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Austral Gold to Acquire Remaining 30% of Casposo Mine in Argentina

Sydney, Australia--(Newsfile Corp. - November 25, 2019) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) ('Austral' or 'the Company') is pleased to announce the Company has entered into a share purchase agreement with Troy Resources Limited ('Troy') (ASX: TRY) to acquire the remaining 30% interest in the Casposo silver-gold mine located in San Juan, Argentina.

Austral has agreed to pay US$0.2 million for the outstanding common shares of Casposo Argentina Ltd, ("CAL") a wholly-owned subsidiary of Troy that owns the Casposo mine. The payment is to be made on the closing date, which we expect to occur by 28 November 2019. The agreement is also subject to standard indemnities provided by both Austral and Troy.

Austral Gold's Chief Executive Officer Stabro Kasaneva said: "We are pleased to own 100% of Casposo and to continue with the exploration program that was launched last month as disclosed in more detail in our September 2019 quarterly report. We are also assessing opportunities to consolidate surrounding projects and source ore from third parties. All these initiatives are part of our business strategy to consolidate mineral resources with the goal of recommencing mining operations at Casposo."

About Austral Gold

Austral Gold Limited is a growing precious metals mining, development and exploration company building a portfolio of quality assets in Chile and Argentina. The Company's flagship Guanaco/Amancaya project in Chile is a gold and silver producing mine with further exploration upside. The company also holds the Casposo Mine (San Juan, Argentina) and an attractive portfolio of exploration projects including the Pingüino project in Santa Cruz, Argentina (100% interest) and the San Guillermo and Reprado projects near Amancaya (100% interest). With an experienced local technical team and highly regarded major shareholder, Austral's goal is to continue to strengthen its asset base through acquisition and discovery. Austral Gold Limited is listed on the TSX Venture Exchange (TSXV: AGLD), and the Australian Securities Exchange. (ASX: AGD). For more information, please consult the company's website

Neither the 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.

On behalf of Austral Gold Limited:

"Stabro Kasaneva"

For Further Information please contact:

José Bordogna
Chief Financial Officer
Austral Gold Limited
54 11 4323 7558

David Hwang
Company Secretary
Austral Gold Limited
61 2 9698 5414

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; the payment is to be made on the closing date, which we expect to occur by 28 November 2019, and we are also assessing opportunities to consolidate surrounding projects and source ore from third parties. 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, business integration risks; uncertainty of production, development plans and cost estimates, commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations, the state of the capital markets, uncertainty in the measurement of mineral reserves and resource estimates, Austral's ability to attract and retain qualified personnel and management, potential labour unrest, reclamation and closure requirements for mineral properties; unpredictable risks and hazards related to the development and operation of a mine or mineral property that are beyond the Company's control, the availability of capital to fund all of the Company's projects and other risks and uncertainties identified under the heading "Risk Factors" in the Company's continuous disclosure documents filed on the ASX and on SEDAR. 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.

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