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1 ASX Code: AUC Directors: Mr Robert Pett NonExecutive Director Mr Richard Lockwood NonExecutive Director Mr Denis Rakich Director/Company Secretary Registered Office: 80 Churchill Avenue Subiaco WA 6008 Share Registry: Security Transfer Registrars 770 Canning Highway Applecross WA 6153 Issued Capital: (31 Mar 13) Ordinary Shares: 153.9M Unlisted Options: 8.4M Investor Relations: Denis Rakich T: E: drakich@ausgoldlimited.com QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 31 MARCH 2013 HIGHLIGHTS Katanning Drilling Program at Katanning Completed A 7,794m shallow aircore drilling program has been completed at the Katanning Gold Project, with targets identified for follow up drilling at Dingo South, Lukin and Datatine. Significant results include Hole From (m) To (m) Length (m) Au (g/t) BSAC BSAC BSAC BSAC BSAC BSAC BSAC BSAC BSAC A review of all historical drilling at Katanning is underway. This includes results from the air core programme recently completed to further identify priority targets for exploration and drilling. Metallurgical testwork to evaluate gravity gold recoveries at Jinkas and Dingo planned. Yamarna Drilling Program at Yamarna completed, results pending A 2,282m aircore program has been completed at the Yamarna Project to follow up on significant intercepts on Cu and Ni mineralisation drilled by the company in 2010 and Initial interpretation has confirmed the presence of the prospective Pyroxenite unit. Results are expected to be received and interpreted over the next few weeks and will be released as soon as they are available. 80 Churchill Avenue, Subiaco, Western Australia 6008 T F E info@ausgoldlimited.com W

2 SUMMARY OF EXPLORATION ACTIVITIES Ausgold Limited ( Ausgold or the Company ) (ASX: AUC) is pleased to release its Quarterly Activities Report for the period ended 31 March KATANNING GOLD PROJECT, WESTERN AUSTRALIA (AUC 100%) The Katanning Gold Project is located 275 kilometres southeast of Perth. Ausgold holds over 2,000 square kilometres of tenure in the region (Figure 1). Figure 1: Location map of Ausgold s Katanning Gold Project The Katanning Gold Project ( KGP ) comprises an area of multilode gold mineralisation, encompassing the Jinkas, Dingo and Jackson deposits, that Ausgold s exploration has now demonstrated exceeds 20km strike length. Soil sampling and aircore drilling have confirmed the potential for significant gold mineralisation in the area and it remains open to the north and south. In December 2012, Ausgold released a maiden JORC resource estimate at KGP of 1.21g/t Au, 403,000 oz Au using a 0.7g/t cut off grade. 2

3 The resource estimate was completed by MPR Geological Consultants Pty Ltd ( MPR ) who provided estimates at a variety of cut off grades which are presented below in Table 1. Cut off Measured Indicated Inferred Total Au g/t Mt Au g/t Mt Au g/t Mt Au g/t Mt Au g/t Au koz Table 1: Katanning Gold Project gold resource estimates by cutoff grade New Drilling at Katanning Gold Project Ausgold Limited is pleased to advise that assay results have now been received for the January February aircore drilling program conducted at the Company s Katanning Gold Project. Drilling was designed to: Follow up previous intercepts of gold mineralisation in widespaced aircore holes over 4.5km strike through the Dingo South and Lukin areas; Extend drill coverage a further 1.5km south of previous Lukin drilling; Test bedrock geology at two geophysical (combined EM and magnetic) targets near Dingo and Jinkas gold deposits; Explore for northward extensions of Jackson gold deposit; and Follow up a highgrade gold intercept in historic drilling at Datatine prospect. The program totalled 7,794 metres in 236 angled holes averaging 33 metres depth. All holes were sampled in one metre intervals with three metre composite spear samples submitted for assay by ALS Perth using aqua regia digest and ICPMS determination. Reference standards and blank samples were inserted at 1:20. This shallow drilling which is focused on the oxide zone at Katanning has identified zones of anomalous gold mineralisation which represent targets for further drilling in the primary zone below the oxide mineralisation. These include targets identified at Dingo South, Lukin and Datatine. 3

4 Dingo South Lukin Previous aircore drilling by Ausgold, comprising holes at 100m spacing on 200m spaced lines, returned significant gold intercepts including 1.03g/t Au, 0.55g/t Au and 0.57g/t Au. 1 Recent drilling was designed to selectively infill the drill spacing to delineate bedrock gold targets for followup RC drilling, with targeting of infill holes also utilizing surface geochemistry and information from the recent highresolution aeromagnetic survey. New Hole locations are shown in Figure 2 and all intervals that assayed 0.5g/t Au or greater are listed in Table 2. Figure 2: Dingo South Lukin aircore drill hole location plan. Previous drill collars are shown in maroon with new collars from this program shown in bright red. 1 Refer to ASX release dated 19/04/2012 Major New Gold Targets Identified Within Katanning Gold Project. 4

