Augustus Minerals Secures $2.5 Million Music Well Drilling Funding Raise

Augustus Minerals Raises $2.5 Million to Accelerate Multi-Project Drilling Push

Augustus Minerals Limited (ASX: AUG) has secured firm commitments to raise $2.5 million through a placement to institutional, strategic, and sophisticated investors, with Evolution Capital Pty Ltd acting as Sole Lead Manager. The Augustus Minerals Music Well drilling funding raise is designed to fast-track an ambitious multi-project work program spanning Western Australia and Papua New Guinea, with drilling at the flagship Music Well Project set to commence as early as June 2026.

The raise was priced at $0.04 per share — representing a modest 2.4% discount to last close — with 62.5 million new shares to be issued alongside one free attaching option for every two shares placed, exercisable at $0.07 each and expiring three years from the issue date.

Key highlights at a glance:

• $2.5 million raised via placement to institutional, strategic, and sophisticated investors
• 62,500,000 new shares issued at $0.04 per share
• 1 attaching option for every 2 shares, exercisable at $0.07, expiring 3 years from issue
• Drilling at Music Well Clifton East to commence early June 2026
• Capital deployed across four projects in WA and PNG

Where the Money Goes: A Multi-Front Exploration Program

The proceeds from this raise are being deployed with clear purpose across Augustus Minerals' project portfolio. Rather than concentrating capital in a single asset, management has structured a diversified work program that advances multiple projects toward drill-ready status or active drilling simultaneously.

The flagship allocation is clearly directed at Music Well, where the Stage 2 drilling program at Clifton East represents the most immediate near-term catalyst for the company.

Furthermore, the inclusion of first-pass drilling at St Patrick's Well alongside soil and rock chip sampling over new prospects suggests a deliberate strategy to both test known targets and expand the pipeline of future drill-ready opportunities simultaneously.

Music Well: The Flagship Asset in Focus

The Music Well Project sits at the centre of Augustus Minerals' near-term exploration narrative. Located 25km north of Leonora in Western Australia — one of the country's most historically productive gold regions — the project spans over 1,242 km² of 100%-owned tenements.

The project is considered highly prospective for both gold and gold-copper VMS (Volcanogenic Massive Sulphide) mineralisation.

What Does the Stage 2 Drill Program Involve?

The Stage 2 drill program at Clifton East comprises an initial 14 RC holes and 2 Diamond holes over 2,300 metres and represents the centrepiece of the Augustus Minerals Music Well drilling funding raise.

The addition of Diamond drilling alongside the RC component is particularly notable. Diamond core provides superior geological information, allowing geologists to assess structural controls, mineralisation styles, and continuity in greater detail than RC drilling alone.

Supporting work at St Patrick's Well (500m first-pass RC) and the broader soil and rock chip survey program (400 soil samples, 200 rock chips) over new prospects underscores a pipeline-building mindset, ensuring future drilling campaigns have well-defined targets ready to test.

Beyond Western Australia: PNG Assets Add Optionality

While Music Well commands the bulk of near-term focus, Augustus Minerals is simultaneously advancing its Papua New Guinea portfolio, providing investors with additional exploration optionality.

Vanapa River Project (ELA2955)

• Located in the Kira Koiari District, Central Province, PNG
• Covers approximately 1,900 km² within the highly prospective New Guinea Mobile Belt
• Field work to commence to establish drill targets

Mt Kare Gold Project

• Augustus holds a second-in-line licence application at Mt Kare, PNG
• Funds from this raise will cover costs related to the licence granting process
• The company has stated its intent to actively pursue the application, including potential negotiation or consolidation of competing applications to expedite the grant process

These PNG assets represent longer-dated exploration optionality — meaningful upside that does not yet appear in the near-term drilling calendar but could become significant as licences are formalised and targets are defined.

Understanding RC and Diamond Drilling: A Quick Primer for Investors

For investors following the Augustus Minerals Music Well drilling funding raise, understanding the drilling methods provides important context for interpreting future results.

What Is RC Drilling?

RC stands for Reverse Circulation drilling. This method uses a rotating drill bit that crushes rock into small chips. Compressed air forces these rock chips back to the surface through the drill rods, where geologists collect and analyse them to identify mineralisation. RC drilling is fast and cost-effective, making it ideal for testing multiple targets efficiently.

