Ann: Quarterly Report and Appendix 5B, page-2

MEDIA RELEASE
Austral Gold Limited
31
October
2018
Austral Gold Reports Q
3
2018 Results
Austral Gold Limited (the “Company” (ASX: AGD; TSX
-
V: AGLD) is pleased to report results from
its activities during its
third
quarter ended 30
September
2018.
Stabro Kasaneva, CEO of Austral Gold said "
We are pleased
to confirm the stabili
s
ation of the
Guanaco/Amancaya mine complex by surpassing 15,000 of gold equivalent ounces of production
for a second consecutive quarter. Our main challenge remains the operation of the Casposo mine.
Production at Casposo continues to be below expectations
and we have commenced a
comprehensive review of the operational and business model.
We expect our cash and
A
ISC
to
continue to decrease in our fourth quarter
as we
focus on our continuous improvement strategy
.
”
K
ey Highlights:
•
Combined
gold
and
silver
production
(100%
basis*)
for
the
September
2018
quarter
was
21,788
gold
equivalent
ounces
(or
16,585 gold ounces and 423,180 silver ounces
).
This
represents
an
increase of 23% from the quarter ended 30 September 2017 and a decrease of 2% from the
quarter
ended 30 June
2018
.
•
During the quarter, production at the Guanaco/Amancaya mine complex (Chile) remained
stable
at 15,398 gold equivalent ounces (monthly average of 5,133 ounces)
while production at the
Casposo mine (Argentina) was lower than forecasted
a
t 6,390 gold equivalent ounces (monthly
average of 2,130 ounces)
due to continued setbacks at the underground mine.
•
Combined quarterly operating
cash cost (C1) and all
-
in
-
sustaining cost (AISC) improved from the
June 2018 quarter
by 10% to US$922 (Guanaco/
Amancaya:US$775; Casposo:US$1,274) and
6
%
to US$1,157 (Guanaco/Amancaya:US$930; Casposo:US$1,705) per gold equivalent ounce
respectively with average selling prices of US$1,214 per ounce of gold and US$14.6 per ounce of silver.
•
Revised
combined production
guidance
for
the
year
is
reduced to
88,000
-
90,000 gold
equivalent ounces from former guidance of
100,000
-
105,000
gold
equivalent
ounces (100%
basis*) due to
a reduction in the forecasted production at the Casposo Mine. The Company
has commenced a comprehe
nsive review of the Casposo operational and business model
and further details will be announced in due course.