Austin Metals : Multiple New Gold Targets Identified, Drilling to Commence

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14 March 2022

GRAVITY COMPLETED, MULTIPLE NEW GOLD TARGETS INDENTIFIED

DRILLING TO COMMENCE THIS WEEK

Key Highlights

• An expanded gravity survey at the Austin Gold Project is now complete
• Preliminary images over a very large area of 15km by 5km now received which covers the main prospective greenstone belt
• Several exciting north and northwest trending structures identified with a similar orientation to high grade deposits in the area, such as Musgrave Minerals high- grade White Heat and Starlight deposits adjacent to the Austin Gold Project
• A review of soil, rock and drilling geochemistry over the newly identified structures has highlighted 5 high priority undrilled targets that may be indicative of alteration associated with gold mineralisation
• An aircore drill rig is currently mobilising to site to test the priority targets, drilling is expected to commence this week
• At least 8 additional high priority targets will be refined with more field work and are planned to be drill tested in the near term
• A trenching program to commence at Teds later this month to follow up spectacular gold specimens at surface

Austin Metals Limited (ASX: AYT, "Austin Metals", "the Company") is pleased to announce the completion of an expanded gravity survey program and the imminent mobilisation of an aircore rig to test newly identified targets at the Austin Gold Project in Western Australia.

Technical Director Leo Horn comments "Gravity surveys have proven crucial in the surrounding area in identifying gold bearing structures. Pleasingly for Austin, multiple new structures and targets have been identified from the new gravity data we have compiled and are a very exciting new development for the project. We are confident that gravity data will provide the key mapping dataset to unlock hidden potential at Austin. Aircore drilling these targets to identify surface anomalism will be the quickest, cheapest and most efficient way of locating which targets are gold-bearing for follow up RC Drilling. We look forward to this exciting new phase of exploration at Austin with drilling expected to start this week."

A ground gravity survey conducted by Atlas Geophysics originally commenced on 29 January 2022. Initially designed to cover the Shadow Area, the survey was expanded twice during the program due to impressive and encouraging preliminary images that were assessed continuously as the survey progressed. The gravity survey is now complete and the Company has acquired a total of 3,933 gravity stations at 100m by 200m

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spacing. The fill survey now effectively covers the main prospective greenstone belt adjoining Musgrave Minerals and Caprice Resources over a very large area of 15km by 5km (Figure 1).

The Gravity survey is particularly important in identifying key cross-cutting structures where abrupt breaks occur as gravity lows that are known in the district to indicate cross cutting structures associated with alteration and veining, as well as high grade gold mineralisation in specific places. This relationship was first effectively demonstrated by

Figure 1: First vertical derivative gravity image at the Austin Gold project showing the known gold occurrences on the project to date, newly identified gravity targets in relation to the Musgrave Minerals deposits and Caprice Resources prospects. Resource estimates by Musgrave Minerals are total combined Indicated and Inferred JORC 2012 estimates (MGV Announcement 11 Nov 2020).

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Musgrave Minerals that utilised ground gravity surveys to identify and interpret the Starlight and White Light high grade discovery structures which sit adjacent to the Austin Gold Project (see MGV announcement dated 16 July 2021).

The Austin Metals team have now had an opportunity to assess the final gravity images along with soil, rock and drilling geochemistry. This work has now highlighted 5 exciting high priority undrilled targets that occur on prominent "gravity break" structures which may be indicative of alteration and veining associated with gold mineralisation (Figure 1). Structures in the Shadow area are primarily oriented northwest that is very similar in orientation to many deposit structures including Starlight and White Heat. These 5 target areas are also interpreted to mainly occur within primarily mafic stratigraphic units, characterised by units of higher relative density, which are the primary host to mineralisation at the Break of Day group of deposits and structures. In addition, the top 5 priority targets are on existing POW permits so the Company has moved quickly to secure an aircore rig to test these targets immediately. A 1,500-2,000m aircore drilling program is expected to commence this week to conduct a first pass phase on these 5 targets.

The review has also identified at least 8 additional high priority targets that require reconnaissance field work to refine these targets and also to submit new POW's for a second round of aircore drill testing. One standout area is characterized by a very interesting north-trending corridor of gravity breaks coincident with the Mt Sandy extensive alluvial and workings and extending 5 km to the north (Figure 1). This suggests an extensive fault trend that may be the source for the gold alluvial workings to the south then extends for many kilometers to the north into areas that have never been drilled or sampled.

