IONDRIVE LIMITED — AGM Information 2011

Nov 16, 2011

Southern Gold Limited

ANNUAL GENERAL MEETING NOVEMBER 2011

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Disclaimer

The information in this presentation is published to inform you about Southern Gold Limited and its activities. Some statements in this estimates or presentation regarding 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 losses or of kind out of the use of information any damages any arising any contained in this presentation. Recipients should make their own enquiries in relation to any investment decisions.

The technical information in this report has been compiled by Nanette Anderson as an employee of Southern Gold and who is a member of the AusIMM and is bound by and follows the Institute’s codes and recommended practices. As a Competent Person, she has a minimum of 5 years relevant experience in the style of mineralisation and types of activities being reported and has given prior written consent to the following presentation in the form and context in which it appears.

This Cannon Gold Resource estimate included in this presentation was conducted and prepared by Runge Limited in compliance with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC).

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SAU - Investment Highlights

Investment Highlights

• Significant potential to grow the resource base at Cannon and along the Cannon Trend, Bulong Gold Project, WA

• Success at Bulong South has driven desire to increase surrounding tenement package through tenement application and joint ventures

• First pass auger testing of Bulong East and Clinker Hill has generated 12 gold anomalies.

• In Cambodia 2011 drill results show significant gold intersections from multiple prospects

• 51% Gold rights under joint venture with Kingsgate Consolidated Ltd surrounding 100,000oz pa Challenger Gold Mine �������� ���� 3

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Corporate Snapshot

ASX Code Issued Shares Market Cap (@4.5c) Cash (30 Sep 2010)

SAU

242.2M $10.9M $2.0M

Major Shareholders Nefco Nominees PL 3.8% CITIC Australia P/L 2.7% JP Mor an Nominees Aus P/L 2.5% g

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SAU 6-month Price Chart
Volume ('000) Price (cps)
1,400 10.0
9.0
1,200
Price 8.0
1,000 Volume 7.0
6.0
800
5.0
600
4.0
400 3.0
2.0
200
1.0
0 0.0
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Board of Directors & Key Management

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Managing Director

Nanette Anderson BSc AusIMM

15 years working in the resource sector with a background in geology, exploring and developing projects throughout Australia and Indonesia, and corporate experience in capital raisings and various project negotiations

Greg Boulton BA FCA FAICD

Chairman

25 years of corporate experience in a finance capacity, with experience in capital raisings, acquisitions and commercial negotiations

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Mick Billing BBus ASA MAICD

Non-Executive Director

30 years of mining industry experience in finance and senior commercial roles. He has held several directorships and is currently Executive Chairman of AIM listed Thor Mining PLC

David Turvey BSc AusIMM

Non-Executive Director

27 years experience in the Australian and Asian mining industries where he has driven business development and corporate M&A activities

Nick Harding BA(Acc) FCPA ACIS

Company Secretary

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Project Portfolio

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• Advanced gold exploration projects in Australia and Cambodia targeting large, new discoveries

• Bulong Project: 20% Increase to Cannon Gold Resource: 94,00oz @ 3.3g/t defined resource

• Resource intersections include:

  • 15m @ 9.5 g/t Au

  • 66m @ 2.9 g/t Au

  • 43m @ 3.4 g/t Au

• Cambodia:

• High grade gold bearing quartz veins intersected over 250m strike length, 10kms south from Oz Minerals Ltd 605,000oz gold Ok Vau project

• Challenger Joint Venture: large tenement holding surrounding 100,000oz pa Challenger Gold Mine

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Bulong Gold Project – 30km East Kalgoorlie WA

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Kalgoorlie
Cannon
Trend
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Bulong Project Cannon Gold Deposit

Resource Upgrade

Type	Indicated	Indicated	Indicated	Inferred	Inferred	Inferred	Total	Total	Total
	Tonnes	Au	Au	Tonnes	Au	Au	Tonnes	Au	Au
	t	g/t	Ounces	t	g/t	Ounces	t	g/t	Ounces
Oxide	8,400	3.0	800	1,000	1.4	-	9,000	2.9	900
Transitional	113,700	3.1	11,400	25,700	1.3	1,100	139,000	2.8	12,500
Fresh	549,500	3.8	66,600	198,300	2.3	14,600	748,000	3.4	81,100
Total	672,000	3.6	78,800	225,000	2.2	15,700	896,000	3.3	94,500

The estimate in the above table prepared by Runge Limited is in compliance with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). This Table must be read in conjunction with the ‘Resource Statement and Parameters’ listed at the end of this presentation.

