Austral Gold Limited
Annual Report 2024

Plain-text annual report

Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD OTQB: AGLDF Level 5, 137-139 Bathurst Street, Sydney NSW 2000 | info@australgold.com | www.australgold.com MEDIA RELEASE 28 March 2025 Austral Gold Files 2024 Annual Report Established gold producer Austral Gold Limited’s (Austral or the Company) (ASX: AGD; TSX- V: AGLD; OTCQB: AGLDF) is pleased to announce that it has filed its Annual Report for the year ended 31 December 2024 (“FY24”). The complete Report is available under the Company’s profile at www.asx.com.au, www.sedarplus.ca and on the Company’s website at 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. Release approved by the Chief Executive Officer of Austral Gold, Stabro Kasaneva. For additional information please contact: David Hwang Jose Bordogna Joint Company Secretary Chief Financial Officer and Joint Company Secretary Austral Gold Limited Austral Gold Limited david@confidantpartners.com jose.bordogna@australgold.com +61 433 292 290 +61 466 892 307 ASX: AGD | TSXV: AGLD OTCQB: AGLDF info@australgold.com https://australgold.com Austral Gold Limited ABN 30 075 860 472 Level 5, 137-139 Bathurst Street Sydney NSW 2000 Unique Value Proposition for Gold Production, Exploration and Investments in the Americas www.australgold.com Annual Report for the year ended 31 December 2024 TABLE OF CONTENTS Corporate Directory 4 Value Proposition 6 Chair’s Letter 10 Key Principles 12 Mineral Reserves and Resources 18 Review of Activities 26 Directors’ Report 34 Financial Statements 62 Directors’ Declaration 106 Auditor’s Independence Declaration 107 Independent Auditor’s Report 108 Additional Information 116 Austral Gold Limited 2 Annual Report 2024 Austral Gold Limited 3 Annual Report 2024 KEY MANAGEMENT Stabro Kasaneva Chief Executive Officer and Executive Director Rodrigo Ramirez* Former Vice President of Operations Jose Bordogna Chief Financial Officer and Joint Company Secretary DIRECTORS Eduardo Elsztain Chair & Non-Executive Director Saul Zang Non-Executive Director Pablo Vergara del Carril Non-Executive Director Stabro Kasaneva Chief Executive Officer and Executive Director Robert Trzebski Independent Non-Executive Director Ben Jarvis Independent Non-Executive Director COMPANY SECRETARY David Hwang Joint Company Secretary Confidant Partners REGISTERED OFFICE Level 5 137-139 Bathurst Street Sydney NSW 2000 Tel: +61 2 9380 7233 Email: info@australgold.com Web: www.australgold.com OTHER OFFICES Santiago, Chile Lo Fontecilla 201 of. 334 Santiago, Chile Tel: +56 (2) 2374 8560 Buenos Aires, Argentina Bolivar 108 Ciudad de Buenos Aires (1066) Argentina Tel: +54 (11) 4323 7500 Fax: +54 (11) 4323 7591 Vancouver, Canada 170-422 Richards Street Vancouver, BC V6B 2Z4 Tel: +1 604 868 9639 SHARE REGISTRIES Computershare Investor Services Australia GPO Box 2975 Melbourne VIC 3001 Tel: 1300 850 505 (within Australia) Tel: +61 3 9415 5000 (outside Australia) Computershare Investor Services Canada 510 Burrard Street, 2nd Floor Vancouver, BC V6C 3B9 Tel: +1 604 661 9400 Fax: +1 604 661 9549 AUDITORS KPMG www.kpmg.com.au LISTED Australian Securities Exchange ASX: AGD TSX Venture Exchange TSXV: AGLD OTC Bulletin Board OTCQB: AGLDF PLACE OF INCORPORATION: Western Australia CORPORATE DIRECTORY * no longer a KMP effective 1 July 2024 Austral Gold Limited 4 Annual Report 2024 Austral Gold Limited 5 Annual Report 2024 VALUE PROPOSITION GOLD PRODUCTION Profitable operations delivering positive cash flow since 2012. Installed production capacity with two agitation and heap leaching plants in Argentina and Chile GOLD EXPLORATION Targeting high and low sulfidation epithermal gold and silver deposits in a high-quality land portfolio. Strategically located in well-known gold mineral endowments in the Americas. MINING INVESTMENTS Expanding exposure through equity investments in public and private mining companies. Seeking strategic alliances with other mining companies to leverage and accelerate growth. Austral Gold Limited 6 Annual Report 2024 UNIQUE EXPOSURE TO GOLD PRODUCTION EXPLORATION AND INVESTMENTS IN THE AMERICAS Austral Gold Limited 7 Annual Report 2024 MINING PORTFOLIO LOCATED IN RICH MINERAL ENDOWMENTS Operations Equity investment SOUTH AMERICA TRIASSIC CHOIYOI BELT, ARGENTINA Casposo-Manantiales Mine Complex 100% Ownership Target to restart the Casposo Plant during 2nd half of 2025 PALEOCENE BELT, CHILE Guanaco-Amancaya Mine Complex 100% Ownership Production | Exploration DESEADO MASSIF, ARGENTINA Unico Silver 5.2% Ownership Cerro Leon and Joaquin Exploration Projects Austral Gold Limited 8 Annual Report 2024 Austral Gold Limited 9 Annual Report 2024 LETTER FROM NON-EXECUTIVE CHAIR EDUARDO ELSZTAIN Non-Executive Chair Austral Gold Limited 10 Annual Report 2024 This report outlines our efforts to generate value for stakeholders and provides an update on our three strategic pillars: Produc- tion, Exploration, and Equity Investments. Our commitment to the well-being of our employees and communities, coupled with the promotion of the highest health, safety, and environmental standards underpins all our activities. In FY24, we remained committed to advancing our two 100% owned operational clusters in Argentina and Chile. At our flagship Guanaco/Amancaya project in Chile, we navigated challenges while continuing the transition from the Amancaya underground mine operations to the new Heap Reprocessing Project (the Heaps Project). Meanwhile, at the Casposo/Manantiales cluster in Argen- tina, we issued an updated Mineral Resource Estimate(1) and, near the end of the year, we commenced plans to refurbish the Casposo Plant as we entered into a toll treatment agreement with ASX- listed Challenger Gold Limited to commence operations during the second half of 2025. Another key highlight of FY24 was the continued support from the Company’s financial lenders and related parties, who renewed all existing facilities and provided additional funding with extended terms. This strengthened the Company’s financial debt maturity profile and, together with the monetisation of certain equities from our investment portfolio provided liquidity, reducing net current liabilities from US$23.7 million as of 31 December 2023 to US$5.8 million as of 31 December 2024. A summary of our performance by strategic pillars is as follows: Production: Looking at the numbers, in FY24, Guanaco/Aman- caya delivered total production of 15,573 gold-equivalent ounces (GEOs), generating an adjusted gross profit of US$6.8 million with an 18.5% margin (excluding depreciation and amortization). While production was lower than our initial FY24 guidance, profitability slightly exceeded FY23 figures of US$6.6 million (13.7% margin) when production reached 24,879 GEOs. The variance in produc- tion for FY24 compared to initial guidance was primarily due to a prolonged delay by a supplier in repairing the HRC 800 equip- ment, a critical component of the heap leaching processing line. This impacted the expected contribution from the Heaps Project in FY24, resulting in actual production of 4,694 GEOs. Despite this challenge, the Company successfully integrated the agitation and leaching production lines, slightly mitigating the impact of the HRC 800 delay. Regarding our second operational cluster, Casposo/Manantiales in Argentina, we continued to evaluate various scenarios for a poten- tial restart of operations. In parallel, we initiated plans to refurbish the processing plant, with the goal of commencing operations in the second half of 2025, to enable Austral to process mineralised material from Challenger’s 100%-owned Hualilán Project over a three-year term under the toll treatment agreement executed by the end of 2024. Exploration: On the exploration front, our focus was on Argen- tina, where we successfully completed and issued an updated Mineral Resource Estimate for the Casposo/Manantiales mine site. This estimate was prepared by an independent Qualified Person in accordance with NI 43-101 and JORC (2012) standards. The consolidation of Casposo’s mineral resource inventory marks a significant step towards our plans for restarting mining operations. Equity Investments: In FY24, our primary focus regarding equity investments was on maintaining our position in ASX-listed Unico Silver Limited, a silver development company with assets in Argen- tina, including Austral’s former Pinguino project. This investment, initially made in FY23, continued to be a key part of our portfolio. Throughout FY24, our broader equity investments played a crucial role in securing necessary funding for the Company through the sale of equity holdings in CSE, TSXV, and ASX-listed companies. Outlook: Looking ahead to FY25, we project total production of 18,000 to 20,000 GEOs from the Guanaco/Amancaya mine site, with approximately 80% to be sourced from the Heaps Proj- ect. Additionally, we expect to complete the refurbishment of the Casposo plant and restart operations in the second half of the year. We expect 2025 to be a transformational year for Austral, with our strategic goals for the operational clusters in Argentina and Chile focused on delivering sustainable production and positive cash flows for the Company. Additionally, we are optimistic about the business environment, driven not only by strong fundamentals in metals prices but also by renewed interest in Argentina and the opportunities for growth and development in its mining sector. We are proud to celebrate 2025 as our 15th consecutive year of production at the Guanaco/Amancaya mine site, which began in late 2010. We would like to sincerely express our gratitude to our shareholders for their unwavering support, to our employees, led by CEO Stabro Kasaneva, as well as to our suppliers, contractors, communities, and Board members for their invaluable contribu- tions throughout the year. Yours sincerely, EDUARDO ELSZTAIN Non-Executive Chair ON BEHALF OF THE BOARD OF DIRECTORS OF AUSTRAL GOLD LIMITED (“AUSTRAL” OR THE “COMPANY”), I AM PLEASED TO PRESENT OUR ANNUAL REPORT FOR THE FI- NANCIAL YEAR ENDING 31 DECEMBER 2024 (“FY24”). (1) NI 43-101 Technical Report on Mineral Resources Estimate on the Casposo Mine Department of Calingasta, San Juan Province, Argentina issued 19 July 2024, prepared by Qualified Person Marcos Valencia FAusIMM, Registered Member ChMC Austral Gold Limited 11 Annual Report 2024 KEY PRINCIPLES Austral Gold Limited 12 Annual Report 2024 BE SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE AND STRIVE TO REDUCE SAFETY RISKS AND OPERATING COSTS BE THE PREFERRED PARTNER FOR COMMUNITIES, GOVERNMENTS AND COMPANIES TO OPERATE AND EXPLORE PRECIOUS METAL PROJECTS IN THE AMERICAS MAXIMISE VALUE CREATION FOR STAKEHOLDERS Austral Gold Limited 13 Annual Report 2024 PATHWAY TO AN ESTABLISHED GOLD PRODUCER 600,000 500,000 400,000 300,000 200,000 100,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 Acquired Guanaco Project Started UG Mining at Guanaco Acquired Casposo Mine and re-started operations Development of Guanaco Project Acquired Amancaya Project Started Open Pit and Heap Leaching Operations at Guanaco CONSISTENT JOURNEY DELIVERING PRODUCTION + 10 YEARS | + 500,000 GOLD OUNCES PRODUCED Austral Gold Limited 14 Annual Report 2024 2017 2018 2019 2020 2021 2022 2023 2024 Acquired Exploration Rights of Manantiales Property adjacent to Casposo Started Mining at Amancaya Completed Construction of the Heap Reprocessing project at Guanaco- Amancaya Updated Mineral Resource Estimate of Casposo/ Manantiales Extended Guanaco- Amancaya LOM to 2033 (10 Years) * Placed Casposo on Care & Maintenance Constructed Agitation Leaching Plant at the Guanaco-Amancaya Cluster Launched Drilling Program at Casposo- Manantiales with the strategic objective to restart operations * See notes to the mineral resources & ore reservesa statement on page 21 Austral Gold Limited 15 Annual Report 2024 STRONG M&A TRACK-RECORD 2013 2014 2016 2017 2019 15% Private Placement in Goldrock Mines 20% Private Placement in Argentex Mining 51% Acquisition of Casposo Mine from Troy Resources Friendly takeover of Argentex Mining Secondary listing of Aus- tral on the TSXV Sold interest in Goldrock Mines Acquisition of remaining interest in Casposo Mine  22% Private Placement in Rawhide mine  (Nevada, US) Acquisition of Amancaya Project from Yamana Gold Acquisition of U/G mining contractor Purchase of Kinross NPI Royalty on Guanaco Acquisition of two Projects from Revelo Resources (stock transaction) Additional 19% Acquisition of Casposo Mine PATHWAY TO AN ESTABLISHED GOLD PRODUCER + 10 YEARS | + 500,000 GOLD OUNCES PRODUCED Austral Gold Limited 16 Annual Report 2024 2020 2021 2022 2023 2024 Earn-in Agreement to acquire up to 100% of the Sierra Blanca project adjacent to Pinguino  Agreement to enter into a JV with Mexplort to ex- plore projects in the Indio Belt (San Juan province, Argentina) plus an earn- in agreement to acquire 50% of the Jaguelito Project Realised gains from the sale of equity investments in CSE listed (Pampa Met- als), TSXV-listed Revival Gold, and privately held Sierra Blanca, as well as partial sales of ASX-listed Unico Silver (Unico) shares, retaining a 5.2% holding at the end of FY24. Executed Toll Agreement with ASX-listed Chal- lenger Gold to process mineralised material from their Hualilan Project at Casposo’s plant Friendly takeover of Revelo Resources (stock and cash transaction) ~20% Private Placement in Ensign Minerals (Utah, US) Completed the sale of SCRN Properties (owner of Pinguino) to ASX listed Unico Silver Limited for approx. US$10M comprising cash, shares and options Austral Gold Limited 17 Annual Report 2024 MINERAL RESERVES AND RESOURCES GUANACO-AMANCAYA (CHILE) TABLE 1: SUMMARY OF MINERAL RESERVES 31 December 2024 Tonnes Grade Contained Metal Classification (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Guanaco and Amancaya Underground Proven - - - - - Probable - - - - - P + P - - - - - Inesperada Open Pit Proven - - - - - Probable 1,607 1.05 14.39 54 744 P + P 1,607 1.05 14.39 54 744 Heap Reprocessing Project Heap Proven 9,305 0.66 3.16 198 946 Probable - - - - - P + P 9,305 0.66 3.16 198 946 Total Total Proven 9,305 0.66 3.16 198 946 Total Probable 1,607 1.05 14.39 54 744 Total P + P 10,912 0.72 4.82 252 1,690 See notes to Mineral Reserves on page 21. Austral Gold Limited 18 Annual Report 2024 TABLE 2: SUMMARY OF MINERAL RESOURCES 31 December 2024 Tonnes Grade Contained Metal Classification (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Guanaco and Amancaya Underground Measured 562 2.65 12.91 48 233 Indicated 943 2.57 17.01 78 516 M + I 1,505 2.60 15.48 126 749 Inferred 350 4.15 8.25 47 93 Insperada Open Pit Measured - - - - - Indicated 1,682 1.05 14.38 57 778 M + I 1,682 1.05 14.38 57 778 Inferred 74 0.91 12.40 2 30 Heap Reprocessing Project Heap Measured 10,482 0.66 3.09 223 1,042 Indicated - - - - - M + I 10,482 0.66 3.09 223 1,042 Inferred 1,907 0.55 2.64 34 162 Total Total Measured 11,044 0.76 3.59 271 1,275 Total Indicated 2,625 1.60 15.33 135 1,294 Total M + I 13,669 0.92 5.84 406 2,569 Total Inferred 2,331 1.10 3.79 83 285 See notes to Mineral Resources on page 21. Austral Gold Limited 19 Annual Report 2024 TABLE 3: SUMMARY OF MINERAL RESERVES 31 December 2023 Tonnes Grade Contained Metal Classification (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Guanaco and Amancaya Underground Proven 2 2.81 5.32 0 0 Probable 3 4.26 8.34 0 1 P + P 5 3.74 7.27 0 1 Inesperada Open Pit Proven - - - - - Probable 1,607 1.05 14.39 54 744 P + P 1,607 1.05 14.39 54 744 Heap Reprocessing Project Heap Proven 10,082 0.67 3.15 217 1,022 Probable - - - - - P + P 10,082 0.67 3.15 217 1,022 Total Total Proven 10,084 0.67 3.15 217 1,022 Total Probable 1,611 1.06 14.38 55 745 Total P + P 11,694 0.72 4.70 272 1,767 See notes to Mineral Reserves on page 21. Austral Gold Limited 20 Annual Report 2024 TABLE 4: SUMMARY OF MINERAL RESOURCES 31 December 2023 Tonnes Grade Contained Metal Classification (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Guanaco and Amancaya Underground Measured 586 2.66 12.69 50 239 Indicated 947 2.60 17.06 79 520 M + I 1,533 2.62 15.39 129 759 Inferred 350 4.15 8.25 47 93 Insperada Open Pit Measured - - - - - Indicated 1,682 1.05 14.38 57 778 M + I 1,682 1.05 14.38 57 778 Inferred 74 0.91 12.40 2 30 Heap Reprocessing Project Heap Measured 11,259 0.67 3.09 242 1,118 Indicated - - - - - M + I 11,259 0.67 3.09 242 1,118 Inferred 1,907 0.55 2.64 34 162 Total Total Measured 11,845 0.77 3.56 292 1,357 Total Indicated 2,630 1.61 15.35 136 1,298 Total M + I 14,474 0.92 5.70 428 2,655 Total Inferred 2,331 1.10 3.79 82 284 Notes to Mineral Reserves: 1. Mineral Reserves follow CIM (2014) definitions and are compliant with the JORC Code. 2. Mineral Reserves are reported on a 100% ownership basis and estimated at the following cut-off grades: • Amancaya: break-even cut-off grade of 3.04 g/t AuEq, and marginal cut-off grades of 2.37 g/t AuEq and 1.37 g/t AuEq for SLS stopes and drifts respectively. • Inesperada - pit discard cut-off grade of 0.40 g/t Au. • Heap Leach Pads - Marginal cut-off grades for Heap Reprocessing have been estimated as 0.20 g/t Au and 0.15 g/t Au for Heaps I and Heap II respectively, and at zero cut-off for Heaps III. 3. Mineral Reserves are estimated using an average long term gold price of US$1,700/oz and silver price of US$22/oz. 4. Amancaya AuEq was calculated as AuEq = Au + 0.0110 x Ag, based on prices of US$1,700/oz Au and US$22/oz Ag and recoveries of Au and Ag of 93% and 79%, respectively. 5. The following parameters were used for the Amancaya Mineral Reserve estimate: • A minimum mining width of 1.5 m was used for SLS stopes and 3.5 m for drifts. • Stope dilution: 0.5 m in the hanging wall and 0.5 m in the footwall (1.0 m total). • Drift dilution: 0.25 m in each of the side walls (0.5 m total). 6. Metallurgical recovery is 93% for gold and 79% for silver. 7. Bulk density is 2.5 t/m3. 8. The following parameters were used for the Inesperada Mineral Reserve estimate: • Dilution and mining recovery factors of 0% and 100% respectively were applied. • Metallurgical recovery is 80% for gold. • Bulk density is 2.44 t/m3. 9. The following parameters were used for the Mineral Reserve estimate for the Guanaco Heaps: • Heap Leach Pad I: maximum of 5% dilution. The average dilution over the LOM is 3.5%. Dilution grades are 0.18 g/t Au and 1.50 g/t Ag. • Heap Leach Pad II: maximum of 5% dilution. The average dilution over the LOM is 2.5%. Dilution grades are 0.13 g/t Au and 1.40 g/t Ag. • Heap Leach Pad III: All internal dilution within the heap limits was included. 10. Metallurgical recoveries for Heaps I, II, and II are 54%, 70%, and 46% for gold respectively. 11. Bulk density is 1.77 t/m3 for Heap I, 1.50 t/m3 for Heap II, and 1.70 t/m3 for Heap III. 12. Numbers may not add due to rounding. Notes to Mineral Resources: 1. Mineral Resources followed CIM (2014) definitions and are compliant with the JORC Code. 2. Mineral Resources are reported on a 100% ownership basis. 3. Mineral Resources are inclusive of Mineral Reserves. 4. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 5. Mineral Resources are estimated at the following cut-off grades: • Amancaya and Guanaco underground Mineral Resources: 2.90 g/t AuEq and 1.50 g/t AuEq, respectively. • Inesperada open pit Mineral Resources: 0.38 g/t Au. • Heap Leach Pads Mineral Resources: zero cut-off grade – the entire volume is included. 6. Mineral Resources at Guanaco and Amancaya are estimated using a long-term gold price of US$1,750/oz and a silver price of US$22/oz. Mineral Resources at Inesperada and Heap Leach Pads are estimated using a long-term gold price of US$1,750/oz. 7. Gold equivalency (AuEq) was calculated as follows: • Guanaco: AuEq = Au + 0.0106 x Ag based on a gold and silver price of $1,750/ oz and $22/oz respectively and recoveries of gold and silver of 95% and 80%, respectively. • Amancaya: AuEq = Au + 0.0107 x Ag based on a gold and silver price of $1,750/oz and $22/oz respectively and recoveries of gold and silver of 93% and 79%, respectively. 8. Metallurgical recoveries are 93% for gold and 79% for silver for Amancaya, 95% for gold and 80% for silver for Guanaco, 80% for gold for Inesperada, and 54%, 70%, and 46% for gold for Heaps I, II, and II, respectively. 9. A minimum mining width of 1.5 m is used for resource underground shapes for the Amancaya and Guanaco mines. 10. Bulk densities are 2.5 t/m3 for Amancaya and Guanaco, 2.44 t/m3 for Inesperada, and 1.77 t/m3 for Heap I, 1.50 t/m3 for Heap II, and 1.70 t/m3 for Heap III, respectively. 11. Numbers may not add due to rounding. Austral Gold Limited 21 Annual Report 2024 NOTES TO THE MINERAL RESOURCES & ORE RESERVES STATEMENT Guanaco and Amancaya Mines The SLR Qualified Persons (QPs) for the Amancaya and Guanaco Reserve and Resource Estimates include: Stephan R. Blaho, MBA, P.Eng., SLR Principal Mining Engineer, Orlando Rojas, MAIG, SLR Associate Principal Geologist, Rodrigo Barra, MAIG, SLR Associ- ate Principal Geologist, Varun Bhundhoo, ing., SLR Project Mining Engineer, Andrew P. Hampton, M.Sc., P.Eng., SLR Principal Metal- lurgist, and Luis Vasquez, M.Sc., P.Eng, SLR Senior Environmental Consultant and Hydrotechnical Engineer. The Mineral Resources and Reserves are classified and reported in accordance with CIM (2014) definitions as incorporated in NI 43-101, as well as JORC 2012, within the Guanaco and Amancaya Gold Project, Region II, Chile, dated 25 March, 2022, with an effective date of 31 Decem- ber 2021. The Company confirms that the form and context in which the CP’s findings are presented have not been materially modified from the original market announcement, except for the depletion of mineral resources in 2022, 2023 and 2024. The Company ensures that the Ore Reserves and Mineral Resource Estimates are subject to appro- priate levels of governance and internal controls. Governance of the Company’s Ore Reserves and Mineral Resources development and the estimation process is a key responsibility of the Executive Management of the Company. The Chief Executive Officer of the Company oversees the review and technical evaluations of the Ore Reserves and Mineral Resource estimates. Competent Persons Statement The information in the report to which this statement is attached that relates to the depletion of Mineral Resources is based upon information compiled by Guillermo Valdés, a Competent Person (CP 0475) who is a registered member of the Comision Calificadora de Competencias en Recursos y Reservas Mineras. Guillermo Valdés has sufficient experience that is relevant to the type of deposit and the mining methods of exploitation under consider- ation and to the activity being undertaken to qualify as a Compe- tent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Explora tion Results, Mineral Resources and Ore Reserves’. Guillermo Valdés consents to the inclusion in the report of matters based on his information in the form and context in which it appears. The information in the report to which this statement is attached that relates to Ore Reserves is based upon information is based on work supervised, or compiled on behalf of Robert Trzebski, a Non-Executive Director of the Company. Dr. Trzebski, holds a degree in Geology, PhD in Geophysics and is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) who qualifies as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Robert Trzebski consents to the inclusion in the report of matters based on his information in the form and context in which it appears. Austral Gold Limited 22 Annual Report 2024 CASPOSO-MANANTIALES (ARGENTINA) TABLE 5: SUMMARY OF MINERAL RESOURCES 31 December 2024 Tonnes Grade Contained Metal Classification (000 t) (g/t Au) (g/t Ag) (g/t) AuEq (oz Au) (oz Ag) (oz AuEq) Casposo (including Manantiales) Open Pit Measured 15,600 3.89 92.39 5.04 1,949 46,338 2,528 Indicated 332,174 4.00 65.53 4.82 42,677 699,810 51,425 M + I 347,774 3.99 66.73 4.83 44,626 746,148 53,953 Inferred 119,233 10.80 23.90 11.10 41,419 91,610 42.654 Underground Measured - - - - - - Indicated 346,692 2.98 181.2 5.25 33,240 2,019,758 58,486 M + I 346,692 2.98 181.2 5.25 33,240 2,019,758 58,486 Inferred 543,059 3.75 74.94 4.69 65,542 1,308,238 81,895 Stockpile Heap Measured - - - - - - - Indicated 374,003 1.26 74.18 2.19 15,151 891,975 26,301 M + I 374,003 1.26 74.18. 2.19 15,151 891,975 26,301 Inferred - - - - - - - Total Total Measured 15,600 3.89 92.39 5.04 1,949 46,338 2,528 Total Indicated 1,052,869 2.69 102.69 4.02 91,067 3,611,554 136,212 Total M + I 1,068,469 2.71 106.48 4.04 93,016 3,657,882 138,740 Total Inferred 662,291 5. 