AUSGOLD LIMITED — Capital/Financing Update 2018

Nov 15, 2018

16 November 2018

ASX Release

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Jinkas South drilling highlights extension of the Jinkas deposit

Highlights:

• Nine holes drilled at Jinkas South for a total of 1,468m

• High-grade mineralisation remains open along strike and occurring within a broad zone of mineralisation, that is delineated over:

• New significant intercepts, including 12.5m @ 1.58 g/t Au from 117.6m including 4.1m @ 4.16 g/t Au in BSDD016

• Previous high grade intercepts, including 26m @ 6.6 g/t Au from 117m (including 4m @ 37.19 g/t Au from 119m) in BSRC0814, and 6m @ 3.66 g/t Au from 117m (including 5m @ 10.37 g/t Au) in BSRC0859

• New drilling intersected a broad zone of mineralisation which confirms exploration potential over 1,100m along strike and down dip

• A new upgraded Resource is expected to be released in the coming week

Ausgold Limited (ASX: AUC) (“ Ausgold ” or the “ Company ”) is pleased to announce the results of recent reverse circulation (RC) and diamond drilling programs at the Jinkas South prospect, within its 100%-owned Katanning Gold Project (KGP) in Western Australia’s south-west.

As announced on 3 October 2018, the Company commenced a drill program at Jinkas South which consisted of one diamond hole for 178m as part of the Western Australian Government-funded Exploration Incentive Scheme (EIS), and eight RC holes drilled for 1,290m. The drilling program was designed to test the extent and orientation of mineralisation within the Jinkas South area.

Mineralisation at Jinkas South is the culmination of the Jinkas and White Dam lodes, at which point they thicken along the hinge zone of a regionally extensive fold that extends down dip. Currently these two lodes contain the majority of the KGP Mineral Resource, which stands at 20.98 million tonnes grading 1.17 g/t Au for 785,000 ounces of gold, all located within 150m of surface (Table 3).

Eastern Jinkas mineralisation

The recent drilling better delineates a broad zone of mineralisation which is traced over a considerable strike length along the eastern side of the current defined mineralisation which is a down dip extension of the JinkasWhite Dam Resources where the two lodes coalesce. The position coincides with a broad zone of mineralisation which has significant high grade mineralisation intersected along at least 1,200m strike length, with the most recent intercepts being at Jinkas South (Figure 1).

This broad zone of gold mineralisation within the Jinkas deposit is localised around a sill-like quartz monzonite (granite) body which dips towards the east (Figures 3 and 4). This sill separates the Jinkas lode from the White Dam lode but is not considered to be directly related to gold mineralisation. Its margins represent a focus where mineralisation is localised either directly or along a pre-existing structure.

New drilling is further supported by ground gravity data that shows a significant gravity anomaly to the east of the Jinkas deposit and the Jinkas South area (Figure 2). This anomaly extends along the length of the KGP and is interpreted as representing a significant crustal scale structure, which likely provides a fundamental control on the gold mineralisation. The overall strike of this gravity anomaly is north-west. However, it is noted the highest

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gold grades, such as those at Jinkas and the recently intersected gold mineralisation at BSDD006, BSRC0814 and BSRC0859, coincide with this gravity anomaly.

The planned EIS diamond drilling will test similar positions along strike where historically significant intercepts have occurred, but still remain poorly drill tested. Significant historical intercepts (ASX Release, 25 July 2017 and 20 October 2015) along the eastern Jinkas deposit include (Figure 2):

• 13.5m @ 1.68g/t from 113.5m, including 5.7m @ 2.00 g/t Au in BSDD001

• 20.91m @ 3.21g/t from 98.59m, including 5.91m @ 5.31 g/t Au in BSDD005

• 8m @ 4.08 g/t Au from 115m, including 2m @ 8.06 g/t Au in BBRC011

• 4m @ 7.77 g/t Au from 134m, including 2m@ 14.92 g/t Au in BSRC0423

• 6.04m @ 4.33g/t from 224.96m, including 2.04m @9.71 g/t Au in BSDD006

• 27m @ 1.12 g/t Au from 96m in BRC22

Jinkas South

The White Dam lode is located beneath both the Jinkas lode and the quartz monzonite sill (Figures 3 - 4). It exhibits a similar trend to Jinkas and is approximately parallel to the Jinkas lode. Both lodes come closer together as the quartz monzonite sill thins southward and towards the east.