Recommendations by Runge include “ The shallow, medium grade nature of the mineralisation and the proximity to toll treatment facilities suggests that the project has reasonable prospects for eventual economic extraction. It is recommended that preliminary economic analysis be conducted to assist in understanding the project potential. The deposit remains open in a number of areas and further drilling is warranted to define the full extent of the mineralisation .”

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Cannon Gold Resource – Cross Sections

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Cross sections through the Cannon Gold Resource shows gold mineralisation extending from surface, dipping to the west and open at depth. 9 SOUTHERNGOLD

Bulong Project – Cannon Trend

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Follow up RC drilling identified significant gold trends at Pinner and
broad low level gold mineralisation at Monument.
[Base map : High gold in soil values that define the Cannon Trend].
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Bulong East – Auger Programme

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12 Anomalies identified from the regional geochemical auger programme conducted over the Bulong East tenements.

Infill auger sampling and first pass drilling to commence in the upcoming quarter. [Background map: GSWA 1:500000 scale Regional Geological Map].

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drilling to commence in the
upcoming quarter.
[Background map: GSWA
1:500000 scale Regional
Geological Map].
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Southern Gold Projects - Cambodia

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

• Targeting large, new discoveries in prospective geological region

• Initial drill results include • 8m @ 5.9g/t,

• 4m @ 5.8g/t; and

• • 1m @ 9 g/t gold

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Challenger Area Gold Project - South Australia

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Southern Gold
Dominion JV
Calcrete AnomalyGold Prospect
0 5 10
kilom eters
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• 2,960 km[2] project area surrounding million ounce Challenger Gold Mine, mostly in Joint Venture with Kingsgate Consolidated Ltd.

• Southern Gold has earned 51% of the gold rights in the Challenger Area.

• Targeting Challenger-style gold deposits near Dominion’s +1 million ounce mine.

• Significant regional potential with 30 number of calcrete geochemical anomalies identified.

• Geochemical targets to be prioritised and the high ranked anomalies to be drill ready in 2012.

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Southern Gold – A Value Growth Story

Bulong, WA

• Cannon upgraded resource of 94,500oz at 3.3g/t Au with significant resource growth potential.

• A host of opportunities to replicate the Cannon discovery (within 1km of the main Cannon deposit).

• Commence preliminary development studies on the Cannon Resource and conduct active exploration in 2011/12 with drilling commencing in the upcoming quarter.

Cambodia

• Significant gold intersections from multiple prospects

• Active exploration in 2011/12

Challenger JV Project, SA

• Surrounds Kingsgate’s 100,000oz per annum Challenger Gold Mine

� Priority targets to be drill ready, 2012 �������� ���� 14 SOUTHERNGOLD

Southern Gold Limited

Nanette Anderson Managing Director +61 8 8368 8804 nanderson@southerngold.com.au www.southerngold.com.au

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Appendix 1: Bulong South (Cannon Gold Deposit)

Type	Indicated	Indicated	Indicated	Inferred	Inferred	Inferred	Total	Total	Total
	Tonnes	Au	Au	Tonnes	Au	Au	Tonnes	Au	Au
	t	g/t	Ounces	t	g/t	Ounces	t	g/t	Ounces
Oxide	8,400	3.0	800	1,000	1.4	-	9,000	2.9	900
Transitional	113,700	3.1	11,400	25,700	1.3	1,100	139,000	2.8	12,500
Fresh	549,500	3.8	66,600	198,300	2.3	14,600	748,000	3.4	81,100
Total	672,000	3.6	78,800	225,000	2.2	15,700	896,000	3.3	94,500

Details of Resource parametres are available in the ASX Announcement dated 23 June 2011

The information in this report that relates to Mineral Resources is based on information compiled by Mr Rob Williams. Mr Williams, who is a full time employee of Runge Limited and a Member of the Australian Institute of Mining and Metallurgy, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Mr Williams consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

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