Austin Metals : More Gold in Mafic Rocks from Aircore Drilling

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26 April 2022

NEW ASSAY RESULTS DEFINE FURTHER WIDESPREAD GOLD IN THE

NORTHERN MT SANDY BLOCK

Key Highlights

• • Second batch of aircore drilling results from the recent program designed to test for low level anomalous gold on targets identified from gravity work has defined further widespread gold.

• • In addition to the recently discovered Everlong, Generator and Breakout Prospects, the new Overdrive prospect has returned:

  • o 6m at 1.0 g/t Au from 12m; and

  • o The prospect remains open at depth and for over at least 700m to the north where the most extensive area of the Mt Sandy surface alluvial gold which cover an area of 700m x 450m and has not been drill tested.

• • Newly defined mineralisation at Overdrive is again hosted in mafic rocks, similar to host rocks at the Musgrave Minerals high grade Break of Day group of deposits.

• • Mineralisation intersected at Overdrive is a potential breakthrough in the Mt Sandy Area with the gold-bearing veins intersected in the bedrock representing the possible source for the extensive alluvial gold - this is now a high priority drill target.

• • With the continued identification of gold-bearing mafic rocks and multiple targets for follow up, a significantly expanded 5,000-7,500m aircore program will commence shortly pending POW approvals.

Technical Director Leo Horn comments "The newly discovered gold prospect at Overdrive, in addition to the recently discovered Everlong, Generator and Breakout Prospects, shows the widespread gold in mafic and ultramafic rocks - and these are the rocks that host high grade gold adjacent to our project at Break of Day and Starlight. We are zoning in now and as shown previously at Shadow, the gravity data continues to provide us with the primary mapping dataset for identifying gold-bearing structures in our exploration quest. These results give us increasing confidence to launch into a much larger aircore drilling program in order to continue our regional exploration success. We firmly believe we have only just scratched the surface in uncovering the hidden potential across the northern block area."

Austin Metals Limited (ASX: AYT, "Austin Metals", "the Company") is pleased to announce the second batch of aircore drilling assays within the northern Mt Sandy Block within the Austin Gold Project in Western Australia.

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Overdrive Prospect & Mt Sandy Area (Aircore Drilling)

During March of this year, Austin Metals completed a total of 27 shallow aircore holes for 1,301 metres in the northern Mt Sandy area (Table 1) in an initial reconnaissance program. The primary aim of the drilling was to define shallow, low-level anomalies >0.05 g/t Au in areas defined by subtle gravity low 'breaks' identified in the ground gravity survey, particularly those in a similar orientation to the high-grade structures identified by Musgrave Minerals such as Starlight (See AYT announcement 14 March 2022).

The highlight new assay aircore results have been returned at the newly discovered Overdrive prospect as a direct result of targeting structures interpreted from the new gravity data. The aircore drilling has defined a 50m thick zone of weathered to fresh mafic rocks with variable quartz veining (>5%) that is interpreted to dip west where it is open (Figure 2). Thick zones of quartz veining is all highly elevated in gold >40-50ppb Au with internal higher grade intersections:

• • 6m at 1.0 g/t Au* from 12m in SAAC204; and

• • 11m at 0.1 g/t Au* from 12m in SAAC203 (at end of hole);

• • 4m at 0.1 g/t Au from 40m & 4m at 0.1 g/t Au from 44m in SCI021 which represents a separate zone within sedimentary rocks and black shale near the contact with mafic rocks.

Figure 1: First vertical derivative gravity image at the Austin Gold project at the Shadow Area showing the highlight shallow aircore drilling results and interpreted gold-bearing structures.

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The zone of gold-bearing quartz veining at the Overdrive Prospect is strongly associated with a prominent north-trending gravity low that appears to be a secondary splay from the renowned Tuckabianna West regional shear zone that bounds the eastern edge Mt Magnet greenstone belt (Figure 1). Interestingly, the largest area of continuous alluvial workings at Mt Sandy that are observed over an area of 700m by 450m occur immediately to the north of these exciting new drill results at Overdrive (Figure 1). Bedrock drilling has never been conducted beneath the extensive workings to the north of gold-bearing veins intersected in SAAC204 so the structure remains open and untested for several hundred metres or more.