In the central Resource area a significant gap exists within the White Dam Resource where only limited drilling has adequately tested this mineralisation (Figure 2).

The mineralisation intersected in this recent drilling supports the Company’s geological interpretation, providing significant potential for down-dip extension of the White Dam Resource. It also places the relatively sparse historical drilling into a better geological context in terms of further potential along strike to the south and down dip to the east.

The new drilling highlights controls on grade and supports the recent interpretation of the mineralisation along the eastern end of the Jinkas deposit, in which it was noted that the highest grades are located where the Jinkas and White Dam lodes intersect.

One diamond drill hole for 177.6m and eight RC holes for 1,290m were drilled at Jinkas South following up highgrade mineralisation previously intercepted in wide-spaced RC drilling, including 26m @ 6.6 g/t Au from 117m (including 4m @ 37.19 g/t Au) in BSRC0814 (ASX Release, 3 April 2018), and 6m @ 3.66 g/t Au from 117m (including 5m @ 10.37 g/t Au from 117m) in BSRC0859 (ASX Release, 18 May 2018).

Diamond drilling

As noted above, one diamond drill hole for 177.6m was drilled at Jinkas South, which is the first of the EIS-funded holes. The scheme is a co-funded drilling program in which Ausgold was awarded a grant to complete four holes planned for 1,200m of diamond drilling, of which EIS will fund 50% of drilling costs, up to a total value of $150,000 (ASX Release, 21 June 2018).

The EIS-funded diamond drilling program is designed to provide a better geological understanding of high grade gold mineralisation intersected in the Jinkas South area and along strike to test the eastern Jinkas-White Dam lodes over 1,100m to the north (Figure 2). The Jinkas South gold mineralisation corresponds to a fold hinge zone down dip of the Jinkas and White Dam lodes.

This new diamond drill hole (BSDD016) was also designed to better understand the high grade gold mineralisation down dip from Jinkas-White Dam lodes intersected in Jinkas South area, which include 26m @ 6.6 g/t Au from 117m including 4m @ 37.19 g/t Au in BSRC0814.

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Significant new intercepts from BSDD016 include:

• 12.7m @ 1.58 g/t Au from 117.6m, including 4.1m @ 4.16 g/t Au in BSDD016

• 8m @ 1.11 g/t Au from 95m, including 2 @ 3.40 g/t Au in BSDD016

The highest grade mineralisation intersected within this drill hole was 0.71m @ 39 g/t Au from 120.85m in BSDD016. Mineralisation corresponds to high pyrrhotite-magnetite content and further petrological analysis of this drill core will provide better geological controls on high grade gold mineralisation along the eastern Jinkas deposit.

RC drilling

As noted above, eight RC holes for 1,290m were completed in the recent round of drilling, which has identified a broad zone of gold mineralisation further extending north along strike. Significant intercepts from the recent RC drilling at Jinkas South are shown in Table 1 and include:

• 6m @ 1.48m g/t Au from 116m, including 3m @ 2.24 g/t Au in BSRC0863

• 19m @ 0.54m g/t Au from 105m, including 5m @ 1.06 g/t Au in BSRC0864

The intersected gold mineralisation mirrors a crescent-shaped gravity anomaly, which is located to the immediate east of the recent drilling. Several subtle changes in strike along the eastern extension were noted during both the RC and diamond drilling, with the highest gold grades, such as those intersected in BSRC0814 and BSRC0859, running parallel to and along the western side of the gravity anomaly.

Further work, including ground-based geophysics and additional RC drilling, is planned to test the strike extents of this broad zone of gold mineralisation to the north and south .

