Established gold producer Austral Gold Limited (Austral or the Company) (ASX: AGD; TSX-V: AGLD; OTCQB: AGLDF) announces updates to its loan arrangements with related parties.

A loan of up to US$3 million provided by Inversiones Financieras del Sur S.A. (“IFISA”), the Company’s largest shareholder, was announced on 15 September 2023 of which IFISA has funded US$2 million (“IFISA Loan 2”). Mr. Eduardo Elsztain and Mr. Saúl Zang, two of the Company’s directors, also loaned US$850,000 and US$150,000 respectively through loan agreements (“Mr. Elsztain and Mr. Zang Loan 2″) under the same terms as the IFISA Loan 2. It should also be noted that Mr. Elsztain has control over IFISA.

A US$1 million loan, announced 13 March 2023 from Mr. Elsztain and Mr. Zang (“Mr. Elsztain and Mr. Zang Loan 1″), has been extended to 31 March 2024.

The terms and conditions of the loan agreements are standard for facilities of this nature, are unsecured and are, in the view of the non-involved Austral directors, as favorable, if not more so, than if the parties were dealing at arm’s length. The cash received under the loans has been used for working capital purposes.

As of 31 December 2023, the breakdown of the unsecured related party loans, excluding accrued and unpaid interest, were as follows:

In addition, the Company and Republic Relations Pty Ltd. P (“Republic”) have mutually agreed to end Republic’s services as the Company’s investor relations advisor in Australia effective 31 January 2023.

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.