Sydney - Austral Gold Limited (the 'Company' or 'Austral') is pleased to provide an update on its on-going exploration programs in Chile and Argentina.

Highlights

At Amancaya, three of six drill holes in the Sur vein confirmed the continuity of DAM-003 as previously announced on 27 January 2021 and two of the five follow-up drillholes in the Oeste vein confirmed the continuity of the structure at depth. The most significant results obtained were: DAM-028 0.60 meters @ 84.25 g/t gold and 7.0 g/t silver (Sur Vein)

DAM-029 0.81 meters @ 24.70 g/t gold and 1.9 g/t silver (Sur Vein)

DAM-032 2.26 meters @ 5.72 g/t gold and 5.3 g/t silver (Sur Vein)

DAM-035 1.50 meters @ 20.06 g/t gold and 4.8 g/t silver (Oeste Vein)

DAM-036 2.82 meters @ 6.13 g/t gold and 2.5 g/t silver (Oeste Vein)

At Sierra Inesperada, the latest drilling results confirmed silver mineralisation vectoring to potential blind gold mineralisation in the Purisima breccia complex. The most significant results obtained were: DIN-018B 98.50 meters @ 19.2 g/t silver

DAM-027 129.00 meters @ 34.0 g/t silver

At Casposo - Manantiales district, the first phase of drilling was completed in five vein targets. At Manantiales vein, a blind ore-shoot was intercepted opening the upside to the south. The most significant results obtained were: MDH-021-56 1.44 meters @ 6.88 g/t gold and 10.6 g/t silver

MDH-021-57 1.50 meters @ 5.05 g/t gold and 10.3 g/t silver

At Sierra Blanca, the first tranche to acquire 51% of the project was completed. To date the Company has incurred exploration expenses of US$145,000 and is focused on acquiring the next 29% interest, which requires an additional US$555,000 in exploration expenses be incurred over the next two years.

About Austral Gold

Austral Gold Limited is a growing gold and silver mining, development and exploration company whose strategy is to expand the life of its cash generating assets in Chile, restart its Casposo mine in Argentina and build a portfolio of quality assets in Chile, the USA and Argentina organically through a Tier 1 or 2 exploration strategy and via acquisitions and strategic partnerships. 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 noncontrolling 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 (TSX-V: AGLD) and the Australian Securities Exchange. (ASX: AGD).

Contact:

Jose Bordogna

Tel: +54 (11) 4323 7558

Email: jose.bordogna@australgold.com

Forward Looking Statements

Statements in this news release that are not historical facts are forward-looking statements. Forward- looking statements are statements that are not historical and consist primarily of projections - statements regarding future plans, expectations and developments. Words such as 'expects', 'intends', 'plans', 'may', 'could', 'potential', 'should', 'anticipates', 'likely', 'believes' and words of similar import tend to identify forward-looking statements. Forward-looking statements in this news release include our plans for more drilling at Amancaya, we plan to test during targets at Sierra Inesperada in Q4 2021, a second drill phase is expected to be completed during Q4 2021 at the Casposo - Manantiales District, our planned Q4 2021 activities at the Pinguino - Sierra Blanca District are focused on relogging and reinterpretation of historical data, and the expectation that we will receive updated mineral resource and mineral reserve estimates at our Guanaco-Amancaya mine complex during Q1 2022.

These forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied, including, without limitation, business integration risks; uncertainty of production, development plans and cost estimates, commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations, the state of the capital markets especially in light of the effects of the novel coronavirus, uncertainty in the measurement of mineral reserves and resource estimates, Austral's ability to attract and retain qualified personnel and management, potential labour unrest, reclamation and closure requirements for mineral properties; unpredictable risks and hazards related to the development and operation of a mine or mineral property that are beyond the Company's control, the availability of capital to fund all of the Company's projects and other risks and uncertainties identified under the heading 'Risk Factors' in the Company's continuous disclosure documents filed on the ASX and on SEDAR. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Austral cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. Austral's forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and Austral does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.

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