including 4m @ 7.99 g/t Au in BSRC1411 (White Dam)
		- 5.1m @ 2.05 g/t from 69.9m in BSDD036 (Jinkas South)
personal		- 3m	@ 4.40 g/t from 93.75m Including 1.0m @ 12.00 g/t from 95m in BSDD036 (Jinkas South)
	- 8m	@ 1.72 g/t from 54m including 7.0m @ 1.87 g/t from 55m in BSDD040 (Jinkas)
	- 4m	@ 2.51 g/t from 122m including 2m @ 4.70 g/t from 123m in BSRC1382 (Dingo)
		- 7m	@ 2.04 g/t from 34m including 2m @ 6.12 g/t from 37m in BSRC1383 (Dingo)

 Ausgold's robust understanding of the geology demonstrated by the recent upgrade and low discovery cost show further potential to build the Resource:

- Untested down-hole EM targets along strike from the Jinkas high-grade mineralsiation a further 800m along strike with diamond drilling underway

- Central and Southern Zone Resources remain open at depth and along strike, showing further potential discovery

- Prefeasibility Study (PFS) and maiden Ore Reserve nearing completion

 An additional 5,000m of drilling at the KGP are pending assays and an 820m diamond drill program underway  Regional exploration has identified high grade mineralisation at the Duggan prospect 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

Assays pending for an additional 1,200m of drilling.

For

ABN 67 140 164 496

Level 4, 251 St Georges Terrace, Perth WA 6000

1. 08 9220 9890 F: 08 9220 9820 E: [e-mail] W: www.ausgoldlimited.com

Ausgold Limited (ASX: AUC) (Ausgold or the Company) is pleased to provide the following report for the quarter ended 30 June 2022. During the quarter, Ausgold continued to advance its 100%-owned flagship Katanning Gold

onlyProject (KGP), located 275km from Perth, Western Australia.

Katanning Gold Project, WA

AUC interest 100%

The Company holds approximately 5,500km2of tenure within the South-West Yilgarn Craton, a region which is historically underexplored but is highly prospective for gold, copper, silver and Ni-PGE.

useBackground

The KGP represents a 17km mineralised trend with significant potential across three key zones, which include the following Resource deposits and prospects (Figure 1):

• Northern Zone - Datatine
• Central Zone - Jackson, Olympia, Jinkas, and Jinkas South
• Southern Zone - Rifle Range, Dingo, and Lukin

KGP Resource Estimate

The upgraded JORC Resource at KGP now totals 2.16 million ounces of gold (see Table 1 for details)

		Table 1 - Summary Gold Resources for the KGP
	Resource category		Tonnes Mt	Grade (g/t au)	Contained gold (oz)
	MEASURED		10.0	1.31	800,000
	INDICATED		26.8	1.14	984,000
	INFERRED		9.5	1.03	370,000
	TOTAL RESOURCE		56.0	1.21	2,160,000
personalNotes to Table 1:
	Resource is reported at a lower cut-off grade of 0.6 g/t Au and above 150m RL (approximately 220m depth), the underground Resource is
	reported at 1.8 g/t Au beneath 150m RL.
	The information in this report that relates to the Mineral Resource in Table 1 is based on information announced to the ASX on 25 May
For

2022. Ausgold confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.

Resource Upgrade Key Points:

• Addition of 320,000 Resource ounces - 17% increase since December 2021
• 1.78 Moz in Measured and Indicated categories - 33% increase and a substantial basis for the on-going Prefeasibility Study
• 957,000 oz added to the KGP Resource during 2021 at average cost of $11 per Resource ounce
• 0.56 Mt at 3.25 g/t Au for 59,000 ounces in Jinkas underground Resource, reported below 150mRL at a higher 1.8 g/t cut-off grade, now shows untested potential at depth, with planned drilling targeting down-hole EM targets a further 800m along strike

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 Addition of almost 26,700m new RC and diamond drilling in Resource areas since the previous (December

	2021) estimate
only
	Mineral Resource is reported at a 0.6 g/t Au cut-off grade for open pit and 1.8 g/t Au cut-off grade for
	underground Resource, which remains consistent with previous Resource estimates

 Bulk of Resource is considered as Open Pitable and is reported above 150mRL, to an approximate maximum depth of 220m from surface

