IONDRIVE LIMITED — AGM Information 2016

Sep 20, 2016

==> picture [72 x 91] intentionally omitted <==

SOUTHERN GOLD

[Insert Key Photo]

Extraordinary General Meeting – 21 September 2016 Southern Gold in South Korea

ASX Ticker: SAU

Disclaimer

==> picture [780 x 8] intentionally omitted <==

Forward-looking statements

The information in this presentation is published to inform you about Southern Gold Limited (“Southern Gold”) and its activities. Some statements in this presentation regarding estimates or future events are forward looking statements. These may include, without limitation:

• Estimates of future cash flows, the sensitivity of cash flows to metal prices and foreign exchange rate movements;

• Estimates of future metal production; and

• Estimates of the resource base and statements regarding future exploration results and increasing the company’s resource base

Such forward looking statements are based on a number of estimates and assumptions made by the Company and its consultants in light of experience, current conditions and expectations of future developments which the Company believes are appropriate in the current circumstances. Such statements are expressed in good faith and believed to have a reasonable basis. However the estimates are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from estimated results.

All reasonable efforts have been made to provide accurate information, but the Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of this presentation, except as me be required under applicable laws. Recipients should make their own enquiries in relation to any investment decisions from a licensed investment advisor.

Competent Person’s statements

The information in this report that relates to Exploration Results has been compiled under the supervision of Dr. Chris Bowden (FAusIMM(CP)). Dr Bowden, who is a full time employee of Southern Gold Limited and a Fellow and Chartered Professional 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 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Dr Bowden consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Mr Ian Blucher (MAusIMM). Mr. Blucher is a full time employee of Southern Gold 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 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC, 2012). Mr Blucher consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

==> picture [780 x 53] intentionally omitted <==

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

2
----- End of picture text -----

The Korean Assets

• 44 granted tenements across 17 project areas in a jurisdiction where tenure is difficult to secure.

• All host historic gold/silver mining operations ranging from formal underground operations to artisanal workings, including remanent tailings.

• Significant potential for orogenic, mesothermal and epithermal precious metal deposits.

• Highly prospective greenfields upside across the tenements.

• Key highlight projects from north to south: 1. Taechang, 2. Gubong, 3. Weolyu, 4. Heungdeok, 1 2 3 4 5. Kochang, 6. Hampyeong5 6

• Significant foreign estimates of gold-silver endowment (slide 5 and ASX release 8 July 2016)

==> picture [335 x 458] intentionally omitted <==

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

1
2
3
4
5
6
----- End of picture text -----

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 3
----- End of picture text -----

Overview of Key Targets: North to South

==> picture [780 x 8] intentionally omitted <==

1 Taechang (TC)

Old mining district, high grades. Known plunge to mineralisation. Recent underground access confirms mineralisation remains in-situ. Potential to open underground to fast-track development .

2 Gubong (GB)

Significant orogenic gold mining district. Historically 2[nd] largest gold mine in Korea (>400koz). Potential to open underground to fast-track development.

3 Weolyu (WU)

New discovery of classic high level LS epithermal veining & recent access to underground confirming vein mineralisation remains in-situ.

4 Heungdeok (HD)

Artisanal mining across a large area on 9 parallel veins. No previous drilling.

5 Kochang (KC)

Extremely high grade gold and silver in narrow veins. Recent drilling confirms visual mineralisation. Further drilling planned and potential to open underground workings to fast-track development.

6 Hampyeong (HP) Up to 21.6g/t Au in rock chip samples of epithermal quartz veins. New discovery of ‘A’Cha’ vein . No previous drilling.

==> picture [409 x 409] intentionally omitted <==

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

1
2
3
4
5
6
----- End of picture text -----

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 4
----- End of picture text -----

2

Foreign Estimates – See ASX Release 8 July 2016

1

4 3

5

==> picture [510 x 402] intentionally omitted <==

Foreign Estimate

• In line with JORC “Exploration Target”, suggesting a potential range of:

• 1Mt to 4.5Mt at between 6g/t and 12g/t Au (or ca. 500,000oz to 1.5Moz of Au).

The exploration carried out to-date is insufficient to estimate a resource and it is uncertain whether further exploration will result in the estimation of a resource. Future exploration activities that will test the validity of this exploration target will include drill testing of the historical and newly discovered zones of mineralisation, diamond drilling and underground sampling, which is expected to be undertaken over the next 18 months.

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 5
----- End of picture text -----

1

2

3

Technical Situation – Multiple Mine Reopenings

==> picture [780 x 8] intentionally omitted <==

• Taechang : historic Au mine, fast-track underground potential, drill ready. Rehabilitate and re-open old mine .