What Is Diamond Drilling?

Diamond drilling uses a rotating drill bit embedded with industrial diamonds to cut a solid cylinder of rock — called a "core" — which is brought to the surface intact. This provides far more detailed geological information than RC chips, including structural data, accurate grade estimation, and mineralisation style identification.

Why Does the Combination Matter?

Using both methods together represents a well-regarded exploration approach:

• RC holes cover ground quickly and cost-effectively, testing multiple targets
• Diamond holes provide deeper insight into the most compelling intersections
• Together, they balance efficiency with geological understanding

For investors, the inclusion of Diamond drilling at Clifton East signals that Augustus Minerals is not simply conducting a broad first-pass programme — management believes the target warrants a higher level of geological investigation.

Capital Structure and Placement Mechanics

The placement involves the issuance of 62,500,000 new shares, structured as follows:

The attaching options (exercisable at $0.07, 3-year term) provide investors with additional upside leverage if the share price moves above the exercise price — which would represent a 75% premium to the placement price.

Director and management participation on the same terms as external investors reflects meaningful alignment between company leadership and incoming shareholders.

The Investment Thesis: Exploration Leverage Across High-Quality Ground

Augustus Minerals presents a focused junior exploration story with several characteristics worth noting:

1. Proximity to world-class infrastructure: Music Well sits 25km north of Leonora, WA — a region synonymous with significant gold discoveries and established mining infrastructure.
2. Scale of tenure: Over 1,242 km² at Music Well and approximately 1,300 km² at Ti-Tree represents substantial ground positions with multiple targets across both projects.
3. Diversified project pipeline: Four active projects across two jurisdictions (WA and PNG) provide multiple potential value-creation pathways without over-reliance on a single outcome.
4. Near-term drilling catalysts: With Music Well drilling confirmed to start in early June 2026, investors face a relatively short waiting period before newsflow from the ground begins.
5. Experienced leadership: The company is led by directors and senior executives with stated experience across exploration, development, and operation of both open pit and underground mines.
6. Low-dilution raise structure: The 2.4% discount to last close is modest by junior explorer standards, and the attaching options provide additional upside leverage without significantly increasing the near-term dilution burden.

What to Watch: Key Catalysts on the Horizon

The deployment of this capital sets up a series of near-term and medium-term milestones that investors should monitor closely:

• Early June 2026: Commencement of Stage 2 drilling at Clifton East, Music Well — the most immediate and material catalyst
• June–July 2026 (anticipated): Initial assay results from the 14 RC and 2 Diamond holes at Clifton East
• Parallel timeline: First-pass drilling at St Patrick's Well and soil/rock chip results from new Music Well prospects
• Ti-Tree: EM survey results over Money Intrusion drill targets — geophysical data that will shape future drilling decisions
• PNG (Vanapa River): Fieldwork results and identification of initial drill targets
• PNG (Mt Kare): Progress on the licence granting process

"Augustus Minerals has structured this raise to deliver maximum near-term newsflow across its portfolio. With drilling at Music Well set to begin within weeks, investors have a clear and immediate catalyst to follow — while the broader multi-project programme at Ti-Tree and PNG adds depth to the longer-term exploration story."

Understanding VMS Deposits: Why They Matter at Music Well

Given Music Well's prospectivity for VMS-style mineralisation, understanding these deposit types provides valuable context for investors.

What Are VMS Deposits?

Volcanogenic Massive Sulphide deposits form on the seafloor during periods of volcanic activity. Hot, mineral-rich fluids emerge from underwater volcanic vents and deposit metals as they cool in seawater. These deposits typically contain combinations of copper, zinc, lead, gold, and silver.

Why Are VMS Deposits Significant?

VMS deposits are important for several reasons:

• They often contain multiple valuable metals in economic concentrations
• They can be large-scale deposits supporting long-life mining operations
• Modern exploration techniques can effectively identify buried VMS systems
• Processing technologies for VMS deposits are well-established

The Music Well Project's location within prospective geological terrain and the planned drilling programme aim to test for VMS-style mineralisation alongside traditional gold targets. In addition, this multi-commodity approach provides meaningful discovery potential beyond single-metal exploration programmes.

Glossary of Key Terms

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