IONDRIVE LIMITED — AGM Information 2009

Oct 27, 2009

Southern Gold Limited SOUTHERN GOLD LIMITED

Company Update Annual General Meeting 28[th] Oct 2009

Stephen Biggins

Disclaimer

The information in this presentation is published to inform you about Southern Gold Limited and its activities. Some statements in this presentation regarding estimates or future events are forward looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. All reasonable effort has been made to provide accurate information, but we do not warrant or represent its accuracy and we reserve the right to make changes to it at any time without notice. To the extent permitted by law, Southern Gold Limited accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation. Recipients should make their own enquiries in relation to any investment decisions.

The information in this report has been compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as an employee of Southern Gold and who is a member of the Australasian Institute of Mining and Metallurgy and is bound by and follows the Institute’s codes and recommended practices. As a Competent Person, he has a minimum of 5 years relevant experience in the style of mineralisation and types of activities being reported and has given written consent to the above report in the form and context in which it appears.

SAU Corporate Snapshot

ASX Code SAU Board and Senior Management Issued Shares 140m Chairman Greg Boulton Market Cap (at 10 cents) $14m Managing Director Stephen Biggins Cash (30 Aug 2009) $1.0m NED Mick Billing Investments (39% SNU) $2.5m GM Cambodia Grant Thomas - Debt Enterprise Value $10.5m Major Shareholders Talbot Group Holdings 23.2% Top 20 51.7%

Cambodia - Exploring for Company Making Deposits

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Seven Cambodian Projects - World Class Region

• Seven tenements secured in Cambodia covering 1,500km[2]

• Tenements adjacent to licences being actively explored by Oz Minerals

• Targeting large, new discoveries

• Significant potential of projects illustrated by US$4.5 million JV with JOGMEC on 3 of 7 projects

• Highly prospective geological region with undrilled mineralisation at surface

• Initial drill results from only 1,200 metre of RC drilling include 8m @ 5.9g/t gold and 4m @ 5.8g/t gold

• 6,500 metre RC and diamond drill programme to commence mid-Nov 2009

• Grant Thomas (ex-Tianshan Goldfields Managing Director) is Southern Gold’s

JOGMEC Joint Venture - International Partner

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• JV on 3 of 7 SAU licences with JOGMEC, Japan’s $2 billion Oil, Gas and Metals Corporation • US$4.5 million to be spent by JOGMEC by mid 2011 to earn 51%

• US$1 million committed to be spent by end March 2010

• • US$1.2 million spent to date

• • SAU is JV operator

• Follows Japan’s interest in the

Cambodia - First Significant Gold Results

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• First significant gold intersection drilled in July 2009

• 8m @ 5.9g/t and 4m @ 5.8g/t at Anchor Prospect, Snoul EL (100% SAU)

• At least 4 separate veins intersected at Anchor Prospect

• Follow-up drilling due to commence mid-Nov 2009

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interpreted
mineralised
structures
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Kratie South JV - PK NW Prospect Drill Ready

200m

• Trenching completed on number of prospect areas on JOGMEC JV Projects

• • Targets ready for drilling, due to commence mid-Nov 2009

• Visible gold at surface

• Multiple potentially mineralised vein zones

• Substantial related alteration

• • Large gold anomaly in soils and

OZ Minerals’ Adjacent Kratie South Project

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Challenger Area Gold Project - South Australia

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• 5,000 km[2] project area surrounding million ounce Challenger Gold Mine, mostly in Joint Venture with Dominion Mining

• Southern Gold recently earned a 51% interest in the Challenger Area Joint Venture with Dominion. Dominion now has can elect to maintain its 49% interest or dilute. If Dominion dilutes, Southern Gold can move to an 80% interest by spending a further A$2 million by October 2012

• High grade gold (>40 g/t) shoots identified at Golf Bore

• Significant regional potential with over

Golf Bore Plunging Gold Shoots - 3D

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Monsoon Prospect - large 2km x 1km area Previous RAB drilling but no RC drilling yet

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Challenger Area Project - Regional Exploration Numerous large targets to be tested

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Challenger Area Project - Regional Exploration Numerous large targets to be tested

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Bulong South Project, Western Australia Bulong South Project WA - Gold and Nickel

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• Large Tenement Holding (100% & JV) in district prospective for more major deposits

• SAU has made significant discoveries through well managed and focussed exploration programs

• New nickel sulphide discovery in 2007

Bulong South Project - Gold Cannon & Monument Prospects

Cannon: 25m @ 4.1 g/t and 33m@ 1.9 g/t straddling tenement boundary

Monument:

Gold over 550 metres of strike including 14m @ 2.11g/t & 6m @ 4.09g/t

• 2 phase RC and diamond gold drilling programme starting this month for 2,500 metres

42m @ 2.7 g/t Au

Roxby Geothermal Project - Summary

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• Inferred Geothermal Resource of 260,000 PJ Resource area represents ~5% of Project

• Power Transmission Infrastructure 275Kv & 132Kv Lines, Power Stations

• Adjacent to growing market of large power consumer Olympic Dam, Prominent Hill, Whyalla

• Potentially Economic Heat Flows Temperatures of close to 200°C at 4,500m

• • Roxby Geothermal Project covers 10,000km[2] 22 Granted GELs

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Southern Gold Work Program
Project Sep Qtr 2009 Dec Qtr 2009 Mar Qtr 2010 Jun Qtr 2010
RC Drilling
Cambodia Gold
Soil and Trench surveys
Initial
RC Drilling RC Drilling
Resource
Challenger Gold, SA
AC Drilling
Calcrete Surveys
Bulong Nickel, WA RC Drilling RC Drilling
Torrens Geothermal, SA Resource GDP & Value Add IPO/Divestment
18
SOUTHERNGOLD
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Southern Gold - Summary

Cambodia

• Significant gold intersections including 8m @ 5.9g/t gold

• RC and diamond drilling commencing Nov 09

• JOGMEC spending US$4.5 million on JV ground (3 of 7 projects)

• Challenger JV Project, SA

• Surrounds Dominion’s 100,000 oz pa Challenger Gold Mine

• – A number of attractive gold targets already identified

• – Drill results up to 40g/t gold

• Bulong, WA – RC drilling of gold prospects to commence this month

• Geothermal, SA

• 260,000 PJ Geothermal Resource