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Austral Resources Australia Ltd (ASX:AR1) Lady Colleen Drilling Update
As previously announced, Austral Resources Australia Ltd (ASX:AR1) has commenced work to re-evaluate the current global resource, with a focus on the current sulphide resource. The intent is to determine the potential at LC for a lower tonnage, higher grade resource that could be economically open pit mined. Progress to date includes.

- Completed update and re-calculation of the LC sulphide resource by an independent resource geologist, confirming the continuity of the higher-grade core of the LC resource.

- Pit shell evaluation of the updated LC sulphide resource with positive results warranting further detailed mine design and economic evaluation

- Integration of both the updated resource model and pit shells were then used to optimise the design of a now in-progress drilling program with multiple targets being;

o Infill of the current LC resource and upgrade portions of the Inferred Resource to Indicated and Measured status

o Potential extensions of the resource within and immediately outside or adjacent to the Pit shells with step out drilling

o To the north and northeast of the current resource envelope targeting potential extensions of mineralisation along strike and down plunge, and

o Evaluation of the oxide and transitional cap over the sulphide resource.

Resource Update and Pit Optimisation

The resource model displayed in the following images has not been reported in accordance with JORC, and the economics used for pit shell evaluation are based on Austral internal estimates as at 7 July 2022

Open pit optimisation of the Lady Colleen deposit has been undertaken to justify further drilling and provide insight into potential targets to improve the value of the project. The geologic resource model was updated in June 2022, and the inputs used for optimisation are Austral internal estimates.

Analysis and resultant drill design was targeted at the inferred and unclassified material between the base pit shell and +5% increased revenue factor (RF) shell to evaluate the potential to improve predicted grades in this volume and to seek to increase the potential metal yield and value of the project.

Drilling Update

This overview of drilling is preliminary in nature based on incomplete information and will be updated once laboratory assays are received in August or September 2022.

Austral Resources is in the progress of drilling a total of 17 RC drill holes for 2,475m at LC, with 6 of the (not yet drilled) RC drillholes having diamond tails totalling 655m. A plan view of collar locations and sections lines is displayed in Figure 1*, with section lines displayed in Figures 2 & 3*. Drillhole design details are listed in Table 2*.

Drilling results to date have validated the continuity of the revised geologic resource model and the targeting strategy applied. All RC drillholes targeting oxides are completed and have variable widths of visible copper oxide, occurring predominantly along fracture coatings. The highest visible oxides intersected to date at Lady Colleen are in MTKC00624 (Figure 4*).

All RC drillholes completed to date targeting sulphides have intersected variable widths of visible pyrite and chalcopyrite, with the sulphide content varying from disseminated to semi massive. The highest visible sulphides intersected to date at Lady Colleen are in MTKC00626 (Figure 5*).

Further Work

Further work includes:

- Completion of the drilling program design at LC, receipt of all assays, geological evaluation and updating the LC resource model to enable generation of a new Mineral Resource estimate that will be reported in accordance with the JORC Code. To be completed by the end of September.

- Evaluation and optimisation of pit shells generated from updated resource model using current financial inputs and detailed mine design. To be completed by the end of September

- Economic evaluation of the potential for extraction of LC sulphide resource through open pit mining, including all costs relevant to having the material transported and processed at an appropriate sulphide concentrator. To be completed by the end of October.

This ongoing evaluation of LC is a first step in assessing the potential to begin commercialising Austral's 210,000t of contained copper in sulphides to augment the Company's current 40,000t Anthill Mine copper production from the Anthill copper oxide mine.

*To view the full Quarterly Report, please visit:

Jane Morgan 
Investor and Media Relations Manager 
T: +61-405-555-618 

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