Austral Gold : Announces Filing of Q2 2021 Quarterly Activity Report

Sydney - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (the 'Company') is pleased to announce that it has filed its Q2 2021 Quarterly Activity Report.

The complete Report is available under the Company's profile at www.asx.com.au, www.sedar.com and on the Company's website at www.australgold.com.

Chief Executive Officer, Stabro Kasaneva commented, 'We have seen consistent monthly improvements at the Guanaco-Amancaya mine complex and expect production to gradually increase to achieve our annual guidance of 45,000-50,000 gold equivalent ounces. Our focus in 2021 is to extend the mine life at this operation. During the second quarter, we discovered two new veins at Amancaya as previously disclosed on 19 May 2021 and have extended the Central Vein at depth. We also continue to target high sulfidation gold and silver Tier 1 deposits in the Paleocene Belt in Chile consistent with our exploration strategy disclosed in our FY 2020 annual report. We currently have four exploration HS projects in the belt; Sierra Inesperada, Cerro Buenos Aires, and now an option agreement on Morros Blancos (adjacent to Amancaya) and Cerro Blanco. Additionally, we are drill testing Sierra Inesperada and plan to start drilling at Cerro Buenos Aires in September 2021.'

Key quarterly highlights are as follows: Q2 2021 production gradually improving after completion of outsourcing to new UG mine contractor at Amancaya. A total of 8,351 gold equivalent ounces ('GEOs') (7,966 gold ounces and 26,332 silver ounces) were produced during the quarter, a 78% increase from Q1 2021.

Cost of production ('C1') per GEO reduction to US$1,115 in Q2 2021, a 29% decrease from US$1,574 in Q1 2021 while all-in-sustaining cost ('AISC') was US$1,647 in Q2 2021, a 38% decrease from US$2,659 in Q1 2021. The quarterly average GEO selling price was US$1,830/oz.

As previously announced in the Company's March 2021 quarterly activity report, the Company expects production to increase during the second half of the year and meet its 45,000-50,000 GEOs guidance provided for 2021. Consequently, we forecast average annual 2021 C1 and AISC per GEO to decrease to a range of US$850-US$950 and US$1,050- US$1,150 per GEO, respectively.

Operating cash flow before changes in working capital was positive at US$3.3 million during Q2 2021 following the sale of 6,856 GEOs for proceeds of US$12.5 million. Cash at the end of the quarter was US$1.8 million and combined with the fair value of unsold 2,000 gold ounces in inventory totaled US$5.4 million.

About Austral Gold

Austral Gold Limited is a growing gold and silver mining, development and exploration company building a portfolio of quality assets in Chile, the USA and Argentina. Austral owns a 100% interest in the Guanaco/Amancaya mine in Chile and the Casposo Mine (currently on care and maintenance) in Argentina, a non-controlling interest in the Rawhide Mine in Nevada, USA and a non-controlling interest in Ensign Gold which holds the Mercur project in Utah, USA. In addition, Austral owns an attractive portfolio of exploration projects in the Paleocene Belt in Chile (including those acquired in the recent acquisition of Revelo Resources Corp), a non-controlling interest in Pampa Metals and a 100% interest in the Pinguino project in Santa Cruz, Argentina. Austral Gold Limited is listed on the TSX Venture Exchange (TSXV: AGLD) and the Australian Securities Exchange.

Contact:

Jose Bordogna

Tel: [phone]

Email: [e-mail]

(C) 2021 Electronic News Publishing, source ENP Newswire