AUSGOLD LIMITED — Capital/Financing Update 2012

Aug 29, 2012

ASX Announcement

30 August 2012

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Detailed Aeromagnetic Survey at Katanning

Ausgold Limited (“Ausgold” or “the Company”) ( ASX: AUC ) is pleased to announce the commissioning of a high-resolution aeromagnetic survey across the 25km x 6km core zone of the Katanning Gold Project, located in the Yilgarn block of Western Australia (Figure 1).

The low-level, ultra-detailed aeromagnetic survey being undertaken by Ausgold is designed to accurately identify strongly magnetised zones within the prospective stratigraphy. A recent petrological study of ore samples from the Jinkas and Dingo deposits has shown that gold mineralisation is intimately associated with strong magnetite and pyrrhotite alteration and that detailed magnetics potentially represents a direct ore-finding technique.

The area of the aeromagnetic survey includes the prospective Datatine area to the north and extends to the Lukin prospect in the south - both recently defined by Ausgold’s intensive geochemical sampling campaigns.

The aeromagnetic survey will be flown using a flight-line spacing of 40 metres and a nominal survey flight height of only 30 metres above the ground. The aeromagnetic survey is expected to take place early in the December quarter of 2012 and the Company anticipates that final data, including interpretation, will be available within three months of survey completion. The resulting data will enable Ausgold to identify additional gold targets for testing during 2013.

Ausgold CEO, Dr Andrew Tunks commented: “Our detailed soil sampling program conducted over the past twelve months has enabled a detailed comprehension of the previously under-explored Katanning Greenstone Belt. The acquisition of detailed aeromagnetic data over our Katanning Gold Project is an effective technique in mapping prospective magnetic zones which we believe are associated with the gold mineralisation. These data will be used in conjunction with our existing geochemical results from air core drilling and soil sampling, and will enable us to identify new prospective targets for the upcoming drilling program.”

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----- Start of picture text ----- Figure 1: Proposed Aeromagnetic Survey Area, Katanning Gold Project----- End of picture text -----

ENDS

For further information, shareholders and media please contact:

Andrew Tunks Victoria Thomas Chief Executive Officer Six Degrees Investor Relations Ph: (08) 9466 9555 Ph: (03) 9645 7567 Email: atunks@ausgoldlimited.com Email: victoria.thomas@sdir.com.au

About Ausgold Limited

Ausgold Limited was formed to utilise some of the latest innovations in geosciences to target areas in Australia prospective for the discovery of gold and copper-gold ore bodies. This work was initially carried out by the Centre for Exploration Targeting, an internationally renowned group affiliated with the University of Western Australia and Curtin University, using a team of highly qualified geoscientists with extensive experience in gold mineralised systems and exploration targeting.

The result was Ausgold's acquisition of tenements covering 17,500 km² of ground prospective for gold and copper mineralisation. These tenements cover a range of mineralised systems in known and emerging mineral provinces throughout Australia, where potential exists for new gold and copper discoveries. Ausgold has identified a major new greenstone belt 200 km in length within south Western Australia similar to other greenstone belts in the Yilgarn and with attributes of other Giant Archaean gold camps.

This successful targeting by Ausgold has led to the unearthing of the Katanning Gold Project, 275 km south west of Perth. The discovery sits within the greater Katanning Regional Project covering 9,000 km² in the Yilgarn to the southeast of Newmont's Boddington Gold Mine.

A major reverse circulation drilling program undertaken by Ausgold has identified multiple gold mineralised horizons at Katanning within a corridor having a strike length in excess of 20 kilometres. To date, three main zones have been uncovered within the confines of the Katanning Gold Project; Jackson, Jinkas and Dingo.

In addition to the burgeoning Katanning Gold Project and Katanning Regional Project, highly prospective ground has also been identified and acquired at Doolgunna Station, Yamarna, Paterson and Cracow.

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Gary Brabham, who is a Member of the Australian Institute of Geoscientists and a Member of the Australasian Institute of Mining and Metallurgy. Mr Brabham is a full-time employee of Ausgold Limited, and has sufficient experience relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Brabham consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.