AUSGOLD LIMITED — Capital/Financing Update 2012

Apr 18, 2012

ASX ANNOUNCEMENT

19 APRIL 2012

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MAJOR NEW GOLD TARGETS IDENTIFIED WITHIN KATANNING GOLD PROJECT

Ausgold Limited (“ Ausgold ” or the “ Company ”) ( ASX: AUC ) is pleased to announce significant advances have been made at its wholly owned Katanning Gold Project in Western Australia, with the identification of two new areas defined for priority drill testing.

Highlights

• Discovery of the largest gold anomaly to date at the Lukin Prospect following recent aircore drilling south of the Dingo Corridor.

• Lukin Prospect is now the highest priority drill target following aircore drilling confirming four stacked anomalous zones over four kilometres in strike.

• Soil sampling also confirms strong gold and multi-element soil anomalies within the Datatine Corridor to the north of the Jinkas Corridor.

• Strong correlation between gold mineralisation and sulphide (pyrrhotite) and magnetite alteration clearly demonstrated by recent diamond drilling and petrological analysis.

• Extensive geophysical testwork to commence in Q2 2012.

• A total of 12 geochemical targets have now been identified within the highly gold anomalous Dingo Corridor and will be progressively tested during 2012 commencing with the Lukin Prospect.

• The gold mineralised system that hosts the current Katanning Gold Project has been extended to over 20km and remains open north and south.

Dr Andrew Tunks, Ausgold’s new CEO, commented:

“These new anomalies are highly significant for Ausgold, in that they extend the strike of the known gold mineralised system at Katanning to over 20km. The gold anomalism appears to be related to a major thoroughgoing structural corridor, with an orientation (340°) similar to the major structures that host significant deposits across the Yilgarn such as the Boulder Lefroy Fault, The Zulieka Shear Zone and the Mt Ida Fault.

80 Churchill Avenue, Subiaco, Western Australia 6008 T +61 8 9466 9555 | F +61 8 9466 9566 | E info@ausgoldlimited.com | W www.ausgoldlimited.com

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“Another noteworthy finding of our recently completed diamond drill program is the close link between gold mineralisation and pyrrhotite and magnetite. To date, Ausgold has not used geophysical techniques to assist in the identification of high-grade shoots within this large system, however following these results an extensive geophysical program will now be initiated to provide targeting information on the high-grade zones with the aim of increasing our chances of a major discovery.

The Lukin Prospect now extends over a 4 km strike extending south from the Dingo Prospect. Recent aircore drilling has confirmed that Lukin contains up to four stacked anomalous zones, making it our highest priority drill target for Q2 2012. In addition, strong Au and multi-element anomalies have also been confirmed in the Datatine Corridor and aircore drilling and geophysics will be used to refine the targets for RC drilling in Q3 2012.”

Background

The Katanning Gold Project (“ KGP” ) – is an area of multi-lode gold mineralisation, encompassing the Jinkas, Dingo and Datatine Corridors contained within a belt now exceeding 20km. Soil sampling and Aircore drilling has confirmed that the mineralised system hosting the three corridors (comprising KGP) remains open to the north and south. Figure 1 shows the location of the major prospects and gold anomalies within the KGP. New information is discussed below.

Targets within the Dingo Corridor:

• Aircore drilling has defined a 4km long gold-enriched zone extending south from Dingo to the Lukin prospect , with RC drilling follow up planned;

• Confirmation of four parallel stacked gold lodes within the Dingo Corridor;

• The Corridor remains open to the south.

Targets within the Datatine Corridor:

• A new 5km zone of Au in soil anomalies has been identified north of Jinkas;

• This zone includes some shallow historic RC drilling within the oxide zone that returned a best result of 4m @ 15.6 g/t that was never followed up nor was there testing within fresh rock;

• The anomalies remain open to the north and will be the focus of further work including geophysical testing and aircore drilling before RC testing in Q3 2012.

Regional Extension to the Katanning Gold Mineralised Corridor:

• Reconnaissance aircore and ionic soil sampling has traced the gold mineralising system north and south of the current KGP and has identified parallel systems;

• Further data is forthcoming and yet to be received.

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Figure 1. The KGP Gold Anomaly Map. This figure illustrates the 20km strike length of strongly anomalous gold results that make up the Katanning Gold Project. To date a total of 5,250 multi-element soil samples have been collected at 200m by 50m sampling intervals along the 20km strike of the KGP. The extent of very significant anomalism is considered outlined by the plus 25 times anomaly to background value for gold.