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Figure 1 - Location of the prospect areas within the KGP shown with mineralised trends

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Figure 2 - Grade shown as gram-metres and location of recent RC drilling along southern Jinkas trend shown over gravity image (location shown on Figure 1)

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Figure 3 - Section A-A’ see Figure 2

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Figure 4 - Section B-B’ see Figure 2

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Other work programs

Ausgold has engaged SRK Consulting, independent mining consultants, to update the 2017 Mineral Resource estimate for the KGP. The revised Resource estimate includes recent drilling from the 2017-18 exploration program, including 16,205m RC and 860m diamond drilling. This, along with the improved geological model, has enabled Ausgold to extend current Resource areas to include Jinkas South, southern Jackson-Lone Tree, Olympia and Datatine.

Further work on the diamond core will include multi-element analysis and petrography which will be used to better characterise the newly defined mineralisation within Jinkas South, which is thought to extend along the eastern edge of the Jinkas Resource. Further analysis of the Jinkas South RC and diamond core with 22 duplicate analysis using 50 gram fire assay with AAS finish and seven 3kg samples using Leach Well bulk cyanide leach samples of high grade gold mineralisation from Jinkas South are being undertaken.

Additional field work is being completed which includes geological mapping and surface sampling at the regional Katanning Gold Project and Red Hill Vanadium Project. In addition, geophysical modelling of previously collected ground magnetics data at Mine Hill and Red Hill has been conducted to target vanadium-magnetite mineralisation.

Management Comment

Ausgold’s Managing Director, Matthew Greentree, commented:

“The new RC and diamond drilling, along with past high grade intercepts, demonstrates that high grade mineralisation at Jinkas South has continuity along the strike length of the Jinkas and White Dam Resource areas, which extend over 1,100m. The highest gold grades are coincident with gravity anomaly along the eastern edge of the Jinkas deposit, where the Jinkas and White Dam lodes coalesce. This down-dip position towards the east remains poorly tested with the current drilling at the KGP only effectively testing the top 150m, leaving the downdip extent of the Jinkas-White Dam mineralisation largely untested.

Further work is being undertaken to better delineate gold mineralisation down dip of and along the Jinkas trend. These targets represent immediate exploration targets that should add significantly to the Jinkas-White Dam Resources”

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Table 1 - Significant Intercepts

	Holde type	From	To	Interval (m)	Grade g/t A
BSDD016	Diamond	95	103	8	1.11
			including	2	3.40
BSDD016	Diamond	117.6	130.3	12.7	1.58
			inc	4.1	4.16
BSDD016	Diamond	141.95	144	2.05	0.40
BSRC0863	RC	1	2	1	0.45
BSRC0863	RC	104	105	1	0.35
BSRC0863	RC	116	122	6	1.48
			Including	3	2.24
BSRC0863	RC	127	128	1	0.62
BSRC0864	RC	73	74	1	2.05
BSRC0864	RC	88	90	2	0.69
BSRC0864	RC	105	124	19	0.54
			Including	5	1.06
BSRC0864	RC	127	130	3	0.36
BSRC0864	RC	133	135	2	1.13
BSRC0864	RC	138	140	2	0.39
BSRC0864	RC	149	150	1	0.31
BSRC0865	RC	134	135	1	1.12
BSRC0866	RC	107	114	7	0.33
BSRC0866	RC	117	119	2	0.40
BSRC0867	RC	145	146	1	0.30

Notes to Table 1 .

For RC and diamond drill assay results the intervals reported are thickness-weighted averages (i.e.. XXm grading XX grams per tonne gold content). Reported intervals are calculated using ≥ 0.3g/t Au cut-off grade and using a ≤ 2m minimum internal dilution (unless otherwise stated).

Table 2 - Collar location for Jinkas RC and diamond drilling

Hole ID	Total Depth (m)	MGA North	MGA East	RL (m)	Azimuth	Dip	Tenement
BSDD016	177.6	584895.7	6287391	383	243	-61	M70/488
BSRC0863	156	584892.2	6287416	382	237	-81	M70/488
BSRC0864	150	584865.4	6287403	383	246	-80	M70/488
BSRC0865	162	584894.5	6287480	378	240	-80	M70/488
BSRC0866	150	584866.6	6287466	379	251	-79	M70/488
BSRC0867	174	584942	6287473	378	245	-60	M70/488
BSRC0868	156	584873.4	6287505	377	238	-80	M70/488
BSRC0869	174	584910	6287524	376	243	-80	M70/488
BSRC0870	168	584862.4	6287573	374	240	-81	M70/488

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About Ausgold Limited

Ausgold Limited is a gold exploration and development company based in Western Australia.

