Austral Resources Australia Ltd. announced assay results from the reverse circulation ("RC") drilling program, part of the in- progress Lady Colleen drilling program. Lady Colleen (LC) is located on an existing Mineral Lease (ML90170) and contains a JORC Mineral Resource Estimate of 7.9MT at 0.84% Cu. The quoted resource was calculated in 2013 by the previous mine owner and released by Austral in its IPO prospectus.

As previously announced, Austral Resources has commenced evaluation of the potential at LC for a lower tonnage, higher grade sulphide resource that could be economically open pit mined. Progress to date includes. Updating of the LC sulphide resource by an independent resource geologist, confirming the continuity of the higher-grade core of the LC resource.

Pit shell evaluation of the updated LC sulphide resource with positive results warranting further detailed mine design and economic evaluation. Integration of both the updated resource model and pit shells were then used to optimise the design of a now in-progress drilling program with multiple targets being; Infill of the current LC resource and upgrade portions of the Inferred Resource to Indicated and Measured status Potential extensions of the resource within and immediately outside or adjacent to the Pit shells with step out drilling To the north and northeast of the current resource envelope targeting potential extensions of mineralisation along strike and down plunge, and Evaluation of the oxide and transitional cap over the sulphide resource. Austral Resources has completed drilling a total of 17 RC drill holes for 2,475m at LC.

The drilling of diamond tails totaling 655m is in progress for 6 RC drillholes. Assay results have been received for all the RC drillholes (except for 3 of the diamond tail pre-collars which will be reported once received). All RC & HQ drillholes are sampled on 1m intervals and submitted to ALS Laboratory for analysis.

Austral will continue to update the market as results are received. Results to date have been outstanding and verified the current geologic resource model, validated the targeting strategy applied and confirmed the continuity of the high-grade core at LC which remains open along strike in both directions, as indicated. Figure 4 is a photo of drill cuttings from MTKC0628 over the sample interval 164-165m which returned an assay of 8.58% Cu.

The colour of the drill cuttings and the elemental ratio of Fe:Cu:S as 2:2:1 suggest the primary copper sulphide is chalcocite rather than chalcopyrite. Mineralogy will be undertaken to further evaluate and confirm the sulphide species present at LC. MTKC0626 & 0627 are both infill holes targeting increased certainty of resource classification in the high-grade core of the LC resource.

MTKC0628 is an extension /step-out hole on the northeast of the resource. This intersection is a 30m step out along strike to the ESE from MTKCD045 (32m @ 2.97% Cu from 159m). Further drilling will be designed and completed to evaluate the potential strike extent of the high- grade core.

The extensive program of further work includes: The evaluation, identification, design and completion of required further drilling, including evaluation of the potential strike extent of the high-grade core. By end-September. Completion of the drilling program at LC, receipt of all assays, geological evaluation (including mineralogy) and updating the LC resource model to enable generation of a new Mineral Resource.

By mid-October. Completion of a pre-feasibility study (PFS) of the potential for extraction of LC sulphide resource through open pit mining, including all costs relevant to having the material Evaluation of the appropriate Mineral Resource and Ore Reserve (dependent on the PFS outcomes) classification and reporting in accordance with the JORC Code. By mid-November.

This ongoing evaluation of LC is a first step in assessing the potential to begin commercialising Austral's 210,000t of contained copper in sulphides to augment the Company's current 40,000t Anthill Mine copper production from the Anthill copper oxide mine.