IONDRIVE LIMITED — AGM Information 2013

Nov 20, 2013

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Southern Gold Limited

Cannon Gold Resource – Ready to Fire 2013 ANNUAL GENERAL MEETING

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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 and we reserve the to to it time without notice. To accuracy right make changes at any 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, from a licensed investment advisor.

The information in this presentation that relates to Exploration Results has been compiled by Mr Ian Blucher. Mr Blucher, who is a full time employees of Southern Gold 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 he 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 Blucher consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this presentation that relates to Mineral Resources is based on information compiled under the supervision and guidance of Mr Trevor Stevenson. Mr Stevenson (FAusIMM(CP) is a full time employee of RungePincockMinarco Limited and has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC, 2004). Mr Stevenson consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

SOUTHERNGOLD

Corporate Snapshot

ASX Code	SAU	Major Shareholders(@ 1 Aug 13) Silverlake Resource Ltd 12.05% Gary B Branch Pty Ltd 7.56% JP Morgan Nominees Pty Ltd 4.08% National Nominees Pty Ltd 3.26%	Major Shareholders(@ 1 Aug 13)	Major Shareholders(@ 1 Aug 13)
Issued Shares	360.6 m		Silverlake Resource Ltd	12.05%
Market Cap(@ 1.5c)	$5.4 m		Gary B Branch Pty Ltd	7.56%
Cash(@ 30 Sep 2013)	$770 k		JP Morgan Nominees Pty Ltd	4.08%
Shareholdings			National Nominees Pty Ltd	3.26%
Trafford Resources Ltd(@ 10c)	$300 k

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SAU share price (red) S&P/ASX All Ord Gold (blue)
Share Price
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Board of Directors & Key Management

Greg Boulton AM BA FCA FAICD

Nanette Anderson BSc MAICD AusIMM

Non-Executive Chairman

Managing Director

• 25 years of corporate experience in a finance capacity

• Experience in capital raisings, acquisitions and commercial negotiations.

• Chairman of Paragon Equity Ltd, K&S Corporation.

• Non Executive Director of Statewide Superannuation Trust.

• Geologist, with corporate and technical experience in the resource sector for 18 years.

• Project evaluation, exploration and development experience throughout Australia and SE Asia.

• Corporate experience in equity raisings, project sales through to acquisitions and joint ventures.

• Previously director of Jaguar Minerals Ltd.

David Turvey BSc AusIMM

Mick Billing BBus MAICD

Non-Executive Director

Non-Executive Director

• Geologist with over 27 years experience in the Australian and Asian resource sector

• Driven business development, corporate merger and acquisition activities in precious metals, bulk commodities and industrial minerals.

• Experiences in minerals exploration, project development and commercial evaluation of mineral assets.

• Previous directorships with FerrAus Ltd & Lawson Gold Ltd

• 35 years of mining industry experience

• Worked in a finance capacity, company secretarial, nonexecutive and managing director roles

• Experience in debt and equity raising, project evaluation and feasibility studies in Australia and overseas.

• Executive Chairman/CEO - AIM listed Thor Mining PLC

• Non-Exec. Director – ASX listed Blackfire Minerals Ltd

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The Bulong Gold Project

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SOUTHERNGOLD

Cannon Gold Resource Table

Updated Resource sees 93% of the resource in Indicated Category at an average grade of 4 g/t

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	8,000	3.0	800	1500	2.4	100	9500	2.9	900
Transitional	137,600	3.1	13,900	34,100	2.6	2,900	171,700	3.0	16,800
Fresh	573,500	4.3	78,500	57,500	2.3	4,200	631,000	4.1	82,800
Total	719,100	4.0	93,200	93,000	2.4	7,200	812,200	3.9	100,400

Note: Rounding of tonnes can affect totals. Details of deposit geology, the drilling, QA/QC procedures and the mineral resource estimation methodology employed are appended.

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Cannon Gold Resource – Upgraded Jan 2013

Current resource estimate – 100k ounces gold 812,200 tonnes @ 3.9g/t gold

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SOUTHERNGOLD

Cannon Gold Resource - Pre-Feasibility Study

Key Outcomes

 Pre-Feasibility Study (PFS) demonstrates that development of the Cannon Gold Resource as a toll treatment operation delivers positive economic returns with a low capital cost structure.

Item	Units	Scenario 1 A$1350/oz Au	Base Case A$1400/oz Au	Scenario 2 A$1500/oz Au	Scenario 3 A$1600/oz Au
Mine Life	Months	36	36	36	36
Mined Ounces	oz Au	68,200	68,200	68,200	68,200
Recovery (ave)	%	92	92	92	92
Infrastructure Cost	A$M	13.3	13.3	13.3	13.3
Operating Cost	A$/oz	1028	1028	1028	1028
WA State Royalty1	%	2.5	2.5	2.5	2.5
Free surplus cashflow	A$M	4.95	8.02	14.15	20.28

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Cannon Gold Resource - Pre-Feasibility Study

Key Outcomes

• The open pit and underground mine design supports the production of 484,000t at an average grade of 4.4g/t Au for 68,200oz.

