Ausgold : New Central Zone drilling intercepts high-grade gold

ASX Release

25 February 2022

New Central Zone Drilling Continues to Identify Near Surface High-
only	Grade Gold Mineralisation
Highlights:
	 New drilling has identified near surface high-grade gold mineralisation in the Central Zone along the
use	Jackson and White Dam lodes, with results including:
- 6m @ 4.79 g/t Au from 48m including 3m @ 9.08g/t Au in BSRC1285
- 4m @ 5.47 g/t Au from 42m in BSRC1349
	- 5m @ 3.43 g/t Au from 23m in BSRC1334
	- 9m @ 1.30 g/t Au from 27m in BSRC1304
	- 7m @1.03 g/t Au from 29m in BSRC1259
	- 6m @ 1.17 g/t Au from 53m and 5m @ 1.37 g/t Au from 102m in BSRC1345
	 New drilling designed to increase Resource confidence level and has identified higher-grade gold
	mineralisation
	 Ausgold has now completed 17,631m of its 30,000m multi-rig RC drilling program in the Central and
personal	Southern Zones
 Prefeasibility (PFS) studies continue to advance targeting completion late Q2 CY2022

Ausgold Limited (ASX: AUC) (Ausgold or the Company) is pleased to provide an update of exploration activities at the Company's 100% owned Katanning Gold Project (KGP).

Multi-Rig Drill Program

Ausgold is advancing its 30,000m multi-rig drilling campaign at Katanning focused on high value targets identified in the Central and Southern Zones. A total of 17,631m of RC and diamond drilling has now been completed (Figure 1).

New drilling within the Central Zone has targeted the near surface gold mineralisation within the Jackson and White Dam lodes. The Jackson and White Dam lodes represent the lower two of the three stacked lodes at the KGP which Forhave seen limited drilling comparatively to the main Jinkas lode. The focus of this drilling is to test significant gaps (>1km strike length) in current Resource drilling. The higher-grade material intercepted within this new drilling will

likely add to the April 2022 Resource upgrade (Figure 2 - 6).

This new drilling has intersected a newly identified high-grade shoot within the White Dam Lode (including 4m @ 5.47 g/t Au from 42m in BSRC1349, Figures 2 and 6), has demonstrated potential for higher-grade gold mineralisation than is currently reported in the current Resource model. The newly identified higher-grade mineralisation remains open with further drilling planned to target this mineralisation further along strike and down plunge (Figure 3).

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	1

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Regional exploration - 2,500m auger and 30,000m aircore drill programs on Ausgold regional tenure is in progress focused on high priority target areas with gold and PGE potential. A further program of aircore drilling is planned on the Katanning Regional and Woodanilling projects following the receipt of results for 20,307m of aircore and 2,130m of regional RC drilling completed during Q4 CY2021 and Q1 CY2022.

Rifle Range Drilling - Drilling using a low impact rig is planned for the Rifle Range area further expanding the Resource potential over 2.5km strike length for the Southern Zone.

Lukin South - a program of 10 wide spaced RC holes has now been completed at the Lukin south area targeting widespread gold anomalism identified over a 1.5km strike length. Drilling is currently underway at Lukin and could eventually extend the Resource potential over a further 5km south of the Dingo area.

Resource Drilling - Ausgold has now completed 17,631 m of its 30,000m multi-rigRC drilling campaign focusing on high-prioritytargets in the Central and Southern Zones of the KGP with a Resource upgrade planned for April 2022. An additional 2,274m of RC drilling at Dingo South has now been completed following up recently reported results from the Dingo South area. A program of 10 down-holeelectromagnetic (DHEM) surveys have been completed at the Dingo and Jinkas Deeps areas.

The Company is encouraged by the extent of near surface gold mineralisation identified within both the Jackson and White Dam lodes which sits along the footwall of the Central zone. The additional oxide mineralisation onlycombined with the greater continuity of gold mineralisation over this 4.5km of strike length will support further

open-pitmine planning during the company's Prefeasibility Studies.

Management Comment

Ausgold Managing Director, Matthew Greentree, commented:

"We are now over halfway into our 30,000m campaign, with these results from new drilling intercepting near surface gold mineralisation which is higher-gradethan previously reported in the current Resource. Drilling in the useJackson and White Dam lodes has targeted a number of gaps in the current Resource drilling which included the old

tailings dam and the southern portion of the Jackson area historically seeing only wide spaced drilling.

These higher-graderesults will feed into a further Resource upgrade now planned for Q2 CY2022 and will increase the proportion of Measured and Indicated Resource in this new model. The position along the footwall of the Central Zone will also add further potential Reserves for the KGP.

The drilling program is moving ahead and continues to target key areas within the Central and Southern Zone as we progress towards the planned April Resource upgrade and the Maiden Reserve in June following the completion of

personalPrefeasibility Studies." Work programs

At present two RC rigs are operating at the KGP drilling in both the Central and Southern Zones with the results of this drilling to support a Resource upgrade at the beginning of Q2 CY2022.

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Prefeasibility Studies (PFS) are rapidly advancing with results of metallurgical test work expected to be available in early Q2 CY2022 and completion of PFS late in the same quarter.

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Mine Development Studies - Work is underway to support studies for the project, which will assess potential mine development scenarios for the KGP. GR Engineering has been engaged to lead the engineering studies and the Company anticipates that a Prefeasibility Study for the initial stage of development at the KGP 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 which have been supported by down hole televiewer programs in RC and diamond holes.

Metallurgical test work - ongoing test work is now focused on optimisation of comminution flow sheets and leach test work on sulphide composites. Initial waste rock and tailings characterisation test work continues.

Community and environmental studies - stakeholder engagement is underway along with planning for the approvals process.

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For personal use only

Figure 1 - KGP Resource with New drilling showing December 2021 Resource block model

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Figure 2 - New drilling in Central Zone shown with grade as gram-metres (intercept width in metres x grade)

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