The Company’s flagship project is the Katanning Gold Project, located 275km south-east of Perth and approximately 40km north-east of the wheatbelt town of Katanning. Ausgold holds a dominant ground position in this relatively underexplored greenstone belt, an area prospective for Archean gold deposits. The current Resource at Katanning is 785,000 oz gold (Table 3).

Ausgold’s portfolio also includes the Doolgunna Station Cu-Au project and the Yamarna Ni-Cu-Co project in Western Australia and the Cracow Au Project in Queensland.

Table 3 Current Mineral Resource

(Details in ASX release 3 August 2017)

	Tonnes (Mt)	Grade (g/t)	Ounces (‘000)
Measured	3.0	1.94	190
Indicated	6.7	1.07	232
Inferred	11.2	1.01	363
Total	20.9	1.17	785

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Figure 5 - Regional map showing the KGP, other Ausgold projects and mineralised greenstone belts

On behalf of the Board,

Matthew Greentree

Managing Director Ausgold Limited

For further information please visit Ausgold’s website or contact:

Matthew Greentree Managing Director, Ausgold Limited T: +61 (08) 9220 9890 E: info@ausgoldlimited.com

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Competent Person’s Statements

The information in this statement that relates to the Mineral Resource Estimates is based on work done by Mr Rod Brown of SRK Consulting (Australasia) Pty Ltd and Dr Matthew Greentree of Ausgold Limited. Dr Greentree is Managing Director and is a Share and Option holder in Ausgold Limited. Dr Greentree takes responsibility for the integrity of the Exploration Results including sampling, assaying, and QA/QC, and the preparation of the geological interpretations. Mr Brown takes responsibility for the Mineral Resource Estimate.

Mr Brown and Dr Greentree are Members of The Australasian Institute of Mining and Metallurgy and have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity they are undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition).

The Competent Persons consent to the inclusion of such information in this report in the form and context in which it appears.

Forward-Looking Statements

This Announcement includes “forward-looking statements” as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Ausgold Limited’s control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitation, those regarding Ausgold Limited’s future expectations. Readers can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “risk,” “should,” “will” or “would” and other similar expressions. Risks, uncertainties and other factors may cause Ausgold Limited’s actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include, but are not limited to, the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for coal and base metal materials; fluctuations in exchange rates between the U.S. Dollar, and the Australian dollar; the failure of Ausgold Limited’s suppliers, service providers and partners to fulfil their obligations under construction, supply and other agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labour shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. The information concerning possible production in this announcement is not intended to be a forecast. They are internally generated goals set by the board of directors of Ausgold Limited. The ability of the company to achieve any targets will be largely determined by the company’s ability to secure adequate funding, implement mining plans, resolve logistical issues associated with mining and enter into any necessary off take arrangements with reputable third parties. Although Ausgold Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