02 65.74 5.85 106,961 1,399,848 124,459 Notes to Mineral Resources: • Effective date April 30, 2024 • Stationary domains were modelled according the lithological and structural continuities. • Mineral Resources were classified and reported in accordance with the NI 43-101. • Indicated Resources was declared under a grid pattern of 25 m in the strike direction and 25 m in the dip direction. • Mineral Resources are defined via optimization for open pit and stockpile. • A cut-off grade of 1.0 g/t AuEq was defined to mine Stockpiles. • A cut-off grade of 1.5 g/t AuEq was defined to Open Pit Mining Method. • A cut-off grade of 2.0 g/t AuEq was defined to Underground Mining Method beneath the open pit shells and optimized using the Vulcan Stope Optimizer. • Metallurgical recoveries were applied by deposit. • Selective Mining Unit were defined and built according to the underground optimization. Dilution has been incorporated into the SMU. • A bulk density of 2.5 ton/m3 has been applied to all domains in open pit and underground and 1.8 ton/m3 for stockpile. • Numbers may not add due to rounding. Austral Gold Limited 23 Annual Report 2024 NOTES TO THE MINERAL RESOURCES STATEMENT Casposo Mine The Technical Report for the Casposo Mine was prepared by Marcos Valencia FAusIMM, Registered Member ChMC, an Inde- pendent “Qualified Person” as defined by NI 43 101 (the “QP”). The scientific and technical information contained in this report release is extracted from the Technical Report. On 23 July 2024, the Technical Report to support the updated Mineral Resource estimates for the Casposo Mine, prepared in accordance with NI 43-101, was filed on the ASX at www.asx.com.au. And SEDAR+ (www.sedarplus.ca). Competent Persons Statement The information in the report to which this statement is attached that relates to Ore Reserves is based upon information is based on work supervised, or compiled on behalf of Robert Trzebski, a Non-Executive Director of the Company. Dr. Trzebski, holds a degree in Geology, PhD in Geophysics and is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) who qualifies as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Robert Trzebski consents to the inclusion in the report of matters based on his information in the form and context in which it appears. Austral Gold Limited 24 Annual Report 2024 Austral Gold Limited 25 Annual Report 2024 REVIEW OF ACTIVITIES REVIEW OF RESULTS For the Year Ended 31 December 2024 The following report on the review of results for the year ended 31 December 2024 (“FY24”) and 2023 (“FY23”) together with the consolidated financial report of Austral Gold Limited (the Company) and its subsidiaries (referred to hereafter as the Group) PRINCIPAL ACTIVITIES Produced 15,573 gold equivalent ounces at the Group’s Guanaco/Amancaya mine complex, integrating agitation and heap leaching processes, with gradual contributions from the new Heap Reprocessing Project, partially offsetting the depletion in production at the Amancaya underground mine HRC equipment, used in the Heap Reprocessing Project launched in 2023, was returned to Guanaco in Q4 2024 after prolonged repair delays from the supplier since Q1 2024 Issued an updated Mineral Resource Estimate for the Company’s 100% owned Casposo-Manantiales mine complex, prepared by an independent Qualified Person in accordance with NI 43-101 and JORC (2012) Executed a Toll Treatment Agreement with ASX-listed Challenger Gold Limited (“Challenger”) to process mineralised material from Challenger’s Hualilan project at Casposo’s Plant, in San Juan, Argentina Renewed all existing loan facilities and secured additional financing from banks and related parties, enhancing the Company’s financial debt maturity profile. This included a 2-year loan of up to US$7,000 thousand loan to refurbish the Casposo’s Plant Significant improvement of liquidity indicators, decreasing net current liabilities from US$23,685 thousand on 31 December 2023 to US$5,823 thousand at 31 December 31, 2024 Realised gains from the sale of equity investments in ASX and TSXV publicly listed mining companies, while maintaining a 5.2% interest in ASX-listed company Unico Silver Limited (“Unico”) There were no other significant changes in our principal activities during the year. All resolutions were passed at the Company’s 28 May 2024 Annual General Meeting. Austral Gold Limited 26 Annual Report 2024 SAFETY AND ENVIRONMENTAL PROTECTION Safety and environmental protection are core values of the Company. The implementation of best practice safety standards along with a sound risk management program are key priorities for Austral Gold. SAFETY For the year ended 31 December 2024, 2 lost-time accidents (LTAs) and 11 nil-lost-time accidents (NLTAs) were recorded among employees of Guanaco/Amancaya and third party contractors, while no LTAs or NLTAs occurred at Casposo/Manan- tiales during the same period. COMMUNITY ACTIVITIES Austral Gold has an extensive history of being a committed neighbor to the communities in which it operates. Our support to the communities surrounding our projects in Chile and Argentina focuses mainly on education programs as we believe that through education it is possible to improve citizens socio- economic conditions and contribute to the youth population and the overall community. ENVIRONMENTAL Guanaco/Amancaya The environmental monitoring program implemented includes meteorology, air quality, water quality, flora and fauna, and archaeology. There is also a meteorological station in Guanaco, independent from the air quality monitoring system. Monitoring of flora and fauna is conducted in Punta del Viento, Las Mulas and Pastos Largos approximately 30 km east of Guanaco. The results of the environmental monitoring campaigns are regularly submitted electronically to the Environmental Super- intendency (“SMA”) through the system set up in the SMA’s website to upload the information. In addition, the monitoring results are submitted to other government agencies such as the General Water Directorate. The Guanaco Amancaya mine complex is in an arid area with infrequent surface runoff resulting from precipitation. There is no discharge of water to the environment from the Guanaco/ Amancaya mine complex. The process plant, the heap leach pads, and the tailing storage facility (“TSF”) are operated as zero discharge facilities. The heap leach pads are operated as closed circuits. The freshwater supply to be used for industrial processes is required to offset evaporation losses. Currently the water supply is mostly groundwater pumped from two main wells. There are two additional small wells (for a total of four) that provide small volumes of water. The water collected from the wells is a small fraction of the total freshwater supply. Flow monitoring is conducted at three locations in the area where freshwater is taken from the natural ponds/creeks resulting from spring water, which encompasses three sectors: Punta del Viento, Las Mulas and Pastos Largos. Flow monitoring is also conducted at the groundwater supply wells. Water quality monitoring is conducted at five groundwater monitoring wells located down- stream of the heap leach pads and the tailing storage facility. There is no discharge of water to the environment from the Amancaya site. Freshwa- ter is required only for road irrigation (dust suppression) and domestic consumption. Currently the freshwater supply is obtained by pumping water from one groundwater well and conveying it by gravity through HDPE pipes. Flow monitoring is conducted at the water supply well. Water quality monitoring is conducted at four groundwater moni- toring wells located down- stream of the Amancaya site. Water for domestic use is treated in potable treatment plants installed at both Guanaco and Amancaya. Sanitary wastewa- ter is sent to sewage treatment plants, and the treated effluent is used for road irrigation and operation of drilling equipment for exploration activities. Casposo/Manantiales The environmental monitoring program at the Casposo/ Manantial complex also includes meteorology, air quality, water quality, flora and fauna, and archaeology. A dedicated meteorological station operates at Casposo, independent of the air quality monitoring system. Flora, fauna, and fish populations are monitored within the project area, while flow monitoring is conducted at four loca- tions: Río Castaño, Río Los Patos, Río San Juan, and Verti- ente 6. This work is undertaken by the Water Institute of the Universidad Nacional de San Juan. The tailings deposit is subject to ongoing monitoring by the Seismology Institute of the National University of San Juan, with additional semi-annual assessments by a surveyor engi- neer to detect any positional changes. Casposo also conducts monthly water well monitoring, with qualitative analysis performed by an external laboratory. In January 2025, updates V and VI of the Environmental Impact Assessment (EIA) were approved. Casposo received the ISO 14001 certification for its Environmental Management Plan in 2012. Austral Gold Limited 27 Annual Report 2024 REVIEW OF RESULTS OF OPERATIONS A summary of key operating results for FY24 and FY23 are set out in the following tables for comparative purposes. KEY OPERATIONAL INDICATORS Guanaco/Amancaya Operations Year ended 31 December 2024 2023 Safety Indicators Lost-Time Accidents (LTA) 2 7 Non-Lost-Time Accidents (NLTA) 11 11 Mining Mined Ore (t) 28,567 239,356 Agitation Leaching Process Processed (t) 325,251 343,835 Plant Grade Mine (g/t Au) 2.45 2.79 Plant Grade Heap (g/t Au) 1.03 1.47 Plant Grade Mine (g/t Ag) 7.01 8.83 Plant Grade Heap (g/t Ag) 3.40 3.74 Gold recovery rate (%) 84.67 92.76 Silver recovery rate (%) 59.86 76.32 Gold produced (Oz) 10,594 22,676 Silver produced (Oz) 24,373 69,388 Gold-Equivalent produced (Oz)(1) 10,879 23,504 Heap Leaching Process Gold produced (Oz) 4,544 1,336 Silver produced (Oz) 12,781 3,232 Gold-Equivalent produced (Oz) 4,694 1,375 Total Production Gold produced (Oz) 15,138 24,012 Silver produced (Oz) 37,154 72,620 Gold-Equivalent produced (Oz) 15,573 24,879 C1 Cash Cost of Production (US$/AuEq Oz)(2) 1,943 1,645 All-in Sustaining Cost (US$/Au Oz)(3) 2,164 2,004 Realised gold price (US$/Au Oz) 2,358 1,942 Realised silver price (US$/Ag Oz) 28 23 Gold Equivalent sales volume 15,605 24,578 1. (AuEq) ratio is calculated at: 85.4:1 for FY24 and 83.8:1 Ag:Au for FY23 2. The cash cost (C1) includes: Mine, Plant, On-Site G&A, Smelting, Refining, and Royalties (excludes Corporate G&A). It is the cost of production per gold equivalent ounce. 3. The All-in Sustaining Cost (AISC) includes: C1, Sustaining Capex, Brownfield Exploration, and Mine Closure Amortisation 4. Composition of the cash cost (C1) and All-in Sustaining Cost (AISC) are provided on page 29 Austral Gold Limited 28 Annual Report 2024 Cash Costs of Production (C1) refer to the direct expenses incurred during the production of gold and silver. These costs are typically reported on a per-ounce basis while All in Sustaining costs (AISC) provides a comprehensive view of the total costs included with gold and silver production and includes C1 plus sustaining costs to maintain ongoing mining operations. KEY OPERATIONAL INDICATORS Cash Cost of Production (C1) and All-in Sustaining Cost (AISC) Breakdown Expressed in USD per GEO(1) Year ended 31 December 2024 2023 Mining 235 700 Plant 1,265 557 Geology, engineering, and laboratory 93 123 Onsite general and administration 230 240 Smelting and refining 52 27 Royalties and taxes 62 48 Inventory movement 3 (52) Other 3 2 Cash Cost (C1) 1,943 1,645 Reclamation & Remediation amortisation 16 1 Sustaining capital expenditure 30 218 Other administration costs 85 56 Financial leases 90 84 All in Sustaining costs (AISC) 2,164 2,004 1. Gold Equivalent Ounce KEY FINANCIAL RESULTS Thousands of US$ Year ended 31 December 2024 2023 Revenue 36,790 47,729 Gross profit 3,557 546 Gross profit % 9.7% 1.1% Adjusted gross profit (excluding depreciation and amortisation) 6,797 6,557 Adjusted gross profit % (excluding depreciation and amortisation) 18.5% 13.7% Adjusted earnings 3,862 4,174 Adjusted earnings per share (basic and fully diluted) 0.63c 0.68c Loss before income tax (32,209) (7,951) Loss attributed to owners of the Company (27,068) (7,229) Loss attributed to non-controlling interests (6) (14) Loss per share (basic and fully diluted) (4.42) c (1.18) c Comprehensive loss (27,022) (7,242) Note: Adjusted earnings and basic adjusted earnings per share are non-IFRS measures that the Company considers to better reflect normalised earnings as it eliminates items that in management’s judgment are subject to volatility as a result of factors which are unrelated to operations in the period, and readers are cautioned that Adjusted earnings may not be comparable to similar measures presented by other companies. Further, readers are cautioned that Adjusted Earnings should not replace profit or loss or cash flows from operating, investing and financing activities (as determined in accordance with IFRS), as an indicator of the Company’s performance. Austral Gold Limited 29 Annual Report 2024 ADJUSTED EARNINGS Thousands of US$ Year ended 31 December 2024 2023 Loss before income tax (32,209) (7,951) Depreciation and amortisation(1) 3,272 6,048 Impairment loss on mine properties 2,550 - Impairment loss on property plant and equipment 16,705 - Impairment loss on exploration and evaluation expenditure 8,836 3,981 Other (income)(2) Gain on sale of subsidiary (91) (1,964) Gain on sale and revaluation of financial assets (1,724) (1,033) Gain on sale of equipment (654) (46) Equipment rental (8) (222) Other(3) (381) (466) Other expenses(4) Care and maintenance(7) 2,096 2,125 Loss on fair value of financial assets - 992 Rawhide option and due diligence expenses - 617 Other 1,880 669 Finance income(5) Interest income (101) (140) Present value adjustment to mine closure provision - (36) Finance costs(6) Interest expense 3,392 1,395 Present value adjustment to mine closure provision 299 - Present value adjustment to GST/VAT receivable - 145 Share of loss of associates - 60 Adjusted Earnings 3,862 4,174 1. Includes US$18 thousand and US$14 thousand (2023: US$18 thousand and US$19 thousand) of depreciation and amortisation included in Care and maintenance in Other Expenses (note 8) and Administration (note 9) respectively 2. Note 7 to the financial statements 3. Reconciles with note 7 to the financial statements 4. Note 8 to the financial statements 5. Excluding depreciation and amortisation 6. Note 10 to the financial statements 7. Note 11 to the financial statements Austral Gold Limited 30 Annual Report 2024 Thousands of US$ Year ended 31 December 2024 2023 Cash and cash equivalents 3,590 1,261 Current assets 20,177 17,357(2) Non-current assets 52,913 87,149 Bank overdraft 199 222 Current liabilities 26,000 41,042 Non-current liabilities 32,725 21,891 Net assets 14,365 41,573 Net current liabilities (5,823) (23,685) Current loans and borrowings 5,433 13,540 Non-current loans and borrowings 19,901 2,568 Current lease liabilities 677 1,169 Non-current lease liabilities 385 1,143 Combined debt (bank overdraft, loans, borrowings and lease liabilities) 26,595 18,642(2) Combined net debt (net of cash and cash equivalents) 23,005 17,381(2) Current ratio(1) 0.8 0.4 Total liabilities to net assets 4.1 1.5 1. Current Assets divided by Current Liabilities 2. Changes from disclosure in the FY23 annual report. For details of changes, see note 39 of the financial statements OPERATING AND FINANCIAL RESULTS OF THE GROUP(1) During FY24, the Group realised a loss before and after income tax of US$32,209 thousand (FY23: $7,951 thousand) and US$27,074 thousand (FY23:US$7,243 thousand), respectively. Sales revenues from operations totaled US$36,790 thousand compared to US$47,729 thousand in FY23. The gross profit (including depreciation and amortisation) increased to US$3,557 thousand (9.7% margin) in FY24 compared to US$546 thousand (1.1% margin) in FY23, while the gross profit margin (excluding depreciation and amortisation) increased to 18.5% in FY24 compared to 13.7% in FY23. The increase in gross profit and margin was mainly due to higher sales prices, partially offset by higher costs of production. The Group’s results during FY24 were also impacted by the following: i. A non-cash impairment of US$16,705 thousand on property plant and equipment (FY23: US$nil), as the Company impaired the remaining book value attributed to the Amancaya underground mine due to the decision to temporarily cease operations in that area. ii. A non-cash impairment of US$8,836 thousand on exploration and evaluation expenditure (FY23: US$3,981 thousand), primarily due to the impairment on the Jaguelito project and three properties that were part of the acquisition of Revelo Resources Corp. in 2021. The FY 23 expense was mainly due to the impairment of the Morros Blancos project as a result of the expiry of the option agreement with CSE-listed Pampa Metals Corporation and the implementation of a rationalisation plan to reduce non-core explo- ration areas in Chile. iii. A non-cash impairment of mine properties of US$2,550 thousand (FY 2023-US$nil) due to the temporary stoppage of production at the Amancaya underground mine. The amount related to exploration and evaluation expenditure that were transferred to mine properties when the mine started production. iv. Increase in FY24 administration costs by US$184 thousand to US$6,329 thousand (FY23:US$6,145 thousand) mainly due to higher staff costs due to severance, partially offset by a decrease in office and utility costs. v. Decrease in other income by US$873 thousand to US$2,858 thousand (FY23: US$3,731 thousand). FY24 other income was primarily due to a realised and unrealised gain of US$1,724 thousand (FY23: US$1,033 thousand) from the sale and increase in the value of equity securities of publicly listed mining companies and US$654 thousand (FY23: US$46 thousand) realised from a gain on sale of equipment. FY23 other income was primarily due to a US$1,964 thousand gain resulting from the sale of SCRN Properties Ltd. to Unico and a US$1,012 revaluation of equity securities (note 19 to the financial statements). vi. Decrease in other expenses by US$520 thousand to US$4,266 thousand (FY23: US$4,786 thousand) mainly due to the following: a. FY23 Rawhide option agreement and due diligence expenses of US$617 thousand. The takeover option was not exercised. b. Increase in other costs by US$1,184 thousand to US$1,581 thousand in FY24 (FY23: US$397 thousand) primarily due to the Group’s decision to terminate the agreement with the Amancaya underground contractor and to terminate an agreement with another contractor responsible for the maintenance of mining equipment. Austral Gold Limited 31 Annual Report 2024 vii. Decrease in finance income by US$531 thousand to US$3,753 thousand (FY23: US$4,284 thousand) primarily due to a US$456 thousand decrease in foreign exchange gains to US$3,652 thousand (FY23: US$4,108 thousand). Foreign exchange gains in both fiscal years resulted from the apprecia- tion of the US dollar versus the Argentine and Chilean curren- cies. viii. Increase in finance costs by US$2,151 thousand to US$3,691 thousand (FY23: US$1,540 thousand) was primarily due to interest expense of US$3,392 thousand (FY23:US$1,395 thousand). The interest expense was higher mainly due to an increase in the amount of loans and borrowings of the Group during FY24. The cost of production (“C1”) per GEO increased to US$1,943 for FY24, compared to US$1,645 for FY23, while the all-in sustain- ing cost (“AISC”) per GEO increased to US$2,164 for FY24 from US$2,004 for FY23. Production in FY24 was lower than FY23, with higher production costs per GEO in FY24, mainly due to delays by the Company’s supplier in repairing the HRC 800 equipment used in the heap leaching production line. FINANCIAL POSITION(1) The Group held cash and cash equivalents of US$3,590 thousand at 31 December 2024 (2023: US$1,261 thousand) or US$4,886 thousand (2023: US$2,803 thousand) when combined with the fair value of 490 unsold and unrefined gold equivalent ounces in inven- tory of US$1,296 thousand (2023: 742 unrefined gold equivalent ounces with a fair value of US$1,542 thousand). Trade and other receivables (current and non-current) increased by US$1,291 thousand to US$4,774 thousand at 31 December 2024 (31 December 2023:US$3,483 thousand). The increase was mainly due to the recognition of US$2,000 thousand of the initial fee due under the Toll Processing Agreement with ASX-listed Challenger Gold Limited, received in January 2025 as described in further detail in note 33. Additionally, during FY24, the Group received the third cash instalment of US$750 thousand from Unico following the sale of SCRN Properties Ltd. in 2022, a former subsidiary of the Group whose major asset was the Pingüino exploration project. Other financial assets (current and non-current) decreased by US$2,702 thousand to US$3,383 thousand at 31 at December 2024 (31 December 2023:US$6,085 thousand) mainly due to the sale of Unico and Revival Gold Inc. (formerly Ensign Minerals Inc.) shares. At 31 December 2024, the Group’s financial assets primar- ily consisted of shares and options of Unico. Inventories decreased by US$995 thousand to US$8,704 thou- sand at 31 December 2024 (31 December 2023: US$9,699 thou- sand) mainly due to a decrease in ore stockpiles, mainly at the Guanaco mine. In addition, gold and bullion in process decreased as explained in the disclosure above on cash and cash equivalents. Mine properties decreased by US$4,864 thousand to US$1,395 thousand at 31 December 2024 (31 December 2023: US$6,259 thousand) primarily due to the impairment of US$2,550 as disclosed above, and a decrease in the provision for reclamation and rehabilitation at the Guanaco mine. Property, plant and equipment decreased by US$19,561 thousand to US$30,055 thousand at 31 December 2024 (31 December 2023: US$49,616 thousand) primarily due to the impairment at the Amancaya Underground as discussed in Operating and Financial results of the Group. Exploration and evaluation expenditure decreased by US$8,435 thousand to US$19,459 thousand at 31 December 2024 (31 December 2023: US$27,894 thousand) mainly due to the impair- ment of exploration projects described above. Current trade and other payables decreased by US$7,503 thou- sand to US$14,783 thousand at 31 December 2024 (31 December 2023: US$22,286 thousand. The reduction in payables was mainly due to an increase in related party borrowings to repay outstand- ing payables, a decrease in the value of the Chilean peso versus the US dollar, minimal operations at the Amancaya underground mine and fewer exploration activities in 2024. Payables were also impacted by lower than expected cash flow generated due to lower than forecasted production, primarily due to a delay in ramping up production at the Heap Reprocessing Project. This delay was caused by the Company’s supplier taking longer to repair the HRC 800 equipment used in the heap leaching production line. Deferred revenue was US$2,000 thousand at 31 December 2024 (US$nil at 31 December 2023). As disclosed in note 33 to the financial statements, this amount (received in January 2025) shall be returned to Challenger if the Casposo plant is not ready for commercial operations on or before July 31, 2025, other than for delays or any other matters beyond the Company’s control; and/or the Technical Committee determines, after conducting all relevant studies and testing, that less than 70% of the Material from the Hualilan Project processed at the Plant will be recovered; Net current liabilities decreased by US$17,862 thousand to US$5,823 (31 December 2023: US$23,685 thousand). The decrease from 31 December 2023 was mainly due to an increase in non-current borrowings which enabled the Group to reduce its trade and other payables. In addition, the Group expects its current net liability position to continue to improve in FY25 mainly due to an increase in production at higher margins. Combined net financial debt (loans, borrowings, lease liabilities and bank overdraft net of cash and cash equivalents) increased by US$5,624 thousand to US$23,005 thousand at 31 Decem- ber 2024 (31 December 2023: US$17,381 thousand). Financial debt totaled US$26,595 thousand at 31 December 2024, of which US$6,309 thousand (representing 25% of total financial debt) was categorised as short-term. The short-term financial debt includes US$1,606 thousand of US$12,396 thousand of related party loans, lease liabilities, bank overdraft and the short-term portion of a 2-year and 4-year bank loan. Net assets decreased by US$27,208 thousand from 31 December 2023 to US$14,365 thousand at 31 December 2024 (31 December 2023: US$41,573 thousand) following the net loss of the year. Austral Gold Limited 32 Annual Report 2024 CASH FLOW(1) Operating activities before and after changes in working capi- tal generated a net cash inflow of US$1,420 thousand (FY23: US$3,910) and a net cash outflow of US$6,492 thousand (FY23: inflows of US$8,132), respectively, during FY24. The variation was primarily due to lower cash generated from operations following a reduction in production and the repayment of overdue accounts payable using longer-term debt financing secured during the year. Net cash provided by investing activities totaled US$5,030 thou- sand during FY24 (FY23:US$12,425 thousand used in) mainly due to the following: • Proceeds of US$4,742 thousand (FY23:US$22 thousand) primarily from the sale of equity securities described above, including the sale of 5,458,833 Unico shares to Mr Elsztain, a director of Austral Gold, the sale of 963,323 Unico shares to Mr Zang, also a director of Austral Gold, and the sale of 8,139,023 Unico shares to its largest shareholder, Inversiones Financieras del Sur SA (IFISA), of which Mr. Elsztain and Mr Zang are also directors and shareholders, for US$2,950 thousand, and the sale of 6,941,865 Revival Gold Inc. shares for proceeds of US$1,396 thousand. • Investments of US$434 thousand in FY24 were primarily used for additions to plant, property and equipment (FY23:US$11,283 thousand including US$5,633 thousand on the Heap Repro- cessing Project); • Exploration and evaluation activities of US$928 thousand of which US$641 were incurred on the Casposo and Manantia- les district and US$286 thousand on projects in the Guanaco district (FY23:US$4,614 thousand of which US$2,943 thousand was incurred on the Jaguelito project and US$917 thousand was incurred at the Casposo-Manantiales district). Net cash generated from financing activities totaled US$3,814 thousand during FY24, (FY23: US$4,406). During FY24, the Group received net proceeds from loans and borrowings of US$7,554 thousand, compared to US$7,178 thousand in FY23. 1. Certain 2023 amounts in the consolidated profit or loss and other comprehensive income, the consolidated statement of financial position and consolidated statement of cash flows have been restated as disclosed in note 39 to the financial statements. LIQUIDITY AND CAPITAL RESOURCES Access to capital The Group maintains strong banking relationships, as demon- strated by continued financial support. During the year, the company successfully renewed and extended the maturity profile of its financial debt, including securing a two-year, US$7,000 thou- sand loan from a local Argentine bank to refurbish the Casposo Plant. Additionally, the Group has benefited from a supportive share- holder base, which provided debt funding of US$8,516 thousand as disclosed in more detail in note 27 to the financial statements, during FY24 as well as purchased a portion of the Group’s equity investments for US$1,670 thousand. The Group expects both its banking partners and shareholders to continue their financial support. Going Concern The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and settlements of liabilities in the ordinary course of business in accordance with the business plan for the 2025-2026 period approved by the Board (the Business Plan). The Directors have assumed that the Group will have suffi- cient cash to pay its debts as and when they become payable, for a period of at least 12 months from the date the financial report was authorised for issue. Notwithstanding this view, there remains a material uncertainty as to whether the Group can continue to operate as a going concern due to the combined effect of the following uncertainties: • the Group’s ability to generate cash inflows from operations as forecast based on the aforementioned gold prices, production volumes, and cash costs over the forecast period; • the Group’s ability to repay contractually overdue amounts to its suppliers whilst also remaining compliant with new contractual commitments arising from new trade payables associated with ongoing operations; and • the timing and amount of proceeds that can be sourced from the sale of equity investments, if needed. Further disclosure is provided in Note 3 to the financial statements. Austral Gold Limited 33 Annual Report 2024 DIRECTORS’ REPORT The Company’s Board believes that a highly credentialed Board, with diverse backgrounds, skills and perspectives, will be effective in supporting and enabling delivery of strong governance for the Company and creating value for the Company’s shareholders. The Board brings a broad mix of experience and skills to the Company including in the areas of corporate governance, legal, geological expertise and financial management. Austral Gold Limited 34 Annual Report 2024 Austral Gold Limited 35 Annual Report 2024 Mr. Eduardo Elsztain is Chair of IRSA Inversiones y Repre- sentaciones S.A. (NYSE:IRS), one of Argentina’s largest and most diversified real estate companies, comprising shop- ping centers, premium office buildings, five-star hotels and residential developments. He also serves as Chair of Cresud (NASDAQ:CRESY) and BrasilAgro (NYSE:LND), leading Latin American agricultural companies; and of financial institutions Banco Hipotecario S.A. (BASE: BHIP) and BACS. He is member of the World Economic Forum, the Council of the Americas, the World Jewish Congress and Argentina’s Busi- ness Association (AEA). He is President of Fundacion IRSA, which promotes education among children and young people, and Co-Founder of Endeavor. Mr. Elsztain was recently appointed as Non-Executive Chair of ASX-listed Challenger Gold Limited, effective 4 March 2025. Mr. Elsztain has not held any other Directorships with Austra- lian or Canadian listed companies in the last three years. Director since 29 June 2007 Appointed Chair 2011 until August 2020 when he became Vice Chair after Mr. Wayne Hubert was appointed Chair. Re-appointed Chair on 30 May 2023 and on 28 May 2024 THE DIRECTORS EDUARDO ELSZTAIN Chair Austral Gold Limited 36 Annual Report 2024 Mr. Kasaneva is a Geologist with a degree from the Universidad Católica del Norte, Chile and has over 30 years of experience in production geology, exploration and management of precious metal mining operations. Since Mr. Kasaneva joined Austral Gold in 2009, he has been instrumental in transforming the Company by consolidating the operations of the Guanaco Mine in Chile, restarting opera- tions at the Casposo Mine in Argentina as well as identifying a number of opportunities that represent the growth potential for Austral Gold. Throughout his career as a geologist, he worked on exploration and production gaining vast experience in grade control, QA/ QC, modeling and geological resources estimation. Mr. Kasaneva led Business Development Departments for several years evaluating a number of mining business oppor- tunities in South America, Central America and North America. He has held the roles of General Manager of Mining Operations, Vice-President of Operations and COO. Mr. Kasaneva has not held any Directorships with Australian or Canadian listed companies in the last three years. Director since 7 Oct 2009 Appointed COO until appointment as Chief Executive Officer August 2016 Mr. Zang obtained a law degree from Universidad de Buenos Aires. He was a founding member of the law firm Zang, Bergel & Viñes. Mr. Zang is an adviser and Member of the Board of Directors of the Buenos Aires Stock Exchange and provides legal advice to national and international companies. Mr. Zang currently holds: i. Vice-Chairships on the Boards of IRSA (NYSE: IRS, BASE: IRSA), and Cresud (NASDAQ: CRESY, BASE: CRES) ii. Directorships with Banco Hipotecario (BASE: BHIP), Brasil Agro (NYSE: LND, BVMF:AGRO3), among others. Mr. Zang has not held any other Directorships with Australian or Canadian listed companies in the