5 Hole East North Depth (m) From (m) To (m) Length (m) Au (g/t) BSAC BSAC BSAC BSAC and BSAC BSAC and BSAC BSAC and BSAC BSAC BSAC BSAC BSAC and BSAC BSAC BSAC Table 2. Dingo South Lukin aircore drill intercepts 0.5g/t Au Jackson North Four traverses, at 200m spacing, of angled aircore holes at 50m spacing were drilled north of Jackson deposit, an area never previously tested by drilling. Drill coverage was based on surface gold geochemistry and trends evident in aeromagnetic data. Hole locations are shown in Figure 3 and drill intervals that assayed 0.5g/t Au or greater are listed in Table 3. Hole East North Depth (m) From (m) To (m) Length (m) Au (g/t) BSAC BSAC BSAC Table 3. Jackson North aircore drill intercepts 0.5g/t Au 5

6 Figure 3: Jackson North aircore drill hole location plan. Also shown in read is the surface projection of known mineralisation. 6

7 Datatine Datatine prospect is located approximately 8km NNW of the central Katanning Gold Project. Historic drilling records (circa 1990) contain a single intercept of 15.6g/t Au from 24m depth in a RAB hole. Followup drilling at the time failed to locate any further significant mineralisation but recent soil geochemistry and interpretation of aeromagnetic data indicated the possibility that mineralisation is hosted by a northeast striking structure. Three traverses of closespaced aircore holes were drilled to test this possibility and to infill a gap in the historic drill coverage. Hole locations are shown on Figure 4 and Table 4 lists intervals that assayed 0.5g/t Au or greater. The results confirm the potential for a northeast striking mineralised structure not tested by previous drilling and represents a strong target for further drilling. Hole East North Depth (m) From (m) To (m) Length (m) Au (g/t) BSAC BSAC and Table 4. Datatine aircore drill intercepts 0.5g/t Au Geophysical Targets Highresolution aeromagnetics flown in late 2012, in conjunction with reprocessing of previous airborne EM data, highlighted two coincident magnetic and conductivity anomalies in areas of no outcrop and not previously tested by drilling, one located south of the Dingo open pit and one located north of the Jinkas deposit. 2 A single line of 50m spaced aircore holes drilled to bedrock over each of the anomalies revealed unusually shallow weathering profiles over both areas. No significant gold mineralisation was encountered nor did this shallow drilling identify the source of the coincident anomalies. 2 Refer to ASX release dated 27/11/2012 New Drill Targets at Katanning 7

8 Figure 4: Datatine drill hole location plan. Historic (nonausgold) drilling is shown in blue with new 2013 drilling shown in red. A review of the historic drilling at Katanning is underway. This is to include the most recent drilling to establish priority targets for further exploration and drilling. 8

9 YAMARNA, WESTERN AUSTRALIA (AUC 100%) Air core program The Yamarna Project is located approximately 125 kilometers northeast of Laverton in central Western Australia on Exploration Licence ( EL ) 38/2129. It comprises approximately 57 square kilometers of prospective ground over the easternmost Archaean greenstone belt of the Yilgarn Craton the Yamarna belt. In 2010 the Company identified 19 conductive EM (Electro Magnetic) targets, initial drilling intercepted significant copper and nickel intercepts at the Winchester Prospect in hole YMRC 003 which returned 0.58% Cu, & 0.35% Ni from 29m During 2011, eight holes were completed in three areas, namely Winchester and two electromagnetic ( EM ) targets. Significant assays received were: 0.63% Cu, 0.20% Ni, and 0.02% Co from 88m (Hole YMRC009) 0.50% Cu, 0.21% Ni, and 0.02% Co from 99m (Hole YMRC010) Mineralisation is characterised by disseminated sulphide minerals (up to 10%) comprising chalcopyrite (copper), pentlandite (Ni) and pyrite (Fe) within a mafic/ultramafic unit, sitting above a black shale. In March 2013 the Company completed a 77 hole aircore program for 2,282m of drilling to gain a better understanding of the bedrock geology and any geochemical dispersion from the known sulphide mineralisation. Shown in Figure 5 are the completed aircore drill traverses, north and south of the previous discovery intercepts draped over the VTEM image which highlights the EM anomaly. At this stage no results for the multi element assays are available, they are expected to be received and interpreted over the next few weeks and released to the market as soon as possible. However, initial interpretation has confirmed the presence of the prospective Pyroxenite unit. 9