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APPENDIX 1 – TABLE 4

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	The reverse circulation (“RC”) drilling program referred to in this announcement consisted of 8 reverse circulation holes for 1,290m. Samples from RC drilling were collected in one metre intervals in mineralised zones with a 1/8 split for assay, split by a cyclone-mounted cone splitter, bagged in pre-numbered calico bags and the remainder retained in large plastic bags. QAQC samples consisting of field duplicates (additional split from RC), with standards and blanks inserted into the sequence of assay samples at a rate of 1 in 10. Each RC metre sampled weighed approximately 2 to 3 kilograms. All RC samples were sent to ALS Laboratories for crushing and pulverising to produce a 50 gram sample charge for analysis by fire assay and flame atomic absorption spectrometry (AAS). HQ Diamond drill core was split using a diamond bladed saw into half core to be sent to the Geological Survey of Western Australia as per the EIS agreement. The remaining half core was split again into quarter core, with one quarter being sent for assay and the remaining quarter retained on site. Gold was analysed from a 50g charge and using fire assay.
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is _oriented and if so, by what method, etc). _	All samples in this program were from RC drilling conducted by Top Drill Pty Ltd. Drilling was undertaken by Top Drill utilising a truck mounted 685 Schramm reverse circulation drill rig. Diamond drilling undertaken by Top Drill utilising a truck mounted Sandvik DE840 rig with holes drilled using triple tube HQ diamond drill with each run being oriented.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples.	Samples were collected dry with occasional damp samples, sample recoveries were visually estimated as a semi-quantitative range and recorded in the log. Recoveries were generally excellent (>90%), with reduced recovery in the initial near- surface sample and transported cover material. Drill cyclone and sample bags were used to collect the 1m samples and cleaned between rod changes. In addition,the cyclone wasgenerallycleaned several times duringeach hole(at the base of transported

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Criteria	JORC Code explanation	Commentary
	• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	cover and the base of completed oxidation) and after each hole to minimise downhole and/or cross- hole contamination. The relationship between sample recovery and grade and whether bias has been introduced has not been investigated at this stage.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	All drill holes in the current program have been geologically logged to a level of detail to support the definition of geological domains appropriate to support exploration work. The 1m sampling is appropriate for mineral resource estimation. Representative rock chips were collected in chip trays, and logged by the geologist at the drill site. Sample condition and degree of weathering were recorded qualitatively; geotechnical logging is not possible on RC samples. Lithology, weathering (oxidation state), structure, veining, mineralisation and alteration are recorded in detail using standard digital logging sheets and defined look up tables to ensure that all data is collected consistently. This data is logged using tablet computers. All data is validated by the logging geologist before being entered in an acQuire database. All drill holes are logged. Diamond drilling was logged in intervals less than 1m in length recording Lithology, weathering (oxidation state), structure, geotech, veining, mineralisation and alteration are recorded in detail using standard digital logging sheets and defined look up tables to ensure that all data is collected consistently. This data is logged using tablet computers. All data is validated by the logging geologist before being entered in an acQuire database. All drill holes are logged.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	Dry samples below transported cover are riffle split to obtain representative 1m samples (submitted when anomalous). The samples were recorded as dry, damp or wet. Sample duplicates were obtained by repeating the composite sampling process. All RC samples were sorted, dried, crushed to 10mm, pulverised to -75µm, split to produce a 25g charge or fire assay (1 m bottom of hole). HQ Diamond drill core was split using a diamond bladed saw into half core to be sent to the Geological Survey of Western Australia as per the EIS agreement. The remaining half core was split again into quarter core, with one quarter being sent for assay and the remaining quarter retained on site. Gold was analysed from a separate 50g charge and using fire assay.
Quality of assay data and laboratory	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is consideredpartial or	The gold was determined using a 50 g charge using fire assay (Au-AA26). For QAQC samples, a sequence of matrix matched certified reference materials, commercial certified reference materials and blanks were inserted into the sample run at a frequencyof approximatelyone in