• to access historic workings and mineralisation

• Gubong Mine & District : in-situ exploration target range, significant upside potential, drill ready. .

• Rehabilitate and re-open old mine to access historic workings and mineralisation

• Weolyu : in-situ high-grade Au-Ag veins (north and south of river), plus new epithermal vein discovery in the south. Significant district upside. Rehabilitate and re-open old mine to access historic workings and mineralisation.

5

• Kochang : historic Au and Ag mines plus “gap” between them of >700m. Fast-track underground potential. .

• Drilling commenced. Rehabilitate and re-open old mine to access historic workings and mineralisation

• Hampyeong : greenfields project, significant district potential, new vein discoveries still being made (i.e. A’Cha in 2015).

• Heungdeok : drill ready on multiple Au bearing quartz veins with no previous drilling.

Options to reopen the historic mines and various scenarios for early production are currently being explored.

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 6
----- End of picture text -----

1

Taechang

• Underground recon done (August 2016)

• Confirmed mineralisation remains in situ

• Validated drill target and potential for mine reopening

• KORES supported mapping project with report and samples due November 2016

• Potential for fast track development on receipt of regulatory approvals

==> picture [544 x 477] intentionally omitted <==

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 7
----- End of picture text -----

2 Gubong: Potential Large Scale Project

==> picture [780 x 8] intentionally omitted <==

• Multiple veins on district scale

• Huge zone of potential targets in 4km x 7km area

• Vein 1 and 6 still with undeveloped/ mined areas

• Danbong Vein in SE represents an additional target zone

• Opportunity to reopen old mines and get access to the mine face quickly

• Potential for large project into the medium term

==> picture [312 x 328] intentionally omitted <==

==> picture [177 x 73] intentionally omitted <==

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

Example Korean map of
underground workings
and areas marked for
development
----- End of picture text -----

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 8
----- End of picture text -----

3

Weolyu South: New Discovery

==> picture [780 x 8] intentionally omitted <==

Field reconnaissance led to discovery of classic low sulphidation bladed carbonate boulders (early 2015). Follow-up field recon (mid to late 2015) discovered classic banded low sulphidation mineralised quartz veins.

Ag-Ge Mine

Cave explorers confirm vein in situ in the wall at bottom of artisanal mine (mid 2016).

==> picture [155 x 150] intentionally omitted <==

==> picture [150 x 119] intentionally omitted <==

==> picture [216 x 138] intentionally omitted <==

KRS200052: 17.6g/t Au, 820g/t Ag

==> picture [150 x 90] intentionally omitted <==

Cave Explorers

KRS200053: 3.8g/t Au, 88.5g/t Ag

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 9
----- End of picture text -----

3 Weolyu South: Underground

==> picture [586 x 423] intentionally omitted <==

• Underground pilot survey done (Aug 2016) including shaft access

• Confirmed quartz vein mineralisation remains (approx. 7m long exposure at 3m width)

• Validated drill target, visually similar to mineralised surface rocks

• Contractor supplied map illustrates layout

• Options for underground drill rig deployment being considered

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 10
----- End of picture text -----

5

Kochang: Au-Ag Mines, Sanpo Mine ‘Rediscovery’

==> picture [780 x 8] intentionally omitted <==

 2016 reconnaissance discovering ‘new’ mines, adits and mineralisation not previously known.

 Expert geological contractor engaged to investigate district (Oct 2016 and post winter 2017).

 Newly identified ‘Sanpo Mine’ area where wide intersections were returned from KORES drilling in 1984

• KC84-2: 2.5m @ 17.4g/t Au from 63m and 2.4m @ 1,763g/t Ag from 97.6m

• KC84-2 now located in field with historical workings and underground development (mullock) nearby

 KORES drill grant application (round 2) in process for Sanpo (TBC Sept’16)

==> picture [403 x 406] intentionally omitted <==

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

Current KORES
drilling area
(round 1)
Newly identified
Sanpo Mine area
with KORES drilling
application (round 2)
Old Korean
KC84-2 map showing
historical drilling
----- End of picture text -----

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 11
----- End of picture text -----

5

Kochang: KORES Funded Drilling

==> picture [780 x 8] intentionally omitted <==

KORES ‘round 1’ drilling at Kochang at Kochang Au Mine and Kochang NE within 10 days of acquisition (about 2km from Sanpo Mine).

==> picture [298 x 169] intentionally omitted <==

==> picture [226 x 203] intentionally omitted <==

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

KRS200062: 13.9g/t Au, 52.2g/t Ag
----- End of picture text -----

Surface samples grading 13.9g/t Au and 52.2g/t Ag look very similar to mineralisation intercepted in drill core.

Assays pending KORES final review and sign-off (ETA mid-late Sept for sampling)

Assays expected early October.

