Ausgold : March 2022 Quarterly Report and Appendix 5B

ASX Release

22 April 2022

Quarterly Report for period ending 31 March 2022

Highlights:

•  Ausgold successfully raises $16.6 million in a two-tranche placement to institutional and sophisticated investors, reflecting strong support for the Katanning Gold Project (KGP)

•  Ausgold significantly expands tenement position at Katanning signing a farm-in agreement with Cygnus Gold Ltd to acquire a majority interest in the Stanley Gold Project:

  • o The Project covers a 233km2 land position along 24km strike length of highly prospective greenstone belt that contains the same sequence that hosts the KGP Resource; and

  • o Adds a district-scale option that supports Ausgold's ambition to establish a multi-million-ounce Resource position at the KGP.

•  30,000m multi-rig RC drilling campaign has been completed at the KGP with additional 2,500m of follow-up drilling underway

•  New drilling has identified near-surface high-grade gold mineralisation with results including:

  Central Zone (Jackson, White Dam and Jinkas Lodes)

  • o 13m @ 2.62 g/t Au from 9m including 3m @ 9.64 g/t Au in BSRC1441 (Jackson)

  • o 8m @ 4.19 g/t Au from 53m including 4m @ 7.99 g/t Au in BSRC1411 (White Dam)

  • o 9.2m @ 1.70 g/t Au from 99m including 4m @ 3.06 g/t Au in BSDD038 (Jinkas)

  • o 15.4m @ 1.55 g/t Au from 125m including 5m @ 3.98 g/t Au in BSDD038 (Jinkas)

  • o 13m @ 1.04 g/t Au from 187m in BSRC1355 (Jackson)

  • o 6m @ 4.79 g/t Au from 48m including 3m @ 9.08 g/t Au in BSRC1285

  • o 4m @ 5.47 g/t Au from 42m in BSRC1349

  • o 5m @ 3.43 g/t Au from 23m in BSRC1334

  Southern Zone (Dingo)

  • o 9m @ 2.34 g/t Au from 63m including 3m @ 6.23 g/t Au from 69m in BSRC1312

  • o 3m @ 2.48 g/t Au from 30m in BSRC1299

  • o 5m @ 1.58 g/t Au from 39m in BSRC1268

•  Excellent results delivered from first phase metallurgical test work:

  • o KGP ore is free milling and amenable to a conventional CIL processing flowsheet;

  • o Recoveries of coarse gravity gold between 40 - 69%;

  • o Preliminary leach extractions demonstrate average total gold recoveries of between 88 - 94% for the Central Zone ores at a 75 μm grind and 24 hour leach time. Higher total gold recoveries of 91 - 96% achieved at finer grinds and longer leach times are to be optimized as part of the current test work program; and

  • o Low cyanide consumption of 0.5-0.7 kg/t.

•  Resource upgrade expected early May 2022 and Prefeasibility Study (PFS) targeted completion late Q2 CY2022

ABN 67 140 164 496

Level 4, 251 St Georges Terrace, Perth WA 6000

T: 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 31 March 2022. During the quarter, Ausgold continued to advance its 100%-owned flagship Katanning Gold Project (KGP), located 275km from Perth, Western Australia.

Katanning Gold Project, WA

AUC interest 100%

The Company holds approximately 5,000km2of tenure within the South-West Yilgarn Craton, a region which is historically underexplored but is highly prospective for gold, copper, silver and Ni-PGE.

Background

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 current JORC Resource at KGP totals 1.84 million ounces of gold (see Table 1 for details), following an upgrade announced 7 December 2021.

Table 1 - Summary Gold Resources for the KGP

Resource category	Tonnes Mt	Grade (g/t au)	Contained gold (oz)
MEASURED	6.59	1.65	349,000
INDICATED	21.97	1.19	841,000
INFERRED	17.58	1.14	647,000
TOTAL RESOURCE	46.14	1.24	1,837,000
Notes 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 7 December 2021. 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.

Prefeasibility Studies

Prefeasibility studies for the proposed development of the KGP advanced during the quarter with completion targeted for late June 2022.

•  Mine Development Studies - Work is underway to support the PFS for the KGP, which will assess potential mine development scenarios. GR Engineering Services Limited has been engaged to lead the engineering studies and the Company anticipates that the PFS for the initial stage of development will be completed in Q2 2022.

•  Geotechnical, hydrogeology and metallurgical drilling is planned in the Central Zone and Dingo Resource areas to support future open pit and underground mining studies. This follows recent diamond drilling to collect geotechnical data, supported by down-hole televiewer programs in RC and diamond holes. Additional diamond drill holes will follow to collect samples for metallurgical optimisation test work. Furthermore, additional groundwater monitoring wells will be installed to complement existing groundwater monitoring data.

•  Community and environmental studies - Stakeholder engagement is underway along with development of the approvals pathway. Ground water and waste rock characterisation studies have also begun.

•  Metallurgical test work - Excellent results from first phase metallurgical test work (ASX announcement 31 March 2022). The test work demonstrates that the KGP ore is free milling and amenable to a conventional CIL processing flowsheet. 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 pre-engineering works based on the test results.

  Leach tests have been completed on five composites. Three of these composites are from the Central Zone (Jinkas and Jinkas South lodes) and 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 a low residue (tail) grade of 0.15g/t gold across the project, 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, overall average gold recovery increases to 91-96%.

  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

KGP Central Zone

The Central Zone contains the majority of the current JORC Resource of 1.84 Moz, identified within a 4.5km strike length (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.

Ausgold has now completed its 30,000m multi-rig reverse circulation (RC) drilling campaign designed to add near-surface Resource ounces and support open-pit mine planning as part of the Prefeasibility Study (PFS). Results have now been received for 15,000m of drilling along the Jackson and White Dam lodes, with further results pending and an additional 2,500m of drilling underway within the Olympia and Jinkas North areas.

The Company is encouraged by the extent of near-surface gold mineralisation identified within both the Jackson and White Dam lodes, which sit along the footwall of the existing Resource in the Central Zone. The additional oxide mineralisation, combined with the greater continuity of gold mineralisation over this 4.5km of strike length, will support further open-pit mine planning.

Jinkas

New drilling (11 holes 1,068 metres) within the Jinkas lode targeting the down plunge extensions of the high-grade gold mineralisation has intercepted broad zones of gold mineralisation. Further RC drilling and downhole electromagnetic (EM) surveys are planned to further extend this mineralisation. Significant results include:

- 9.2m @ 1.70g/t Au from 99m including 4.0m @ 3.06g/t Au in BSDD038

- 15.4m @ 1.55g/t Au from 125m including 5.0m @ 3.98g/t Au in BSDD038 (Jinkas)

Southern Jackson Areas

Drilling along the Southern Jackson area has intersected near surface high-grade gold mineralisation. The significant results have identified further down-plunge potential which remains open at depth and within 150m from surface following recent high-grade results. New significant results include:

• - 13m @ 2.62g/t Au from 9m including 3m @ 9.64g/t and 2m @ 3.92 from 52m in BSRC1441 (White

  Dam)

• - 10.0m @ 0.61g/t Au from 94m in BSRC1437 (Jackson)

• - 13.0m @ 1.04g/t Au from 187m in BSRC1355 (Jackson)

• - 9.0m @ 0.95g/t from 99m including 5.0m @ 1.35g/t in BSRC1350 (Jackson)

This new drilling complements recent drilling which has shown high-grade gold mineralisation within the Jackson deposit.

- 6m @ 4.79g/t Au from 48m including 3m @ 9.08g/t Au in BSRC1285 - 4m @ 5.47g/t Au from 42m in BSRC1349