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Cannon Gold Resource - Pre-Feasibility Study

Mine Development Timetable

• Board approval received to proceed with mine development of the Cannon Gold Resource, subject to securing finance and regulatory approvals.

• Permitting work carried out in parallel with Pre-Feasibility Study to reduce lead times, with the aim to commence mining operations in the first half of 2013. SOUTHERNGOLD

Cannon Gold Resource - Pre-Feasibility Study

Value Enhancement Opportunities

• Inferred resource material within the pit design has not been included in the mining inventory nor have any underground inferred resource ounces been included in the PFS (see Cannon Resource table for information on inferred ounces.)

• Resource remains open to the west. Exploration from underground development will be an integral part of the operation to test extensions to the west and south of the current defined resource.

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Metallurgical test work shows ave 92% recovery. Micrograph section showing coarse gold grains

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Favourable Opportunity

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• Proximity to Kalgoorlie – infrastructure, skilled workforce, informed stakeholders, mining and processing plant locally available.

• • Development of the Cannon Gold resource in 2014 could provide an early cashflow opportunity and inturn supporting value growth.

• Market conditions favour reductions in capital costs, mining contractor and milling costs.

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Building the Resource Base

CANNON TREND – a 1km long gold in soil anomaly from Cannon.

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Base map: High gold in soil values that define the Cannon Trend.

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The Bigger Picture

Bulong Gold Project – Regional Targets

• 250km[2] tenement holding, 30km east of the world class Kalgoorlie goldfield.

• 30 priority anomalies identified from regional geochemical auger programme conducted over the Bulong East tenements.

• Knowledge gained from work at the Cannon Resource provides important structural an geochemical information to assess regional targets for similarities.

• Infill auger sampling and first pass drilling lead to the prioritisation of 12 targets for follow up test work.

• Five targets selected for Sub Audio Magnetic (SAM) ground geophysics survey. SOUTHERNGOLD

Regional Exploration - Bulong and Cowarna Project

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SOUTHERNGOLD

Bulong Gold Project – Focus Value Growth

On the acquiring finance and permitting approvals for development Focus of the Cannon Gold resource in 2014. Adding additional resource ounces through test work of Tier 1 targets.

Ability to consider a low CAPEX, fast-track development pathway based on a toll-treatment scenario of the Cannon Resource. Value Mine inventory of 484,000t at an average grade of 4.4g/t Au for 68,200oz of gold SAU Market Cap (@ 1.5c) A$5.4m Cash (at 30/9/2013) A$700 k TRF Shares (as at 20/11/2013) A$300k Growth Cornerstone investor SLR 12.05% Cannon Gold Resource 100,400 at an average grade 3.9g/t (mineralisation from surface) Build on Resource Base Cannon Trend

Growth

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Appendix 1 – Bulong Gold Project Resource Table

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
Cannon Resource
Oxide	8,000	3.0	800	1500	2.4	100	9500	2.9	900
Transitional	137,600	3.1	13,900	34,100	2.6	2,900	171,700	3.0	16,800
Fresh	573,500	4.3	78,500	57,500	2.3	4,200	631,000	4.1	82,800
Total	719,100	4.0	93,200	93,000	2.4	7,200	812,200	3.9	100,400
Pinner Resource
Oxide	-	-	-	600	3.0	200	600	3.0	200
Transitional	-	-	-	76,400	2.2	5,400	76,400	2.2	5,400
Fresh	-	-	-	94,900	2.0	6,100	94,900	2.0	6,100
Total	-	-	-	172,000	2.1	11,500	172,000	2.1	11,500
Total Resource	719,100	4.0	93,200	265,000	2.2	18,700	984,100	3.5	111,900

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Appendix 1

Resource Estimation Method

Perth based independent geological consultants, RungePincockMinarco Limited (RPM), were contracted to undertake the 2013 Mineral Resource estimations for Cannon and Pinner.

The estimated resource present was classified into Indicated and Inferred categories based on the number of drill holes used to estimate the grade of each block and the proximity of relevant drill holes. The classified resource was then summarised for all blocks with a gold grade >= 1 g/t

The information in this presentation that relates to Mineral Resources is based on information compiled under the supervision and guidance of Mr Trevor Stevenson. Mr Stevenson (FAusIMM(CP) is a full time employee of RungePincockMinarco Limited and has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC, 2004). Mr Stevenson consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

The estimate in the above table prepared by RungePincockMinarco 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 should be read in conjunction with details of Resource parameters are available in the ASX Announcement dated 29 January 2013.

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Southern Gold Limited

Nanette Anderson Managing Director +61 8 8368 8888 info@southerngold.com.au www.southerngold.com.au SOUTHERNGOLD