 Improvements to the mineralisation model confirm continuity along strike, with three laterally extensive

	mineralised systems (Jinkas, White Dam and Jackson) defined from west to east (Figures 1 and 2).
use	o Jinkas - White Dam Resource is now estimated as a single folded lode (55 holes for 6,050m), this refinement
	significantly improves the understanding of the Central Zone and enables mining studies to be accelerated
o	Olympia is extended northward with new drilling (27 holes for 2,088m) and remains open along strike to
		the south; it represents the likely strike extension of Jinkas, which has now been better modelled by drilling
		planned to link the geological models between the two Resource areas
	o Jackson Resource - new drilling (58 holes for 5,313m) extends towards the north where it coalesces with the
		Olympia-Jinkas mineralisation; new drilling has extended this model which remains open along strike with
personal		further drilling planned
o Dingo - new drilling (77 holes for 8,199m) has identified mineralisation extending from the Dingo Resource
	and now extends southward over an additional 900m along strike
	o	Tails Dam - new drilling (20 RC for 1,627m) has tested tails material and the mineralisation within the
		underlying White Dam and Jackson lodes, which show continuity along strike and down dip

Prefeasibility Study

The Prefeasibility Study (PFS) for the proposed development of the KGP advanced during the quarter with completion targeted for late July 2022. The current study work is evaluating several mining scenarios which demonstrate a significant gold project in the KGP. GR Engineering Services Limited (GR Engineering) has been engaged to lead the engineering study.

 Mine Development Study - Work is nearing completion which will support the PFS for the KGP, which will assess

	potential mine development scenarios.
 Community and Environmental Study - Stakeholder engagement is continuing along with development of the
	approvals pathway. Ground-water (including monitoring bore drilling) and waste rock characterisation studies
	have also begun.
For
	Metallurgical Test Work - Excellent results from the PFS metallurgical test work demonstrate that the KGP ore

is free milling and amenable to a conventional CIL processing flowsheet (ASX announcement 31 March 2022).

Ausgold has completed a comprehensive metallurgical test work program on five composites from 13 diamond drill holes in the Central and Southern Zones. Initial results have been received from ALS Metallurgy under the supervision of an independent metallurgical consultant, and GR Engineering is progressing PFS engineering based on the test results. Leach tests were completed on five composites across the KGP, three of these composites are from the Central Zone (Jinkas and Jinkas South lodes) and two from the Southern Zone (Dingo deposit). Recoveries from these samples indicate a consistently high gravity component from all samples with recoveries ranging between 40% up to 69% of total gold recovered. Leach test work indicates recoveries in the range 88-94% based on a 75 micron grind and 24 hour CIL residence time, with most of the Central Zone ores, which reflect the majority of the current Resource being in the range of 88-94%. At a 53 micron grind and 48 hour residence time, overall average gold recovery increases to 91-96%.

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For personal use only

Reagent usage was relatively low, with less than 0.7 kg of cyanide (NaCN) consumed per tonne of ore on the Central Zones and less than 1kg/t on Southern Zones. Further studies will consider pre-oxidation to further reduce reagent consumption.

Ongoing test work is now focused on optimisation of the comminution process flow sheets and leach test work on fresh composites. Initial waste rock and tailings characterisation test work continues.

Figure 1 - Map of the 17km Katanning Gold Project, including the Northern, Central and Southern Zones

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KGP Central Zone

The Central Zone contains the majority of the current JORC Resource of 2.16 Moz, identified within a 4.5km strike onlylength (Figures 2 and 3, Table 1).

Recent exploration and Resource drilling programs have targeted areas of high-grade mineralisation in the Central Zone using an improved geological model combined with geophysical techniques. Ausgold has refined the exploration targeting methods, including the extensive use of DHEM techniques to detect and locate extensive zones of pyrrhotite-magnetite alteration, which are characteristic of high-grade gold mineralisation. This improved deposit knowledge and exploration targeting method has enabled Ausgold to further expand the KGP Resource.

useAfter 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- urface mineralisation on the Jackson and Jinkas lodes - along strike and down plunge from current Resource areas. During the quarter 22 RC holes for 3,552m were drilled on those lodes. 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 mineralisation.

During the quarter assay results from diamond drilling (2 holes for 235 metres) and additional Resource RC drilling (50 holes for 4,536 metres) were returned. This drilling intercepted broad zones of gold mineralisation with significant results including:

• 13m @ 2.62 g/t Au from 9m including 3m @ 9.64 g/t Au in BSRC1441 (Jackson)
• 8m @ 4.19 g/t Au from 53m including 4m @ 7.99 g/t Au in BSRC1411 (White Dam)
• 5.1m @ 2.05 g/t from 69.9m in BSDD036 (Jinkas South)
• 3m @ 4.40 g/t from 93.75m Including 1.0m @ 12.00 g/t from 95m in BSDD036 (Jinkas South)
• 8m @ 1.72 g/t from 54m including 7.0m @ 1.87 g/t from 55m in BSDD040 (Jinkas)

personalJinkas Deeps

The drilling of the Jinkas Deeps target has commenced and 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. (Figure 3) The drilling is supported by several untested down hole EM plates at 400m vertical depth. This high-grade gold mineralisation will further add to the open - pit studies being assessed in the current PFS and shows

Forpotential to extend the high-grade underground mineralisation in the Central Zone.

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