HIGHLIGHTS

• Austral Gold (54.69%) and New Dimension Guernsey Limited (45.31%) agree to sell their pro-rata interests in the Sierra Blanca Project (the "Project") to ASX listed company Unico Silver ("Unico").

• Consideration for 100% of the Project is to consist of (i) 5,000,000 shares of Unico, and (ii) reimbursement of certain administrative fees until closing, which amount is limited to A$20,000.

• Austral Gold's existing interest in Unico is expected to increase from 11.62% 12.33%.

Sydney, Australia--(Newsfile Corp. - May 21, 2024) - Established gold producer Austral Gold Limited's (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) (Austral or the Company) is pleased to announce that its subsidiary Austral Gold Argentina S.A. ("AGASA") and New Dimension Guernsey Limited, an affiliate of TSXV listed Capella Minerals Limited, have entered into a share purchase agreement ("The Agreement") to sell 100% of their pro-rata share of Sierra Blanca S.A. ("SBSA") to ASX listed Unico Silver Limited ("Unico" or "USL"). AGASA owns 54.69% of SBSA while New Dimension Guernsey owns 45.31% of SBSA.

SBSA owns 100% of the Sierra silver-gold project that is adjacent to Unico's 100% owned Pinguino Project located in the Santa Cruz province of Argentina.

Total consideration on closing for SBSA is to consist of 5,000,000 ordinary USL shares at an issue share price of A$0.151 (Austral's share, equivalent to 2,734,500 USL shares valued at A$412,910 or approximately US$275,535) plus cash equal to certain administrative fees paid by Sierra Blanca

S.A. in the first semester of 2024 that is to be paid on the completion date of the Agreement, which amount is limited to A$20,000.

The Agreement is subject to usual conditions precedent for a transaction of this nature, including the following conditions that must be satisfied before completion occurs:

• USL obtaining shareholder approval for the issue of Unico shares to AGASA, for the purpose of ASX Listing Rule 10.11, and

• the entry into deed of assignment in respect of a royalty over the Sierra Blanca permits with third parties.

These conditions must be satisfied on or before 31 July 2024 or such later date as agreed to by the parties.

About Sierra Blanca S.A.

Sierra Blanca S.A owns the Sierra Blanca Project and the Cruz del Sur Project. The Sierra Blana Project is made up of 5 mining titles comprising 7,997 Ha located east and west of Unico's Angostura Pinguino properties respectively, concluding Unico's consolidation of the known main geological volcanic rocks and structures that host silver-gold epithermal veins in the area.

The Cruz del Sur Project which is made up of 2 additional mining titles comprising 1,752Ha that was explored by IAMGOLD in the early 2000's.

Austral acquired its pro-rata interest in Sierra Blanca pursuant to an option agreement with New Dimension Resources announced on 13 October 2020.

About Austral Gold

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.

In 2023 Austral sold SCRN Properties Ltd, owner of the Pingüino Project, to Unico for total consideration of approximately US$10 million, comprising US$5 million in cash, shares, and options of Unico.

For more information, please visit the Company's website at .

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Release approved by the Chief Executive Officer of Austral Gold, Stabro Kasaneva. For additional information please contact:

Stabro Kasaneva
Chief Executive Officer
Austral Gold Limited
stabro.kasaneva@australgold.com
+56 9 9822 3563

Jose Bordogna
Chief Financial Officer
Austral Gold Limited
jose.bordogna@australgold.com
+61 466 892 307

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements are statements that are not historical and consist primarily of projections - statements regarding future plans, expectations and developments. Words such as "expects", "intends", "plans", "may", "could", "potential", "should", "anticipates", "likely", "believes" and words of similar import tend to identify forward-looking statements. Forward-looking statements in this news release include in this news release include Austral Gold Argentina S.A. ("AGASA") and New Dimension Guernsey Limited to sell 100% of their pro-rata share of Sierra Blanca S.A. ("SBSA") to ASX listed Unico Silver Limited ("USL"), total consideration on closing for SBSA is to consist of 5 million ordinary USL shares plus cash equal to certain administrative fees paid by Sierra Blanca

S.A. in the first semester of 2024 that is to be paid on the completion date of the Agreement, the Agreement is subject to usual conditions precedent for a transaction of this nature including USL obtaining shareholder approval for the issue of Unico shares to AGASA, for the purpose of ASX Listing Rule 10.11 and the entry into deed of assignment in respect of a royalty over the Sierra Blanca permits with third parties, and Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets.

All of these forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied, including, without limitation, uncertainty of exploration programs, development plans and cost estimates, commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations, the state of the capital markets especially in light of the effects of the novel coronavirus, uncertainty in the measurement of mineral resources and reserves and other risks and hazards related to the exploration of a mineral property, and the availability of capital. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Austral cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. Austral's forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and Austral does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.