Austral Gold Provides Update on Casposo Toll Agreement

Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) advises that it is in discussions with Challenger Gold Limited regarding a transition from the current Toll Processing Agreement to an arrangement under which the Company would purchase mineralised material from Challenger's Hualilan Project. The discussions are not related to the Company's toll-processing performance. During the toll campaign, Casposo processed 39,342 tonnes of Hualilan material during May and June 2026 at recovery rates above 85%, exceeding the maximum threshold for the Tolling Agreement's variable incentive fee. Tolling fees for the May and June 2026 campaign have been received in full, as have the fixed monthly fees for July and August 2026. Casposo continues to process its own material and the Company does not expect a material financial impact in the current period from not processing mineralised material under the Tolling Agreement. Any new arrangement is expected to be non-exclusive and to allow Casposo to blend third-party mineralised material with the Company's own ore. The Company continues to evaluate additional third-party processing and mineralised material purchase opportunities in the San Juan region, where Casposo is one of the few permitted and operating processing facilities. The Company will update the market if and when a binding agreement is entered into.

Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the Americas based on three strategic pillars: production, exploration and equity investments. Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets. Under its equity investments pillar, Austral holds shares in ASX-listed Unico Silver. For more information, please visit the Company's website at www.australgold.com.