Austral Gold Limited is in discussions with Challenger Gold Limited regarding a transition from their current toll processing agreement to an arrangement under which Austral would purchase mineralised material from Challenger's Hualilan Project for processing at the Casposo facility in San Juan, Argentina.

The discussions are not related to the company's toll-processing performance. During the May and June 2026 campaign, Casposo processed 39,342 tonnes of Hualilan material at recovery rates above 85%, exceeding the maximum threshold for the tolling agreement's variable incentive fee. Tolling fees for the campaign have been received in full, alongside the fixed monthly fees for July and August 2026.

Commercial production resumed at the 100%-owned Casposo operation in October 2025 following plant refurbishment, establishing a second active producing asset alongside Austral's Guanaco mine in Chile. Austral continues to process its own material at Casposo and does not expect a material financial impact in the current period from not processing mineralised material under the tolling agreement.

Any new arrangement is expected to be non-exclusive, allowing Casposo to blend third-party mineralised material with the company's own ore. Casposo operates as one of the few permitted and operating processing facilities in the San Juan region, positioning Austral to evaluate additional third-party processing and material purchase opportunities.

Nearby in the surrounding district, Challenger reported toll pit infill drilling results at Hualilan in July 2026, including an intercept of 16.0 metres at 2.5 g/t gold equivalent at the Magnata pit. Austral stated it will update the market if and when a binding agreement is entered into.

Read the full announcement: Austral Gold Provides Update on Casposo Toll Agreement