last three years. Director since 7 Jun 2007 STABRO KASANEVA Executive Director, Chief Executive Officer SAUL ZANG Non-Executive Director Austral Gold Limited 37 Annual Report 2024 THE DIRECTORS Mr. Jarvis is the Managing Director of Six Degrees Investor Rela- tions, an Australian advisory firm that provides investor relations services to a broad range of companies listed on the Australian Securities Exchange. Mr. Jarvis was educated at the University of Adelaide where he majored in Politics. Mr. Jarvis is a non-executive director of Aguia Resources Limited (ASX:AGR) and Freehill Mining Limited (ASX:FHS) and he was a non-executive director of QX Resources Limited (ASX:QXR) until his resignation effective 27 October 2023. Mr. Jarvis has not held any other Directorships with Australian or Canadian listed companies in the last three years. Director since 2 Jun 2011 Mr. Vergara del Carril is a lawyer and is professor of Post- graduate Degrees for Capital Markets, Corporate Law and Business Law at the Argentine Catholic University. He is a member of the International Bar Association, the American Bar Association and the AMCHAM, among other legal and business organisations. He is a founding Board member of the Australian-Argentinean Chamber of Commerce. He is a Board member of the Argentine Chamber of Corporations and also an officer of its Legal Committee. He is recognised as a leading lawyer in Corporate, Real Estate, M&A, Banking & Finance and Real Estate Law by international publications such as Chamber & Partners, Legal 500, Interna- tional Financial Law Review, Latin Lawyer and Best Lawyer. He is a Director of Banco Hipotecario SA. (BASE: BHIP), Nuevas Fronteras (owner of the Intercontinental Hotel in Buenos Aires), and Emprendimiento Recoleta SA (owner of the Buenos Aires Design Shopping Centre), among other companies. Mr. Vergara del Carril is also a Director of Guanaco Mining Company Limited and Guanaco Capital Holding Corp. Mr. Vergara del Carril has not held any other Directorships with Australian or Canadian listed companies in the last three years. Director since 18 May 2006 BEN JARVIS Non-Executive Director, Member of the Audit Committee PABLO VERGARA DEL CARRIL Non-Executive Director, Member of the Audit Committee Austral Gold Limited 38 Annual Report 2024 Dr. Trzebski holds a degree in Geology, PhD in Geophys- ics, Masters in Project Management and has over 30 years of professional experience in mineral exploration, project management and mining services. He is currently the Director International Business of Aust- mine Ltd. As a fellow of the Australian Institute of Mining and Metallurgy, Dr. Trzebski also acts as the Competent Person (CP) for the Company’s announcements. Dr. Trzebski is a non-executive director of Lake Resources NL (ASX: LKE; OTC: LLKKF). Dr. Trzebski has not held any other Directorships with Austra- lian or Canadian listed companies in the last three years. Director since 10 Apr 2007 ROBERT TRZEBSKI Non-Executive Director, Chair of the Audit Committee Austral Gold Limited 39 Annual Report 2024 SENIOR MANAGEMENT DAVID HWANG Confidant Partners, Joint Company Secretary Mr. David Hwang is a Joint Company Secretary of Austral Gold. Mr Hwang is a corporate lawyer, company secretary and advisor to Boards and management of ASX listed entities. Mr Hwang is the Managing Direc- tor of Confidant Partners, which provides ASX compliance, corporate legal, company secretarial and Board advisory services. Previously, Mr. Hwang was a senior executive at a leading integrated technology solu- tions and professional services provider, where he led Australia’s largest outsourced company secretarial and legal team. Joint Company Secretary since 3 July 2024 JOSÉ BORDOGNA Chief Financial Officer and Joint Company Secretary Mr. Bordogna joined Austral Gold in 2013 as Controller and was promoted to CFO in 2016. Since then, he has overseen all corporate finance and account- ing activities, including equity and direct investments in mining related assets, listing the company on the TSX-V, amongst others. Mr. Bordogna is a Certified Public Accountant and holds a Global Executive MBA (IE Business School) and a Master of International Business (The Univer- sity of Sydney). He is also CFA charter holder. Prior to joining Austral Gold, he worked for the International Finance Corpora- tion (IFC) and Deloitte in Latin America. He has over 15 years’ experience in corporate finance, M&A, investment banking and accounting roles. Mr. Bordogna is a non-executive director of Unico Silver Limited (ASX: USL). Chief Financial Officer from August 2016 until his resignation on 28 February 2022 and his reappointment effective 1 May 2022 Austral Gold Limited 40 Annual Report 2024 DIRECTORS’ MEETINGS The number of Directors’ meetings (including meetings of Commit- tees of Directors) and number of meetings attended by each of the Directors of the Company during the financial year were: Directors’ meetings Audit Committee meetings Director A B A B Pablo Vergara del Carril 4 4 3 4 Robert Trzebski 4 4 4 4 Eduardo Elsztain 4 4 N/A N/A Saul Zang 4 4 N/A N/A Stabro Kasaneva 4 4 N/A N/A Ben Jarvis 4 4 4 4 A: Number of meetings attended B: Number of meetings held during the time the Director held office during the financial year SHARES AND OPTIONS At the date of this report there are no options over the Company’s ordinary shares. During or since the end of the financial year, the Company has not granted options over its ordinary shares. INDEMNITY AND INSURANCE OF OFFICERS Under a deed of access, indemnity and insurance, the Company indemnifies each person who is a Director, secretary or officer of Austral Gold Limited against: • any liability (other than for legal costs) incurred by a Director, secretary or officer in his or her capacity as an officer of the Company or of a subsidiary of the Company; and • reasonable legal costs incurred in defending an action for a liability incurred or allegedly incurred by a secretary in his or her capacity as an officer of the Company or of a subsidiary of the Company. The above indemnities: • apply only to the extent the Company is permitted by law to indemnify a Director, officer or secretary; • are subject to the Company’s constitution and the prohibitions in section 199A of the Corporations Act; and • apply only to the extent and for the amount that a Director, secretary or officer is not otherwise entitled to be indemnified and is not actually indemnified by another person (including a related body corporate or an insurer). INDEMNITY AND INSURANCE OF AUDITOR • The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. • During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. REMUNERATION REPORT (AUDITED) Remuneration Policy The full Board of Austral Gold is responsible for determining remu- neration policies in respect of executives and Key Management Personnel (KMP). The Company has a Remuneration Policy that aims to ensure the remuneration packages of Directors and senior executives properly reflect the person’s duties, responsibilities and level of performance, as well as ensuring that remuneration is competitive in attracting, retaining and motivating people of the highest quality. The level of remuneration is based on market rates and is not directly linked to the market value of the shares of Austral Gold. At the most recent Annual General Meeting of the Company held on 28 May 2024, 82.58% of votes cast at the meeting were in favour of the adoption of the Remuneration Report. Remuneration information for KMP is reported in US Dollars (US$). All contractual arrangements for non-executive Directors and the Chair are denominated in US Dollars. The contractual arrange- ments for the Senior Executive KMP, are denominated in the local currency of the jurisdiction in which the Senior Executive KMP are employed. The level of remuneration for non-executive Directors is consid- ered with regard to the practices of other public companies and the aggregate amount of fees paid to non-executive Directors approved by shareholders. The executive directors do not receive fees for being a director. Total compensation for all non-executive directors, last voted on by shareholders at the 2020 AGM, is not to exceed US$400,000 per annum. The director fee for the Chair is US$100,000 per annum. Director fees for other non-executive directors are US$50,000 per annum. Non-executive directors do not receive performance-related compensation and are not provided with retirement benefits except for statutory superannuation for Australian KMP, including direc- tors. Total KMP remuneration was US$1,257,389 in FY24 (US$1,616,011 in FY23). Senior Executives KMP have not received any cash bonus performance payments which they are entitled to for FY24, FY23 and FY22. Additionally, the director fees for of non-executive directors Mr. Elsztain for the years FY21-FY24, and Mr. Zang for part of FY21 and for the years FY22-FY24, and Mr. Vergara del Carril for part of FY23 and FY24 also remain unpaid. Austral Gold Limited 41 Annual Report 2024 The Key Management Personnel (KMP) during or since the end of the financial year were: The Directors of the Group: • Eduardo Elsztain Non-Executive Chair • Saul Zang Non-Executive Director • Pablo Vergara de Carril Non-Executive Director • Robert Trzebski Non-Executive Director • Ben Jarvis Non-Executive Director • Stabro Kasaneva Chief Executive Officer and Director Other Executive KMP of the Group: • Rodrigo Ramirez Vice President of Operations (no longer a KMP effective 1 July 2024)1 • José Bordogna Chief Financial Officer Remuneration of KMP The Group has employment agreements with all KMP executives in accordance with the laws in the jurisdiction in which the KMP is employed. Remuneration of executive KMP is made up of a fixed component and a variable (at risk’) component. Performance is assessed by the Board of Directors and CEO accordingly against financial and non-financial indicators including production, safety, cost of production, sustaining capital investments, new business and value accretive investments amongst others. The award of the variable component is fully discretionary as detailed in the `Contractual Arrangement with Senior Executive KMP in the “31 December 2024” table. Link Between Remuneration and Performance The Group aims to align its executive remuneration to its strategic and business objectives and the creation of shareholder value. The table below shows the measures of the Group’s financial performance over the last 5 financial years as required by the Corporations Act 2001. 12 months ended 31 December 2020 12 months ended 30 June 2021 12 months ended 31 December 2022 12 months ended 31 December 2023 12 months ended 31 December 2024 Sales Revenue (US$’000) 88,223 64,390 49,710 47,729 36,790 Profit/(loss) before tax (US$’000) 14,335 (4,686) (9,581) (7,951) (32,209) Basic EPS (US cents per share) 1.36 (1.20) (1.35) (1.18) (4.42) Diluted EPS (US cents per share) 1.34 (1.20) (1.35) (1.18) (4.42) Share price (cents AUD/CDN) 21.0/22.0 8.5/8.0 3.9/3.5 2.9/3.0 2.2/2.5 Dividend (AUD per share) 0.009 0.008 - - - 1. Change in Key Management Personnel (KMP) Classification: During the first half of 2024, Mr. Ramirez was classified as a KMP, primarily managing the Amancaya underground operations. With the gradual reduction and outsourcing of these activities and the completion of the Heap Reprocessing Project’s construction phase, the responsibility for ongoing production oversight transitioned to the CEO, resulting in Mr. Ramirez no longer being classified as a KMP effective 1 July 2024. Austral Gold Limited 42 Annual Report 2024 Details of Remuneration Details of the nature and amount of each major element of the remuneration of each Director of the Group and each of the Senior Executive KMP of the Group during the financial year were: Twelve month period ended 31 December 2024 Primary Post-employment Share-based Total Cash and accrued Salary and Fees US$ Accrued Cash Bonus US$2 Non- monetary benefits US$4 Super- annuation US$ Retirement/ Termination benefits US$ Other long-term benefits Equity settled Shares US$ Options US$ US$ Directors Non-executive directors E Elsztain6 100,000 - - - - - - - 100,000 S Zang6 50,000 - - - - - - - 50,000 R Trzebski 44,942 - 3,695 5,058 - - - - 53,695 B Jarvis 44,942 - - 5,058 - - - - 50,000 P Vergara del Carril6 50,000 - - - - - - - 50,000 Total non- executive director remuneration 289,884 - 3,695 10,116 - - - - 303,695 Executive Director S Kasaneva2 356,893 87,062 7,905 - - - - - 451,860 Total Director remuneration 646,777 87,062 11,600 10,116 - - - - 755,555 Other Key Executives R. Ramirez2,3 143,167 34,469 14,556 - - - - - 192,192 J. Bordogna2,5 228,162 52,521 4,231 18,960 - 5,463 - - 309,337 Total other executive remuneration 371,329 86,990 18,787 18,960 - 5,463 - - 501,529 Total director and executive officer remuneration 1,018,106 174,052 30,787 29,076 - 5,463 - - 1,257,389 1. All salaries are paid in local currency and converted to USD using the historical spot foreign exchange (FX) rate. Accrued bonuses and Termination/Retirement benefits are converted to USD using the FX rate in effect on 31 December 2024. 2. No accrued cash bonus was paid to the other Senior Executive KMP as of the date of this report. 3. The table includes remuneration paid and benefits accrued to Mr Ramirez while a KMP from 1 January 2024 - 30 June 2024. During the first half of 2024, Mr. Ramirez was classified as a KMP, primarily managing the Amancaya underground operations. With the gradual reduction and outsourcing of these activities and the completion of the Heap Reprocessing Project’s construction phase, the responsibility for ongoing production oversight transitioned to the CEO, resulting in Mr. Ramirez no longer being classified as a KMP effective 1 July 2024. 4. Non-monetary benefits include annual leave, health and benefit premiums, professional membership dues and parking. 5. Mr. Bordogna is entitled to long service leave (LSL) in accordance with statutory regulations and its employment agreement, having been employed by the Group since March 2013. During FY24, US$5,463 was charged to LSL. As of 31 December 2024, the LSL amounts to A$69,095 (US$45,610). 6. The 2024 director fees were not paid to Mr. Elsztain, Mr. Zang and Mr. Vergara del Carril, and the accrued cash bonuses had not been paid as of the date of this report. Austral Gold Limited 43 Annual Report 2024 Twelve month period ended 31 December 2023 Primary Post-employment Share-based Total Cash and accrued Salary and Fees US$ Accrued Cash Bonus US$ Non- monetary benefits US$4 Superannuation US$ Retirement/ Termination benefits US$ Equity settled Shares US$ Options US$ US$ Directors Non-executive directors E Elsztain 100,000 - - - - - - 100,000 S Zang 50,000 - - - - - - 50,000 R Trzebski 45,147 - 4,298 4,853 - - - 54,298 B Jarvis 45,147 - - 4,853 - - - 50,000 P Vergara del Carril 50,000 - - - - - - 50,000 Total non- executive director remuneration 290,294 - 4,298 9,706 - - - 304,298 Executive Director W Hubert - - - - - - - - S Kasaneva 387,500 93,001 7,656 - - - - 488,157 Total Director remuneration 677,794 93,001 11,954 9,706 - - - 792,455 Other Key Executives R. Ramirez 311,281 75,197 3,889 - - - - 390,367 R Guerra3 34,002 11,859 623 - 71,762 - - 118,246 J Bordogna 220,971 57,784 18,512 17,676 - - - 314,943 Total other executive remuneration 566,254 144,840 23,024 17,676 71,762 - - 823,556 Total director and executive officer remuneration 1,244,048 237,841 34,978 27,382 71,762 - - 1,616,011 1. The 2022 accrued cash bonus was only paid to the VP of Exploration as part of his resignation agreement in 2023. No accrued cash bonus was paid to the rest of the Senior Executive KMP as of the date of this report. ². All salaries are paid in local currency and converted to USD using the historical spot foreign exchange (FX) rate. Accrued bonuses and Termination/Retirement benefits are converted to USD using the FX rate in effect on 31 December 2023. 3. Mr. Guerra resigned effective 31 January 2023. Per his settlement agreement, Mr. Guerra is to receive his 2022 bonus, a 2023 bonus of US$11,859, an exit bonus of US$71,762 and US$10,081 of vacation owed. The amount is to be paid in six equal monthly installments in Chilean pesos commencing February 2023 and ending July 2023 net of assets purchased of US3,108. 4. Non-monetary benefits include annual leave, health and benefit premiums, professional membership dues and parking Austral Gold Limited 44 Annual Report 2024 Contractual Arrangement with Executive KMP during 2024 The table below represents the target remuneration mix for group executives in the current year. The variable remuneration is provided at target levels. Name Term of Agreement and notice period Notice Period by Either Party Base salary Bonus performance Bonus performance conditions Termination payments Stabro Kasaneva Chief Executive Officer Open 1 month Base salary is paid in Chilean pesos with no FX adjustment clause 0% to 100% of salary At the discretion of the Board based on Group results and individual performance One month salary per year of employment Rodrigo Ramirez VP of Operations Open 1 month Base salary is paid in Chilean pesos with no FX adjustment clause 0% to 100% of salary At the discretion of the Chief Executive Officer based on Group results and individual performance One month salary per year of employment Jose Bordogna Chief Financial Officer Open 1 month Base salary is paid in Australian dollars with no FX adjustment clause 0% to 100% of salary At the discretion of the Chief Executive Officer based on Group results and individual performance One month salary per year of employment Relative Proportion of Fixed vs Variable Remuneration Expense The following table shows the relative proportions of executive remuneration that are linked to performance and those that are fixed, based on the amounts disclosed as statutory remuneration expense in the tables above. Name Fixed remuneration At risk — short-term incentive At risk — long-term incentive December 2024 December 2023 December 2024 December 2023 December 2024 December 2023 Executive Directors Stabro Kasaneva 80% 81% 20% 19% 0% 0% Executive Officers Rodrigo Ramirez 82% 81% 18% 19% 0% 0% Raul Guerra N/A 29% N/A 71% N/A 0% Jose Bordogna 83% 82% 17% 18% 0% 0% Non-executive KMPs are not considered in this table as they would have 100% fixed remuneration. Equity Holdings The movement during the financial year in the number of ordinary shares in the Company held, directly, indirectly or beneficially by each key management person, including their related parties, is as follows: Balance at 1 January 2024 Granted as remuneration Market purchases Number of ordinary shares at time of retirement/ resignation Balance at 31 December 2024 Eduardo Elsztain 461,294,560 - 21,574 - 461,316,134 Saul Zang 1,640,763 - - - 1,640,763 Pablo Vergara 68,119 - - - 68,119 Robert Trzebski - - - - - Ben Jarvis 600,000 - - - 600,000 Stabro Kasaneva 7,881,230 - - - 7,881,230 Rodrigo Ramirez 279,514 - - - N/A1 Jose Bordogna 126,495 - - - 126,495 Total 471,890,681 - - - 471,632,741 1. No longer a KMP Austral Gold Limited 45 Annual Report 2024 Other transactions with KMP On 25 June 2024, the Company sold 5,458,833 previously issued common shares of Unico (“Unico Shares”) to Mr. Elsztain and 963,323 Unico Shares to Mr. Zang, at a price per Unico Share of A$0.16 per share. Total proceeds from the transaction was US$682,393. On 25 July 2024, the Company entered into an agreement to sell an additional 8,139,023 Unico Silver shares to its largest shareholder, Inversiones Financieras del Sur SA (IFISA). Two board members, Eduardo Elsztain and Saul Zang are also shareholders and direc- tors of IFISA. The sale was completed on 2 August 2024 for proceeds of US$987,869. Zang, Bergel & Viñes Abogados is a related party since one non-executive Director, Pablo Vergara del Carril has significant influence over this law firm based in Buenos Aires, Argen- tina. Fees charged and expenses to reimbursement to the Group for the year ended 31 December 2024 amounted to US$75,224 (2023: US$80,922). As at 31 December 2024, the Group owed ZBV US$41,508 (31 December 2023-US$5,990). During the year ended 31 December 2024, the Group received unsecured related party loans totaling US$8,516,397 (31 December 2023-US$4,555,000). Including accrued interest, the total amount owed at 31 December 2024 is US$12,396,018. (31 December 2023-US$4,716,790). This concludes the remuneration report, which has been audited. Austral Gold Limited 46 Annual Report 2024 Principal activities The principal activities of the Group during FY24 were: • Produced 15,573 gold equivalent ounces at the Group’s Guanaco/Amancaya mine complex, integrating agitation and heap leaching processes, with gradual contributions from the new Heap Reprocessing Project that was launched in 2023, partially offsetting the depletion in production at the Amancaya underground mine • HRC equipment, used in the Heap Reprocessing Project launched in 2023, was returned to Guanaco in Q4 2024 after prolonged repair delays from the supplier since Q1 2024 • Issued an updated Mineral Resource Estimate for the Compa- ny’s 100% owned Casposo-Manantiales mine complex, prepared by an independent Qualified Person in accordance with NI 43-101 and JORC (2012) • Executed a Toll Treatment Agreement with ASX-listed Chal- lenger Gold Limited (“Challenger”) to process mineralised mate- rial from Challenger’s Hualilan project at Casposo’s Plant, in San Juan, Argentina • Renewed all existing loan facilities and secured additional financing from banks and related parties, enhancing the Compa- ny’s financial debt maturity profile. This included a 2-year loan of up to US$7,000 thousand loan to refurbish the Casposo’s Plant • Significant improvement of liquidity indicators, decreasing net current liabilities from US$23,685 thousand on 31 December 2023 to US$5,823 thousand on 31 December 31, 2024 • Realised gains from the sale of equity investments in ASX and TSXV publicly listed mining companies, while maintaining a 5.2% interest in ASX-listed company Unico Silver Limited (“Unico”) Objectives The group’s key objectives for 2025 are to: • Achieve or exceed the production forecast of 18,000-20,000 gold equivalent ounces from the Guanaco operations, • Enhance profitability margins to strengthen cash flow generation and further reduce debt, and • Complete the refurbishment of the Casposo Plant in line with the Toll Agreement executed with ASX-listed Challenger Gold Limited Events subsequent to reporting date On 3 January 2025, the Group received US$2,000 thousand in accordance with the Toll Treatment Agreement entered into between the Group’s subsidiary Casposo Argentina Mining Ltd. and Challenger Gold Limited. (note 33) On 28 February 2025, the Group amended a loan agreement with IFISA to transfer the liability to two KMPs. On 14 March 2025, the Group received the second installment of US$2,500 thousand under the loan agreement from Bank San Juan to refurbish the Casposo plant. Likely developments The Group will continue to pursue its objectives for 2025. Environmental The Group’s operations are subject to environmental regulation in the areas where it operates, Chile and Argentina. The Group is committed to achieving a high standard of environ- mental performance. The environmental monitoring program implemented for the Guanaco Amancaya Operation includes meteorology, air quality, water quality, flora and fauna archaeology. Monitoring of flora and fauna is conducted in Punta del Viento, Las Mulas and Pastos Largos approximately 30 km east of Guanaco. Auditors KPMG continues in office as auditors in accordance with the requirements of the Corporations Act 2001. Non-audit services Details of the amounts paid or payable to the auditor for non-audit services provided during the period by the auditor are outlined in note 12 to the financial statements. There were no non-audit services provided by KPMG in 2024 (2023: Nil). Dividends No dividends were paid to shareholders during the year. Proceedings on Behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. Auditor’s Independence Declaration The lead auditor’s independence declaration for the period ended 31 December 2024 has been received and is included in this report. Signed in accordance with a resolution of Directors at Sydney. Rounding of Amounts The Company is a company of the kind referred to in ASIC Instru- ment 2016/191, dated 1 April 2016, and in accordance with that Instrument amounts in the Directors’ Report and the financial report are rounded off to the nearest thousand dollars, unless otherwise indicated. Signed in accordance with a resolution of Directors made pursuant to s.298(2) of the Corporations Act 2001. Review of prospects for future years The Group’s prospects for future years are based on the achieve- ment of its 2025 objectives. Material risks related to the achievement of 2025 objectives The achievement of the Group’s 2025 objectives is subject to the following material risks, including: • Operational risks: Uncertainty in achieving the production forecast due to potential equipment failures and lower than expected recovery rates. • Financial risks: Commodity prices set by the market and currency fluctuations in the countries where the Group operates. • Project execution risks: Delays or cost overruns in the refur- bishment of the Casposo Plant, which could affect commit- ments under the Toll Agreement with Challenger Gold and result in financial consequences. For and on behalf of the board Robert Trzebski Director 28 March 2025 Austral Gold Limited 47 Annual Report 2024 MINE COMPLEXES BACKGROUND OVERVIEW The Guanaco and Amancaya mine complex remains the Company’s flagship asset. Guanaco is located approximately 220km south- east of Antofagasta in Northern Chile at an elevation of 2,700m and 45km from the Pan American Highway. Guanaco is embedded in the Paleocene/Eocene belt, a geological feature which runs north/south through the centre of the Antofagasta region, Chile. Gold mineralisation at Guanaco is controlled by perva- sively silicified, sub-vertical east/ northeast-west/ southwest trending zones with related hydro-thermal breccias. Silicification grades outward into advanced argillic alteration and further into zones with argillic and propy- litic alteration. In the Cachinalito vein system, most of the gold mineralisation is concentrated between depths of 75m and 200m and is contained in hori- zontally elongated mineralised shoots. The altera- tion pattern and the mineralogical composition of the Guanaco mineralisation have led to the classification as a high-sulfidation epithermal deposit. In July 2014, the Company acquired the Amancaya Project (‘Amancaya’) from Yamana Gold Inc (TSX:YRI | NYSE:AUY) which is located approximately 60km south-west of the Guanaco mine. Amancaya is a low sulfidation epithermal gold-silver deposit consisting of eight mining exploration concessions covering 1,755 hectares (and a further 1,390 hectares of second layer mining claims). On 6 June 2017, Austral Gold completed the construc- tion of a new agitation leaching plant at Guanaco. At Amancaya, open-pit mining operations began during the first half of 2017 while under- ground operations at Guanaco started in 2018. The Amancaya ore is deliv- ered to the Guanaco plant for processing. On 25 March 2022, the technical report(1) was updated, revealing an extended mine life at Guanaco/ Amancaya that could sustain production levels of 30,000-35,000 gold equivalent ounces over the next three to four years plus a further 10,000 gold equivalent ounces of production over the subsequent seven to eight years through heap processing. GUANACO AND AMANCAYA Austral Gold Limited 48 Annual Report 2024 In 2023, the Company completed the construction of the Heap Reprocessing Project at the Guanaco mine site, which is expected to be the main source of mineral production at Guanaco/ Amancaya in the following years. In Q4 2024, the Company decided to temporarily cease operations at Amancaya. PALEOCENE BELT Austral Gold controls an extensive portfolio of +50,000 hectares of mining properties. Chile’s Paleocene Belt hosts major gold and silver deposits and porphyry copper mines. Austral Gold Limited 49 Annual Report 2024 GUANACO & AMANCAYA MINE COMPLEX 1 Strategic location (220km from Antofagasta, Chile) with + 50K hectares of mining property 2 Guanaco, high-sulphidation epithermal deposit, and Amancaya a low sulphidation epithermal deposit, both hosted in the Paleocene/Eocene Belt 3 1,500 tpd milling circuit to agitation leaching and Merrill-Crowe processing plant +3,000 tpd crushing, heap leaching, and CC circuit processing plant 4 Austral Gold historical production of + 500K gold-equivalent ounces since 2010 5 Completed construction of Heap Reprocessing Project in 2023 Austral Gold Limited 50 Annual Report 2024 Austral Gold Limited 51 Annual Report 2024 MINE COMPLEXES BACKGROUND OVERVIEW The Casposo mine is in the department of Calin- gasta, San Juan Province, Argentina, approximately 150km from the city of San Juan, and covers an area of 100.21km2. Casposo is a low sulfidation epithermal deposit of gold and silver located in the eastern border of the Cordillera Frontal geological province. The Cordillera Frontal represents the eastern portion of the Cordillera Principal that runs along the Chile-Argen- tine border for approximately 1,500km. The Casposo gold– silver mineralisation is Permian in age, and occurs in the extensive Permo-Triassic volcanic rocks of the Choiyoi Group, at both rhyolite, and underlying andesitic rocks, where it is associated with NW-SE, E-W and N-S striking banded quartz, chalcedony and calcite veins, typical of low sulfidation epithermal environments. Post-mineralisation dykes of rhyolitic, mafic, and trachytic composition often cut the vein systems. These dykes, sometimes reaching up to 30m thickness, are usually steeply dipping and north–south oriented. Mineralisation at Casposo occurs along a 10km long north- west to southeast trending regional structural corridor, with the main Kamila Vein system forming a 500m long sigmoidal set near the centre. The Mercado Vein system is the northwest continuation of Kamila and is separated by an east–west fault from the Kamila deposit. In March 2016, Austral Gold acquired a controlling stake and management of the Casposo gold and silver project. Since then, Austral Gold undertook a complete revision of historical work (geology, geochemistry, geophys- ics and drillings), and completed a regional mapping at a 1:10,000 scale to identify potential opportunities for discovering additional mineralisation and ranking a series of mine and brownfield exploration targets. In March 2017, Austral Gold acquired an additional 19% of the Casposo silver and gold project and in December 2019, it effectively acquired the remaining 30%. The Manantiales project is located immediately to the west and adjacent to Casposo. Exploration rights and an option for exploitation were granted by the Instituto Provincial de Exploraciones y Explotaciones Mineras de la Provincia de San Juan (IPEEM) in 2019. The Casposo Mine was placed on care and mainte- nance during the June 2019 quarter and exploration activities that commenced during the December 2019 quarter have been ongoing with the goal of recom- mencing processing operations. CASPOSO MANANTIALES Austral Gold Limited 52 Annual Report 2024 In 2004, Austral engaged an indepen- dent Qualified Person in accordance with NI 43-101 and JORC (2012) to prepare a Mineral Resource Estimate (MRE) for the Company’s 100% owned Casposo- Manantiales mine complex Casposo and Manantiales. The report was completed and announced on 17 July 2024. Additionally, the Group executed a Toll Treatment Agreement with ASX-listed Challenger Gold Limited (“Challenger”) to process mineralised material from Chal- lenger’s Hualilan project at Casposo’s Plant, in San Juan, Argentina, and obtained a 2-year loan of up to US$7,000 thousand loan to refurbish the Casposo’s Plant. The first tranche of US$1,500 thousand was received in December 2024. Austral Gold Limited 53 Annual Report 2024 CASPOSO MANANTIALES MINE COMPLEX 1 On Care & Maintenance since 2019 with the strategic objective to restart activities during the second half of 2025 2 1,300 tpd crushing circuit to agitation leach and Merril-Crowe processing plant 3 Historical 2010-2019 production of 530K gold- equivalent ounces 4 Camp facilities 21km from mine site 5 +70K hectares of land plus mining property 6 Executed a Toll Treatment Agreement with ASX listed Challenger Gold Limited (“Challenger”) to process mineralised material from Challenger’s Hualilan project at Casposo’s Plant, in San Juan, Argentina Austral Gold Limited 54 Annual Report 2024 Austral Gold Limited 55 Annual Report 2024 THREE YEARS AGO, WE ESTABLISHED A NEW EXPLORATION STRATEGY WHICH INCLUDES THE FOLLOWING: Find high-sulfidation gold and silver deposits in a high quality land portfolio; Discover brownfields ounces at Amancaya, Casposo and Manantiales; Guanaco District: complete delineation at Sierra Inesperada to drill the best ranked targets; New Opportunities: Identify and consolidate third-party projects with potential near existing Austral Gold infrastructure; Explore other oxide and deeper gold-rich sulfide mineralisation opportunities in the Chilean Paleocene-Eocene Belt EXPLORATION Austral Gold Limited 56 Annual Report 2024 EXPLORATION IN ARGENTINA CASPOSO-MANANTIALES PROJECT, ARGENTINA During FY24, the Group’s exploration activities focused on key priorities. Specifically, efforts were directed towards reviewing and interpreting target areas within the Casposo-Manantiales Mine Complex. These activities included mapping and collecting rock chip samples from the Cerro Amarillo target, as well as geologi- cal mapping and geochemical analysis of the Cerro Amarillo and Casposo properties. The review of previous geophysics studies at Cerro Amarillo validated the concept of a significant fault system and shallow mineralisation models. Geological mapping continued in the district, consolidating two main mineralisation systems and advancing towards an integrated exploration map. In the Manrique Area, geochemical results revealed limited anomalies, with no significant gold findings. However, our analysis indicates that veins and textures provide encouraging evidence of a blind or deeper low sulphidation epithermal system in the area. Additionally, geological mapping at 1:5,000 scale was completed in key sectors, including Vetas Blancas and SE Casposo. Preliminary interpretations of the Casposo-Cerro Amarillo map identified a potential exit zone for the Casposo Dacite unit, marking a barrier to mineralisation. Mapping of the East Block continued with no signifi- cant hydrothermalism observed. Updated mapping at Manantiales clarified mineralisation controls. In the Manantiales District (Cerro Amarillo), remapping of the Cerro Amarillo - Vetas Blancas target and the SE Casposo block was completed. Vetas Blancas is possibly controlled by the boundary of two rhyolitic domes, with the eastern one being more preserved and surrounded by a ring of tuffs. Like those previously identified in Cerro Amarillo, outcrops of rhyolitic domes have been discov- ered. These rhyolites show minimal alteration and have scarce centimetric N-S veinlets composed of light and dark grey saccha- roidal Silica-Carbonate. The rhyolitic domes exhibit a northeast alignment, suggesting they may be injected when intersecting with N S structures. Another key aspect of this sector is the small outcrops of Dacita Casposo, which are unconformably situated in the andesitic tuffaceous sequence. At the Casposo SE Sector, a thrust puts the basement of the La Puerta Formation (characterised by metapelites, sandstones, and conglomerates) in contact with the Dacita Casposo. The Casposo Dacite presents facies variations that include autobreccias, porphyritic, and mostly laminated. The rhyolitic component is predominant in the mapped area’s southern sector. The alterations in the dacite are widespread, illite in the matrix, smectite/illite in plagioclase, and the presence of epidote (propylitic alteration) is common at the highest levels. There appears to be SE continuity of Inca as the two float samples aligned in the Inca corridor exhibited low gold anomalies. Although this sector experiences a strong glacial drag, the alignment of these samples indicates that beneath the cover, and at a relatively shallow depth due to the uplifted block, mineralised veins may be present. SIERRA BLANCA, ARGENTINA In FY24, no major activities were conducted in Sierra Blanca as the Group sold its interest in Sierra Blanca SA that owns the Sierra Blanca exploration project in Santa Cruz Argentina. CASPOSO-MANANTIALES PROJECT Our presence in the Triassic Choiyoi Belt is in the Casposo District, located on the eastern edge of the Cordillera Frontal (Calingasta Department), about 170 km NW of the city of San Juan Figure: Casposo-Manantiales District, Argentina EXPLORATION IN ARGENTINA Austral Gold Limited 57 Annual Report 2024 EXPLORATION IN CHILE GUANACO-AMANCAYA MINE COMPLEX, CHILE In FY24, the main exploration activities were as follows: PALEOCENE BELT, CHILE: GUANACO-AMANCAYA MINE COMPLEX Dumbo Area: During FY24, the Group, continued historical drillhole re-logging and interpretation of sections to explore additional opportuni- ties for exploitation. This involved reinterpreting gold and copper mineralisation and understanding the lithological and structural controls beneath the recognised open pit and underground (UG) limits at the Dumbo, Defensa, and Perseverancia sectors. The reinterpretation of geological sections showed increased hydro- thermal alteration towards the west, with potential exploration targets identified south of the Dumbo fault. Favourable lithological units and fault structures indicate potential high mineralisation in certain sectors. Austral Gold Limited 58 Annual Report 2024 Figure: Guanaco District, Chile GUANACO MINE Exploring within the mine footprint to increase production and LOM The structural and lithology models for the Dumbo Cluster were updated, generating a new geological model. This is essential for understanding the different behaviours of ledges and mineralisa- tion across various lithological units, providing a foundation for more precise geological domains. A ledge model has also been developed to identify the main structures and the control of the higher gold and copper grades, combining section-by-section mapping with historical data. The alteration model (silica + alunite – illite) has been updated based on recent interpretations of key sections. These updates are intended to better align the alteration envelope with ledge geometry for greater coherence. Geologists, in collaboration with a third-party consultant, contin- ued to refine the Dumbo cluster model by integrating historical data and updating interpretations. The objective is to understand the gold and copper distribution and controls and define geological domains for a resource model. Cerro Guanaquito: A new exploration strategy for Cerro Guana- quito is focused on disseminated mineralisation, with the goal of obtaining low-grade and high-tonnage bulk ore suitable for open- pit mining with minimal copper content to avoid impacting the metallurgical processes. Historical drill results, various which show various types of mineralisation, including ledges and dissemina- tion, has influenced current exploration plans. Austral Gold Limited 59 Annual Report 2024 MINING INVESTMENTS BUILDING AN EQUITY PORTFOLIO OF MINING COMPANIES Austral Gold Limited 60 Annual Report 2024 EQUITY INVESTMENTS UNICO SILVER DESEADO MASSIFF, SANTA CRUZ, ARGENTINA 5.2% INTEREST Unico Silver is a pure-play silver development company listed on the ASX that has increased resources through exploration and acquisitions • Austral’s interest in Unico Silver was acquired through the 2023 sale of SCRN Properties, owner of the Pinguino project • Its flagship asset is the new Cerro Leon project comprising two adjacent silver and gold districts, with land holdings in the mining- friendly province of Santa Cruz, Argentina Name Holding Type Projects Location Flagship Project Unico Silver Ltd ASX Listed 5.2% Exploration Argentina Cerro Leon Project Rawhide Acquisition Holdings LLC1 Private 24.7% Restructuring1 USA Rawhide Mine 1. Owns Rawhide Mining LLC. On 20 December 2023 (the “Petition Date”) Rawhide Mining LLC, which owns the Rawhide mine, filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. The petition was dismissed in 2024 and Rawhide Mining LLC is not currently operating the mine. Austral Gold Limited 61 Annual Report 2024 FINANCIAL STATEMENTS Austral Gold Limited 62 Annual Report 2024 AUSTRAL GOLD LIMITED FINANCIAL REPORT 2024 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME All figures are reported in thousands of US$ For the year ended 31 December Note 2024 2023 Sales revenue 16 36,790 47,729 Cost of sales (including depreciation and amortisation) 6 (33,233) (47,183) Gross profit 3,557 546 Other income 7 2,858 3,731 Other expenses 8 (4,266) (4,786) Impairment loss on mine properties 21 (2,550) - Impairment loss on property plant and equipment 22 (16,705) - Impairment loss on exploration and evaluation expenditure 23 (8,836) (3,981) Administration expenses 9 (6,329) (6,145) Finance income 10 3,753 4,284 Finance costs 11 (3,691) (1,540) Share of loss of associates - (60) (Loss) before income tax (32,209) (7,951) Income tax benefit 14 5,135 708 (Loss) for the year after income tax expense (27,074) (7,243) (Loss) attributable to: Owners of the Company (27,068) (7,229) Non-controlling interests (6) (14) (27,074) (7,243) Other comprehensive income Items that may not be classified subsequently to profit or loss Foreign currency translation 52 1 Total comprehensive (loss) for the year (27,022) (7,242) Comprehensive (loss) attributable to: Owners of the Company (27,016) (7,228) Non-controlling interests (6) (14) (27,022) (7,242) (Loss) per share (cents per share): Basic (loss) per share 15 (4.42) (1.18) Diluted (loss) per share 15 (4.42) (1.18) The notes on pages (67) to (103) are an integral part of these consolidated financial statements. Austral Gold Limited 63 Annual Report 2024 AUSTRAL GOLD LIMITED FINANCIAL REPORT 2024 CONSOLIDATED STATEMENT OF FINANCIAL POSITION All figures are reported in thousands of US$ As at 31 December Note 2024 2023 Assets Current assets Cash and cash equivalents 17 3,590 1,261 Trade and other receivables 18 4,427 2,356 Prepaid income tax 73 83 Other financial assets 19 3,383 3,958 Inventories 20 8,704 9,699 Total current assets 20,177 17,357 Non-current assets Other receivables 18 347 1,127 Prepaid income tax 140 126 Other financial assets 19 - 2,127 Mine properties 21 1,395 6,259 Property, plant and equipment 22 30,055 49,616 Exploration and evaluation expenditure 23 19,459 27,894 Deferred tax asset 14 1,517 - Total non-current assets 52,913 87,149 Total assets 73,090 104,506 Liabilities Current liabilities Bank overdraft 17 199 222 Trade and other payables 14,783 22,286 Supply chain financing arrangement 24 - 835 Employee entitlements 2,908 2,990 Loans and borrowings 27 5,433 13,540 Deferred revenue 33 2,000 - Lease liabilities 22 677 1,169 Total current liabilities 26,000 41,042 Non-current liabilities Trade and other payables - 3 Provisions for reclamation and rehabilitation 26 11,566 13,695 Loans and borrowings 27 19,901 2,568 Lease liabilities 22 385 1,143 Employee entitlements 27 18 Deferred tax liability 14 846 4,464 Total non-current liabilities 32,725 21,891 Total liabilities 58,725 62,933 Net assets 14,365 41,573 Equity Issued capital 28 109,114 109,114 Accumulated losses 29 (93,658) (66,549) Reserves 30 (1,091) (1,157) Non-controlling interest 31 - 165 Total equity 14,365 41,573 The notes on pages (67) to (103) are an integral part of these consolidated financial statements. Austral Gold Limited 64 Annual Report 2024 AUSTRAL GOLD LIMITED FINANCIAL REPORT 2024 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the years ended 31 December 2024 and 2023 All figures are reported in thousands of US$ Note Issued capital Accumulated losses Reserves Non- controlling interest Total Balance at 31 December 2022 109,114 (59,320) (1,158) 179 48,815 Loss for the year - (7,229) - (14) (7,243) Foreign exchange movements from translation of financial statements to US$ - - 1 - 1 Total comprehensive income/ (loss) - (7,229) 1 (14) (7,242) Balance at 31 December 2023 109,114 (66,549) (1,157) 165 41,573 Loss for the year - (27,068) - (6) (27,074) Foreign exchange movements from translation of financial statements to US$ - (14) 66 - 52 Total comprehensive income/ (loss) (27,082) 66 (6) (27,022) Decrease in Sierra Blanca investment - (27) - 27 - Sale of Sierra Blanca investment 31 - - - (186) (186) Balance at 31 December 2024 109,114 (93,658) (1,091) - 14,365 The notes on pages (67) to (103) are an integral part of these consolidated financial statements. Austral Gold Limited 65 Annual Report 2024 AUSTRAL GOLD LIMITED FINANCIAL REPORT 2024 CONSOLIDATED STATEMENT OF CASH FLOWS All figures are reported in thousands of US$ For the year ended 31 December Note 2024 2023 Changes in cash and cash equivalents Cash and cash equivalents at the beginning of the year 1,039 926 Cash and cash equivalents at the end of the year 17 3,391 1,039 Net increase in cash and cash equivalents 2,352 113 Cash Flows from operating activities Loss after income tax (27,074) (7,243) Adjustments for Income tax benefit recognized in loss (5,135) (708) Impairment of mine properties 21 2,550 - Impairment of exploration and evaluation expenditure 23 8,836 3,981 Impairment of property, plant and equipment 22 16,705 - Depreciation and amortisation 6/8/9 3,272 6,048 Gain on sale of equipment 7 (654) (46) Gain on sale of subsidiary 7 (91) (1,964) Gain on sale of financial assets 7 (939) (21) Exclusivity fee on option agreement 7 - (100) Net finance charges 11 3,392 1,395 Gain from foreign exchange (182) - Loss from foreign exchange - 319 Provision for reclamation and rehabilitation (48) 126 Allowance for doubtful accounts 37 (107) Inventory write-down 307 302 Non-cash employee entitlements 1,271 960 Share of loss of associates - 60 Loss in fair value of other financial assets 8 - 992 Gain in fair value of other financial assets 7 (785) (1,012) Net cash generated from operating activities before change in assets and liabilities 1,462 2,982 Income tax refunds (42) 928 Net cash generated from operating activities before changes in assets and liabilities 1,420 3,910 Changes in working capital Decrease / (increase) in inventory 688 (1,055) Decrease in trade and other receivables (76) 1,519 (Decrease) /increase in trade and other payables (6,345) 4,963 (Decrease) / increase in supply chain financing arrangement (835) 835 (Decrease) in employee entitlements (1,344) (2,040) Net cash used in / generated from operating activities (6,492) 8,132 Cash flows from investing activities Additions to property, plant and equipment 22 (434) (11,283) Proceeds from sale of subsidiary 13 750 3,250 Proceeds from sale of equipment 958 113 Proceeds from exclusivity fee on option agreement - 100 Payment for investment in exploration and evaluation (928) (4,614) Payment for investment in mine properties 21 (58) (9) Payment for other financial assets - (4) Proceeds from sale of other financial assets 19 4,742 22 Net cash generated from /used in investing activities 5,030 (12,425) Cash flows from financing activities Restricted proceeds from convertible note offering - 591 Proceeds from loans and borrowings 19,999 17,955 Repayment of loans and borrowings (12,445) (10,777) Interest paid on loans and borrowings (1,495) (720) Repayment of lease liabilities (1,135) (2,252) Interest paid on leases (184) (186) Other Interest paid (926) (205) Net cash generated from financing activities 3,814 4,406 Net increase in cash and cash equivalents 2,352 113 The notes on pages (67) to (103) are an integral part of these consolidated financial statements. Austral Gold Limited 66 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 1. REPORTING ENTITY Austral Gold Limited (the “Company”) is a company limited by shares that is incorporated and domiciled in Australia. The Company’s shares are publicly traded on the Australian Securities Exchange with the symbol AGD, on the TSX Venture Exchange with the symbol AGLD and on the OTCQB Venture Market with the symbol AGLDF. These consolidated financial statements (“financial statements”) as at and for the year ended 31 December 2024 comprise the Company and its subsidiaries (together referred to as the “Group”). The Group is a for-profit entity and the nature of the operations and principal activities of the Group are described in the Directors’ Report. The consolidated annual financial statements of the Group as at and for the year ended 31 December 2024 are available upon request from the Company’s registered office at Level 5, 137-139 Bathurst Street, Sydney NSW 2000, Australia at www.australgold.com. 2. BASIS OF PREPARATION The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards adopted by the Australian Accounting Standards Board (‘AASB’) and the Corpo- rations Act 2001. The consolidated financial statements also comply with International Financial Reporting Standards adopted by the International Accounting Standards Board. They were authorized for issue by the Company’s Board of Directors on 28 March 2025. Details of the Group’s accounting policies, including changes thereto, are included in Note 39. 2.1 FUNCTIONAL AND PRESENTATION CURRENCY These consolidated financial statements are presented in United States dollars (US$), which is the Company’s functional currency. The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and in accordance with that instrument, amounts in the consolidated financial statements and directors’ report have been rounded off to the nearest thousand dollars, unless otherwise stated. 2.2 PARENT ENTITY INFORMATION In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supple- mentary information about the parent entity is disclosed in Note 35. 3. GOING CONCERN For the year ended 31 December 2024, the Group reported a gross profit of US$3,557 thousand (year ended 31 Decem- ber 2023:US$546 thousand) and a net loss after tax of US$27,074 thousand (year ended 31 December 2023 US$7,243 thousand). Operating and working capital activities generated a net cash outflow of US$6,492 thousand (year ended 31 December 2023 inflows of US$8,132 thousand). Net cash inflows from investing activities were US$5,030 thousand (year ended 31 December 2023: outflow of US$12,425 thousand), while financing activities resulted in net cash inflows of US$3,814 thousand (year ended 31 December 2023: US$4,406 thousand). As at 31 December 2024, the Group had net assets of US$14,365 thousand and net current liabilities of US$5,823 thousand (31 December 2023: US$41,573 thousand and US$23,685 thousand, respectively). The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and settlements of liabilities in the ordinary course of business in accordance with the business plan approved by the Board (the Business Plan), for the 18 month period from 31December 2024 (the Relevant Period). The Directors have assumed that the Group will have sufficient cash to pay its debts as and when they become payable, for a period of at least 12 months from the date the financial report was authorised for issue. In forming this view, the Direc- tors have based their assessment on the following facts and circumstances and the Business Plan, having regard to the associated uncertainties: • The production guidance for FY25 (12 months) is estimated to range between 18,000 and 20,000 gold equivalent ounces (GEOs) while the Business Plan (18 months) for the going concern analysis estimates production of 25,018 GEOs for the Relevant Period. This is expected to be achieved through the integration of agitation leaching and heap leaching processes, using material from the Heaps and remaining ore from the Guanaco mine. Actual production for FY24 was 15,573 GEOs. • The Business Plan (18 months) estimates cash costs (C1) per GEO of US$1,489-US$2,651 (average C1: US$1,737), with All-in-Sustaining Cost (AISC) ranging from US$1,798 to US$2,925 (average AISC: US$1,998). Actual Average C1 for FY24 was 1,943 per GEO. • The Business Plan (18 months) also assumes average prices realised per GEO of US$2,844. • Obtaining additional loan and borrowings and other forms of assistance from related parties as required by the Group. Mr Elsztain, Mr Zang, and their related entities Inversiones Fiancieras del Sur S.A. and Consultores Asset Management S.A have confirmed their intention (rather than binding commitment) to continue providing ongoing financial support and assistance, as deemed necessary. Austral Gold Limited 67 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS • With respect to the refurbish and commercial startup of the Casposo plant the business plan assumes: – The costs to refurbish and commercially setup the plant will be fully funded by the US$7,000 thousand secured loan obtained from Banco San Juan S.A in December 2024; – The Company will comply with the contractually agreed conditions related to the US$2,000 thousand initial fee paid by Challenger Gold Limited in January 2025 under the Toll Treatment Agreement signed on 5 December 2024 and thereby, the initial fee is not expected to be returned to the counterparty; and – The Casposo plant will gradually commence production in August 2025. The Business Plan (18 months) estimates total cash generation of US$9,376 thousand, with US$3,371 thousand generated in calendar year 2025. • At 31 December 2024, of the total US$14,783 thousand trade and other payables disclosed in note 24 of the 31 December 2024 financial statements, approximately US$2,724 thousand was contractually overdue, a reduction from US$7,500 thousand at 30 June 2024. As disclosed in the 31 December 2023 financial report, the Group entered into extended payment terms with suppliers of the Guanaco-Amancaya mine complex in Chile. During the year ended 31 December 2024, trade and accounts payable and supply chain financing arrangement decreased by US$8,338 thou- sand, as a result of repayments made using funds sourced financing activities and the sale of equity investments. The Board’s strategy assumes that the Group will continue to negotiate extended payment terms, or alternatively repay these contractually overdue amounts to its suppliers through a combination of cash collected from outstanding trade and other receivables, the sale of inventory, the sale of non-core assets and equity investments, and the draw down of cash proceeds from unsecured credit facilities. • The cashflow assumptions underpinning the Business Plan have modelled a potential cash inflow of US$1,366 thou- sand from the sale of equity investments. The Directors also considered alternative sources of funding not currently modelled within the cashflow assumptions, including the potential sale of non-core assets. Based on the above, the Directors are of the view that the Group will be able to continue as a going concern and will therefore realise its assets and extinguish its liabilities in the normal course of business at the amounts stated in the financial report. Notwithstanding this view, there remains a material uncertainty as to whether the Group can continue to operate as a going concern due to the combined effect of the following uncertainties: • the Group’s ability to generate cash inflows from operations as forecast based on the aforementioned gold prices, production volumes, and cash costs over the forecast period; • the Group’s ability to repay contractually overdue amounts to its suppliers whilst also remaining compliant with new contractual commitments arising from new trade payables associated with ongoing operations; • the Group’s ability to repay or replace the existing external and related party loans on or before the relevant expiry dates; and • the timing and amount of proceeds that can be sourced from the sale of equity investments, if needed. Austral Gold Limited 68 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 4. USE OF ESTIMATES AND JUDGEMENTS In preparing these financial statements, Management has made judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospec- tively. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ended 31 December 2024 are detailed below: Allowance for Obsolete and Slow-Moving Inventory The Group assesses the need for an allowance for obsolete and slow-moving inventory at each reporting date. This assessment requires judgement and involves considering factors such as: • Historical Usage: Past consumption patterns of inventory items. • Future Usage: Likely use based on demand, considering market trends and economic conditions. • Physical Condition: The physical state of the inventory, including any damage or deterioration. Based on these factors, an allowance is made for inventory items that are no longer expected to used. Ore Reserves and Mineral Resources. The Group reviewed its ore reserves and mineral resources, annually at each year end, based on information compiled by Competent Persons as defined in accordance with the Australasian code for reporting of Exploration Results, Mineral Resources and Ore Resources (JORC code 2012). The estimated quantities of economically recoverable reserves are based upon interpretations of geological models and require assumptions to be made regarding factors such as estimates of short and long-term exchange rates, estimates of short and long-term commodity prices, future capital requirements and future operating performance. Changes in reported reserves estimates can impact the carrying amount of mine development (including mine properties, property, plant and equipment and exploration and evaluation assets), (further details on carrying value are included in note 21), the provisions for reclamation and rehabilitation (further details on the mine closure provisions are included in note 26), the recognition of deferred tax assets (further details on deferred tax assets are included in note 14), as well as the amount of amortisation charged to the statement of profit or loss. Impairment for property, plant and equipment and mine properties Significant judgements, estimates and assumptions are required in determining value in use or fair value less costs of disposal. This is particularly so in the assessment of long life assets. It should be noted that the CGU recoverable amounts are subject to variability in key assumptions including, but not limited to, gold and silver prices, currency exchange rates, discount rates, mineral resources, production profiles and operating and capital costs. A change in one or more of the assumptions used to determine value in use or fair value less costs of disposal could result in a change in a CGU’s recoverable amount (further details on the value of the CGU’s are included in note 21 and 22). Exploration and evaluation assets The Group tests at each reporting date whether there are any indicators of impairment as identified by AASB 6 “Explora- tion for and Evaluation of Mineral Resources”. Where indicators of impairment are identified, the recoverable amounts of the assets are determined, and an impairment is recorded when the carrying value exceeds recoverable value. In assessing indicators of impairment, assumptions relating to whether the exploration and evaluation activity will be recouped through successful development and exploitation of the area are made. Indicators of impairment were identi- fied as disclosed in note 23. Mine closure provisions Obligations associated with exploration and mine properties are recognised when the Group has a present obligation, the future sacrifice of the economic benefits is probable, and the provision can be measured reliably. The provision is measured at the present value of the future expenditure and a corresponding rehabilitation asset is also recognised. On an ongoing basis, the rehabilitation will be remeasured in line with the changes in the time value of money (recognised as an expense and an increase in the provision), and additional disturbances (recognised as additions to a corresponding asset and rehabilitation liability if the subsidiary is operating, and expense, if the subsidiary is not operating. The calcula- tion of this provision requires assumptions such as application of environmental legislation, mine closure dates, available technologies and engineering cost estimates. The related carrying amounts are disclosed in note 26. Austral Gold Limited 69 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS Measurement of fair values The Group has established a control framework with respect to the measurement of fair values. A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: i. Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities ii. Level 2 — inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly (i.e. as prices), or indirectly (i.e. derived from prices) iii. Level 3 — inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. The Group holds listed equity securities on the Australian and Canadian stock exchanges at fair value, which are measured at the closing bid price at the end of the reporting period. These financial assets are held at fair value fall within Level 1 of the fair value hierarchy. The Group also holds options which rely on estimates and judgements to calculate a fair value for these financial instruments using the Black Scholes model. These financial assets held at fair value fall within Level 3 of the fair value hierarchy. Further information about the assumptions made in measuring fair values is included in the following notes: • Note 18— Trade and other receivables • Note 19— Other financial assets • Note 32 — Financial instruments. 5. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ADOPTION OF NEW/AMENDED AASB Adoption of other narrow scope amendments to IFRSs and IFRS Interpretations There are a number of new and revised Standards that are applicable for the first time for the year ended 31 December 2024. The Group applied Supplier Finance Arrangements (Amendments to AASB 7 and 107) and amendments to AASB 101 Presentation of Financial Statements the classification of certain liabilities as current or non-current may change (e.g. convertible debt and liabilities with covenants) for the first time in the current year. The amendments to AASB 7 and 107 introduce new disclosures to help users of the financial statements to assess the effects of supplier finance arrange- ments on an entity’s liabilities, cash flows and liquidity risk, while the amendments to AASB 101 help provide users with better insights into the entity’s financial health and potential risks. These do no impact the Group as it does not have finance arrangements, nor any loan covenants in place at 31 December 2024. In addition, a number of new standards and amendments to standards are effective for annual periods beginning after January 2025 and earlier application is permitted and earlier application is permitted; The Group has not early adopted any other new or amended standards in preparing these consolidated financial state- ments and does not expect a material impact from the application of the standards to the Group’s Consolidated Financial Statements. Austral Gold Limited 70 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 6. COST OF SALES All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Production 22,401 31,107 Staff costs 5,927 9,707 Royalty 970 1,198 Mining canon fees 339 523 Inventory movements 356 (1,363) Total cost of sales before depreciation and amortisation expense 29,993 41,172 Depreciation of plant and equipment 2,846 5,562 Amortisation of mine properties 394 449 Total depreciation and amortisation expense 3,240 6,011 Total cost of sales 33,233 47,183 Severance included in staff costs 158 317 7. OTHER INCOME All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Gain on sale of subsidiary (note 13) 91 1,964 Gain on revaluation of equity securities (note 19) - 1,012 Gain on sale of financial assets 939 21 Gain on fair value of financial assets 785 - Gain on sale of equipment 654 46 Equipment rental 8 222 Other 381 466 Total other income 2,858 3,731 8. OTHER EXPENSES All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Loss on fair value of financial assets - 992 Care and maintenance(1) 2,114 2,143 Rawhide option and due diligence expenses - 617 Exploration expenses 272 365 Inventory allowance at non-operating mine 299 272 Other(2) 1,581 397 Total other expenses 4,266 4,786 (1) Includes depreciation of US$18 thousand (2023-US$18 thousand) (2) Termination of agreement with Amancaya contractor and expenses related to preparing the Casposo plant for use Austral Gold Limited 71 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 9. ADMINISTRATION EXPENSES All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Office and utility costs 922 1,039 Staff costs (1),(2) 2,974 2,767 Consulting and professional services 1,283 1,194 Non-executive director fees(2) 300 300 Depreciation on equipment 14 19 Business, property and other taxes 721 652 Other 115 174 Total administration expenses 6,329 6,145 (1) Severance included in staff costs 292 138 (2) Amounts for defined contribution plans included in staff costs and director fees 75 27 10. FINANCE INCOME All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Interest income 101 140 Gain from foreign exchange 3,652 4,108 Present value adjustment to mine closure provision - 36 Total finance income 3,753 4,284 11. FINANCE COSTS All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Interest expense 3,206 1,216 Interest expense on leases 186 179 Present value adjustment to mine closure provision 299 - Allowance on GST/VAT receivable - 145 Total finance costs 3,691 1,540 12. AUDITOR’S REMUNERATION All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Audit and review services Auditors of the Group-KPMG Audit and review of financial statements-Group 226,920 110,839 Audit and review of financial statements-controlled entities 74,200 105,700 301,120 216,539 13. GAIN ON SALE OF SUBSIDIARY All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Gain on sale of subsidiary 91 1,964 On 20 May 2024, the Group’s subsidiary Austral Gold Argentina S.A. (“AGASA”) and New Dimension Guernsey Limited, an affiliate of TSXV listed Capella Minerals Limited, entered into a share purchase agreement (“The Agreement”) to sell 100% of their pro-rata share of Sierra Blanca S.A. (“SBSA”) to ASX listed Unico Silver Limited (“Unico”). AGASA owned 54.69% of SBSA while New Dimension Guernsey owned 45.31% of SBSA, whose major assets are exploration assets. The 100% shares were traded for 5,000,000 shares issued by Unico, which required Unico’s shareholder approval and all conditions for closing the deal were met and the sale was completed on 24 July 2024. AGASA received 2,734,500 Unico shares respective to their pro-rata shares valued at US$315,595 and the amount of US$7,974 for the reimbursement of expenses. A gain on sale of US$91 thousand was recognised (note 7) based on the difference between the carrying value of the assets and consideration received. Austral Gold Limited 72 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS On 25 November 2022, the Group entered into a Share Sale Agreement (“Agreement”) with E2 Metals Limited, whose name was subsequently changed to Unico Silver Limited (“Unico”) to sell the common shares of its subsidiary, SCRN Properties Ltd. (“SCRN”), whose major assets are exploration assets and property and equipment. All conditions for closing the transaction were met and the sale was completed on 1 March 2023. A gain on the sale of US$1,964 thousand was recognised (note 7) based on the difference between the US$8,249 thousand carrying value of the assets held for sale and the total consideration of US$10,213 thousand related to: a. Total cash consideration of US$5,000 thousand, (US$2,500 thousand received at closing, while US$2,500 thousand is due over three subsequent years on the anniversary of the Agreement date, of which US$750 thousand was received in each of November 2023 and November 2024). The fair value of the outstanding US$1,000 thousand was estimated at US$963 thousand (note 18). b. 49,751,970 shares of Unico valued at US$4,709 thousand (A$6,965 thousand) at closing that were restricted as they were subject to a holding lock, with 50% released on the first anniversary of the closing date and 50% released on the second anniversary of the closing date. During the year ended 31 December 2024, the Group owned 22,925,291 shares of Unico as it sold 29,561,179 shares of Unico, of which 4,685,194 shares were sold after receiving approval from Unico to remove the holding lock (note 19). As of 31 December 2024, 20,190,791 shares of Unico were restricted until 1 March 2025. c. 15 million options of Unico. The value of the options at 31 December 2024 was US$563 thousand using the key assumptions as disclosed in note 19. 14. INCOME TAX EXPENSE All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 (A) Income tax expense comprises: Current income tax (benefit) - (637) Deferred income tax (benefit) expense (5,135) (71) Income tax (5,135) (708) (B) Reconciliation of effective income tax rate: Loss before tax (32,209) (7,951) Prima facie income tax (benefit)/expense calculated at 30% (9,663) (2,386) Difference due to blended overseas tax rate* 1,094 460 Share of loss of associates - 16 Non-deductible expenses 2,605 740 Prior year deferred income tax expense adjustments - 87 Prior year current income tax true up (31) (637) Derecognition of carry-forward tax losses 1,304 1,012 Recognition of previously unrecognised deductible temporary differences and tax losses (444) - Income tax (5,135) (708) *Chile tax rate: 27% (31 December 2023: 27%). Argentina tax rate: 30-25% (31 December 2023: 30-25%%). Austral Gold Limited 73 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS All figures are reported in thousands of US$ 31 December 2024 31 December 2023 Chile Argentina Other Total Chile Argentina Other Total (C) Deferred tax assets and liabilities Deferred tax assets Other receivable 269 - - 269 83 - - 83 Inventory 80 63 - 143 77 11 - 88 Mining concessions brought into account - 36 - 36 - 46 - 46 Accrual for mine closure 2,009 986 - 2,995 2,728 842 - 3,570 Financial assets 656 - - 656 699 - 699 Tax losses carried forward 6,982 1,185 7,135 15,302 6,857 375 7,337 14,569 Payroll accrual 173 - - 173 295 - - 295 Other - 38 - 38 36 26 - 62 Leasing liabilities 411 - - 411 793 - - 793 Allowance for tax carry forward - (2,278) (6,790) (9,068) - (1,300) (7,337) (8,637) Deferred tax assets 10,580 30 345 10,955 11,568 - - 11,568 Deferred tax liabilities Exploration and evaluation assets (2,784) - - (2,784) (3,405) - - (3,405) Property, Plant and equipment (4,694) - - (4,694) (9,254) - - (9,254) Accrual for mine closure (334) - - (334) (968) - - (968) Deferred income (675) - - (675) (597) - - (597) Property, plant and equipment inflation adjustment - (861) - (861) - (881) - (881) Leasing assets (576) - - (576) (927) - - (927) Financial assets - (12) (345) (357) - - - - Trade and other receivables - (3) - (3) - - - - Deferred tax liabilities (9,063) (876) (345) (10,284) (15,151) (881) - (16,032) Net deferred tax assets/ (liabilities) 1,517 (846) - 671 (3,583) (881) - (4,464) Movement in deferred tax balances Opening balance (3,583) (881) - (4,464) (4,106) (368) (61) (4,535) Exchange rate difference - - - - - - - - Charged to profit or loss 5,100 35 - 5,135 523 (513) 61 71 Closing balance 1,517 (846) - 671 (3,583) (881) - (4,464) Deferred tax assets have not been recognised in respect to tax losses for certain entities of the Group. See below for details. (D) The Group operates in Australia, Chile, Argentina, Canada, and the US. Australia has enacted new legislation to implement the global minimum top-up tax in accordance with Pillar Two of the OECD/G20 Two-Pillar Solution. Canada is actively working on implementing the Pillar Two rules. The Canadian government has expressed its commitment to the OECD/G20 Inclusive Framework and is expected to introduce legislation to align with the global minimum tax rules. The US has incorporated aspects of the Pillar Two framework through its Corporate Alternative Minimum Tax (CAMT) under the Inflation Reduction Act. This includes a 15% minimum tax on the adjusted financial statement income of large corporations. Chile is part of the OECD Inclusive Framework and is in the process of aligning its tax policies with the Pillar Two require- ments. The country is expected to implement the global minimum tax rules to ensure compliance with the international standards. In certain entities of the Group, deferred tax assets have not been recognised because it is not probable that future taxable profit will be available to utilise the deferred tax assets. The ability of the Group to utilise Australian, Argentina, US or Canadian tax losses will depend on the applicability and compliance with the respective country’s tax laws regarding continuity of ownership or same or similar business tests. Austral Gold Limited 74 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS (E) Unrecognised Deferred Tax Assets All figures are reported in thousands of US$ As at 31 December Gross amount 2024 Expiry Gross amount 2023 Expiry Australia Tax losses 12,464 no-expiry 13,658 no-expiry Capital losses 1,999 no-expiry 2,208 no-expiry All figures are reported in thousands of US$ As at 31 December Gross amount 2024 Expiry Gross amount 2023 Expiry Canada Tax losses 5,654 2037-2045 4,861 2037-2044 Capital losses 269 no-expiry 311 no-expiry All figures are reported in thousands of US$ As at 31 December Gross amount 2024 Expiry Gross amount 2023 Expiry USA Tax losses 5,700 no-expiry 5,624 no-expiry All figures are reported in thousands of US$ As at 31 December Gross amount 2024 Expiry Gross amount 2023 Expiry Argentina Tax losses 4,740 2025-2029 1,495 2024-2028 Deferred tax assets 4,372 no-expiry 3,700 no-expiry All figures are reported in thousands of US$ As at 31 December Gross amount 2024 Gross amount 2023 Total Tax losses 28,558 25,638 Capital losses 2,268 2,519 Temporary differences 4,372 3,700 15. EARNINGS PER SHARE All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Net loss attributable to owners (27,068) (7,229) Weighted-average number of ordinary shares (basic) 612,311,353 612,311,353 Weighted-average number of ordinary shares (diluted) at 31 December(1) 612,311,353 612,311,353 Basic earnings (loss) per ordinary share (cents) (4.42) (1.18) Diluted earnings (loss) per ordinary share (cents) (4.42) (1.18) (1) The potential conversion of convertible notes (note 27) of up to 15,578,942 ordinary shares could potentially dilute basic earnings per share in the future, but were not included in the calculation of diluted earnings per share because they are antidilutive for the period(s) presented. 16. OPERATING SEGMENTS Management have determined the operating segments based on reports reviewed by the Chief Operating Decision Maker (“CODM”). The CODM considers the business from both an operations and geographic perspective and has identified two reportable segments, Guanaco/Amancaya which is based in Chile and Casposo/Manantiales which is based in Argentina. The CODM monitors the performance in these two regions separately. During the year ended 31 December 2024 and 2023, the Group earned 100% of its consolidated revenue from sales made to one customer. Austral Gold Limited 75 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS All figures are reported in thousands of US$ For the year ended 31 December 2024 For the year ended 31 December 2023 Guanaco/ Amancaya Casposo Group and unallocated items Consolidated Guanaco/ Amancaya Casposo Group and unallocated items Consolidated Sales Revenue Gold 35,871 - - 35,871 45,872 - - 45,872 Silver 919 - - 919 1,857 - - 1,857 Cost of sales (29,993) - - (29,993) (41,172) - - (41,172) Depreciation and amortisation expense (3,240) - - (3,240) (6,011) - - (6,011) Impairment loss on mine properties (2,550) - - (2,550) - - - - Impairment loss on property plant and equipment (16,705) - - (16,705) - - - - Impairment loss exploration and evaluation assets (763) - (8,073) (8,836) (2,328) - (1,653) (3,981) Other income1 720 235 1,903 2,858 249 352 3,130 3,731 Other expenses (1,363) (2,849) (54) (4,266) (578) (2,415) (1,793) (4,786) Administration expenses (3,168) (92) (3,069) (6,329) (2,963) (34) (3,148) (6,145) Finance income 2,460 369 924 3,753 1,848 396 2,040 4,284 Finance expenses (2,241) (51) (1,399) (3,691) (1,169) (182) (189) (1,540) Share of loss of associates - - - - - - (60) (60) Income tax (expense)/ benefit 5,100 35 - 5,135 1,221 (513) - 708 Segment (loss) (14,953) (2,353) (9,768) (27,074) (3,174) (2,396) (1,673) (7,243) Segment assets 49,050 16,240 7,800 73,090 72,090 14,163 18,253 104,506 Segment liabilities 44,986 9,179 4,560 58,725 51,188 4,985 6,760 62,933 Property, plant and equipment 434 - - 434 11,283 - - 11,283 Exploration and Evaluation expenditure 287 641 - 928 752 919 2,943 4,614 Mine properties 58 - - 58 9 - - 9 Capital expenditure 779 641 - 1,420 12,044 919 2,943 15,906 1. Includes gain on sale of subsidiary of US$1,964 and gain on revaluation of equity securities of US$1,012 related to other Group for the year ended 31 December 2023. Geographic information: All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Revenue by geographic location Chile 36,790 47,729 Total revenue 36,790 47,729 All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Non-current assets by geographic location Chile 40,811 66,724 Argentina 12,102 19,400 Canada - 915 British Virgin Islands - 110 Total non-current assets 52,913 87,149 Austral Gold Limited 76 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 17. CASH AND CASH EQUIVALENTS All figures are reported in thousands of US$ As at 31 December 2024 2023 Cash at call and in hand 3,372 1,261 Short-term investments 218 - Total cash and cash equivalents 3,590 1,261 Reconciliation of Cash Cash at the end of the financial year as shown in the Statement of Cash Flows, is reconciled to items in the Statement of Financial Position as follows: Cash and cash equivalents 3,590 670 Restricted cash received from private placement of convertible note offering (note 24) - 591 Cash and cash equivalents 3,590 1,261 Bank overdraft (199) (222) Cash and cash equivalents, net of bank overdraft 3,391 1,039 18. TRADE AND OTHER RECEIVABLES All figures are reported in thousands of US$ As at 31 December 2024 2023 Current Trade Receivables 106 668 Other receivables 3,577 911 GST/VAT receivable 744 777 Total current receivables 4,427 2,356 Non-current GST/VAT receivable 808 540 Other receivables 21 1,032 Total non-current receivables 829 1,572 Allowance for expected credit losses on GST/VAT (482) (445) Net non-current receivables 347 1,127 Trade debtors ageing The ageing of trade receivables is 0-30 days 106 668 >30 days - - As part of the Other receivables disclosed above, the main balances are the receivables from Unico disclosed in note 13 and the receivable from Challenger Gold as disclosed in note 33. The receivables, which were greater than one year when they arose, have been discounted using the following US treasury yield rates: All figures are reported in thousands of US$ Due date Undiscounted receivable Discounted receivable Discount rate (%) 2 January 2025 2,000 N/A N/A 25 November 2025 1,000 963 4.17 1.1 Past due but not impaired There were no trade receivables past due at 31 December 2024 (31 December 2023: nil). 1.2 Fair value and credit risk Due to the short-term nature of trade receivables, their carrying amount is assumed to approximate their fair value. Refer to note 32 for more information on the risk management policy of the Group and the credit quality of the receivables. 1.3 Key customers During 2024 and 2023 the Group is reliant on one customer to which gold and silver produced from the Guanaco/Aman- caya mines are sold. Austral Gold Limited 77 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 19. OTHER FINANCIAL ASSETS All figures are reported in thousands of US$ As at 31 December 2024 2023 Current Listed bonds — level 1 - 23 Listed equity securities — level 1 2,820 2,427 Unico Silver options— level 3 563 496 Unlisted equity securities, Ensign—level 3 - 1,012 Total current other financial assets at fair value 3,383 3,958 Non-Current Listed equity securities— level 1 - 2,127 Total non-current other financial assets at fair value 3,383 6,085 The table above sets out the Group’s assets and liabilities that are measured and recognised at fair value at the end of each reporting period with any movements recorded through the profit and loss statement. Current Unico Silver equity securities classified as level 1 and non-current listed equity securities refers to listed equity securities that are subject to a holding lock (note 13b). Listed equity securities are shares of Australian and Canadian listed mining companies nominated in A$ and C$ at 31 December 2024 and 31 December 2023, respectively. Level 3 recurring fair value Reconciliation of Level 3 fair values The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values. All figures are reported in thousands of US$ Note Equity securities Options Balance at 31 December 2022 - 28 Addition from sale of SCRN Properties Ltd. 13 712 Unrealised gain on revaluation of equity securities 1,012 (244) Balance at 31 December 2023 1,012 496 Sale of equity instrument (formerly Ensign) shares to level 1 (1,012) - Change in fair value - 67 Balance at 31 December 2024 - 563 Transfers During the year ended 31 December 2024, unlisted equity securities of Ensign were transferred from level 3 to listed equity securities-level 1 as the securities of Ensign were acquired by Revival Gold Inc., a Canadian listed company in exchange for Revival Gold securities. All of the Revival Gold shares received by the Company were sold at 31 December 2024. Unlisted equity securities As of 31 December 2023, the Group prepared several valuation models and determined using publicly available informa- tion, noting Ensign’s peer group consists of listed companies. The Group determined that the chosen valuation metric, Enterprise Value to Mineral Resources, is a widely accepted standard in the sector for assessing the relative valuation of capital and the most appropriate valuation methodology for its investment in Ensign Minerals Inc. (“Ensign”). The following assumptions were used to determine the fair value of the Group’s investment in Revival Gold (formerly Ensign) under the Enterprise Value to Mineral Resources model as of 31 December 2023: • Group’s shareholding in Ensign-11.7% • Discount factor of 40% of 1,640 thousand inferred resources advised by Ensign illiquidity discount 20% • EV to Mineral Resource factor 16.08 Austral Gold Limited 78 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS Fair value hierarchy Refer to note 4 of these financial statements for details of the fair value hierarchy. The following assumptions were used to determine the fair value of the Group’s level 3 equity instruments under the Enterprise Value to Mineral Resources Model: As at 31 December 2024 2023 Strike price A$0.26 A$0.26 Annual volatility 92.50% 99.79% Interest rate 3.95% 3.96% Expiration date 1 March 2026 1 March 2026 The value of the options was determined using the Black-Scholes model. 