*All assays are 6m spear composite assays and final results for 1m composites are pending.

Figure 2: Interpreted cross section at the Overdrive Prospect.

Other anomalous zone worthy of potential follow up are various intervals >0.05 g/t Au on a potential new structure located 2km to the southwest at the Sandy West structure (Figure 1) including:

• • 24m at 0.05 g/t Au from 6m in SAAC0217 in sediments and black shale; and

• • 9m at 0.05 g/t Au from 42m (at end of hole) in SAAC0219 in chlorite-altered mafic schist and sediments with up to 20% quartz veining.

Another important structure worthy of note is the newly identified Sandalwood structure where the historic Sandalwood gold mine is located (Figure 1). It is interesting to note that the new Solis discovery by Caprice Resources (3m at 1.2 g/t Au; See CRS announcement 16 & 24 March 2022) appears to occur along the eastern edge of the same structure (Figure 1). More work is required by Austin Metals along the Sandalwood structure once POW approvals are secured.

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Conclusions and Next Steps

Several important implications have been determined from the initial reconnaissance aircore programs:

• 1. As previously shown at Shadow, interpretation of gravity breaks are an extremely important tool for exploration across the Project since they may represent zones of significant gold-bearing quartz veining like that discovered at Overdrive and previously at Everlong (See AYT announcement 14 April 2022).

• 2. The recurring theme in the northern Mt Sandy block is a prominent north-trend to the identified gold-bearing structures in the gravity that appear to be second order splays from the regional west Tuckabianna shear. Highly mineralised secondary splays from major regional thrusts are a common feature of gold deposits across Archean greenstone terrains in WA.

• 3. A further and more expansive aircore drilling to test a multitude of other gravity structures and targets is now planned by Austin Metals across the tenure in order to take advantage of the recent success of this new strategy. Multiple POW's has been submitted and are pending approval.

• 4. Gold mineralisation on the Austin Project is clearly hosted in very similar favourable host rocks to those on the Musgrave tenure such as mafic rocks at Overdrive. These rock types, that are almost all entirely covered by soil and scree of variable depth, have never been targeted by previous explorers due to the focus on well-outcropping BIF's that are known by surface prospectors to host gold in places. A mapping program by renowned mapping geologist John Crossing is now complete which aims to better define the best host lithologies across the tenure. The company aims to target the mapped favourable host lithologies where they are intersected by potential cross-structures in future drill programs.

• 5. Mineralisation intersected at Overdrive represents a potential breakthrough in gold exploration in the Mt Sandy Area for Austin Metals. The intersected gold-bearing veins in the bedrock may represent the source for the extensive alluvial gold workings that extend for 700m to the north which is now an exciting drill target for the Company.

This announcement has been authorised by the Board of Directors of Austin Metals Limited.

-ENDS-

Contact details

Sonu Cheema (Director and Company Secretary) Ph: [phone]

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About Austin Metals

Austin Metals Limited (AYT) is a base and precious metals explorer focused on the prolific mining districts of Broken Hill, the Cobar Basin and the Lachlan Fold Belt of New South Wales,

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Australia. AYT's flagship Austin Gold Project is located in the highly prospective Murchison greenstone province of Western Australia, directly adjacent to the Cue Gold Project owned by Musgrave Minerals Limited (ASX:MGV), which includes the high grade Break of Day Deposit and Starlight discovery. The Company has also secured a significant ground holding of the Tallering Greenstone belt in the prolific Murchison gold mining region of Western Australia located 150 km south of the Golden Grove deposit.

CAUTION REGARDING FORWARD LOOKING INFORMATION

This document contains forward looking statements concerning Austin Metals Limited. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Austin Metal's beliefs, opinions and estimates of Austin Metals as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future development.

COMPETENT PERSONS STATEMENT

The information in this announcement that relates to Exploration Results is based on and fairly represents information and supporting documentation prepared by Mr Leo Horn. Mr Horn is a Director of Austin Metals Limited and a member of the Australian Institute of Geoscientists. Mr Horn has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this announcement and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code"). Mr Horn consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

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