NEWS .........June 2020KEY QUARTERLY HIGHLIGHTS • Continued sound financial performance following the upward trend of gold and silver prices that offset lower quarterly production due to a miners´ strike of 24 days and several precautionary measures taken to protect the health of our people to address the risk of the COVID-19 virus. • Quarterly production at Guanaco/Amancaya mines was 9,206 gold equivalent ounces (8,808 gold ounces and 42,227 silver ounces) – a ~50% decrease from the March 2020 and June 2019 quarters. YTD production totaled 26,302 gold equivalent ounces (24,984 gold ounces and 131,956 silver ounces). Despite the interruption to operations, we are still on track to achieve production at the lower end of our 2020 Guidance of 55,000-60,000 gold equivalent ounces. • Quarterly operating cash flow was US$7.9 million and US$9.7 million before and after changes in working capital respectively. Quarterly sales were 11,296 gold equivalent ounces and revenue of US$19.4 million. The average selling price was US$1,717/oz while the cost of sales per ounce was US$857/oz. • Cash & cash equivalents at quarter end was US$9.7 million, a 47% increase from the previous quarter ended March 2020, while gold and silver in inventory totaled 1,275 gold equivalent ounces at June 2020. • Reduction of consolidated net debt to US$3.2 million at 30 June 2020 from $7.2 million at 31 March 2020. JUNE 2020 Quarterly Activity Report 2 AUSTRAL GOLD QUARTERLY REPORT — JUNE 2020 • Quarterly cash cost of production (C1) was US$874/oz while the all-in-sustaining cost (AISC) equaled to US$1,255/oz. Increase in C1 and AISC from the quarters ended March 2020 and June 2019 were mainly due to the cost of settling the miners’ strike and the lower production. Adjusted quarterly June 2020 C1 and AISC, (which excludes the cost of settling the miners’ strike) were US$747/oz and US$1,080/oz respectively compared to C1 and AISC of US$685/oz and US$893/oz during March 2020. • Entered into an agreement with New Dimension Resources (TSXV:NDR) for the acquisition of the Sierra Blanca gold-silver project located in Santa Cruz, Argentina as announced on 1 April 2020. Expect to close in Q3 2020. • Executed the remaining two option agreements to increase our interest in Rawhide to 26.46%. Total cost was US$0.54 million. • Declaration of A$0.009 per share dividend to shareholders totaling approximately US$3.5 million. Dividend paid in July 2020. • All resolutions were passed at the Company’s 27 April 2020 Annual General Meeting. PRODUCTION • Guanaco/Amancaya gold and silver production during the quarter totaled 9,206 gold equivalent ounces (or 8,808 gold ounces and 42,227 silver ounces). The lower production compared to the March 2020 quarter (46% decrease) is mainly a result of the miners’ strike which shutdown the mine for approximately one month. • No output at Casposo is due to placing the mine on care and maintenance during the June 2019 quarter. • Rawhide gold and silver production (100% basis) during the quarter totaled 7,805 gold equivalent ounces (or 7,279 gold ounces and 44,739 silver ounces) a 56% increase from March 2020 production of 5,012 gold equivalent ounces (or 4,606 gold ounces and 34,558 silver ounces). The Company´s June 2020 quarterly share of production (25.31% basis during the June 2020 quarter) was 1,975 gold equivalent ounces (or 1,842 gold ounces and 11,321 silver ounces) compared to the March 2020 quarterly share of production (23.24% basis) of 1,165 gold equivalent ounces (or 1,071 gold ounces and 8,033 silver ounces)