Austral Gold Announces Closing of Pro-Rata Rights Offering and Notification of Under Subscriptions

Sydney, Australia--(Newsfile Corp. - October 15, 2019) - Austral Gold Limited  (ASX: AGD) (TSXV: AGLD) ("Company") is pleased to announce that, it has closed its Non-Renounceable Pro-Rata Rights Offer (Offer) of ordinary shares (each a Share) and attaching options (each an Option) to raise gross proceeds up to a maximum of A$5,614,407.

The Company received valid applications for entitlements totaling $2,017,620 from Eligible Shareholders. In addition, the Company received additional applications under the shortfall facility as referred to in the Offer Document, for a further 277,674 of Shares and 143,826 attaching Options.

The results of the Offer are summarised as follows:

Accordingly, the under subscriptions are 44,959,843 Shares and 29,973,229 attaching Options.

In relation to the valid applications which have been accepted, the Shares and attaching Options to be issued will be allotted on 18 October, 2019 and holding statements for those Shares and attaching Options will be dispatched to successful applicants on 23 October 2019. Normal trading of those newly issued Shares on the ASX is expected to commence on 23 October 2019. As stated in the Offer Document, the Company will not be seeking to list any of the Options issued under the Offer.

It is the responsibility of all applicants to confirm the number of new Shares and Options allocated to them prior to trading in any of those securities. Applicants who sell any new new Shares and/or Options prior to receiving confirmation of the number of new Shares and/or Options allotted to them under the Offer, do so at their own risk.

The Company wishes to thank all participating shareholders for their continuing support.

Use of Funds

The funds will be primarily used to fund the Company's 2019 Q4 brownfield exploration programs. These exploration programs will be explained in detail in the Company's 2019 September quarterly report.

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 www.australgold.com.

On behalf of Austral Gold Limited:
"Stabro Kasaneva" CEO

For additional information please contact:

Jose Bordogna
Chief Financial Officer
Austral Gold Limited 
jose.bordogna@australgold.com
+54 (11) 4323 7558 

David Hwang
Company Secretary
Austral Gold Limited
info@australgold.com
+61 (2) 8072 1400

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 ASX release include the Company's 2019 Q4 brownfield exploration programs and exploration programs will be explained in detail in the Company's 2019 September quarterly report. 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 Offer Document. 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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