AuStar Gold Limited advised that after a period of several months since cessation of the Company's last exploration drilling at Morning Star, in-mine exploration drilling recommenced in early July. Given the narrow-vein nature of gold mineralisation at Morning Star and limited accessibility for some rig types, the Company, having decided to recommence drilling in mid-2020, investigated establishing an internally-owned drilling competency (see ASX release 3 June 2020 June 2020 Market Update). AUL has acquired a fleet of two Kempe pneumatic diamond drill rigs which have been refurbished by the Company's team of fitters, with a consumables and spares inventory now maintained within a dedicated drilling unit on site at Morning Star. Staff and contractors with Kempe drilling experience have established necessary procedures, and the Company now has two skilled employees comprising the drilling crew with hiring underway to expand this to a team of four. With direction from the site geology team, the drilling team has been operating on a swing-shift basis on Rig 1, moving to a cross- shift (continuous) basis at the conclusion of the current rostered swing. The Company considers ownership and control of an internal drilling capacity, particularly for in-mine drilling at Morning Star, to be an essential step for the business, providing flexibility of rostering, improved cost control and better integration of drilling activities with mining operations. The key focus of the drilling program at Morning Star is the opening of new working areas, in order to increase Mining output and incrementally move Processing at Morning Star from a week-on/week-off to continuous basis. The Board recognises that movement to a sustained higher mining output is key to unlocking profitability at the Group level. With the input of new Senior Geologist Jason Larocca, further target zones are being identified in addition to those outlined in the Company's June release (and summarised here). Morning Star Drilling Program: Overview: Several phases of underground drilling are planned and designed to target potentially gold bearing structures within both the Morning Star Dyke and immediate surrounding sediments. The underground target areas within the Morning Star Mine have been ranked according to three key criteria: The site needs to be readily accessible with minimal additional development required for set up; Targets should be exploitable with minimal mining development; Targets should be based on known follow-up intersections. The program is spread across four broad phases: (1) The Morgans, Age of Progress and Cherry targets, drilled from the MSA, (2) the Stacpoole North Extension target, (3) Wide space drilling from 4 Level, 7 level below Whitelaw's Drilling and above 9 Level and (4) the Gap Zone. Presently, with the first two holes addressing the Age of Progress target completed, Rig 1 has been moved temporarily to 8 Level (Stones Reef ­ which has been reopened and is contributing to production) to test potential extensions of McNally Reef (7 Level) down-dip from current working areas, undertake drill testing of areas surrounding the Stones production zone and test potential ore pass locations between 8 and 7 levels for mineralisation. The first phase of the current program is designed to test the Cherry, Age of Progress (AOP) and Morgan structures that exist between the Morning Star Adit level and the surface. The Age of Progress/Cherry mineralised target zone, immediately above MSA, has potential for easy access. The Morgan's Reef will be tested from an existing drill site at the northern end of MSA to test for near mine mineralised quartz veins in both the dyke and the sediment contact. Successful drill testing of the Morgan's Reef would have the potential for access in a relatively short time (Figure 4). Second Phase: Stacpoole North Extension: The Stacpoole North extension will be drilled from an existing drill site on 4 Level. This area has previously resulted in broad zones of mineralisation when last drilled, however due to the northerly dip of the structure it could not previously be tested further down dip. Should an economic parcel of mineralisation be identified there will be a need to undertake a moderate amount of mining development to access. Third Phase: Wide spaced drilling from 4 Level, 7 Level below Whitelaws and above 9 Level: Widely spaced drilling, targeting areas of the sediment-dyke contact, is also planned. The drill sites to test for a new mineralised structure above 9 Level exist but are only partially set up. The drill sites to drill below Whitelaw are yet to be determined. Phase 3 targets are expected to have a longer lead time to development as new infrastructure and development would be required prior to the commencement of mining. Fourth Phase: The Gap Zone: The Gap Zone is located between the 9 and 15 levels (Figure 5) and is an area that has remained largely unexplored and never mined. Previous drilling by Morning Star NL reported several reefs with indications of visible gold in various locations. The drilling proposed for "The Gap Zone" targets new ground beyond previously drilled areas, to test the occurrence of multiple structures. These holes will be drilled from existing drill cuddies on 9 Level.