10 Figure 5 VTEM image with previous RC drilling (black) and new aircore collars in red. 10

11 CRACOW, QUEENSLAND (AUC 100%) Ausgold holds tenements and tenement applications over approximately 1,735 square kilometres in the Cracow region, approximately 375km northwest of Brisbane. The tenements and applications enclose extensive areas of highly prospective Camboon Volcanics, host to the +1 million ounce Cracow gold mine, a highgrade epithermal AuAg system. Exploration to date at Cracow has included geological mapping, stream sediment sampling and followup by systematic soil geochemical sampling of target areas. Geochemical, geological, geophysical and remote sensing data are now being interpreted to highlight areas for further exploration. CORPORATE During the quarter and subsequent to the quarter end the following management/ board changes occurred; Mr Denis Rakich was appointed to the positions of Executive Director and Company Secretary Mr Simon Trevisan and Mr Chris Kelsall resigned as Directors of the Company Mr Mark di Silvio resigned as Chief Financial Officer and Company Secretary; and Dr Andrew Tunks resigned as Chief Executive Officer FINANCE At quarter end Ausgold held cash and marketable securities totalling $2.88 million. CONTACT DETAILS For further information please contact Denis Rakich on Tel: Fax: visit: Competent Persons Statements The information in this report that relates to Exploration Results is based on information compiled by Mr Gary Brabham, who is a Member of the Australian Institute of Geoscientists and a Member of the Australasian Institute of Mining and Metallurgy. Mr Brabham is a fulltime employee of Ausgold Limited, and has sufficient experience relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Brabham consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resources is based on information compiled by Mr Jonathon Abbott of MPR Geological Consultants Pty Ltd. Mr Abbott is a Member of the Australian Institute of Geoscientists ( AIG ) and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr Abbott consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. 11

12 Ausgold Limited Appendix 5B Mining exploration entity quarterly report Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10. Name of entity AUSGOLD LIMITED ABN Quarter ended ( current quarter ) March 2013 Consolidated statement of cash flows Current quarter Year to date 9 months Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for: (a) exploration & evaluation (b) development (c) production (d) administration (708) (353) (3,735) (1,416) 1.3 Dividends received 1.4 Interest and other items of a similar nature received Interest and other costs of finance paid 1.6 Income taxes paid / R&D tax credit refund (net) 1,263 1, Other (provide details if material) Net operating cash flows 218 (3,837) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) (48) Net investing cash flows (48) + See chapter 19 for defined terms. Appendix 5B Page 12

13 Ausgold Limited Appendix 5B Mining exploration entity quarterly report 1.13 Total operating and investing cash flows (carried forward) 218 (3,885) Current quarter Year to date 3 months 1.13 Total operating and investing cash flows (brought forward) 218 (3,885) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 3, Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings (14) 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows 3,816 Net increase / (decrease) in cash held 218 (69) 1.20 Cash at beginning of quarter/ year to date 1,386 1, Exchange rate adjustments to item Cash at end of quarter 1,604 1,604 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions The payments made were related to directors fee and salary Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest + See chapter 19 for defined terms. Appendix 5B Page 13

14 Ausgold Limited Appendix 5B Mining exploration entity quarterly report Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used 3.1 Loan facilities 3.2 Credit standby arrangements Estimated cash outflows for next quarter 4.1 Exploration and evaluation Development 4.3 Production 4.4 Administration 300 Total 450 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter 5.1 Cash on hand and at bank Previous quarter 5.2 Deposits at call 650 1, Bank overdraft 5.4 Other (Bank Guarantee) Total: cash at end of quarter (item 1.22) 1,604 1,386 + See chapter 19 for defined terms. Appendix 5B Page 14

15 Ausgold Limited Appendix 5B Mining exploration entity quarterly report Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed Tenement reference E70/3736 E70/3345 EPM17057 EPM17055 Nature of interest (note (2)) Relinquishment Relinquishment Relinquishment Relinquishment Interest at beginning of quarter 100% 100% 100% 100% Interest at end of quarter 0% 0% 0% 0% 6.2 Interests in mining tenements acquired or increased Tenement reference E70/4392 EPM19578 Nature of interest (note (2)) Granted Granted Interest at beginning of quarter 0% 0% Interest at end of quarter 100% 100% Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 Preference + securities (description) Total number Number quoted Issue price per security (see note 3) Amount paid up per security (see note 3) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities 153,902, ,902, Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks Convertible debt securities (description) + See chapter 19 for defined terms. Appendix 5B Page 15

16 Ausgold Limited Appendix 5B Mining exploration entity quarterly report 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) 200, , , ,000 1,000, ,000 3,500,000 1,950,000 Exercise price $0.20 $0.25 $1.45 $1.38 $1.72 $1.38 $1.57 $0.45 Expiry date 31 Dec Dec Jul Dec Dec Dec Feb Oct Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 71,530,575 71,530,575 $ Mar Debentures (totals only) 7.12 Unsecured notes (totals only) Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement give a true and fair view of the matters disclosed. Sign here:... Date:...30 April Director Print name:...denis Rakich... Notes 1 The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. + See chapter 19 for defined terms. Appendix 5B Page 16

17 Ausgold Limited Appendix 5B Mining exploration entity quarterly report 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == + See chapter 19 for defined terms. Appendix 5B Page 17