Austral Gold Restarts Production at Casposo, Argentina

HIGHLIGHTS

• Casposo enhances Austral Gold's production profile, with two active mines now operating in Argentina and Chile.
• Commercial production has resumed at the Casposo Mine following completion of the plant refurbishment.
• Q4 2025 Casposo production is forecasted to be approximately 4,000 to 6,000 gold equivalent ounces (GEOs¹), including 230 GEOs¹ produced during the commissioning phase.

Sydney, Australia--(Newsfile Corp. - October 13, 2025) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) ("Austral" or the "Company"), an established gold producer, is pleased to announce that commercial production has resumed at its 100%-owned Casposo Mine in Argentina.

The refurbishment of the Casposo Plant has been successfully completed, including the commissioning phase, which formally commenced at the end of December 2024, following the Company's receipt of a US$7 million bank loan.

Initial production at Casposo is currently being sourced from the Company's existing stockpiles. Austral plans to transition to open-pit mining through a collaborative operating arrangement. The Company is in negotiations with a local contractor and expects to finalise an agreement soon. Under this structure, the contractor will provide mining services under the Company's supervision.

As part of the plant refurbishment, the Company completed the commissioning phase, producing approximately 230 gold equivalent ounces (GEOs¹) of doré. During commissioning, the doré was smelted from residual plant material and historical samples that had been returned to Casposo by Argentine customs authorities.

Austral Gold's Chief Executive Officer, Stabro Kasaneva, said: "We are pleased to announce the restart of operations at Casposo, marking a significant milestone for the company as we expand our production base along existing mining operations at Guanaco. This development positions us to generate improved cash flow and strengthen our financial position. I thank our team for their dedication in completing the plant refurbishment and our debtholders and shareholders for their continued support."

Production guidance for the remainder of 2025 from Casposo is forecasted at approximately 4,000 - 6,000¹ gold equivalent ounces (GEOs¹), representing a monthly average of 1,800 GEOs¹. This estimate includes the 230 GEOs produced during the commissioning phase.

1. Notes:
   
   • Gold equivalent ounces (GEOs) were calculated using a silver-to-gold ratio (Ag:Au) of 91:1, in accordance with the following formula: AuEq (g/t) = (g/t Au) + (g/t Ag) / 90.91, where the factor 90.91 reflects metal prices of US$2,500/oz for gold and US$27.5/oz for silver.
   • Gold and silver are expected to account for 70% and 30% at Casposo.
   • Casposo: Metallurgical recovery rates are forecast at 90.3% for gold and 85.8% for silver under the agitation leaching process. Average head grades are forecast at 1.88 g/t gold and 80.73 g/t silver.

About Austral Gold