Austral Gold’s strategy is to maximize shareholder value by the development of mineral deposits in which Austral Gold has an interest, providing such development demonstrates superior rates of return.

Austral Gold plans to continue to explore and invest in its Guanaco property in northern Chile to expand the mineral resources and improve the financial viability of the Guanaco Project. On 21 October 2009, the Company announced the commencement of a Bankable Feasibility Study (BFS), which will determine the financial viability of the Guanaco Project and propose an optimal plan for extraction of gold and silver.

Austral Gold continues to explore its prospective Guanaco property to increase the size of the mineral resource, and increase the property’s potential production and life as a result. The Company also expects to acquire further properties in South America, and will pursue joint ventures with other successful mining exploration companies.