Vancouver, British Columbia--(Newsfile Corp. - June 19, 2017) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) ("Austral" or
the "Company") announces that its wholly-owned Chilean subsidiary Guanaco Compañía Minera S.P.A has secured a U.S. $5,000,000
credit facility for its Chilean operations from BAF Latam Credit Fund, an unrelated third party lender. The credit facility is
secured by a guarantee from the Company, as well as against a corresponding proportion of the receipts of doré sales from the
Guanaco mine in Chile. Amounts drawn against the credit facility are to be repaid within eighteen months.
The delay in energizing a new transmission line delayed the commissioning of the agitation leach plant at the Company's Guanaco
mine, and the Company has secured this debt facility in order to ensure the availability of working capital until the new plant
commences full operations. As announced in the June 6 news release, the energization of the line has now been approved by the grid
authorities and ramp up testing at the plant has commenced. The company is expecting full operations to start by the end of the
month.
About Austral Gold
Austral Gold Limited is a growing precious metals mining, development and exploration company building a portfolio of quality
assets in Chile and Argentina. The Company's flagship Guanaco project in Chile is a low-cost gold and silver producing mine with
further exploration upside. The Company is also operator of the underground silver-gold Casposo mine in San Juan, Argentina, where
it has 70% ownership. With an experienced local technical team and highly regarded major shareholder, Austral's goal is to continue
to strengthen its asset base through acquisition and discovery. Austral Gold Limited is listed on the TSX Venture Exchange (TSXV:
AGLD), and the Australian Securities Exchange (ASX: AGD). For more information, please consult the company's website www.australgold.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
On behalf of Austral Gold Limited:
"Stabro Kasaneva"
CEO
For Further Information Please Contact:
Alison Crealy
info@australgold.com.au
+61 2 9380 7233
José Bordogna
jose.bordogna@australgold.com
+54 11 4323 7550
Forward Looking Statements
Statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements are
statements that are not historical, and consist primarily of projections - statements regarding future plans, expectations and
developments. Words such as "expects", "intends", "plans", "may", "could", "potential", "should", "anticipates", "likely",
"believes" and words of similar import tend to identify forward-looking statements. Forward-looking statements in this news release
include the Company's expectation that the facility will support ongoing operations until the new plant commences and full
operation to start by the end of the month. All of these forward-looking statements are subject to a variety of known and unknown
risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied,
including, without limitation, business integration risks; uncertainty of production, development plans and cost estimates,
commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations, the state of the
capital markets, uncertainty in the measurement of mineral reserves and resource estimates, Austral's ability to attract and retain
qualified personnel and management, potential labour unrest, reclamation and closure requirements for mineral properties;
unpredictable risks and hazards related to the development and operation of a mine or mineral property that are beyond the
Company's control, the availability of capital to fund all of the Company's projects and other risks and uncertainties identified
under the heading "Risk Factors" in the Company's continuous disclosure documents filed on ASX and SEDAR. You are cautioned that
the foregoing list is not exhaustive of all factors and assumptions which may have been used. Austral cannot assure you that actual
events, performance or results will be consistent with these forward-looking statements, and management's assumptions may prove to
be incorrect. Austral's forward-looking statements reflect current expectations regarding future events and operating performance
and speak only as of the date hereof and Austral does not assume any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. For the
reasons set forth above, you should not place undue reliance on forward-looking statements.
