IONDRIVE LIMITED — AGM Information 2018

Nov 29, 2018

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A UNIQUE GOLD COMPANY

SOUTHERN GOLD

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AGM Presentation 30 November 2018

ASX Ticker: SAU

Disclaimer

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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 materiallyfrom 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 Mr. Justin Gum (MAIG). Mr Gum who is an employee of Southern Gold Limited and a Member of the Australasian Institute of Geoscientist, 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. Mr Gum 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 Exploration Results has been compiled under the supervision of Dr Chris Bowden (FAusIMM(CP)). Dr Bowden, who is an employee of Southern Gold Limited and a Fellow and Chartered Professional of The Australasian 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 Exploration Results, 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 has been compiled under the supervision of Mr. Paul Androvic (AusIMM). Mr Androvic who is an employee of Southern Gold Limited and a Member of the Australasian 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. Mr Androvic consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

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Southern Gold: The Core Business

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South Korea

1. Gubong & Kochang Gold Mines (BMV JV 50% SAU)

2. Multiple drill ready epithermal Au-Ag targets (SAU 100%)

Australia (Kalgoorlie)

1. Cannon Gold Mine

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South Korea: 2 Key Elements to the Story

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1. Orogenic gold projects in the northern half: Bluebird Merchant Ventures JV (LSE: BMV)

✓ Gubong (50/50 JV) & Kochang (BMV Earn-In) ✓ First Au production after capex < US$5m ✓ First Au pour target by end 2019

2. Epithermal gold projects in the southern half: 100% Southern Gold

✓ Looking for Tier 1 Deposits

✓ Unrecognised ‘new’ epithermal district ✓ Multiple targets to be drilled in 2019

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JV: Gubong (I)

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120km of historic underground mine development Development in place = major capital cost saving

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JV: Gubong circa 1967 (II)

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JV: Gubong (III)

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5km long
regional trend
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Open at depth
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Historic KORES Drilling in yellow…very
limited drilling for a deposit of this scale.
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JV: Kochang (I) - ETR

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The exploration target range: 500,000 and 700,000 tonnes, with a grade range of 5.0 to 7.0 g/t gold and 27g/t and 35 g/t silver.

This exploration target in not a mineral resource and is conceptual in nature. The estimate is based upon 3D modelling of the geological structures within the Kochang Gold and Silver mines using the recently obtained underground access to the Kochang 245mRL and 265mRL Levels and the geological mapping and channel sampling. See ASX Release 22 November 2018.

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JV: Kochang (II) – Facilities Layout

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Looking for the Tier 1

Tier 1 = NPV>US$1b, long life, low cost

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KRS203043. Precious metals below detection limits. Vein sample comprised solely of quartz pseudomorphs after bladed calcite, indicative of flash boiling. Central Beopseongpo Vein Segment.

Epithermal gold projects in the southern half of South Korea 100% Southern Gold blue sky

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Beopseongpo

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• Au-Ag epithermal target;

• Two new tenements granted 100% SAU;

• Up to 21.8 g/t Au and 19 g/t Ag (float);

• vein system 3.8 km strike;

• high-level low-sulphidation style.

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Deokon: ultra high grade Au-Ag

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Sample ID	Location	Width (m)	Au (g/t)	Ag (g/t)
Deok K-1	Main Mine	0.5	59.3	8,879
DK-132	Main Mine	0.6	29.3	3,820
DK-131	Main Mine	0.6	28.5	7,485
DK-122	Main Mine	0.6	23.3	9,708
On-3	Main Mine	2.5	20.1	1,457
DK-121	Main Mine	0.5	20.0	5,672
DK-130	Main Mine	0.3	16.5	4,227
Deok K-2	Main Mine	0.5	16.0	29
DK-133	Main Mine	0.4	15.5	4,109
DK-134	Main Mine	0.4	15.5	3,424

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Weolyu: Drilling and Underground Channels

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Underground channel
and drill tested zone
6.18g/t Au +1030g/t Ag
(KRS202116)
KRS200052 Next stage
drilling
Stage 3 drilling
WUDD007
0.92m @13.55g/t Au + 447g/t Ag
KRS202116
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Weolyu: High Grade Au-Ag in Channels

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KRS202116
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Cannon Gold Mine

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Open Pit (completed):

• ~52koz Au recovered

• ~A$13.7m profit achieved

• ~A$10.2m net of debt

• Funded company 2015-17

Underground (pending):

	Category		Level mRL	Tonnes	Grade g/t	Ounces
	Total Indicated		170 -> 240	121,600	5.68	22,170
	Total Inferred		145 -> 240	20,700	2.21	1,470
	Total Resource		145 -> 240	142,200	5.18	23,640

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Open at depth
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Southern Gold: The Year Ahead

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❑ Completion of Feasibility Study at Gubong and Kochang (BMV)
❑ First gold pour in South Korea 2019Q4 (BMV)
❑ Maiden JORC Resource at Weolyu
❑ Drilling the epithermal targets, confirmation of bonanza grades at Deokon
❑ Unlock value from the Cannon Gold Mine with underground phase
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