20. INVENTORIES All figures are reported in thousands of US$ As at 31 December 2024 2023 Materials and supplies 5,918 6,558 Ore stocks 1,647 1,736 Gold bullion and gold in process 1,139 1,405 Total inventories 8,704 9,699 *As part of the Group’s regular inventory review process, certain materials and supplies that are considered obsolete were identified. Obsolescence is determined based on factors such as age, condition, and likelihood of use. The allowance for inventory obsolescence forming part of the above balance is US$2,181 (31 December 2023:US$1,874) resulting in an expense of US$299 included with other expenses (note 8) and US$8 charged to cost of sales (note 6) 21. MINE PROPERTIES All figures are reported in thousands of US$ Guanaco/Amancaya Casposo Total Mine Properties – 31 December 2023 Cost 68,516 9,795 78,311 Accumulated amortisation (62,257) (9,795) (72,052) Carrying value — Mine Properties 6,259 - 6,259 Mine Properties – 31 December 2024 Cost 66,596 9,795 76,391 Accumulated amortisation (65,201) (9,795) (74,996) Carrying value — Mine Properties 1,395 - 1,395 All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Costs carried forward in respect of areas of interest Carrying amount at the beginning of the year 6,259 4,054 Additions 58 9 Transfers from exploration and evaluation expenditure 103 - Impairment for the year (2,550) - (Decrease) increase in provision for reclamation and rehabilitation (2,081) 2,645 Amortisation (394) (449) Carrying amount at end of the year 1,395 6,259 Austral Gold Limited 79 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS Carrying value — Guanaco/Amancaya The Guanaco and Amancaya mines have been determined to be a single cash generating unit (‘CGU’). In the 31 December 2024 financial year, the Group decided to temporarily cease operations at the Amancaya underground mine. Since the open pit mining operations began at the Amancaya underground mine, ore has been transferred to the Guanaco mine for processing. Following the completion of the construction of the Heap Reprocessing Project at the Guanaco mine site, the Heap Processing Project is the main source of mineral production. Since the operations at the Amancaya underground mine have now temporarily ceased, with no near-term plans to recom- mence operations, the Group identified an indicator of impairment and performed an assessment of the recoverable value. The Group determined the recoverable value of the Amancaya assets to be $nil and an impairment charge of $19,255 thousand has been recorded as at 31 December 2024, relating to mine properties ($2,550 thousand) and property plant and equipment assets $(16,705 thousand). The impairment charge is recorded in the Guanaco/Amancaya operating segment. The fair value less cost of disposal, is used to assess the recoverable value of the remaining assets in the Guanaco/ Amancaya CGU. The mine properties noted above and the property, plant and equipment that is an intrinsic part of the mine and its structure (included in note 22) are included in determining the carrying value of the CGU, which has been estimated at US$15,372 thousand after deducting working capital and non-current liabilities related to the CGU, for the purposes of assessing for impairment, while the carrying value of the Guanaco, plant and equipment and mining assets is US$27,367 thousand. An impairment test was also performed internally using the discounted cash flow model (DCF) as the primary valuation methodology. This fair value less cost of disposal (FVLCOD) discounted cashflow model is a level 3 fair value hierarchy. Main assumptions of the DCF model for impairment test purposes are as follows: • Forecast Gold price (2025-2034): US$2,050/oz -US$2,892/oz, with a weighted average of US$2,262/oz (31 December 2023 (2024-2033): US$2,048/oz-1,815/oz) • Forecast Silver price (2025-2034):US$33/oz-27/oz (31 December 2023 (2024-2033) US$24/oz– US$25/oz) • The gold and silver assumptions represent management’s assessment of future prices are based on current commodity prices and market expectations of future changes. • Life of mine operations based on the current model are forecast to end in 2034 (31 December 2023: 2033). • Discount Rate (pre-tax): 10.8% (31 December 2023:9.6%) • Discount Rate (after-tax):7.9% (31 December 2023: 8.5%) • The discount rate was a measure estimated based on the Company’s current weighted average cost of capital. • Production costs 2025: US$1,863/oz (2024: US$1,364/oz) • Production costs are management’s estimate of costs based on estimated production, historical data and anticipated inflationary changes. Production is based on Proven and Probable reserves and resource estimates to 31 December 2024 that are based on an independent technical report provided to the Group in 2022. No reasonably possible change to the key assumptions would result in a recoverable value below the book value of any of the projects based on the sensitivity analysis to the key assumptions, which would have the following results; The sensitivity to +/- 10% variation in the gold price US$1,845/oz -US$3,181/oz on the recoverable value of the Guanaco project results in an impact of +/- US$18,000 thousand. The sensitivity to +/- 10% variation in the discount rate 9.7%-11.8%) recoverable value of the Guanaco project results in an impact of +/- US$2,000 thousand. The sensitivity to +/- 10% variation in production costs on the recoverable value of the Guanaco project results in an impact of +/- US$11,000 thousand. 22. PROPERTY, PLANT AND EQUIPMENT All figures are reported in thousands of US$ As at 31 December 2024 2023 Property, plant and equipment owned 24,334 42,581 Right of use assets 5,721 7,035 30,055 49,616 Property, plant and equipment owned Cost 174,300 175,490 Accumulated depreciation (149,966) (132,909) Carrying amount at end of the year 24,334 42,581 Austral Gold Limited 80 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Movements in carrying value Carrying amount at beginning of the year 42,581 35,549 Additions 434 11,283 Depreciation (1,811) (4,184) Disposals (1,624) (760) Depreciation on disposals 1,459 693 Impairment for the year (16,705) - Carrying amount at end of the year 24,334 42,581 The majority of the property, plant, and equipment is allocated to the Guanaco/Amancaya Cash Generating Unit (“CGU”), which totals US$27,367 thousand, including right of use (note 22). The Casposo property, plant, and equipment are recorded at salvage value, as they are not currently in use, with a carrying amount of US$4,069 thousand. 22.1 Reconciliation of carrying amount All figures are reported in thousands of US$ Underground Mine Development Plant Mining Equipment Buildings Heap Other Total Cost Balance at 31 December 2022 86,733 36,052 19,907 14,318 612 7,345 164,967 Additions 5,009 122 40 - 5,633 479 11,283 Disposals - - (760) - - - (760) Balance at 31 December 2023 91,742 36,174 19,187 14,318 6,245 7,824 175,490 Additions - 93 - - 316 25 434 Disposals - - (828) - - (796) (1,624) Balance at 31 December 2024 91,742 36,267 18,359 14,318 6,561 7,053 174,300 Accumulated depreciation Balance at 31 December 2022 66,936 27,606 15,915 11,937 - 7,024 129,418 Depreciation 3,133 561 162 219 103 6 4,184 Disposals - - (693) - - - (693) Balance at 31 December 2023 70,069 28,167 15,384 12,156 103 7,030 132,909 Depreciation 824 383 107 129 334 34 1,811 Disposals - - (661) - - (798) (1,459) Balance at 31 December 2024 70,893 28,550 14,830 12,285 437 6,266 103,261 Impairment Balance at 31 December 2023 - - - - - - - Impairment 16,705 - - - - - 16,705 Balance at 31 December 2024 16,705 - - - - - 16,705 Carrying amounts At 31 December 2023 21,673 8,007 3,803 2,162 6,142 794 42,581 At 31 December 2024 4,144 7,717 3,529 2,033 6,124 787 24,334 Austral Gold Limited 81 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 22.2 Right of use assets All figures are reported in thousands of US$ Office Vehicles Machinery and equipment Total Balance at 31 December 2022 9 2,544 4,155 6,708 Additions 232 - 1,670 1,902 Disposals - (160) - (160) Less depreciation (83) (1,033) (299) (1,415) Balance at 31 December 2023 158 1,351 5,526 7,035 Additions - - - - Disposals (39) (208) - (247) Less depreciation (78) (815) (174) (1,067) Balance at 31 December 2024 41 328 5,352 5,721 23. EXPLORATION AND EVALUATION EXPENDITURE All figures are reported in thousands of US$ For the year ended 31 December 2024 2023 Costs carried forward in respect of areas of interest: Carrying amount at the beginning of the year 27,894 27,261 Additions 928 4,614 Disposal of assets (424) - Transfers to mine properties (103) - Impairment for the year (8,836) (3,981) Carrying amount at end of the year 19,459 27,894 The recovery of the carrying amount of the exploration and evaluation assets is dependent on the successful development and commercial exploitation or sale of the areas of interest. This balance mainly relates to expenditures at the Guanaco, and Casposo exploration areas of interest. Additions for the year ended 31 December 2024 mainly related to the Casposo-Manantiales project in San Juan, Argen- tina, and the Guanaco projects in Chile. For the year ended 31 December 2023, additions primarily related to exploration on the Jaguelito project in the Indio belt, Argentina, as well as the Casposo-Manantiales project in San Juan, Argentina, and the Guanaco projects in Chile. During the year ended 31 December 2024, the Group impaired the Jaguelito project for US$4,943 thousand. The decision was made after Mexplort Perforaciones Mineras S.A. (”Mexplort”), with whom the Company has an option agreement, informed the Group that they are not willing to fund their share of the project. In addition, the group impaired the three properties previously acquired from Revelo Resources in 2021 for US$3,131 thousand as no exploration and evaluation expenditures had been performed on these properties since their acquisition. Furthermore, the Group impaired two properties located near Guanaco in Chile: the San Guillermo property for US$516 thousand and the West Natalia property for US$246 thousand as the Group abandoned the properties. Austral Gold Limited 82 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS During 2023, the Group impaired the Morro Blanco project for US$1,850 thousand as the Group did not expect to meet the commitments under the option agreement with Pampa Metals that expired on 27 July 2023. In addition, it impaired the following properties: a. Reprado project acquired from Revelo Resources for US$258 thousand as it abandoned the property. b. Between 20-54% of the Las Pampas, Victoria Sur and Loro properties acquired from Revelo Resources and the San Guillermo property for US$1,643 thousand as the Group relinquished a selected number of hectares based on histori- cal geological information and the Group’s internal estimate of the potential for further discoveries, c. Expenditures of US$230 thousand on phase II of the Sierra Blanca project as US$400 thousand was due to be incurred by 31, August 2023, but was not spent. Impairment for the year ended 31 December 2024 and 2023 relate to impairment on the exploration projects with either no expected value or partial value. An impairment occurs where the Company no longer has rights to the area. Colossus Resource Agreement On 4 April 2023, the Group entered executed a letter of intent to grant Colossus Resources Corp. (“Colossus”) an option to acquire the Group’s Chilean Calvario and Mirador copper projects (the “Option”). Colossus paid US$100 thousand, recorded as other income (note 7), with US$75 thousand used to pay the 2023 mining canon fees. Subsequently, the parties executed an agreement on 15 November 2023. The key terms include: (i) a US$2,500 thousand work commitment over a two-year period, (ii) a 19.99% shareholding in Colossus (non- diluted basis), (iii) one million Colossus warrants at a C$0.50 exercise price and anti-dilution rights up to a US$3,800 thousand capital raise, and (iv) a contingent share payment if Colossus completes a prefeasibility study. Colossus was also required to complete an equity financing of at least US$1.5 million within a specified period, which remains outstanding. 24. TRADE AND OTHER PAYABLES All figures are reported in thousands of US$ As at 31 December 2024 2023 Current Trade payables 5,501 15,179 Accrued expenses 7,000 5,312 Royalty payable 1,306 578 Director fees 654 531 Restricted cash received on private placement of convertible notes (note 27) - 591 Other 322 95 Total current trade and other payables 14,783 22,286 Austral Gold Limited 83 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 25. EMPLOYEE ENTITLEMENTS All figures are reported in thousands of US$ As at 31 December 2024 2023 Current Salaries, social security and bonuses 2,151 1,967 Employee entitlements 757 1,023 Total current employee entitlements 2,908 2,990 The current provision for employee entitlements includes all unconditional entitlements in accordance with the applicable legislation. The entire amount is presented as current, since the Group does not have an unconditional right to defer payment. The entire balance of employee benefits is expected to be settled within the next 12 months. Total employee salary, benefits and bonuses of the Group in the profit and loss statement was US$9,550 thousand (2023- US$13,286 thousand), including US$5,927 thousand (2023-US$9,707 thousand) in cost of sales and US$3,623 thousand (2023-US$3,579 thousand) in administration expenses and care and maintenance expenses. The non-cash adjustment of US$1,271 thousand in the 2024 Consolidated Statement of Cash Flows (2023: US$960 thousand) relates to accrued bonuses for the period and other non-cash employee entitlements. 26. PROVISIONS All figures are reported in thousands of US$ As at 31 December 2024 2023 Mine closure 11,566 13,695 Movement in non-current provisions Opening balance 13,695 10,924 Increase in provision for reclamation and rehabilitation expensed 471 - (Decrease)/ increase of provision for reclamation and rehabilitation capitalised (2,081) 2,645 Exchange difference (818) 161 Present value adjustment 299 (35) Closing balance 11,566 13,695 Mine closure provision Provision for rehabilitation work has been recognised in relation to estimated future expenditures including rehabilitating mine sites, dismantling operating facilities and restoring affected areas. These future cost estimates are discounted to their present value. The calculation of this provision requires assumptions such as application of environmental legisla- tion, mine closure dates, available technologies and engineering cost estimates. On 8 August 2024, the Chilean National Geology and Mining Service Agency (“Servicio Nacional de Geología y Minería” or “SERNAGEOMIN”) approved the updated Reclamation and Rehabilitation/Mine-Closure Plan (“MCP”) for the Guanaco- Amancaya mine complex, resulting in a decrease of the MCP provision by US$2,081 thousand. The MCP provision encompasses the entire mine complex, and it foresees the initiation of closure activities in 2033, following the conclusion of production from the Heap Reprocessing Project. The carrying amount of the mine closure asset of US$1,237 thousand is included in the carrying value of mine properties CGU totalling US$15,372 disclosed in note 21. As at 31 December 2024, the total restoration provision amounts to US$7,440 thousand (31 December 2023–US$10,103 thousand) for Guanaco/ Amancaya mine. The present value of the restoration provision was determined based on the following assumptions: Undiscounted rehabilitation costs: • US$9,340 thousand (31 December 2023– US$ 12,860 thousand); • Discount period: 9.0 years (Discount period based on expected timing of restoration work). • Discount rate: 2.58% (2023- 2.44%) At 31 December 2024, the total restoration provision amounts to US$4,126 thousand (31 December 2023: US$3,592) for the Casposo mine. The present value of the restoration provision was determined based on the following assumptions: • Number of years, 7 (31 December 2023-5 years). • Undiscounted reclamation and rehabilitation costs: US$4,760 thousand (31 December 2023-US$3,912 thousand); • Discount rate: 2.08% (2023–1.7%) Austral Gold Limited 84 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 27. LOANS AND BORROWINGS All figures are reported in thousands of US$ As at 31 December 2024 2023 Current Loan facilities 3,779 8,823 Related party loans 1,606 4,717 Interest on convertible notes 48 - Total current loans and borrowings 5,433 13,540 Non-current Loan facilities 8,547 2,568 Related party loans 10,790 - Convertible notes 564 - Total non-current loans and borrowings 19,901 2,568 Loan Facilities During the year ended 31 December 2024, the Group entered into the following bank loans: 1. On 25 July 2024, the Group secured a new US$7,000 thousand loan with Santander Bank at an interest rate of 10.17%, with monthly principal and interest repayments of US$167 thousand from 21 February 2025 to 17 July 2028. This loan replaced US$6,800 thousand in debt maturing between 2024 and 2026. Under the loan agreement, equipment appraised at US$3,824 thousand was provided as collateral. 2. On 9 December 2024, the Group secured a new US$2,883 thousand loan with Banco de Crédito e Inversiones SA (BCI) at an interest rate of 9.9%, with repayments scheduled from March 2025 to March 2026. This loan replaced US$2,613 thousand in debt due between 2024 and 2026. Plant related equipment appraised at US$5,960 was provided as collateral for the loan. 3. On 20 December 2024, the Group entered into an US$7,000 thousand secured loan facility with an interest rate of 8% per annum to refurbish the Casposo Plant from Banco San Juan. The first installment of the loan of US$1,500 thousand was received on that date and the remaining installments under the loan are due as follows: • 60-75 days after signing: US$2,500 thousand • 30-45 days after the prior disbursement: US$1,000 thousand • 30-45 days after the prior disbursement: US$500 thousand • 30-45 days after the prior disbursement: US$1,500 thousand Each disbursement, except for the initial US$1,500 thousand, is subject to using the funds for capital expenditures and expenditures required to refurbish the Casposo Plant. The second disbursement is also subject to the Group contributing US$500 thousand to Casposo between November 2024 to February 2025. The loan is repayable over 24 months from each installment received, with monthly repayments of principal and interest to commence on 20 June 2025. A pledge guarantee was provided over Casposo’s Plant and a mortgage over the farmland where the processing plant is located were provided to Banco San Juan as collateral. At 31 December 2024, the current and non-current Loan facilities are to be repaid over 7 months and 42 months respec- tively at an annual average interest rate of 11.5% (2023–9.6%). Related party loans During the year ended 31 December 2024, the Group received unsecured related party loans totaling US$8,516,397 (31 December 2023-US$4,555,000). Including accrued interest, the total amount owed at 31 December 2024 is US$12,396,018 (31 December 2023-US$4,716,790). Details of the new loans received and repaid during the period are as follows: • On 1 March 2024, the Group entered into an unsecured bridge loan from Consultores Assets Management SA (CAMSA) for up to US$2,200,000 with Consultores Assets Management (CAMSA), an entity controlled by Austral’s major share- holder and Chair, Eduardo Elsztain. US$1,000,000 was received under the loan facility on 4 March 2024. • On 12 March 2024, the loan maturity dates of the loans held by Inversiones Financieras del Sur S.A. (“IFISA”), Eduardo Elsztain and Saul Zang aggregating principal of US$4,555,000 were extended to 30 September 2024. The loans were further extended to 31 Jul 2026. • On 27 March 2024, the Group entered into an unsecured bridge loan from CAMSA for approximately AR$1,200,000 thousand Argentine pesos (“ARS”) equivalent to US$1,401,051. The loan carried an interest rate of 100% per annum, and was repaid with proceeds received from a loan from Banco Hipotecario (BH) (described below). Interest on the Austral Gold Limited 85 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS loan totaled approximately US$123,992. The loan was repaid in Argentine pesos (ARS). The Company’s directors, Eduardo Elsztain and Saul Zang, are also directors and shareholders of CAMSA. • On 27 April 2024, the Group entered into an unsecured related party loan from BH, a company related to Eduardo Elsztain for AR$1,400,000,000 (US$1,600,000). The interest on the loan is based on the five-day average of the local market reference rate (“MRR”) Badlar (“Buenos Aires Deposits of Large Amount Rate”) plus 2%, which was effec- tively 43.5%. The Company used the proceeds to repay CAMSA. On 1 October 2024, BH loan was renewed, and the principal amount of the loan was increased to AR$1,600,000,000 (US$1,615,346). Interest on the renewed loan is 44% per annum. • US$4,500,000 was received from IFISA, Eduardo Elsztain and Saúl Zang, as follows: – As announced on 30 August 2024, the Company entered into an unsecured credit facility agreement with IFISA for up to US$3,500,000 with an interest rate of 9% per annum, with funds advanced under the facility due 29 January 2026. US$2,500,000 was advanced under the facility and US$1,000,000 has not been funded as of the date of this financial report. On 28 February 2025, IFISA and the Group executed an assignment, assumption and amendment agreement with Eduardo Elsztain to assign US$1,700,000 of the funds advanced under the credit facility, effective 30 August 2024. Additionally, IFISA and the Group entered into a similar agreement with Saul Zang to assign $300,000 of the funds advanced under the same credit facility agreement. – US$2,000,000, announced on 26 September under a loan agreement, was received on 1 October. The loan provides for collateral of up to 20,191,791 shares of Unico Silver Limited, subject to shareholder approval with an interest rate of 7% per annum. Convertible notes On 10 October 2023, the Group entered into an Agreement to issue approximately 1,548 thousand non-transferable unsecured convertible notes, each with a face value of AUD$1, to an accredited and sophisticated investor. The 919,158 notes was calculated by converting the gross proceeds into equivalent Australian dollars. The notes are to bear inter- est at a rate of 9% per annum and mature on the second anniversary of the date they are issued. Each note issued entitles the holder to convert the notes into ordinary shares of the Company at the holder’s option at a conversion price of AUD$0.059 per share during the first year (15,578,942 ordinary shares), and AUD$0.118 (7,789,471 ordinary shares) during the second year. The private placement was expected to yield gross proceeds of US$1,000 thousand (approxi- mately AUD$1,548 thousand). At 31 December 2023, the Group had received US$591 thousand from the investor, and as the aggregate of US$1,000 thousand stated in the agreement had not been received, the Group has not closed the financing, and classified the cash received as restricted cash. On 14 February 2024, a Deed of Variation of the Convertible Note Agreement was entered into which allowed for the closing of the convertible notes in two tranches, with the first tranche totaling US$591 thousand and the second tranche due by 15 March 2024. On 15 February 2024, the first tranche of the Agreement was completed and the US$591 thousand became unrestricted cash. The second tranche was not closed and expired. The carrying value of the convertible notes is US$612 thousand (inclusive of accrued interest and is accounted for using the amortised costs method) Austral Gold Limited 86 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS Reconciliation of movements of liabilities to cash flows arising from financing activities All figures are reported in thousands of US$ Loans Leasing Balance at 1 January 2023 8,646 2,836 Change from financing cash flows Proceeds from loans and borrowings 17,955 - Repayments (10,777) (2,252) Interest paid (720) (186) Other changes New leases - 1,742 Foreign exchange - (14) Interest expense 1,004 186 Balance at 31 December 2023 16,108 2,312 Balance at 1 January 2024 16,108 2,312 Change from financing cash flows Proceeds from loans and borrowings (1) 20,599 - Repayments (12,445) (1,135) Interest paid (1,495) (184) Other changes Non-cash movements - (108) Interest expense 2,234 184 Foreign exchange (279) (7) Balance at 31 December 2024 24,722 1,062 (1) Cash received by the Group from loans and borrowings totaled US$19,999 thousand, while US$600 thousand was paid directly from the Borrower to repay supply chain financing arrangements. Austral Gold Limited 87 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS All figures are reported in US$ 31 December 2024 Interest rate (%) Maturity date (1) Lender Face value Carrying value Banco Hipotecario(2),(4) 1,552,644 1,606,306 43.50 1 August 2025 Inversiones Financieras del Sur S.A.(2) 500,000 514,750 9.00 29 January 2026 Eduardo Elsztain(2),(3) 1,700,000 1,725,925 9.00 29 January 2026 Saul Zang(2),(3) 300,000 304,575 9.00 29 January 2026 Convertible notes 564,158 612,291 9.00 15 February 2026 Banco de Crédito e Inversiones SA (BCI) 2,883,060 2,900,503 9.90 27 March 2026 Inversiones Financieras del Sur S.A.(2) 555,000 612,859 9.00 31 July 2026 Inversiones Financieras del Sur S.A.(2) 2,000,000 2,242,750 9.00 31 July 2026 Eduardo Elsztain(2) 850,000 988,243 9.00 31 July 2026 Saul Zang(2) 150,000 174,396 9.00 31 July 2026 Eduardo Elsztain(2) 850,000 947,963 9.00 31 July 2026 Saul Zang(2) 150,000 167,363 9.00 31 July 2026 Consultores Assets Management S.A. 1,000,000 1,075,500 9.00 31 July 2026 Inversiones Financieras del Sur S.A.(2) 2,000,000 2,035,389 7.00 25 September 2026 Banco de Crédito e Inversiones SA (BCI) 1,000,000 611,111 12.35 23 October 2026 Banco San Juan 1,500,000 1,500,000 8.00 20 December 2026 Santander Bank 7,000,000 7,314,423 10.17 17 July 2028 Total 24,554,862 25,334,347 (1) The Maturity date refers to the date when the loan is to be completely repaid. Loans and borrowings have been classified based on the actual repayment calendar as disclosed in note 32 (2) Related party loans (3) Assigned from Inversiones Financieras del Sur S.A. during the year (4) Interest rate denominated in Argentine pesos (AR$) 28. ISSUED CAPITAL As at 31 December 2024 2023 Fully paid ordinary shares (in thousands of US$) 109,114 109,114 Number of ordinary shares 612,311,353 612,311,353 Weighted average number of ordinary shares 612,311,353 612,311,353 Movements in ordinary share capital Number of ordinary shares US$000’s Balance at 31 December 2024 and 2023 612,311,353 109,114 Ordinary shares participate in dividends and the proceeds on winding up of the Parent Entity in proportion to the number of shares held. At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands. The ordinary shares do not have any par value. 29. ACCUMULATED LOSSES All figures are reported in thousands of US$ As at 31 December 2024 2023 Accumulated losses at beginning of year (66,549) (59,320) Net (loss) for the year (27,068) (7,229) Foreign exchange movements (14) - Disposition of subsidiary with a non-controlling interest (27) - Accumulated losses at end of year (93,658) (66,549) Austral Gold Limited 88 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 30. RESERVES All figures are reported in thousands of US$ As at 31 December 2024 2023 Foreign currency translation reserve Balance at beginning of year 235 234 Foreign exchange movements from translation of financial instruments to US dollars 66 1 Balance end of year 301 235 Business combination reserve Balance at beginning of year (1,406) (1,406) Balance end of year (1,406) (1,406) Profit appropriation reserve Balance at beginning of year 14 14 Dividend paid - - Balance end of year 14 14 Total reserves (1,091) (1,157) Foreign Currency Translation Reserve Exchange differences arising on translation of the non-US$ denominated non-monetary balances of Group Companies are recognised in the foreign currency translation reserve. The reserve is recognised in profit or loss when the net invest- ment is disposed. Business Combination Reserve Created on the acquisition of non-controlling interests. The reserve is reversed when the entity acquired is disposed. Profit appropriation Reserve Transfers up to the net income earned during the year may be transferred from accumulated losses and paid as a dividend. 