Ausgold : New KGP Drilling Extends Mineralisation Further 900m South

ASX Release

7 February 2022

New Drilling at KGP Extends Mineralisation Further 900m South

Highlights:
only	 New drilling has significantly extended gold mineralisation 900m south beyond the existing Resource
	with near surface intersects
	- 9m @ 2.34 g/t Au from 63m including 3m @ 6.23 g/t Au from 69m in BSRC1312
use	- 5m @ 2.88 g/t Au from 37m in BSRC1248
- 3m @ 2.48 g/t Au from 30m in BSRC1299
- 5m @ 1.58 g/t Au from 39m in BSRC1268
 Recent metallurgical drilling intersects high-grade gold mineralisation at Dingo
- 21m @ 2.11 g/t Au from 61.08m including 4.81m @ 6.33 g/t Au and 2.56m @ 3.57 g/t Au in BSDD033
 Mineralisation remains open along strike with drilling to test a further 5,000m of strike length south
from current drilling
	 Ausgold has now completed 14,950m of its 30,000m multi-rig RC drilling program in the Central and
	Southern Zones
	 Prefeasibility (PFS) studies are advancing targeting completion late Q2 CY2022
	 Katanning Regional exploration program progressing well with results for gold and Ni-PGE pending
	from 21 RC holes for 2,130m of regional RC, 714 aircore holes for 20,307m and 776 auger samples
	pending for 8 targets.

personalAusgold 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 Katanning drilling campaign focused on high value targets identified in the Central and Southern Zones. A total of 14,950m of RC and diamond drilling has been completed to date within the Central and Southern Zones, with a further 2,130m RC and 20,307m aircore drilled on regional targets.

ForNew drilling in the Southern Zone extends areas of interpreted gold mineralisation 900m south beyond the current 1.84Moz KGP Resource and will be used in a Resource upgrade now planned for Q2 2022 (Figure 1 and 2).

Southern Zone

Drilling within the Southern Zone has intersected gold mineralisation over 900m of strike length extending southward beyond the recently upgraded Dingo Resource. New drilling extending southeast along strike and parallel to the Rifle Range area has shown an extensive zone of near surface gold mineralisation. Results from this drilling are well beyond the newly updated Resource at Dingo in an area which has had only limited previous drilling (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

Previously reported Dingo results include:

The Company is encouraged by the extent of near surface gold mineralisation at Dingo, extending over a total of 2,400m in strike length and remaining open south towards the Lukin prospect. Drilling is currently underway at

onlyLukin and could extend the Resource potential over a further 5,000m to the south.

Dingo

New results from the Dingo area continue to highlight high-grade Resource extension opportunities to the south beyond the existing Southern Zone Resource. Drilling results at Dingo South further delivers extensive zones of gold mineralisation over an additional 900m of strike length, with new significant results including:

	-	21m	@ 2.11 g/t Au from 61.08m including 4.81m @ 6.33 g/t Au and 2.56m @ 3.57 g/t Au in BSDD033
use	- 9m @ 2.34 g/t Au from 63m including 3m @ 6.23 g/t Au from 69m in BSRC1312
- 5m @ 2.88 g/t Au from 37m in BSRC1248
- 3m @ 2.48 g/t Au from 30m in BSRC1299
-	5m	@ 1.58 g/t Au from 39m and 7m @ 0.87 g/t Au from 47m in BSRC1268
-	3m	@ 2.12 g/t Au from 84m in BSRC1249
-	2m	@ 3.25 g/t Au from 70m in BSRC1264
	-	11m	@ 0.87 g/t Au from 23m in BSRC1310
	-	10m	@ 0.89 g/t Au from 40m in BSRC1301
personal	-	11m	@ 0.71 g/t Au from 103m in BSRC1307

Results from this new drilling at Dingo and extending beyond the current Resource area into Dingo South are very promising, with high-grade gold mineralisation intersected significantly beyond the current Resource area. A second phase of infill drilling 13 holes for 1,300m will target the largescale high-grade mineralisation that has been previously identified in the Dingo Resource area with recent results including (ASX 27 August 2021).

• 11m @ 1.89 g/t Au from 59m including 6m @ 2.98 g/t Au in BSRC1229
• 12m @ 1.29 g/t Au from 75m including 5m @ 2.11 g/t Au in BSRC1228
• 10m @ 2.89 g/t Au from 84m including 3m @ 8.35 g/t Au in BSRC1231
• 6m @ 4.5 g/t Au from 32m including 2m @ 12.75 g/t Au in BSRC1168
• 9m @ 2.52 g/t Au from 85m including 5m @ 4.09 g/t Au in BSRC1200
• 18m @ 1.23 g/t Au from 83m in BSRC1230
• 10m @ 2.01 g/t Au from 66m in BSRC1226

ForWith mineralisation open along strike over an additional 5km southward. Further work is planned to target gold mineralisation further south at Dingo South and Lukin which have received limited drilling in the past (Figure 2 and

3) (ASX Releases 28 May 2019 and 27 August 2021):

Previously reported Lukin results include:

• 3m @ 5.3 g/t Au from 20m including 1m @ 14.55 g/t Au from 20m in BSRC0891
• 1m @ 2.64 g/t Au from 90m in BSRC0892
• 3m @ 0.5 g/t Au from 42m, 3m @ 1.18 g/t Au from 129m and 1m @ 1.8 g/t Au from 156m in BSRC1148
• 4m @ 0.67 g/t Au from 111m and 2m @ 0.64 g/t Au from 168m in BSRC1149

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Management Comment

Ausgold Managing Director, Matthew Greentree, commented:

onlyQ2 CY2022. The new RC and diamond drilling at Dingo highlights potential to further add Resource ounces and scale to the KGP as we target completion of Prefeasibility Studies.

"New drilling has intercepted gold mineralisation along a further 900m which is well beyond the current Resource areas within the Southern Zone. This new drilling will form part of a significant Resource upgrade now planned for

The drilling program is moving ahead on schedule and will now target southern extensions of the existing Resource boundary to the south towards Lukin, which opens up an additional 5km of strike length based on results from past reconnaissance drilling."

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.
use	Resource Drilling - Ausgold has now completed 14,950m of its 30,000m multi-rig RC drilling campaign

	focusing on high-priority targets in the Central and Southern Zones of the KGP with Resource upgrade
	planned for April 2022. Planning is underway for a further 1,300m of RC drilling at Dingo South following-
	up on the new Dingo South results. Further drill planning will be refined after the completion of the down-
	hole electromagnetic (DHEM) program which has now commenced in the Dingo and Jinkas Deeps areas.
	Rifle Range Drilling - Drilling using a low impact small track-mounted diamond drill rig is planned for the
	Rifle Range area further expanding the Resource potential over 2.5km strike length for the Southern Zone.
	Regional exploration - 2,500m auger and 30,000m aircore drill programs on Ausgold regional tenure
	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.

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 Q2 CY2022.

	Mine Development Studies - Work is underway to support studies for the project, which will assess
personal	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
For	and leach test work on sulphide composites. Initial waste rock and tailings characterisation test work
continues.

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For personal use only

Figure 1 - KGP Resource with New drilling

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For personal use only

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

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