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Criteria	JORC Code explanation	Commentary
tests	total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	14 samples. Sample sizes are considered to be appropriate for the style/texture of oxide and sulphide mineralisation at the Katanning Gold Project. CRM’s, field duplicates, blanks and standards were inserted approximately every 10m. Blank samples are inserted to check for contamination in field sampling, laboratory sample preparation and analysis. The blank material used should be below detection limits. The gold standards were sourced from Geostats Pty Ltd and RockLabs with gold certified values ranging between 0.10g/t and 2.4g/t. Standard reference materials are used to check accuracy and bias of the analytical method. The results were similar to the standard concentration for the specific standard. QAQC samples were monitored on a batch‐by‐batch basis. An assay batch is accepted if the blank samples are within the acceptable limits (5 times the lower detection limit) and the standards are within the + 3SD (standard deviations). One failed standard can cause rejection if the results around the failed standard are not in the normal grade range. A batch is also re‐assayed when assay results from two or more standards are outside the acceptable limits. The inserted blank materials did not show any consistent issues with sample contamination. 100% of the gold standards assays were within acceptable limits with no low or high bias. The performance of field duplicates in RC samples is generally reasonable and the variations are related to the style of mineralisation. ALS also insert QAQC samples to internally test the quality of the analysis. These results are received with the assay results in each batch. The ALS QAQC included standards, blanks and duplicates for independent quality control. The results of the lab standards were also monitored on a batch to batch basis by the data geologist. The results did not show any issues with the laboratory. The sample sizes are considered to be appropriate to correctly give an accurate indication of mineralisation given thequalitative nature of the technique and the style ofgold mineralisation sought.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	High standard QAQC procedures are in place (and will be audited), therefore repeatability issues from a QAQC point of view are not considered to be significant. Significant and/or unexpected intersections were reviewed by alternate company personnel through review of geological logging data, physical examination of remaining samples and review of digital geological interpretations. All assay data was accepted into the database as supplied by the laboratory. Data importation into the database is documented through standard operating procedures and is guided by acQuire import validations to prevent incorrect data capture/importation. Geological, structural and density determination data is directly captured in the database through a validation controlled interface using Toughbook computers and acquire database import validations. Primary data is stored in its source electronic form. Assay data is retained in both the original certificate (.pdf) form and the text files received from the laboratory. Data entry, validation and storage are discussed in the section on database integrity below. No adjustments to assaydata were undertaken.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations	Drillhole collars (and drilling foresight/backsight pegs) were set out and picked up by Ausgold personnel using a differential GPS; which provided +/- 100 millimetre accuracy. Thegrid system is MGA94 datum,UTM zone 50. Elevation values were in AHD.

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Criteria	JORC Code explanation	Commentary
	used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	An end of hole gyroscopic drill hole survey was completed by the drilling contractors using a Reflex tool. The gyro measured the first shot at 0m followed by every 10m down-hole. The data was examined and validated onsite by the supervising geologist. Any surveys that were spurious were re-taken. Validated surveys are entered into the acQuire data base bydata entry personnel.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	RC drilling was conducted on 40 and 80 by 100 or 160m spacing. BSDD016 was drilled as a twin drill hole with a 6m offset from BSRC0814. RC results reported are based on 1m samples for gold within the gneissic units and 4m composite samples through the quartz monzonite rocks.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	Angled RC drilling (-60 towards 224°) tested the east dipping Jinkas lode (40 – 50°) gneissic foliation as to minimise bias. Steeper drilling was conducted (- 80° dip) to test the orientation of Jinkas South high grade. At this stage primary mineralisation is assumed to have the same orientation as historic drilling in the area. The angled orientation of RC drilling may introduce sampling bias due to any unknown orientation of primary mineralisation/structures. This would be considered minimal as the mineralisation is largely foliation parallel.
Sample security	• The measures taken to ensure sample security.	RC samples are systematically numbered and placed in pre-printed (numbered) calico bags and placed into numbered polyweave bags which were tied securely and marked with flagging. Assay samples were stored at a dispatch area and dispatched, depending on the frequency of pickups and length of the program. Samples were shipped via Katanning Logistics directly to ALS in Perth. The sample dispatches were accompanied by supporting documentation signed by the geologist and showing the sample submission number, analysis suite and number of samples. The chain of custody is maintained by ALS once the samples are received on site and a full audit trail for every sample is available through the ALS’ Webtrieve application. Assay results are emailed to the responsible geology administrators in Perth and are loaded into the acQuire database through an automated process. QAQC on import is completed before the results are finalised.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	Before the commencement of the current RC program, the sampling process was fully reviewed and documented as a standard company process. A number of operational and technical adjustments were identified to improve validation of collected data, interpretation of data and management of QAQC practices. These improvements have been updated into standard operating procedures.

