Ausgold Limited provided positive results from the second phase of drilling at the Company's 100%-owned regional Duggan prospect. The Duggan prospect is located 50km along sealed roads northeast of Ausgold's existing 2.16 Moz flagship Katanning Gold Project (KGP). The recently completed phase two drill program of 1,216m of reverse circulation (RC) drilling has intercepted extensive gold mineralisation extending along strike and down dip from previous RC results, which included 7m @ 4.05 g/t Au from 19m including 5m @ 5.50 g/t Au from 19m in DUGRC015 and 4m @ 5.48 g/t Au from 72m including 3m @ 7.17 g/t Au from 72m in DUGRC019.

This drill program intersected significant gold mineralisation extending mineralisation of two gold lodes within 100m of surface. Additional high-grade mineralisation of 1m @ 43.20g/t Au from 52m in DUGRC036 was intercepted in a newly discovered lode to the southwest, with gold mineralisation remaining open both along strike and down dip. Significant results include: - 4m @ 9.30g/t Au from 84m in DUGRC042 - 1m @ 43.20g/t Au from 52m in DUGRC036 (new lode) - 5m @ 1.15g/t Au from 10m in DUGRC038 Gold mineralisation is associated with a zone of sulphide alteration (pyrite and pyrrhotite) within a sequence of mafic gneisses.

New drilling has shown a shallow mineralisation with further exploration drilling planned to further extend gold mineralisation along strike. Downhole EM (DHEM) survey has been conducted at Duggan which has provided a strong EM response that can be used to further target new drilling. Further ground-based Moving Loop EM (MLEM) survey will be conducted during September to target potential strike extensions at Duggan.