31. NON-CONTROLLING INTEREST All figures are reported in thousands of US$ As at 31 December 2024 2023 Non-controlling interest in subsidiaries comprise Balance beginning of the year 165 179 Increase (decrease) in non-controlling interest(1) 27 - Share of comprehensive (loss) (6) (14) Sale of Subsidiary (note 13) (186) - Balance end of the year - 165 (1) During the year ended 31 December 2024, a loan provided by the Group of US$84 thousand to Sierra Blanca was capitalised, which increased the Group’s interest to 54.69% from 51%. As Sierra Blanca was sold during the year (note 13), the value of the non-controlling interest is nil at 31 December 2024. Austral Gold Limited 89 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 32. FINANCIAL INSTRUMENTS Financial risk management objectives The Group’s principal financial instruments include items such as borrowings, receivables, listed equity securities, cash and short- term deposits. These activities expose the Group to a variety of financial risks: market risk (foreign currency risk and interest rate risk), credit risk, price risk and liquidity risk. The Group recognises the importance of risk management and has adopted a Risk Management and Internal Compliance and Control policy which describes the role and accountabilities of management and of the Board. The Directors manage the different types of risks to which the Group is exposed by considering risk and monitoring levels of exposure to the main financial risks by being aware of market forecasts for interest rates, foreign exchange rates, commodity and market prices. The Group’s exposure to credit risk and liquidity risk is monitored through general business budgets and forecasts. The Group holds the following financial instruments: All figures are reported in thousands of US$ As at 31 December 2024 2023 Financial Assets Cash and cash equivalents 3,590 1,261 Trade and other receivables 4,774 3,483 Other financial assets 3,383 6,085 Financial liabilities Bank overdraft 199 222 Trade and other payables 14,783 22,289 Supply chain financing arrangement - 835 Borrowings 25,334 16,108 Financial leases 1,062 2,312 a. Market Risk i. Foreign Currency Risk The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign currency exchange rate fluctuations. Foreign exchange rate risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a currency that is not the functional currency of the Group. The risk is measured using cash flow forecasting. Foreign currency risk is minimal as most of the transactions are settled in US$. At 31 December 2024, the Group was exposed to foreign exchange risk through the following financial assets and liabili- ties denominated in currencies other than the Group’s functional currency (thousands of US$). The following significant exchange rates have been applied. US$ Average rate Year-end spot rate 2024 2023 2024 2023 ARS 918.73 295.19 1,030.50 806.95 CLP 936.79 839.69 996.46 877.12 AUD 1.51 1.51 1.61 1.47 CDN 1.37 1.35 1.44 1.32 Sensitivity analysis A reasonably possible strengthening (weakening) of the Argentine peso, Chilean peso, Australian dollar, Canadian dollar and US dollar against all other currencies at 31 December 2024 would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. Austral Gold Limited 90 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS Effect in thousands of US$ 31 December 2024 Profit or loss Equity, net of tax Strengthening Weakening Strengthening Weakening ARS (12% movement) (230) 230 (230) 230 CLP (10% movement) (991) 991 (991) 991 A$ (5% movement) 137 (137) 137 (137) C$ (2% movement) - - - - 31 December 2023 Strengthening Weakening Strengthening Weakening ARS (70% movement) (198) 198 (198) 198 CLP (10% movement) (1,952) 1,952 (1,952) 1,952 A$ (5% movement) 289 (289) 289 (289) C$ (1% movement) 5 (5) 5 (5) All figures are reported in thousands of US$ 31 December 2024 Argentinian Peso (ARS) Chilean Peso (CLP) Australian Dollar (AUD) Canadian Dollar (CDN) Financial assets Cash and cash equivalents 214 538 17 7 Trade and other receivables 78 962 24 - Other financial assets - - 3,353 30 Financial liabilities Trade and other payables 604 11,050 131 26 Borrowings 1,606 - 564 - Financial leases - 29 - - All figures are reported in thousands of US$ 31 December 2023 Argentinian Peso (ARS) Chilean Peso (CLP) Australian Dollar (AUD) Canadian Dollar (CDN) Financial assets Cash and cash equivalents 29 14 9 42 Trade and other receivables 28 733 20 - Other financial assets 23 - 5,774 288 Financial liabilities Trade and other payables 278 19,482 85 28 Financial leases - 136 - - ii. Interest Rate Risk The Group’s main interest rate risk arises from recent higher interest rates on new borrowings and finance leases. The Group’s borrowings and finance leases are at fixed rates and therefore do not carry any variable interest rate risk. Changes in interest rates are not expected to have a significant impact on the Group. b. Price Risk The Group’s revenues are exposed to fluctuations in the price of gold, silver and other prices. Gold and silver produced is sold at prevailing market prices in US$. The financial performance of the Group is significantly influenced by the market price of gold. Gold prices have expe- rienced considerable volatility over recent years, driven by various economic, geopolitical, and market factors. As of February 2025, gold prices have increased by more than 10% since the beginning of the year, reaching near-record levels. The future price of gold is expected to remain volatile due to ongoing economic uncertainties, geopolitical tensions, and changes in monetary policies by major central banks. These factors could lead to fluctuations in gold prices, which may impact the Group’s revenue and cash flows. The Group has resolved that for the present time production should remain unhedged. The Group considers exposure to commodity price fluctuations within reasonable boundaries to be an integral part of the business. Sensitivity to Changes in Commodity Prices (Gold and Silver) The sensitivity analysis below demonstrates the after tax effect on the profit/(loss) and equity which could result if there were changes in the gold and silver commodity prices by +/- 10% of the actual commodity prices realised by the Group based on recent history. Austral Gold Limited 91 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS All figures are reported in thousands of US$ Effect on profit/loss) For the year ended 31 December Effect on equity For the year ended 31 December 2024 2023 2024 2023 10 % increase in gold and silver prices 3,679 4,773 3,679 4,773 10 % decrease in gold and silver prices (3,679) (4,773) (3,679) 4,773 c. Financial Market Risk The financial market risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate because of changes in market prices, which occurs due to the Group’s investment in listed securities where share prices can fluctuate over time. The group holds listed government bonds, and listed equity securities (note 4). These are classified as level 1 within the fair value hierarchy as per AASB 7 “Financial Instruments”. i. Sensitivity analysis-Equity price risk All of the Group’s listed equity investments are listed on either the Australian Stock Exchange (“ASX”) or the Toronto Venture Exchange (“TSXV”) or the Canadian Stock Exchange (“CSE”). For such investments, an increase in the value of the investments at the reporting date on profit or loss would have resulted in an increase of US$282 thousand before tax and US$243 thousand after tax (2023: US$243 thousand before tax and US$206 thousand after tax). An equal change in the opposite direction would have decreased profit or loss by US$243 thousand (2023: US$206 thousand after tax). d. Credit Risk The maximum exposure to credit risk at the reporting date to recognised financial assets, including receivables from government authorities, is the carrying amount, net of any allowance for doubtful debts, as disclosed in the statement of financial position and notes to the financial statements. The Group trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the Group’s policy to securitise its other receivables. In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. Although there is a significant credit risk of concentration as the Group typically sells to one refinery, credit risk is minimised as generally funds are collected within two days of the date of shipment, the refiner used by the Group is an LBMA (London Bullion Market Association) Good Delivery refiner, which means it meets strict standards for quality and responsible sourcing, and has robust compliance programs in place to ensure adherence to regulations related to anti-money laundering, combating terrorist financing, and responsible sourcing. e. Liquidity Risk The liquidity of the Group is managed to ensure sufficient funds are available to meet financial commitments in a timely and cost effective manner. Management continuously reviews the Group’s liquidity position through cash flow projections based upon the current life of mine plan to determine the forecasted liquidity position and maintain appropriate liquidity levels. Austral Gold Limited 92 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS Maturities of financial liabilities The tables below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. All figures reported in US$ Consolidated 6 months 6-12 months 1-5 years > 5 years Total 31 December 2024 Financial liabilities Bank overdraft 199 - - - 199 Trade and other payables 14,783 - - - 14,783 Borrowings 2,154 4,620 20,382 - 27,156 Leasing 462 344 405 - 1,211 Total 31 December 2024 liabilities 17,598 4,964 20,787 - 43,349 31 December 2023 Financial liabilities Bank overdraft 222 - - - 222 Trade and other payables 22,286 - 3 - 22,289 Supply chain financing arrangement 835 - - - 835 Borrowings 10,617 3,576 2,748 - 16,941 Leasing 699 653 1,256 - 2,608 Total 31 December 2023 liabilities 34,659 4,229 4,007 - 42,895 33. COMMITMENTS AND CONTINGENCIES All figures are reported in thousands of US$ As at 31 December 2024 2023 Operating leases not recognised as liabilities - - Exploration commitment at the reporting date and recognised as liabilities - - Capital expenditure not recognised as liabilities 641 383 To maintain legal rights to its properties, the Group pays fees for mining concessions and exploration. It anticipates that it will need to pay approximately US$ 641 thousand (2023: US$383 thousand) during the next year to maintain legal rights to all of its properties. Toll Processing Agreement On 30 December 2024, the Group’s subsidiary, Casposo Argentina Mining Ltd. (“Casposo) and Challenger Gold (“Chal- lenger”) executed a Toll Processing Agreement (“the Agreement”). Under the Agreement, Casposo will process mineralised material from Challenger’s Hualilan project at Casposo’s Plant, in San Juan, Argentina. Material Terms of the Agreement • The parties agree to set up a technical and advisory committee made up of up to three professionals from each party. • Casposo to use best commercial efforts to finance, directly or through third parties, the funds required for the refur- bishment and commercial startup of the Casposo Plant on or before July 31, 2025. (note 27) • Operator: The Casposo Plant will be operated by Casposo´s local branch in Argentina, named Casposo Argentina Ltd. Sucursal Argentina. • Guaranteed throughput Tonnage: guaranteed toll treatment of 150,000 tons available to Challenger per year, with a guaranteed toll treatment capacity available to Challenger of 450,000 tons over a three (3) year period. Consideration: As part of this agreement US$2,000 thousand was paid in advance by Challenger to the Group. The amount will be required to be repaid if certain conditions are not met, including the plant not being ready for commercial operations by 31 July 2025, or the plant not being capable of meeting operational targets. Austral Gold Limited 93 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 34. SUBSIDIARIES Country of Incorporation % owned as at 31 December 2024 2023 Subsidiaries Guanaco Mining Company Limited British Virgin Islands 100.000 100.000 Guanaco Compañía Minera SpA Chile 99.998 99.998 Minera Mena Chile Ltda Chile 99.990 99.990 SCM Pampa Buenos Aires Ltda Chile 99.990 99.990 Minera Celeste Chile Ltda Chile 99.990 99.990 Minera Serena Chile Ltda Chile 99.990 99.990 SMC Montezuma Ltda Chile 99.990 99.990 Austral Gold Chile SpA Chile 100.000 100.000 Austral Gold Argentina S.A. Argentina 99.970 99.970 Sierra Blanca S.A. Argentina - 51.000 (1) Austral Gold North America Corp. United States 100.000 100.000 Austral Gold Canada Limited Canada 100.000 100.000 Casposo Argentina Mining Limited Canada 100.000 100.000 Austral Gold Casposo Limited Argentina 100.000 - Revelo Resources Corp. Canada 100.000 100.000 Minera Cuyo S.A. Argentina 50.000 - (1) Note 13 35. PARENT ENTITY DISCLOSURES All figures are reported in thousands of US$ As at 31 December 2024 2023 Result of parent entity (Loss) for the year (28,617) (18,608) Foreign exchange movements from translation of financial statements to US$ 66 1 Total comprehensive (loss) for the year (28,551) (18,607) Financial position of parent entity Current assets 400 4,586 Total assets 37,963 59,970 Current liabilities 1,126 18,832 Total liabilities 25,397 18,832 Net assets 12,566 41,138 Total equity of the parent entity comprising of: Issued capital 109,114 109,114 Accumulated losses (96,187) (67,571) Foreign currency translation reserve (374) (418) Profit appropriation reserve (13) (13) Total equity 12,566 41,138 Austral Gold Limited 94 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 36. RELATED PARTY TRANSACTIONS 37.1 KMP holdings of shares and share options at 31 December 2024 • Mr. Eduardo Elsztain holds 461,316,134 shares directly and indirectly in Austral Gold Limited. (31 December 2023— 461,294,560 shares) • Mr. Saul Zang holds 1,640,763 shares directly in Austral Gold Limited. (31 December 2023— 1,640,763 shares) • Mr. Pablo Vergara del Carril holds 68,119 shares directly in Austral Gold Limited. (31 December 2023—68,119) • Mr. E. Elsztain and Mr. S. Zang are Directors of IFISA which holds 380,234,614 shares (31 December 2023—380,234,614) • Mr. P. Vergara del Carril, Mr. E. Elsztain and Mr. S Zang are Directors of Guanaco Capital Holding Corp which holds 38,859,957 shares. (31 December 2023—38,859,957) • Mr. Stabro Kasaneva holds 7,881,230 shares indirectly in Austral Gold Limited. (31 December 2023—7,881,230) • Mr. Ben Jarvis holds 600,000 shares directly in Austral Gold Limited (31 December 2023—600,000) • Mr. Jose Bordogna holds 126,495 shares directly in Austral Gold Limited. (31 December 2023—126,495) 36.2 Directors and Key Management Personnel Remuneration The aggregate compensation made to Directors and other members of Key Management Personnel of the Group is set out below. All figures are reported in US$ For the year ended 31 December 2024 2023 Short-term benefits 1,222,545 1,516,867 Other long term benefits 34,539 27,382 Termination benefits - 71,762 Total 1,257,084 1,616,011 36.3 Other transactions with related parties On 25 June 2024, the Company sold 5,458,833 previously issued common shares of Unico (“Unico Shares”) to Mr. Elsztain and 963,323 Unico Shares to Mr. Zang, at a price per Unico Share of A$0.16 per share. Total proceeds from the transaction was US$682,393. On 25 July 2024, the Company entered into an agreement to sell an additional 8,139,023 Unico Silver shares to its largest shareholder, Inversiones Financieras del Sur SA (IFISA). Two board members, Eduardo Elsztain and Saul Zang are also shareholders and directors of IFISA. The sale was completed on 2 August 2024 for proceeds of US$987,869. On 31 December 2024, Mr. Elsztain purchased 21,574 shares of the Company in the open market at a cost of US$275 (A$475). In 2024, the Company received US$46,000 (2023: US$30,000) from Unico Silver Limited for providing accounting and administrative services for one of its Argentinean subsidiaries. Related party transactions regarding loans are disclosed in note 27, Loans and Borrowings. Zang, Bergel & Viñes Abogados (“ZBV”) is a related party since one non-executive Director, Pablo Vergara del Carril has significant influence over this law firm based in Buenos Aires, Argentina. Fees charged and expenses reimbursed by the Group for the year ended 31 December 2024 amounted to US$75,224 (2023: US$80,922). As at 31 December 2024, the Group owed ZBV US$41,508 (31 December 2023-US$5,990). IRSA Inversiones y Representaciones S.A. and Consultores Asset Management S.A. are related parties as they are controlled by Non-executive Director and Chair, Eduardo Elsztain. During the year ended 31 December 2024 a total of US$315,058 was charged to and reimbursed by the Company (2023: US$61,975) in regard to financing fees and loan interest, IT services support, HR services, software licenses building/office expenses and other fees at 31 December 2024, the Group owed these companies US$$44,131 (31 December 2023-US$7,285). During 2023 and 2024, the Group entered into loans with Inversiones Financieras del Sur S.A., Consultores Assets Management S.A., Banco Hipotecario, and it’s directors, Eduardo Elsztain and Saul Zang. Terms of the loans are described in note 28 and the respective amounts owed and interest expense are disclosed in the following table: Austral Gold Limited 95 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS All figures are reported in US$ For the year ended 31 December 2024 2023 Balance due Interest expense Balance due Interest expense Lender Inversiones Financieras del Sur S.A.(1) 5,405,748 283,921 2,621,827 88,797* Consultores Assets Management S.A.(2) 1,075,500 199,492 - - Banco Hipotecario(3) 1,606,306 437,469 - - Eduardo Elsztain 3,662,131 181,475 1,780,656 80,656 Saul Zang 646,333 32,025 314,309 14,309 Total 12,396,018 1,134,382 4,716,792 183,762 1. Includes US$22,525 of interest paid during 2023. 2. Includes US$123,992 of interest paid during 2024. 3. Includes US$383,808 of interest paid during 2024, and gained US$186,572 of foreign exchange on repayment of the original loan and recorded US$60,355 of foreign exchange on the current loan during 2024 as the loan is in Argentine pesos. 36.4 Ultimate parent entity The Parent Entity is controlled by IFISA with a 62.1% in Austral Gold Limited and is incorporated in Uruguay. As IFISA is a private company, they do not produce consolidated financial statements available for public use. The ultimate beneficial owner of IFISA is Eduardo Elsztain. 36.5 Board positions with Companies that we hold equity interests Mr. Bordogna, CFO of Austral Gold Limited is a director of Unico Silver Limited (note 13). 37. CAPITAL MANAGEMENT The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as the level of dividends to ordinary shareholders. The Group maintains strong relationships with its lenders, including banks which provide the Group with borrowings and lines of credit, and the gold refinery that the Group has an agreement with, and other customers of the Group that may fund the purchase of gold and silver in advance of delivery. 38. SUBSEQUENT EVENTS 38.1 On 3 January 2025, the Group received US$2,000 thousand in accordance with the Toll Treatment Agreement entered into between the Group’s subsidiary Casposo Argentina Mining Ltd. and Challenger Gold Limited (note 33). 38.2 On 28 February 2025, IFISA and the Group executed an assignment, assumption and amendment agreement with Eduardo Elsztain to assign US$1,700,000 of the funds advanced under a US$3,500,000 unsecured credit facility agreement with IFISA, effective 30 August 2024, the date of the facility. Additionally, IFISA and the Group entered into a similar agreement with Saul Zang to assign $300,000 of the funds advanced under the same credit facility agreement. 38.3 On 14 March 2025, the Group received the second installment of US$2,500 thousand under the loan agreement from Bank San Juan to refurbish the Casposo plant. 39. MATERIAL ACCOUNTING POLICIES The group has consistently applied the following accounting policies to all periods presented in these consolidated financial statements, except if mentioned otherwise (see also Note 5). Change in classification During the year ended 31 December 2024, the Group updated the classification of certain disclosures to better reflect the nature of the items. Changes were made to the Consolidated statement of profit or loss and other comprehensive income to: • reclassify impairment loss on exploration and evaluation assets of US$3,891 thousand from Other expenses. • reclassify gain on sale of equipment and gain on sale of inventory of US$122 thousand from proceeds in other income and cost in other expenses. • reclassify the net present value adjustment to the mine closure provision of US$138 thousand from gross income and costs. Changes were made to the Consolidated statement of financial position to: • reclassify US$222 thousand of bank overdraft from Cash and cash equivalents. • reclassify US$835 thousand of Supply chain financing arrangement from Trade and other payables. Austral Gold Limited 96 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS Changes were made to the Consolidated statement of cash flow to: • reclassify the Bank overdraft from trade and other payables. • reclassify Supply chain financing arrangements from trade and other payables. • to segregate non-cash charges to loss on foreign exchange, employee entitlements and interest paid. Previous financial statement captions 31 December 2023 (Prior) $000’s Reclassification 31 December 2023 (Current) $000’s Consolidated profit or loss and other comprehensive income Other income 3,853 (122) 3,731 Other expenses (8,889) 4,103 (4,786) Impairment loss on exploration and evaluation assets - (3,981) (3,981) Finance income 4,422 (138) 4,284 Finance costs (1,678) 138 (1,540) (2,292) - (2,292) Consolidated statement of financial position Cash and cash equivalents 1,039 222 1,261 Bank overdraft - (222) (222) Trade and other payables (23,121) 835 (22,286) Supply chain financing arrangement - (835) (835) (22,082) - (22,082) Consolidated statement of cash flows Increase (decrease) in trade and other payables 6,048 (1,085) 4,963 Net Finance charges 1,511 (116) 1,395 Loss from foreign exchange - 319 319 (Decrease) / increase in supply chain financing arrangement - 835 835 Provision for reclamation and rehabilitation (126) 252 126 Non-cash employee entitlements (20) 980 960 (Decrease) in employee entitlements (1,060) (980) (2,040) Other interest and financial expenses paid - (205) (205) 6,353 - 6,353 Austral Gold Limited 97 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 39.1 Basis of consolidation 39.2 Revenue recognition 39.3 Goods and services tax (GST)/ Value added tax (VAT) 39.4 Foreign currency 39.5 Mine properties 39.6 Exploration and evaluation expenditure 39.7 Property, plant and equipment 39.8 Cash and cash equivalents 39.9 Income tax 39.10 Inventories 39.11 Trade and other receivables 39.12 Financial assets 39.13 Trade and other payables 39.14 Interest bearing liabilities 39.15 Provisions 39.16 Leases 39.17 Impairment of non-financial assets 39.18 Contributed equity 39.19 Earnings per share 39.20 Borrowing costs 39.21 Employee leave benefits 39.22 Segment reporting 39.1 Basis of consolidation A subsidiary is any entity over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. A list of subsidiaries is contained in note 34 to the financial statements. The financial statements of the subsidiaries are prepared for the same reporting periods as the parent company using consistent accounting policies. All intercompany balances and transactions between entities in the Group, including any unrealised profits or losses, have been eliminated on consolidation. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. Non-controlling interests in the equity and results of the subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Business combinations The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities Austral Gold Limited 98 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 39.2 Revenue Recognition Under AASB 15 “Revenue from Contracts with Customers”, the sale of minerals is recognised at the transfer of control or point of sale, which is when the customer has taken delivery of the goods, the risks and rewards have been transferred to the customer and there is a valid contract. Determining the timing of the transfer of control at a point in time or over time requires judgement. The Group has an agreement with the refinery and sales are made via correspondence or an on-line trading platform with the customer. When the customer is the refinery, the control of the metals is transferred upon stowage of the material into the approved carrier’s vehicle at the gold room at the mine. The metal availability date is when the metals are available for pricing by the refinery. If the customer is not the refinery, revenue is recognised when the metals are transferred to the customer upon receipt and the customer obtains control of the metals. Invoices are payable two business days after the metal availability date. At the Guanaco/Amancaya mine, revenue is recognised when control of the metal is transferred as the related risk and rewards of ownership is transferred. When the customer is not a refinery, control occurs when the ounces of metals are transferred to the customer. The price is set by the market using the London gold market. 39.3 Goods and services tax (GST)/ Value added tax (VAT) Revenues, expenses and assets are recognised net of the amount of GST/VAT, except where the amount of GST/ VAT incurred is not recoverable from the tax authorities. In these circumstances the GST/VAT is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST/VAT. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST/VAT component of investing and financing activities, which are disclosed as operating cash flows. 39.4 Foreign currency transactions Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value is determined. Non- monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in profit or loss and presented within finance costs. Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the transac- tions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. The assets and liabilities of foreign operations are translated into US dollars at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into US dollars at the exchange rates at the dates of the transactions. 39.5 Mine Properties Mine properties in production represent the aggregated exploration and evaluation expenditure and capitalised develop- ment costs in respect of areas of interest in which mining is ready to or has commenced. Mine development costs are deferred until commercial production commences, at which time they are amortised on a units-of-production basis of gold equivalent ounces over mineable reserves. Once production has commenced, further development expenditure is classified as part of the cost of production, (e.g. stripping costs) unless substantial future economic benefits can be established. Amortisation Aggregated costs on productive areas are amortised over the life of the area of interest to which such costs relate on the units-of-production basis. 39.6 Exploration and evaluation expenditure Exploration and evaluation expenditure incurred is capitalised in respect of each identifiable area of interest and carried forward in the statement of financial position where rights to tenure of the area of interest are current; and at least one of the following conditions is met: i. such costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively, by its sales; or ii. exploration and/or evaluation activities in the area of interest have not, at reporting date, yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in the area of interest are continuing. Expenditure relating to pre-exploration activities, including costs incurred prior to the Group having an exploration license, is written off to the profit or loss during the period in which the expenditure is incurred. Austral Gold Limited 99 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Accumulated expenditure on areas that have been abandoned, or are considered to be of no value, are written off in the year in which such a decision is made. When the technical and commercial feasibility of an undeveloped mining project has been demonstrated, the project enters the construction phase. The cost of the project assets are transferred from exploration and evaluation expenditure and reclassified into construction phase and include past exploration and evaluation costs, development drilling and other subsurface expenditure. When commissioned based on technical and commercial viability,, the accumulated costs are transferred into Mine Properties or an appropriate class of property, plant and equipment. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the units of production basis. 39.7 Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation The depreciated amount of property, plant and equipment is recorded either on a straight-line basis or on the production output basis to the residual value of the asset over the lesser of mine life or estimated useful life of the asset. Depreciation rates and methods are reviewed annually for appropriateness. When changes are made, adjustments are reflected prospectively in current and future periods only. . Assets that are idle or no longer ready for use are not depreci- ated but are separately tested for impairment and where the recoverable value is less than the book value of the asset, an impairment is recorded. Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values, and is generally recognised in profit of loss. The estimated useful lives for property, plant and equipment for current and comparative periods are as follows: i. Underground mine development, plant ,mining equipment, machinery and equipment, building and heap: over the life of the area of interest on a production output basis ii. Office equipment, vehicles and other: straight-line basis over 2-3 years De-recognition and disposal An item of property, plant and equipment is de-recognised upon disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss in the year the asset is de-recognised. 39.8 Cash and cash equivalents Cash includes: i. cash on hand and at call deposits with banks or financial institutions; and ii. cash equivalents which includes other short-term highly liquid investments with original maturities of three months or less, net of bank overdraft. 39.9 Income tax Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by reporting date. Deferred income tax is provided on all temporary differences at reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary differences except: i. when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a trans- action that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or ii. when the taxable temporary difference is associated with investments in subsidiaries, associates, or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. iii. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deduct- ible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except: Austral Gold Limited 100 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS iv. when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or v. when the deductible temporary difference is associated with investments in subsidiaries, associates, or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary differ- ence can be utilised. The carrying amount of any deferred income tax assets recognised is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply for the year when the asset is realised or the liability is settled, based on tax laws that have been enacted or substantively enacted at report- ing date. Income taxes relating to items recognised directly to equity are recognised in equity and not in profit or loss. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. 39.10 Inventories Materials and supplies used in production are stated at the lower of cost and net realisable value on a ‘first in first out’ basis. Cost comprises direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity. If the ore stockpile is not expected to be processed in the normal operating cycle, it is included in non-current assets and the net realisable value is calculated on a discounted cash flow basis. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained ounces based on assay data, and the estimated recovery percentage. Stockpile tonnages are verified to periodic surveys. Gold bullion and gold-in-process are valued at the lower of cost and net realisable value. Net realisable value is deter- mined using the prevailing metal prices. 39.11 Trade and other receivables Trade accounts receivable, amounts due from related parties and other receivables represent the principal amounts due at the date of the financial position plus accrued interest and less, where applicable, net of provisions for doubtful accounts and are measured at amortised costs. With respect to VAT, included as other receivables, the Group records an expected credit loss where applicable, noting that VAT in Argentina can generally be recovered only against VAT charged on sales. 39.12 Financial assets Financial assets are initially recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets (unless it is a trade receivable without a significant financing component) are initially measured at fair value plus or minus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. 39.13 Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. They are measured at amortised cost and are not discounted. The amounts are unsecured. 39.14 Interest bearing liabilities Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method. Where there is an existing right to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are classified as non-current. 39.15 Provisions Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Austral Gold Limited 101 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS Mine Closure provision Close-down and restoration costs include the dismantling and demolition of infrastructure and the removal of residual materials and remediation of disturbed areas. Provisions for close-down and restoration costs do not include any addi- tional obligations which are expected to arise from future disturbances. The costs are based on the net present value of the estimated future costs of a closure. Estimated changes resulting from new disturbances, updated cost estimates including information from tenders, changes to the lives of operations and revisions to discount rates are capitalised within the property, plant and equipment. These costs are then depreciated over the lives of the assets to which they relate. The amortisation or “unwinding” of the discount applied in establishing the net present value provisions is charged to the income statement in each period as part of finance costs. The cost of property, plant and equipment includes the estimated cost of dismantling and removing infrastructure and restoring the site to the extent that such cost is recognised as a provision. 39.16 Leases At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period for time in exchange for consideration. At commencement or on modification of a contract that contains a lease component, the Group allocates the consid- eration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of property the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component. Right of use The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right- of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. 39.17 Impairment of non-financial assets At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs of disposal or value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the profit or loss. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax rate. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. 39.18 Contributed equity Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Austral Gold Limited 102 Annual Report 2024 NOTES TO THE FINANCIAL STATEMENTS 39.19 Earnings per share Basic earnings per share Basic earnings per share is determined by dividing net profit after income tax attributable to members of the parent, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year. Diluted earnings per share Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. 39.20 Borrowing costs Borrowing costs are recognised as an expense when incurred unless they are attributable to qualifying assets, in which case they are then capitalised as part of the assets. 39.21 Employee leave benefits/Short-term employee benefits Liabilities for employees’ entitlements to wages and salaries, annual leave and other employee entitlements expected to be settled within 12 months of the reporting date are recognised in the current provisions in respect of employees’ services up to reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabili- ties for non- accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable. Long service leave The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated cash outflows. Superannuation The Company contributes to employee superannuation funds. Contributions made by the Company are legally enforce- able and contributions are made in accordance with the requirements of the Superannuation Guarantee Legislation. 39.22 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer. Austral Gold Limited 103 Annual Report 2024 Entity name Body corporate, partnership or trust Place incorporated/ formed % of share capital held directly or indirectly by the Company in the body corporate Australian or foreign tax resident Jurisdiction for foreign tax resident Austral Gold Limited Body corporate Australia Australian N/A Guanaco Mining Company Body corporate British Virgin Islands 100 Foreign British Virgin Islands Guanaco Compañía Minera Body corporate Chile 100 Foreign Chile Austral Gold Argentina Body corporate Argentina 100 Foreign Argentina Austral Gold North America Corp. Body corporate US 100 Foreign US Austral Gold Canada Limited Body corporate Canada 100 Foreign Canada Casposo Argentina Mining Ltd. Body corporate Canada 100 Foreign Canada/Argentina Revelo Resources Corp. Body corporate Canada 100 Foreign Canada Minera Mena Chile Ltda. Body corporate Chile 100 Foreign Chile Austral Gold Chile Spa Body corporate Chile 100 Foreign Chile SCM Pampa Buenos Aires Body corporate Chile 100 Foreign Chile Minera Celeste Chile Ltda. Body corporate Chile 100 Foreign Chile Minera Serena Mining Chile Ltda. Body corporate Chile 100 Foreign Chile SCM Montezuma Ltda. Body corporate Chile 100 Foreign Chile Minera Cuyo Body corporate Argentina 50 Foreign Argentina CONSOLIDATED ENTITY DISCLOSURE STATEMENT 31 DECEMBER 2024 Austral Gold Limited 104 Annual Report 2024 31 DECEMBER 2024 Austral Gold Limited (the “Company”) is a company limited by shares that is incorporated and domiciled in Australia. BASIS OF PREPARATION KEY ASSUMPTIONS AND JUDGEMENTS Determination of Tax Residency Section 295 (3A) of the Corporation Acts 2001 requires that the tax residency of each entity which is included in the Consolidated Entity Disclosure Statement (CEDS) be disclosed. In the context of an entity which was an Australian resident, “Australian resident” has the meaning provided in the Income Tax Assessment Act 1997. The determination of tax residency involves judgment as the determina- tion of tax residency is highly fact dependent and there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the consolidated entity has applied the following interpretations: • Australian tax residency The consolidated entity has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxa- tion’s public guidance in Tax Ruling TR 2018/5. • Foreign tax residency The consolidated entity has applied current legislation and where available judicial precedent in the determination of foreign tax resi- dency. Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in its determination of tax residency to ensure applicable foreign tax legislation has been complied with. Branches (permanent establishments) Foreign branches of Australian subsidiaries are not separate level entities and therefore do not have a separate residency for Australian tax purposes. Generally, the Australian subsidiary that the branch is a part of will be the relevant tax resident, rather than the branch operations. Additional disclosures on the tax status of Australian subsidiaries having a foreign branch with a taxable presence in that jurisdiction have been provided where relevant. CONSOLIDATED ENTITY DISCLOSURE STATEMENT Austral Gold Limited 105 Annual Report 2024 DIRECTORS’ DECLARATION IN THE DIRECTORS’ OPINION: 1. In the opinion of the directors of Austral Gold Limited (“the Company”) a. the consolidated financial statements, notes that are set out on pages 67 to 103 and the Remuneration report in sections 41 to 46 in the Directors’ report, are in accordance with the Corporations Act 2001, including: i. giving a true and fair view of the Group’s financial position as at 31 December 2024 and of its performance for the financial year ended on that date; and ii. complying with Australian Accounting Standards and the Corporation Regulations 2021; and b. the Consolidated entity disclosure statement as at 31 December 2024 set out on pages 104 to 105 is true and correct; and c. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. 2. There are reasonable grounds to believe that the Company and the group entities identi- fied in Note 34 will be able to meet any obligations or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between the Company and those group entities pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785. 3. The directors have been given the declarations required by section 295A of the Corpora- tions Act 2001 from the chief executive officer and chief financial officer for the financial year ended 31 December 2024. 4. The directors draw attention to Note 2 to the consolidated financial statements, which includes a statement of compliance with International Financial Reporting Standards. Signed on behalf of the Directors by: Robert Trzebski Director Sydney 28 March 2025 Austral Gold Limited 106 Annual Report 2024 107 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Austral Gold Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Austral Gold Limited for the financial year ended 31 December 2024 there have been: i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. no contraventions of any applicable code of professional conduct in relation to the audit. KPM_INI_01 KPMG Jessica Dillon Partner Sydney 28 March 2025 PAR_SIG_01 PAR_NAM_01 PAR_POS_01 PAR_DAT_01 PAR_CIT_01 Austral Gold Limited 107 Annual Report 2024 INDEPENDENT AUDITOR’S REPORT Austral Gold Limited 108 Annual Report 2024 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Austral Gold Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Austral Gold Limited (the Company). In our opinion, the accompanying Financial Report of the Company gives a true and fair view, including of the Group’s financial position as at 31 December 2024 and of its financial performance for the year then ended, in accordance with the Corporations Act 2001, in compliance with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises: • Consolidated statement of financial position as at 31 December 2024 • Consolidated statement of profit or loss and other comprehensive income, Consolidated statement of changes in equity, and Consolidated statement of cash flows for the year then ended • Consolidated entity disclosure statement and accompanying basis of preparation as at 31 December 2024 • Notes, including material accounting policies • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. 109 Austral Gold Limited 109 Annual Report 2024 110 Material uncertainty related to going concern We draw attention to Note 3, “Going Concern” in the Financial Report. The conditions disclosed in Note 3, indicate a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, whether it will realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the Financial Report. Our opinion is not modified in respect of this matter. In concluding there is a material uncertainty related to going concern we evaluated the extent of uncertainty regarding events or conditions casting significant doubt in the Group’s assessment of going concern. This included: • Analysing the cash flow projections by: • Evaluating the underlying data used to generate the projections for consistency with other information tested by us, our understanding of the Group’s intentions, and past results and practices; • Assessing the planned levels of operating cash inflows and outflows, including capital expenditures, for feasibility, timing, consistency of relationships and trends to the Group’s historical results, particularly in light of recent loss making operations, results since year end, and our understanding of the business, industry and economic conditions of the Group; • Assessing significant non-routine forecast cash inflows and outflows for feasibility, quantum and timing. We used our knowledge of the client, its industry and current status of those initiatives to assess the level of associated uncertainty. • Reading correspondence with existing and potential financiers to understand the financing options available to the Group, and assess the level of associated uncertainty resulting from renegotiation of existing debt facilities, and negotiation of additional/revised funding arrangements; and • Evaluating the Group’s going concern disclosures in the Financial Report by comparing them to our understanding of the matter, the events or conditions incorporated into the cash flow projection assessment, the Group’s plans to address those events or conditions, and accounting standard requirements. We specifically focused on the principle matters giving rise to the material uncertainty. Key Audit Matters In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matters described below to be the Key Audit Matters: • Carrying value of Guanaco/Amancaya mine assets and property, plant and equipment Carrying value of exploration and evaluation assets. Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Austral Gold Limited 110 Annual Report 2024 111 Carrying value of Guanaco/Amancaya mine assets and property, plant and equipment (US$27,3 million) Refer to Note 21 “Mine properties”, 22 “Property, plant and equipment”, 39.5 “Mine Properties” and 39.7 “Property, plant and equipment”, to the Financial Report The key audit matter How the matter was addressed in our audit The Group’s Guanaco/Amancaya mine properties and property, plant and equipment are a significant portion (37%) of the Group’s total assets. The Group assessed the recoverable value of the Guanaco/Amancaya cash generating unit (CGU) using a fair value less costs of disposal model, to assess the carrying value for impairment. The carrying value of the CGU is a Key Audit Matter due to: • The high level of judgement used in evaluating key assumptions applied by the Group in its Guanaco/Amancaya CGU model, including: • Forecast gold and silver prices (commodity prices); • Level of resources and reserves estimates for which the Group engaged an external expert during the financial year ended 31 December 2022; • Future production costs; • The specific discount rate applied in the model. These assumptions necessitate additional scrutiny by us due to: • The inherent uncertainties in auditing forward looking assumptions; • The consistency of application of assumptions and the fluctuations in forecast gold and silver (commodity prices) increasing the risk of inaccurate forecasting; and • The sensitivity of assumptions in the Group’s Guanaco/Amancaya CGU model such as commodity prices, production costs and discount rate, reducing available headroom. This drives additional audit effort specific to their feasibility and consistency of application. Our procedures included: • Evaluating the fair value less costs of disposal method used by the Group against the requirements of the Accounting Standards; • Working with our valuation specialists: - we critically evaluated the Group’s key assumptions used to determine the recoverable amount of the Guanaco/Amancaya CGU including commodity prices, production costs and discount rate using our knowledge of the industry and Group, publicly available data of comparable entities and published forecast price expectations of industry commentators, adjusted for factors specific to the Group and its industry; - we considered the sensitivity of the Guanaco/Amancaya CGU model by varying key assumptions including, commodity prices, production costs and discount rate within a reasonably possible range to identify those assumptions at higher risk of impairment, inconsistency in application and to focus our further procedures; - we checked relevant forecast production costs, future productions volumes and timing to those within the Group’s Reserves Report, Board approved plans and budgets. We assessed these against our understanding of the business, and industry trends; - we assessed the level of resources and reserves capable of being produced economically by examining mine closure plans and the Group’s Reserve Report with the Group’s key operational and finance personnel; Austral Gold Limited 111 Annual Report 2024 112 In addition to the above, the Group recorded an impairment charge of $19,255 thousand against mine properties and property plant and equipment, resulting from the ceasing of operations at the Amancaya underground mine. This further increased our audit effort in this key audit area. - we assessed the historical accuracy of budgeting and forecasting by the Group to inform our evaluation of forecasts incorporated in the Guanaco/Amancaya CGU model, including production costs; - we evaluated the Group’s impairment of Amancaya assets based on the Board approved plan, our independent assessment of the recoverable value and against accounting standard requirements. We checked the impairment charge against the recorded amount disclosed. • Assessing the Financial Report disclosures based on our understanding obtained from our testing and the requirements of the accounting standards. Carrying value of exploration and evaluation assets (US$19.5 million) Refer to Note 23 “Exploration and evaluation expenditure” and 39.6 “Exploration and evaluation expenditure”, to the Financial Report The key audit matter How the matter was addressed in our audit Carrying value of Exploration and evaluation assets (‘E&E’) is a key audit matter due to: • the significance of the balance (27%) to the Group’s total assets; • the greater level of audit effort to evaluate the Group’s application of accounting standard requirements. During the year, the Group recorded an impairment charge of $8,836 thousand against E&E assets resulting from abandoning properties, not meeting minimum expenditure requirements under relevant licences or an inability of the Group to fund the continuation of activities for certain properties. We involved senior team members to challenge the Group’s determination of indicators identified associated with E&E assets and impairment recorded by the Group thereon. We focused on: • impairment indicators that may draw into question the commercial continuation of E&E activities for the areas of interest Our procedures included: • evaluating the Group’s accounting policy and approach to assess E&E assets for impairment, including the identification of impairment indicators against the criteria and requirements in the accounting standards; • evaluating the Group’s determination of areas of interest for consistency with the definition in the accounting standards, based on the Group’s planned work programs and results of exploration activity of each area of interest; • For each area of interest, we assessed the Group’s current rights tenure by examining the ownership of the relevant license to government registries and agreements in place with other parties. We tested for compliance with conditions, such as minimum expenditure requirements, on a sample of licenses. This also included testing where minimum expenditure requirements had not been met and assessing the impact to E&E assets impaired; Austral Gold Limited 112 Annual Report 2024 where significant capitalised E&E assets exist; • documentation available regarding rights to tenure, via licensing, and compliance with relevant conditions, to maintain current rights to an area of interest and the Group’s intention and capacity to continue the relevant E&E activities; • the impact of changes in gold and silver prices to the Group’s strategy and intentions; • the Group’s strategy and intentions, including abandonment; and • the ability of the Group to fund the continuation of activities. • evaluating Group documents, such as minutes of director’s meetings and ASX market announcements, for consistency with the Group’s stated intentions for continuing E&E activities in certain areas or abandonement decisions. We corroborated this through interviews with key operational and finance personnel; • analysing the Group’s determination of recoupment through successful development and exploration of the area by evaluating the Group’s documentation of planned future work programs and project and corporate budgets for a sample of areas; • assessing the impact of changes in the forecast gold and silver prices to the Group’s determination underlying their decision for commercial continuation of activities; • obtaining project and corporate budgets identifying areas with existing funding and those requiring alternate funding sources. We compared this for consistency with areas of E&E activities, for evidence of the ability to fund continued activities. We identified those areas relying on alternate funding sources and evaluated the capacity of the Group to secure such funding. This also included testing the Group’s inability to fund the continuation of activities for certain properties and assessing the impact to E&E assets impaired; • Challenging the Group’s assessment of impairment indicators and impairment recorded using the results of the procedures above and against the requirements of the accounting standards. We checked the impairment charge recognised against the recorded amount disclosed. Other Information Other Information is financial and non-financial information in Austral Gold Limited’s annual report which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. 113 Austral Gold Limited 113 Annual Report 2024 114 In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group, and in compliance with Australian Accounting Standards and the Corporations Regulations 2001 • implementing necessary internal control to enable the preparation of a Financial Report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group, and that is free from material misstatement, whether due to fraud or error • assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://auasb.gov.au/media/bwvjcgre/ar1_2024.pdf This description forms part of our Auditor’s Report. Austral Gold Limited 114 Annual Report 2024 115 Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Austral Gold Limited for the year ended 31 December 2024, complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included in pages 41 to 46 of the Directors’ report for the year ended 31 December 2024. Our responsibility is to express an opinion as to whether the Remuneration Report complies in all material respects with Section 300A of the Corporations Act 2001, based on our audit conducted in accordance with Australian Auditing Standards. KPMG Jessica Dillon Partner Sydney 28 March 2025 Austral Gold Limited 115 Annual Report 2024 ADDITIONAL INFORMATION Forward Looking Statements In this annual report 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”, “antici- pates”, “likely”, “believes” and words of similar import tend to identify forward-looking statements. All 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 manage- ment, 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 the 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, expecta- tions 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. CORPORATE GOVERNANCE STATEMENT Austral Gold Limited and its subsidiaries have adopted the corporate governance framework and practices set out in its Corporate Governance Statement. The Corporate Governance Statement is available on the Company’s website at australgold.com. STATEMENT OF ISSUED CAPITAL As at 28 February 2025 the total issued capital of Austral Gold Limited was 612,311,353 ordinary shares. 548,359,530 shares were quoted on the Australian Securities Exchange under the code AGD. The only shares of the Company on issue are fully paid ordinary shares. None of these shares are restricted securities or securities subject to voluntary escrow within the meaning of the Listing Rules of the Australian Securities Exchange. 63,951,823 shares were quoted on the Toronto Venture Exchange under the code AGLD, of which 4,765,313 shares were also quoted on the OCTQB. There are no restrictions on the voting rights attached to the fully paid ordinary shares. On a show of hands, every member present in person, by proxy, by attorney or by representative shall have one vote. On a poll, every member present in person, by proxy, by attorney or by representative shall have one vote for every share held.. DISTRIBUTION OF FULLY PAID ORDINARY SHARES As at 28 February 2025 Size of Holding Holders Shares held % of issued capital 1-1000 1,832 715,672 0.12% 1,001 - 5,000 738 2,355,823 0.38% 5,001 - 10,000 257 2,232,119 0.36% 10,001 - 100,000 497 20,362,808 3.33% >100,001 184 586,644,931 95.81% 3,508 612,311,353 100% There were 1,518 shareholders with less than a marketable parcel (basis price of A$0.046) as at 28 February 2025. SUBSTANTIAL SHAREHOLDERS The Company has been notified of the following substantial shareholdings as at 28 February 2025: Registered Holder Beneficial Holder Shares Held HSBC Custody Nominees (Australia) Limited Inversiones Financieras Del Sur SA (IFISA) 332,576,152 Citicorp Nominees Pty Limited Inversiones Financieras Del Sur SA (IFISA) 47,658,462 HSBC Custody Nominees (Australia) Limited Eduardo Elsztain 42,221,564 HSBC Custody Nominees (Australia) Limited Guanaco Capital Holding Corp 38,859,956 Austral Gold Limited 116 Annual Report 2024 TWENTY LARGEST SHAREHOLDERS Rank Name No. of shares % of issued capital 1 EDUARDO SERGIO ELSZTAIN 461,316,134 75.34% 2 MICHAEL D WINN 15,502,212 2.53% 3 EMX ROYALTY CORPORATION 9,381,770 1.53% 4 HSBC CUSTODY NOMINEES 7,028,529 1.15% 5 STABRO KASANEVA 7,881,230 1.29% 6 BNP PARIBAS NOMINEES 7,072,034 1.15% 7 CITICORP NOMINEES PTY LIMITED 3,698,808 0.60% 8 MRS ANNA VORONTSOVA 2,349,854 0.38% 9 SAUL ZANG 1,640,763 0.27% 10 MR MICHAEL WEHBE 1,438,889 0.23% 11 MR PHILIP BOMFORD 1,420,000 0.23% 12 MARIO SZOTLENDER 1,162,421 0.19% 13 ASOCIACION ISRAELITA ARGENTINA 1,158,265 0.19% 14 MR FAZIL PINEDA SHAFURDIN, MS SARAH SHARFUDIN PINEDA, MR SHAFIQUE SHARFUDIN PINEDA 1,113,758 0.18% 15 FUSION ELECTRICS (AUST) PTY 1,000,000 0.16% 16 MR DEAN MICHAEL MATHEWS 1,000,000 0.16% 17 MRS NICOLA PAULINE COURT 900,000 0.15% 18 MR POH SENG TAN 800,000 0.13% 19 PHILLIPS BADER SUPER HOLDINGS PTY LTD 720,051 0.12% 20 MR ALAN JASON DOBLE 701,961 0.11% Total 525,064,667 85.75% Other 87,246,686 14.25% Total Shares on issue 612,311,353 100% *Beneficial holdings Austral Gold Limited 117 Annual Report 2024 www.australgold.com

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