Austral Gold Limited — Capital/Financing Update 2013

Oct 9, 2013

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MEDIA RELEASE

10 October 2013

Austral Gold to invest C$9.3 million in Goldrock Mines Limited – Additional Information

• Austral Gold to subscribe up to 11,560,000 new shares in TSX-V listed Goldrock Mines Corp Limited

• Austral Gold will hold up to 15% equity stake in Goldrock Mines Corp Limited (“Goldrock”)

• Placement made at C$0.80 per share

• Austral Gold also to be issued 1 new warrant for each new share subscribed at C$0.80 exercise price

• Goldrock Mines Corp’s flagship asset is the Lindero project in Argentina with proven reserves of 641,000 oz Au

• Transaction marks the next step in creating a leading South American-focused resource company

The Directors of Austral Gold Limited (ASX: AGD) are pleased to announce that the company has entered into a Subscription Agreement with Goldrock Mines Corp Limited (TSX-V: GRM) (“Goldrock”) where Austral Gold will subscribe for up to 11,560,000 new shares at C$0.80 per share for a total consideration of C$9.3 million. As part of the Subscription Agreement, Austral Gold will also be issued 1 new warrant for every new share subscribed with the warrants having a strike price of C$0.80 per warrant for a period of 60 month from closing.

Upon completion of the Subscription Agreement, which is anticipated to be closed by 31 October 2013, Austral Gold will hold up to 15% of Goldrock and will have the right to appoint one non-executive director to Goldrock’s Board and one member to Goldrock’s technical committee. Chad Williams, our consultant in Canada with wide experience in the Canadian market and mining sector, will be our nominee to Goldrock´s Board, while AGD Director, Stabro Kasaneva, who leads our management team with an impressive track record in mine construction and development, will be designated as a member of Goldrock´s Technical Committee.

In addition, the subscription agreement grants pre-emptive or anti-dilution rights to AGD, entitling AGD to participate in any future sales or equity offerings to maintain its pro-rata shareholding. With this investment, AGD will become the largest shareholder of Goldrock.

Goldrock holds 100% of the Lindero gold project located in northwest Argentina (Salta Province). The project has proven reserves of 641,000 oz Au and probable reserves of 878,000 oz Au at grades between 0.66 and 0.82 g/t Au.

Austral Gold Limited ABN 30 075 860 472 ASX:AGD Suite 206, 80 William St, Sydney NSW 2011 | T +61 2 9380 7233 | F +61 2 8354 0992 | info@australgold.com.au | www.australgold.com.au

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In May 2013 Goldrock announced the results of a feasibility study on the Lindero project estimating average production of 109,000 oz Au per year for the first 9 years of the mine life and total mine production of 1.037 million oz Au. The feasibility study calculated an after tax NPV of US$215 million based on a discount rate of 5% and a base gold price of US$1,400/oz.

Austral Gold’s Non-Executive Chairman Mr Eduardo Elsztain said: “This is an excellent transaction for Austral Gold and it marks the next step in our strategy of creating a leading South American-focused precious metals resource company. We are pleased to build a strong relationship with Goldrock, and gain access to the impressive Lindero gold development project located in the province of Salta where I have invested in other industries over many years. Our technical team is very encouraged by this project and its unlocked value, and once our initial investment is concluded, we will focus on working with Goldrock’s team to bring the project into production.

“As well as this transaction, we are continuing discussions with Argentex Mining Corporation around a possible business combination. These discussions are progressing well, and we see significant upside in our investment in Argentex.

“Austral Gold has now committed almost US$15 million into precious metals investments in South America in recent months. Our Guanaco gold mine in Chile continues to perform very well, and the free cash it generates gives us the financial flexibility to strengthen our portfolio of assets through equity investments and directly into new projects.”

Paul Matysek, President and CEO of Goldrock commented: “We are very pleased with this investment by Austral Gold and the resulting strategic relationship with an experienced Argentinean business partner. The Austral Gold team includes a number of high profile mining and financial professionals with extensive investment experience in Argentina in particular. In addition, this private placement has enabled Goldrock to take the next critical steps in the construction of Lindero, and significantly de-risks the project’s development schedule.”

Further details about Goldrock and the Lindero Project are available at www.goldrockmines.com

By order of the Board

Catherine Lloyd CFO & Company Secretary

Competent Person’s Statement

Dr Robert Trzebski is a Director of Austral Gold Limited. He has a Degree in Geology, a PhD in Geophysics, a Masters in International Project Management and has over 20 years professional experience in mineral exploration, project management and research and development.

Dr Robert Trzebski is a member of the Australian Institute of Mining and Metallurgy (AUSIMM) and qualifies 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 Robert Trzebski consents to the inclusion of the resources noted in this report.

Austral Gold Limited ABN 30 075 860 472 ASX:AGD Suite 206, 80 William St, Sydney NSW 2011 | T +61 2 9380 7233 | F +61 2 8354 0992 | info@australgold.com.au | www.australgold.com.au

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