Under the scheme KORES cover 70% of the direct drilling cost but have certain execution requirements that results in additional time to execute drill programmes.

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 12
----- End of picture text -----

Hampyeong: New Discovery at A’Cha Vein

==> picture [780 x 8] intentionally omitted <==

==> picture [168 x 168] intentionally omitted <==

HPC016-045: 1.65g/t Au, 1g/t Ag

==> picture [166 x 214] intentionally omitted <==

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

~5cm
----- End of picture text -----

==> picture [526 x 296] intentionally omitted <==

==> picture [44 x 60] intentionally omitted <==

“A’Cha” face: ~8m wide epithermal veining showing multi-phase vein breccia, banding and sulphide mineralisation. Drill target.

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 13
----- End of picture text -----

People

==> picture [780 x 8] intentionally omitted <==

==> picture [102 x 110] intentionally omitted <==

Exploration Manager – South Korea , Dr Chris Bowden, PhD, GCMEE, FAusIMM(CP), FSEG :

• More than 20 years’ experience with an excellent discovery record

• PhD completed on the epithermal gold mineralisation in South Korea

• Experience in South Korea with Ivanhoe Mines on the Eunsan/Moisan discoveries and NE China

• Discovery & delineation of Dish Mountain Gold Deposit in Ethiopia (2Moz JORC resource)

Country Manager – South Korea, Joseph Lee :

==> picture [102 x 88] intentionally omitted <==

• Korean born Australian finance and business development professional

• Over 12 years’ experience, including capital raisings, IPO’s, M&A, and investor relations

• Extensive experience in South Korea as a corporate advisor

• Educated in Australia, Joseph is bilingual and now based in South Korea.

==> picture [102 x 99] intentionally omitted <==

Senior Consulting Geologist and Advisor – South Korea , Douglas Kirwin :

• World renowned geologist with more than 45 years international exploration experience

• Excellent discovery record including:

• Hugo Drummett deposit at Oyu Tolgoi in Mongolia

• Jelai Mewet and Seryung epithermal deposits in Kalimantan

• Eunsan-Moisan gold mines in South Korea

• Moditaung gold deposit in Myanmar

• Merlin Re-Mo deposit in Australia.

• Doug has held senior positions with Anglo American, Amax, Indochina Goldfields and Ivanhoe Mines Ltd until it was acquired by Rio Tinto in 2012.

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 14
----- End of picture text -----

Jurisdiction

==> picture [780 x 8] intentionally omitted <==

• No government (local or national) mining royalties, no government free carry, corporate tax rate is 24.2%;

• There is also a government financial subsidy programme for exploration and mine capital expenditure (e.g.: the current KORES sponsored drilling at Kochang);

• Ubiquitous infrastructure such as road, rail, electricity, internet networks;

• Low cost base compared to Australia with salaries perhaps 50% Australian equivalents;

• It has one of the largest manufacturing bases anywhere in the world with population of 50 million and GDP per capita of ~US$26k (cf. Australia ~US$67k per capita);

• For example, Hanjin D&B, based in Gwangju, is one of the biggest manufacturers of drill rigs in the world.

==> picture [269 x 179] intentionally omitted <==

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 15
----- End of picture text -----

Summary

==> picture [780 x 8] intentionally omitted <==

• Excellent jurisdiction, including significant government support

• Proven gold endowment but lack of modern exploration on first class ‘ring of fire’ geology

• Excellent geological and management team in place with drill ready ‘near mine’ brownfield targets with drilling already started

• Underground access has begun at Taechang and Weolyu South with options for mine development scenarios actively being considered

• Drill results from Kochang due in a few weeks (post KORES review)

• Follow up drilling on historical intercept KC84-2: 2.5m @ 17.4g/t Au from 63m and 2.4m @ 1,763g/t Ag from 97.6m at Sanpo Mine

• Potential for near term production at Taechang (and elsewhere)

• Incredible blue sky / discovery potential at Weolyu

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 16
----- End of picture text -----

Research and Contacts

==> picture [780 x 8] intentionally omitted <==

 RCR Research Report by John Wilson, August 2016 (NAV @ $0.45/share and price target >$0.50/share)

http://www.southerngold.com.au/investors/broker-media-reports/

Simon Mitchell Managing Director +61 8 8368 8888 info@southerngold.com.au www.southerngold.com.au

Level 1, 8 Beulah Road Norwood, SA 5065 PO Box 255 Kent Town SA 5071

==> picture [445 x 297] intentionally omitted <==

South Korean Photography Copyright Erin van der Wyk

==> picture [780 x 53] intentionally omitted <==

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

FROM DISCOVERY TO PRODUCTION 17
----- End of picture text -----