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• Austral Completes Strategic Sale of Pinguino Project

• Consideration: US$5 million in cash, 19.99% of E2 Metals shares, and 15M E2 Metal option

• Austral becomes E2 Metals’ largest shareholder

SYDNEY, AUSTRALIA–(Newsfile Corp. – March 1, 2023)- Austral Gold Limited (ASX:AGD) (TSXV:AGLD) (“Austral”) is SCRN Properties Limited (“SCRN“) Austral Gold Canada Limited (“Austral Canada“) to E2 Metals Limited (“E2“) (ASX: E2M).

At closing, Austral Canada received US$2.5 million and 49,751,970 shares of E2 out of a three-year total of US$5 million. This equates to E2’s 19.9% ​​stake and his 15 million options.

A deferred cash payment of US$2.5 million (see Highlights of Considerations) is secured by a stock pledge of over 51% of SCRN’s common stock pending payment of the second cash installment. %.

SCRN’s main asset is the polymetallic Pinguino project in the Deceado Massif in Santa Cruz, Argentina (see About Pinguino).

CEO of Austral Gold, Stavro Kasaneva Said: “I am pleased to announce that the sale of Pinguino has been completed. The transaction will allow us to partially finance the development of a heap reprocessing project at our flagship Guanaco-Amancaya mining complex in Chile. An immediate cash injection of US$2.5 million has been provided, plus a 19.9% ​​interest in E2 Metals to retain exposure to the Pinguino project in Santa Cruz, Argentina Pinguino, with the remaining 49% interest. You have the option to obtain a

Highlights to consider:

• Cash: $5 million (of which $2.5 million will be paid at closing and the remaining 50% will be paid in three annual installments):

  • US$750,000 on the first anniversary from the closing date.

  • US$750,000 on the second anniversary from the closing date.and

  • $1,000,000 on the third anniversary of the closing date.

• SHARES: A number of E2 shares will be issued from the Treasury equivalent to a 19.99% equity holding in E2 on an undiluted basis, with 50% released on the 1st anniversary of the closing date and 50% released on the 2nd anniversary held in escrow. Closing anniversary. USL shares closed at A$0.125 on 28 February 2023, representing A$6.2 million (US$4.2 million) in Austral’s investment.

• Options: 15 million options granted. Each option has an exercise price of 26 cents per share of E2 common stock and is exercisable through his third anniversary on the closing date. Options are exercisable only to the extent that Austral does not exceed 19.99% of voting rights in E2. The value of the options at the close of trading on 28 February 2020 was US$600,000 using the Black Scholes model.

• Board Representatives: Austral has the right to appoint one person to the E2 Board of Directors, provided it owns at least nine percent (9%) of E2’s outstanding shares.

• Royalties: Austral Canada will retain the option to purchase all or half of the Pinguino Project’s existing 2% refinery return royalties.

About the Pinguino Project

The Silver-Gold-Zinc-Lead-Indium Pingüino project is an advanced-stage development project located in south-central Argentina. 300 km southwest of the city of Comodoro Rivadavia and 220 km northwest of Puerto San Julian. 30 km from the Conserrat project on E2. Over the past few years, six mines have been built in Santa Cruz, making him one of the world’s most prominent sources of precious metals, including world-class deposits such as Cerro Vanguardia and Cerro Negro. The Pinguino Project is similar to Cerro Vanguardia, about 30 km northwest along the same management structure as the Pinguino deposit, but embedded in a smaller vein field (225 km of vein strike length, The strike length of the vein is 115 km). The project has year-round access and is in close proximity to major infrastructure.

About Austral Gold Limited

Austral Gold Limited is a gold and silver prospector and mining producer whose strategy is to extend the life of cash-generating assets in Chile, reopen the Casposo-Manantiales mining complex in Argentina, and invest in Chile, the United States and and building a portfolio of quality assets in Argentina. Organically through exploration, acquisitions and strategic partnerships. Austral has a 100% interest in his Guanaco/Amancaya mines in Chile and his Casposo-Manantiales mining complex in Argentina (currently under care and maintenance), a non-controlling interest in the Rawhide mine in Nevada, USA, and a non-controlling I own the rights. In Utah, USA, he works for Ensign Gold, which runs the Mercur project.

In addition, Austral has an attractive portfolio of exploration projects in Chile’s Paleocene belt (including the acquisition of Revelo Resources Corp in 2021) and a 51% stake in the Sierra Blanca project in Santa Cruz, Argentina. owns an interest in Austral Gold Limited is listed on the TSX Venture Exchange (TSX-V: AGLD) and the Australian Securities Exchange. (ASX: AGD). For more information, see Austral’s website at www.australgold.com.

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.

The release was approved by Stabro Kasaneva, CEO of Austral Gold.

For more information, please contact:

Jose Bordogna
CFO
Austral Gold Limited
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+61 466 892 307

Ben Jarvis
Austral Gold Limited
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+61 413 150 448

Forward-Looking Statements

Statements in this news release that are not statements of historical fact are forward-looking statements. Forward-looking statements are statements that are not historical and consist primarily of projections or statements about future plans, expectations and developments. “expect”, “intend”, “plan”, “could”, “could”, “could”, “should”, “expect”, “possible” Words such as “likely,” “believe,” and words of similar meaning are forward-looking statements. Forward-looking statements in this news release include the receipt of a deferred cash payment of $2.5 million, the reduction of his stock mortgage to 19% in a second cash installment, and the release of his USL shares from escrow. , including his 50% release at the first anniversary. 50% will be released on the second anniversary of the closing date.

All of these forward-looking statements are subject to various known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied. . Cash payments, production uncertainty, exploration program uncertainty, development plans and cost estimates, commodity price fluctuations. political or economic instability and regulatory changes; capital market conditions, particularly in light of currency fluctuations and the impact of COVID-19; uncertainties in measuring mineral reserves and estimating resources; unpredictable risks and hazards associated with the development and operation of mines or mineral assets beyond our control; availability of capital and other risks and uncertainties identified under the heading “Risk Factors” in this document; Company continuous disclosure documents filed with ASX and SEDAR. Note that the above list is not exhaustive of all factors and assumptions that may have been used. Austral cannot guarantee that actual events, performance or results will match these forward-looking statements, and management’s assumptions may prove incorrect. Austral’s forward-looking statements reflect its current expectations of future events and performance and speak only as of the date hereof, and Austral does not assume any liability to the circumstances or to management’s beliefs, expectations or opinions. We undertake no obligation to update any forward-looking statements if they change unnecessarily. Subject to applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.