An Earn In Agreement was recently signed with Argentina Minera S.A. (Aminsa) and its founders to jointly explore tenements covering approximately 227,000 hectares in the Province of San Juan. The property is located within the Porphyry Piuquenes- Los Azules corridor near Xstrata’s advanced exploration copper project called El Pachón in Argentina and Los Pelambres owned by Antofagasta Minerals in Chile.

Austral Gold through Austral Gold Argentina will earn in up to 50% of Aminsa in 5 years by contributing up to US $15 million over this period.

Copper and gold exploration will commence in September 2008 mainly in Los Bagres, Rincones de Araya, Rio Salinas and Calderon/Calderoncito in the Province of San Juan. Recently concluded geophysics (IP and Aster = Advanced Spaceborne Thermal Emission and Reflection Radiometer) and geochemical programs have confirmed anomalies within these areas.

The founders of Aminsa, Patricio Jones (CEO and Chairman of Suramina Resources, a company listed in the Toronto Stock Exchange with assets in Chile and Argentina), Ricardo Martinez and Roberto Martinez have vast experience in exploration activities in the region having participated, among others, in the discoveries of two of the largest mines in Argentina; Xstrata’s copper Bajo de la Alumbrera and Barrick’s gold mine Veladero. Patricio Jones has been involved with the Lundin Group since the 1980´s.

Aminsa