Austral Gold Discusses Transition from Toll Processing Agreement

Austral Gold Limited, an established gold producer, is in discussions with Challenger Gold Limited to transition from a current toll processing agreement to a new arrangement that would see Austral purchase mineralized material from Challenger’s Hualilan Project. The discussions are ongoing and are not related to Austral's toll-processing performance.

During the recent toll campaign, Casposo, Austral’s processing facility, processed 39,342 tonnes of Hualilan material in May and June 2026. The processing achieved recovery rates above 85%, exceeding the maximum threshold for the variable incentive fee stipulated in the Toll Processing Agreement. Tolling fees for the May and June 2026 campaign have been fully received, as have the fixed monthly fees for July and August 2026. Casposo continues to process its own material and does not expect a material financial impact in the current period from not processing mineralized material under the Tolling Agreement.

Any new arrangement is expected to be non-exclusive, allowing Casposo to blend third-party mineralized material with its own ore. Austral is also evaluating additional third-party processing and mineralized material purchase opportunities in the San Juan region, where Casposo is one of the few permitted and operating processing facilities. The company will update the market if and when a binding agreement is entered into.

Stabro Kasaneva, Austral Gold’s Chief Executive Officer, stated, "We are exploring new opportunities to enhance our portfolio and ensure long-term growth. The discussions with Challenger Gold are part of our strategic approach to diversify our sources of mineralized material and strengthen our position in the San Juan region."

Austral Gold continues to advance its portfolio of producing and exploration assets, with a focus on production, exploration, and equity investments. The company’s growth strategy includes building a portfolio of quality assets in the Americas.