CRITICAL RESOURCES LIMITED — Capital/Financing Update 2013

Feb 6, 2013

ASX Release 7[th] February 2013

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Diamond drilling program to commence

Sovereign Gold Company Limited ACN 145 184 667

Level 2, 131 Macquarie Street Sydney NSW 2000 Tel: +61 2 9251 7177 Fax: +61 2 9251 7500

• Targeting proven sheeted vein and disseminated gold mineralisation in dyke (repetition of Martins Shaft-style Gold lode)

• Gold grades of up to 13.75g/t identified, several near surface, walk up drill targets to be tested

• Diamond drill rig mobilised to site, drilling program commencing next week

Contact Michael Leu CEO

• Chinese JV Partner Jiangsu spending $21m over 24 months to accelerate exploration in NSW

email: mleu@sovereigngold.com.au

Latest News

www.sovereigngold.com.au

Directors / Officers John Dawkins AO Michael Leu Peter Meers Jacob Rebek

ASX Symbol: SOC

• Sovereign Gold has determined analogy to 32Moz Donlin Creek, Alaska IRGS system

• Unique strategic partnership with Chinese SOE

• Sovereign Gold holds an 81.26% interest in Precious Metal Resources Ltd (ASX: PMR)

• PMR is conducting exploration at Halls Peak, NSW, which is the inferred volcanic centre for extensive small but high grade Volcanic Massive Sulphide (VMS) deposits rich in copper, lead, zinc and silver, with variable but largely untested gold values

• PMR has identified a potential large SEDEX deposit under the Halls Peak project area

1 Includes $10 million funding into Precious Metal Resources Limited (PMR). Sovereign Gold owns 81.2% of PMR.

Sovereign Gold Company Limited (ASX: SOC) is pleased to announce that diamond drilling is to commence next week at Melvaines Mine. Sovereign Gold plans to test new gold targets and to further prove the existence of multiple Martins Shaft-Style gold lodes in the large Intrusion-Related Gold System (IRGS) in New South Wales.

The gold mineralisation recently discovered at Martins Shaft is significant as this style of mineralisation was predicted from the application of Sovereign Gold’s IRGS Model. The mineralisation at both Melvaines Mine and Martins Shaft comprise sheeted veins and disseminated gold mineralisation within a felsic dyke and confirms the potential of the large IRGS to host several primary hard rock gold deposits.

Sovereign Gold’s Managing Director Mr Michael Leu, said: “We are very excited by the potential of this drilling program to prove the scale and grade of gold mineralisation, further confirming the success of our IRGS Model with the ultimate aim of delineating JORC resources.”

Sovereign Gold will continue to provide regular market updates throughout the course of the program.

Sovereign’s IRGS is analogous to the massive Donlin Creek IRGS Deposit (32Moz of gold) in Alaska which is principally hosted by sheeted veins in dykes.

Melvaines Mine is located 4.3km southeast of Martins Shaft, further confirming the large scale of the Rocky River-Uralla Goldfield IRGS.

This gold mine shaft is not in the records of Geological Survey of New South Wales, and is located on the south side of Kentucky Creek, headwaters of the Rocky River. The gold-bearing dyke hosting Melvaines Mine shed gold into Kentucky Creek.

The alluvial gold in Kentucky Creek was so rich that in 1863 a party of Chinese and German miners drilled and blasted the granite in the basement of the creek to recover gold from the crevices in the granite.

Blasted blocks of granite up to five tonnes were hauled by two man winch teams to form a gigantic stone wall many metres long and several metres high. This effort indicates considerable gold was being shed from the hard rock sources and clearly this prompted the Melvaine to sink his shaft to seek the source.

ASX Release 7[th] February 2013 - Page 2

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Mineralisation excavated by Melvaine was located around the collar of the shaft and samples collected and assayed (Table 1). It is clear the narrow sheeted vein style of the gold mineralisation defeated the old timer.

The narrow veins assay up to 13.75 grams per tonne gold but were not wide enough to mine individually. Such deposits are now readily mineable with modern technology and current high gold prices on the right scale. This drilling program aims to establish the scale.

Regional Exploration Continues

Sovereign Gold’s JV partner Jiangsu Geology and Engineering (SUGEC) is supplying a deep (600 metres) drilling diamond rig to continue on from the successful shallow scouting drilling program on the newly discovered 730 metre long gold-bearing structure on EL 7491 that confirmed discovery of large-scale Martins Shaft-style gold mineralisation.

		Au-
SAMPLE Type	Location	AA25 Au
		ppm
Rock, Shaft Rock, Shaft	S413 S414	0.47 13.75
Rock, Shaft	S415	1.3
Rock, Shaft	MM1	2.12
Rock, Shaft	MM2	0.64

Table 1: Assays of mineralisation collected from waste piles at Melvaines Mine (samples MM1 and MM2 - ALS Certificate of Analysis BR11031277; Samples S413, S414 and S415 - ALS Certificate of Analysis BR11018995)

These holes have proved the existence of both high grade (up to 12.35g/t Au) and wide (12 metres downhole) gold mineralisation at shallow depths ideal for open-cut.

Sovereign drilling will systematically focus on multiple mineralisation ‘plays’ including 15 identified prospective gold lodes, 36 geophysical anomalies and several geochemical anomalies.

Drilling is the most effective way to add value to Sovereign’s large IRGS asset. Sovereign owns a drill rig and is able to conduct rapid, low cost drilling around 30% of the contracted rate. Through being self-sufficient, Sovereign Gold substantially reduces costs of drilling whilst expediting rapid mobilization between target sites.