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- South Dingo Lukin Prospects

Wide spaced (200m x 100m) aircore geochemical drilling results from the within the Dingo corridor have identified four gold lodes (A, B, C and D detailed in Figure 2) associated with mafic rocks defined by geochemical signatures. There is strong correlation between magnetic trends that reflect specific geological units and the presence of anomalous gold zones intersected by the Lukin air core drilling, suggesting a similar association of gold mineralisation and accompanied by pyrrhotite magnetite alteration already observed at Jinkas.

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Lukin Prospect
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Figure 2. Aircore Drilling at the Lukin Prospect, Bottom of Hole Gold Responses. The location of sections shown in figure three is indicated on the map. This 3.5 km long anomaly has been named the Lukin Prospect

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The aircore drilling within the Dingo Corridor has successfully:

1. Extended the Dingo mineralisation a further 750m to the south of the current RC testing. Significant shallow gold responses from Aircore drilling within the depleted oxide zone to the south of Dingo include:

2. 15m @ 1.03g/t (33m-48m), Hole BSAC787

3. 7m @ 0.55g/t (30m-37m), Hole BSAC789

4. 6m @ 0.57g/t (15m-21m), Hole BSAC790

5. Resolved the Lukin soil geochemical anomaly into four discrete parallel anomalies and identified aircore anomalies over 1.7km long and nearly 2km in length, which remains open to the south. Significant shallow gold responses from aircore drilling within the depleted oxide zone at Lukin include:

6. 5m @ 0.41g/t (60m-65m), Hole BSAC873

7. 7m @ 0.37g/t (20m-28m), Hole BSAC867

8. 2m @ 2.14g/t (45m-47m), Hole BSAC979

Both aircore drilling and multi-element soil analysis suggest a major break around 6281400N with the southern block possibly faulted with an apparent displacement of 500m east. Further aircore drilling is now planned to define the continuation of the two eastern zones.

The southernmost line of reconnaissance aircore drilling at Dingo along section 6279600N has confirmed continuity of the gold zone (interpreted as Lode B). Recent soil sampling suggests that this zone continues at least a further 2km south of the current aircore drilling.

Cross sections along lines 6283800N and 6283600N are shown in Figure 3, confirm the stacked nature of gold lodes south of the existing Dingo prospect. Multi-element analyses from the aircore drilling can discriminate specific rock types at this location, confirming the dip of mineralised lodes as identical the Dingo Prospect 700m to the north.

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Figure 3. Geochemical Responses for Gold shown on vertical cross sections trending east west and looking north the position of the sections is shown on figure 2 – Sections are 200m apart.

Future Work

Following these latest results, it is Ausgold’s intention to continue its aggressive exploration program at KGP, focussing on the following key areas:

• 3D modelling of all drilling data within the Jinkas and Dingo corridors to aid in target generation particularly of the high-grade Jinkas shoot where further drilling is being planned

• Initiation of Geophysical surveys to assist in location and targeting of high grade gold lodes

• RC drill testing of current gold targets at Lukin Prospect

• Follow-up low-cost aircore drilling programs to constrain mineralised targets and corridors for RC drilling

• Ongoing soil sampling to extend the KGP to both the north and South where Au anomalies remain open and untested.

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*ENDS***

For further information, shareholders and media please contact:

Dr Andrew Tunks Victoria Thomas CEO Six Degrees Investor Relations Ph: (+618) 9466 9555 Ph: (+613) 9674 0347 Email: atunks@ausgoldlimited.com Email: victoria.thomas@sdir.com.au

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Andrew Tunks, who is a Member of the Australian Institute of Geoscientists. Dr Tunks is the CEO and 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”. Dr Tunks consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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 an impressive 9120 km² in the Yilgarn.

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. Within this area, drilling focused on a 4km stretch of the project termed the Jinkas corridor, which demonstrates the potential for multiple stacked lodes and plunging high grade shoots.

In addition to the burgeoning Katanning Gold Discovery, highly prospective ground has also been identified and acquired at lowsulfidation epithermal targets near the Cracow Au mine in Qld. Ausgold also holds gold and base metal projects within the Yamarna Greenstone Belt, and adjacent to the newly developed DeGrussa Mine in WA.