Austin Metals is now very much focused on progressing the gravity targets by reconnaissance aircore drill testing as well as reconnaissance rock sampling across the key highlighted target areas.

Other Work Programs

The POW permit for the trenching program at Teds has been granted and is expected to commence on 28th March. The primary aim of this program is to investigate and sample the bedrock geology to potentially identify significant widths of gold mineralisation at surface to warrant follow up RC drilling planned for later in the year. This prospect area is particularly interesting due to the spectacular specimens of gold and irregular gold nuggets that occur associated with weathered smoky quartz veins identified by the previous operator Gardner Mining (see AYT announcement dated 7 April 2021).

This announcement has been authorised by the Board of Directors of Austin Metals Limited.

-ENDS-

Contact details

Sonu Cheema (Director and Company Secretary)

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About Austin Metals

Austin Metals Limited (AYT) is a base and precious metals explorer focused on the prolific mining districts of Broken Hill, the Cobar Basin and the Lachlan Fold Belt of New South Wales, Australia. AYT's flagship Austin Gold Project is located in the highly prospective Murchison greenstone province of Western Australia, directly adjacent to the Cue Gold Project owned by Musgrave Minerals Limited (ASX:MGV), which includes the high grade Break of Day Deposit and Starlight discovery. The Company has also secured a significant ground holding of the Tallering Greenstone belt in the prolific Murchison gold mining region of Western Australia located 150 km south of the Golden Grove deposit.

CAUTION REGARDING FORWARD LOOKING INFORMATION

This document contains forward looking statements concerning Austin Metals Limited. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Austin Metal's beliefs, opinions and estimates of Austin Metals as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future development.

COMPETENT PERSONS STATEMENT

The information in this announcement that relates to Exploration Results is based on and fairly represents information and supporting documentation prepared by Mr Leo Horn. Mr Horn is a Director of Austin Metals Limited and a member of the Australian Institute of Geoscientists. Mr Horn has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this announcement and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code"). Mr Horn consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

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Appendix 1: The following tables are provided to ensure compliance with the JORC Code (2012) requirements for the reporting of the Austin Gold Project

Section 1: Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria		JORC Code explanation		Commentary
Sampling		• Nature and quality of sampling (eg cut		Not applicable to this exploration work program and hence not
techniques		channels, random chips, or specific		reported against.
	specialised industry standard measurement
		tools appropriate to the minerals under
		investigation, such as down hole gamma
		sondes, or handheld XRF instruments, etc).
		These examples should not be taken as
		limiting the broad meaning of sampling.
		• Include reference to measures taken to
		ensure sample representivity and the
		appropriate calibration of any measurement
		tools or systems used.
		• Aspects of the determination of
		mineralisation that are Material to the Public
		Report. In cases where 'industry standard'
		work has been done this would be relatively
		simple (eg 'reverse circulation drilling was
		used to obtain 1 m samples from which 3
		kg was pulverised to produce a 30 g charge
		for fire assay'). In other cases more
		explanation may be required, such as
		where there is coarse gold that has inherent
		sampling problems. Unusual commodities
		or mineralisation types (eg submarine
		nodules) may warrant disclosure of detailed
		information.
Drilling		• Drill type (eg core, reverse circulation,		Not applicable to this exploration work program and hence not
techniques		open-hole hammer, rotary air blast, auger,		reported against.
	Bangka, sonic, etc) and details (eg core
		diameter, triple or standard tube, depth of
		diamond tails, face-sampling bit or other
		type, whether core is oriented and if so, by
		what method, etc).
Drill sample		• Method of recording and assessing core		Not applicable to this exploration work program and hence not
recovery		and chip sample recoveries and results		reported against.
	assessed.
		• Measures taken to maximise sample
		recovery and ensure representative nature
		of the samples.
		• Whether a relationship exists between
		sample recovery and grade and whether
		sample bias may have occurred due to
		preferential loss/gain of fine/coarse

Suite 9,330 Churchill Avenue,	[phone]	[e-mail]
Subiaco WA 6008 | PO Box 866 Subiaco WA 6904	[phone]	www.austinmetals.com.au