Austral Gold Releases Updated Guanaco Technical Report Highlighting 14-Year Mine Life and US$192.1 Million NPV

Austral Gold’s Operational Portfolio and Market Presence

Austral Gold Limited is a recognized gold producer operating two fully owned mine complexes across South America, including locations in Argentina and Chile. The Guanaco Mine, situated in Chile’s Antofagasta Region, benefits from well-established mining infrastructure and supply chains. Alongside Chilean operations, the company manages the Casposo mine complex in Argentina, providing geographic diversification. As a junior producer, Austral Gold differentiates itself by extending mine life and creating value through existing permitted processing facilities rather than greenfield developments.

The company is listed on several exchanges: the Australian Securities Exchange (ASX:AGD), the TSX Venture Exchange (TSXV:AGLD), and the OTCQB market (OTCQB: AGLDF), offering investors diverse trading options. This multi-exchange presence underscores Austral Gold’s position as an international junior gold producer with exposure to Australian and North American investment markets. The updated Guanaco Technical Report announcement reinforces the company’s commitment to sustainable operations across its Chilean and Argentine assets.

Revised Mineral Reserves and Resources at Guanaco

The 2026 Technical Report presents updated mineral reserve and resource estimates following comprehensive geological reinterpretation and new deposit modelling. Proven and Probable Mineral Reserves total 18.1 million tonnes grading 0.84 g/t gold and 5.43 g/t silver, containing approximately 352,000 ounces of gold and 1.493 million ounces of silver. These reserves are estimated using conservative metal prices of US$2,200 per ounce for gold and US$25 per ounce for silver, aligning with industry standards.

Measured and Indicated Mineral Resources amount to 17.0 million tonnes at 0.94 g/t gold and 6.11 g/t silver, equating to roughly 511,000 ounces of gold and 3.269 million ounces of silver. These resources are valued at US$2,500 per ounce gold and US$27.50 per ounce silver. Inferred Resources are estimated at 2.0 million tonnes grading 1.17 g/t gold and 7.14 g/t silver, containing about 77,000 ounces of gold and 466,000 ounces of silver. The resource estimates benefit from a dense 25 by 25 metre drill spacing within the Indicated category, meeting industry best practices and supporting reasonable prospects for economic extraction.

Guanaco’s Deposit Structure and Mining Strategy

The Guanaco Mine comprises six distinct mineral deposits: Dumbo, Defensa, Perseverancia, Quillota, and Inesperada, alongside three legacy heap-leach pads on site. This multi-deposit configuration provides operational flexibility, enabling optimized mining sequencing based on grade, metallurgical properties, and proximity to infrastructure. The legacy heap pads offer opportunities to reprocess previously mined material with lower recovery rates, reflected in the mine’s metallurgical recovery and economic modelling.

Austral Gold’s geological team conducted an extensive review and new modelling to characterize each deposit’s geology and grade distribution. This work underpins a robust geological framework for defining remaining in-situ resources and informs the sequencing and economic assumptions in the life-of-mine plan. Building a 14-year mine life plan around existing infrastructure and multiple deposits reduces execution risk and capital requirements compared to single-deposit or greenfield projects.

Life-of-Mine Economic Outlook and Cash Flow

The 2026 Technical Report’s economic analysis highlights solid financial fundamentals for Guanaco. The after-tax net present value at a 10% discount rate is US$192.1 million, supported by undiscounted pre-tax free cash flow of US$379.4 million and undiscounted post-tax free cash flow of US$281.6 million over 14 years. These figures represent net economic benefits after operating costs, capital expenditures, taxes, and the time value of money.

Metal price assumptions are based on median consensus forecasts from a reputable international market data provider. Gold prices are modelled between US$2,500 and US$4,500 per ounce, averaging US$3,135 per ounce, while silver prices range from US$30 to US$70 per ounce, averaging US$42 per ounce. These planning prices are used solely for discounted cash flow modelling; mineral reserves are estimated at more conservative prices of US$2,200 per ounce gold and US$25 per ounce silver.

Cost Structure and Capital Requirements of the Mine Plan

Operating cost metrics demonstrate Guanaco’s efficiency leveraging existing infrastructure. The All-in Sustaining Cost is estimated at US$2,114 per ounce gold equivalent, with an average C1 operating cost of US$1,978 per ounce gold equivalent. Operating costs average US$41 per tonne of ore processed, which is competitive for a junior gold producer benefiting from established facilities.