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Reported results are all from 100% owned Ausgold Exploration Pty Ltd Mining Tenements (wholly owned subsidiary of Ausgold Limited) M 70/488. The land is used primarily for grazing and cropping. The tenement is in good standing, and all work is conducted under specific approvals from the Department of Mines and Petroleum (“DMP”). Apart from reserved areas, rights to surface land use are held under freehold titles. Ausgold has entered into access and compensation agreements with freehold landowners that permit exploration activities. Written consent under section 18(3) for Jinkas Hill dated 24 January 2018 was granted by Honourable Ben Wyatt MLA to disturb and remove the registered Aboriginal Heritage Site 5353 known as “Jinkas Hill” which is located on the eastern side of the Jinkas Pit.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	Gold mineralisation was discovered by Otter Exploration NL in 1979 at Jinkas Hill, Dyliabing, Lone Tree and White Dam after following up stream sediment anomalies. Between 1984 and 1988 Otter and related companies evaluated the region with several other explorers including South West Gold Mines and Minasco Resources Pty Ltd. In 1987 Glengarry Mining NL purchased the project and in 1990 entered into a joint venture with Uranerz who agreed on minimum payments over three years to earn 50% interest. Uranerz withdrew from the project in 1991 after a decision by their parent company in Germany to cease Australian operations. International Mineral Resources NL (“IMR”) purchased the mining leases and the Grants Patch treatment plant from Glengarry Mining NL in 1995 and commenced mining at the Jinkas deposit in December 1995. Ausgold understands the mine was closed in 1997 after producing approximately 20,000 oz of gold from the Jinkas and Dingo Hill open cuts at a head grade of approximately 2.4g/t. In addition, the mine closure was brought about by a combination of the low gold price of the time (<US$400/oz) and the inability of the processing plant’s comminution circuit to process hard ore from below the base of weathering. Reports from the period indicate that the ore bodies were reasonably predictable in terms of grade and continuity and appeared to produce consistent and reproducible results from grade control (Ravensgate, 1999). Great Southern Resources Pty Ltd (“GSR”) purchased the mining and exploration leases from IMR in August 2000. Ausgold entered into a joint venture with GSR in August 2010, and the mineral titles were transferred to Ausgold in entirety in August 2011.
Geology	• Deposit type, geological setting and style of	The project includes two main deposit areas comprising Jinkas in the north, and Dingo in the south. The

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Criteria	JORC Code explanation	Commentary
	mineralisation.	Jinkas area is further subdivided into a set of mineralised zones. The majority of the project area is overlain by residual clays with outcrop mostly limited to remnants of lateritic duricrust on topographic highs. Gold mineralisation is hosted by medium to coarse-grained mafic gneisses which dip at around 30° to 45° towards grid east (68°). These units represent Archaean greenstones metamorphosed to granulite facies. The mineralised gneissic units are interlayered with barren quartz-monzonite sills up to approximately 120 metres thick and are cross cut by several Proterozoic dolerite dykes that post-date mineralisation and granulite metamorphism. Gold predominantly occurs as free gold associated with disseminated pyrrhotite and magnetite, lesser pyrite and chalcopyrite and traces of molybdenite. Thin remnant quartz veins are associated with higher grade zones.
Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Plans showing location of drill holes and location of significant results and interpreted trends are provided in the figures of report. Any new significant RC and diamond results are provided in tables within the report.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure usedfor such aggregation should be stated	All reported RC and diamond assays have been arithmetically length weighted. A nominal 0.3g/t Au lower cut- off is reported with internal waste intervals (i.e. <0.3 g/t) to not exceed the width of a 2m. Higher grade intervals within larger intersections are reported as included intervals and noted in results table. No top-cut off grades have been applied until more assay results become available to allow statistical determination.

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Criteria	JORC Code explanation	Commentary
	and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	The geometry of any primary mineralisation is not known at present due to the early stage of exploration. The angled orientation of RC drilling may introduce some sampling bias (increasing the intercept width of flat lying or vertical mineralisation). All intersections are subsequently presented as downhole lengths. If down hole length varies significantly from known true width then appropriate notes are provided.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Refer to figures
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Please see information provided in results tables in Report
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	At this stage there is no substantive exploration data from the recent drilling that is meaningful and material to report.
Further work	• The nature and scale of planned further work	Further work is discussed in the document in relation to the exploration results.

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Criteria	JORC Code explanation	Commentary
	(eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

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