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Stone wall with individual blasted blocks up to five tonnes that were hauled in 1863 by two man winch team from the basement of Kentucky Creek. A very rare feature in a 19[th] century alluvial goldfield; the effort and resources expended is a testimony to richness of the gold along this portion of Kentucky Creek.

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Melvaines Mine, Sample S414, 13.75 grams/tonne Gold, 2cm wide sheeted quartzsulphide vein in quartz-sericite altered dyke.

ASX Release 7[th] February 2013 - Page 3

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Melvaines Mine, Sample MM1, 2.12 grams/tonne Gold. Narrow sheeted quartz-sulphide veins (light coloured linear structures) in altered dyke like those drilled at Martins Shaft.

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Melvaines Mine, Sample MM2, 0.64 grams/tonne Gold, 2cm wide sheeted quartz-sulphide vein in quartz-sericite altered dyke. Limonite staining after sulphides in vugs associated with prismatic quartz. This open texture of this sample exhibits a high level epizonal (epithermal equivalent) IRGS setting that indicate the bulk of the system is preserved at depth.

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Melvaines Mine, Sample S415, 1.3 grams/tonne Gold. Disseminated quartz-sulphide alteration associated with closed-spaced narrow sheeted veins.

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Melvaines Mines, miarolitic textures with tourmaline (black mineral), a classic diagnostic IRGS characteristic. Indicative of the late stage volatile portion of the magma becoming trapped within the body of the dyke. The last magmatic stages are frequently associated with gold deposition in IRGS. This is clearly the case at Melvaines Mine.

For further information please contact: Michael Leu CEO Telephone: +61 2 9251 7177

ASX Release 7[th] February 2013 - Page 4

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----- Start of picture text -----

151°25’E 151°27’E
L E G E N D
30°35’S
Goldsworth Mine
Sandon Beds
EL 64 83
Uralla Granodiorite
Khatoun Tonalite
Goldsworth Gully Manuka Farm Porphyritic Microtonalite
Wandsworth Volcanic Group
Hanging Pendant
Road
Landrigan Hill
Streams
Unnamed Metallic Mineral Sites
Intrusive related
Frazers Find Other (Mn)
Vickers Prospect Placer - Au dominated
Hudsons Pro sp ect
Placer - Au dominated (deep lead)
Hudsons/McCrossins
Khatoun Prospect
Gracie,
Li ttl e Gra ci e EL 6483
Suey’s Claim
Ma rt ins S ha ft Plan
Area
Unnamed
EL 7491
Wilsons Creek
Shaft Mel va ine s
Unnamed Mine
Br ow n’s
Manuka Reef
Fa r m
Manuka
Deposit
2 km
30°40’S
EL 7491 SGCL02
Powerline
----- End of picture text -----

Melvaines Mine Location

ASX Release

7[th] February 2013 - Page 5

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Sovereign Gold Tenement Portfolio

ASX Release 7[th] February 2013 - Page 6

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Criteria	Explanation
Sampling	Rock chip samples from outcrop. Individual sample weights ranged from 1.43 – 6.56kg.
Techniques
Quality of Assay	All samples were analysed by ALS Minerals.
Data &Laboratory Test	ALS Minerals understand the value of quality analytical data to the integrity of exploration and mining companies. The ALS Minerals quality program consists of a
	series of checks and balances with monitoring at top management levels. ALS Minerals
	laboratories are accredited to ISO/IEC 17025-2005 standards to provide complete
	assurance regarding quality performance.
Analytical	Rock Samples were analysed by one of two suites of analytical methods:
Methods	Au by AU-AA25 and full suite ME-MS61 and Hg by ME-MS42 involves more expensive
	methods but with lower detection limits. Multi-element analyses: Ag, Al, As, Ba, Be, Bi,
	Ca, Cd, Co, Cr, Cu, Fe, K, Mg, Mn, Mo, Ni, P, Pb, S, Sn, Sb, Sr, Te, Ti, V, W, Zn, Hg
	Gold – Method Au-AA25
	Up to a 30g sample is fused at approximately 1100oC with alkaline fluxes including lead
	oxide. During the fusion process lead oxide is reduced to molten lead that acts as a
	collector for gold. When the fused mass is cooled the lead separates from the impurities
	(slag) and is placed in a cupel in a furnace at approximately 900oC. The lead oxidises to
	lead oxide and is absorbed by the cupel leaving a bead (prill) of gold, silver (added as a
	collector) and other precious metals. The prill is dissolved in aqua regia and the gold
	concentration determined by flame AAS. A reduced charge may be used to yield full
	recovery of gold for samples that are difficult to fuse.
	Multielement Analysis – Method ME-MS61
	A 0.25g sample is pre-digested for 10-15 minutes in a mixture of nitric and perchloric
	acids, then hydrofluoric acid is added and the mixture is evaporated to dense fumes of
	perchloric (incipient dryness). The residue is leached in a mixture of nitric and
	hydrochloric acids, the solution is then cooled and diluted to a final volume of 25mls.
	Elemental concentrations are measured using ICP Atomic Emission Spectrometry and
	ICP Mass Spectrometry.
Location of Data	Samples sites were recorded with hand-held Garmin GPS with accuracy of ±5 metres.
Points

Qualifying Statements

The information in this Report that relates to Exploration Information is based on information compiled by Michael Leu who is a member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists.

Mr Leu is a qualified geologist and is a director of Sovereign Gold Company Limited.

Mr Leu 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 Resources. Mr Leu consents to the inclusion in this announcement of the Exploration Information in the form and context in which it appears.

References to Mines refer to historical mines and geographical names, no inference should be made that Sovereign Gold is operating any mines at this stage of its development.

True Widths

Downhole length, true width not known. All drill intersections are stated as downhole lengths, true width not yet determined.

ET Exploration Targets

The potential quantity and grade of exploration targets is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.