Total capital expenditure over the 14-year mine life is projected at US$13.9 million, including US$2.2 million for sustaining capital and US$11.7 million for closure and reclamation. The modest sustaining capital highlights the advantage of utilizing existing operational infrastructure, allowing capital to focus on value-generating mining activities rather than new construction. This low capital intensity offers Austral Gold a competitive edge over juniors pursuing greenfield projects.

Metallurgical Recovery and Processing Details

Metallurgical recoveries at Guanaco reflect ore type diversity and heap-reprocessing inclusion. Life-of-mine average recovery is 72% for gold and 47% for silver. The average is influenced by lower recoveries from heap-reprocessed material, while fresh in-situ ore achieves higher recoveries. This blend supports the extended mine life and aligns with processing capacity constraints.

The mine plan integrates varying recovery rates by ore type, combining lower recovery heap material with higher recovery fresh ore. This approach demonstrates disciplined engineering that accounts for ore characteristics, ensuring the economic model reflects operational realities. Existing processing infrastructure has been optimized over years of operation to handle this ore mix effectively.

Production Forecast and Annual Metal Output

The updated mine plan forecasts steady production over approximately 14 years, from January 2026 to February 2040. Average annual recovered gold is projected at 24,838 ounces, while silver averages 105,262 ounces annually. Total ore processed is 18.1 million tonnes, including fresh ore and reprocessed heap material. This production schedule balances multiple deposits and processing throughput within existing facility capacity.

The consistent multi-year production profile provides revenue visibility and operational stability, mitigating risks common in shorter-life operations. The 14-year horizon allows capital investments to be amortized over time, supporting sustainable cash flow for dividends, debt servicing, exploration, and development at the Casposo asset in Argentina. The plan’s reliance on multiple deposits ensures steady production without dependency on a single source.

Permitting Status and Regulatory Considerations

The 2026 Technical Report notes some expansion components remain subject to outstanding permits, posing potential timing or scope risks. While the life-of-mine plan relies on existing infrastructure and permits, certain expanded mining areas require additional regulatory approval. This permitting status is a key risk factor for investors to monitor.

Austral Gold confirms no other known environmental, legal, title, taxation, socio-economic, marketing, political, or other factors materially affect resource or reserve estimates beyond the outstanding permits. This provides assurance regarding title, environmental baselines, and regulatory stability in the Antofagasta Region. However, permitting outcomes in Chile can evolve with environmental and social standards, making permit advancement a critical milestone for timely mine plan execution.

Strategic Outlook and Value Creation

CEO Stabro Kasaneva emphasized the updated Technical Report’s importance beyond reserve updates, affirming Guanaco’s ability to sustain a 14-year mining operation based on existing infrastructure, disciplined capital expenditure, and steady production. He highlighted Austral Gold’s competitive advantage in extending mine life by leveraging permitted processing facilities and established infrastructure, providing a strong platform for sustainable value generation from both Guanaco and Casposo.

The strategic approach focuses on infill drilling, deposit reinterpretation, and infrastructure leverage to reduce execution risk and capital intensity compared to greenfield projects. By prioritizing capital deployment on mining activities over major infrastructure, Austral Gold aims to maximize returns and maintain financial flexibility. This strategy is well-suited to the current gold market, where capital efficiency and lower project risk are highly valued by junior mining investors. The Guanaco mine plan aligns with the company’s broader portfolio strategy, supporting medium-term production sustainability in Chile and Argentina.

Compliance with Reporting Standards and Technical Oversight

The 2026 Technical Report complies with Canadian National Instrument 43-101 and CIM Definition Standards, internationally recognized frameworks for mineral resource and reserve reporting. Prepared by Qualified Persons, the report is filed simultaneously on the Australian Securities Exchange and SEDAR+, ensuring disclosure compliance across all listing jurisdictions. Mineral resources and reserves are also reported per the JORC Code (2012 Edition) and ASX Listing Rules, demonstrating dual regulatory compliance.

This report supersedes the 2022 Technical Report announced on 29 March 2022, incorporating four years of operational data, refined geological interpretation, and updated economic assumptions. The effective date for resource and reserve estimates is 31 May 2026, with a report signature date of 21 July 2026. This ensures the technical data is current and reflects Austral Gold’s latest understanding of deposit geology and economics. The involvement of Qualified Persons and adherence to multiple regulatory frameworks assures the technical robustness and regulatory acceptance of the disclosed estimates.