IONDRIVE LIMITED — AGM Information 2019

Oct 9, 2019

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SOUTHERNGOLD

PRECIOUS METALS EXPLORATION IN SOUTH KOREA

78.6g/t gold and 13,000g/t silver (1.3% Ag)

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KRS205352: Deokon Au-Ag Project, South Korea

ASX Ticker: SAU AGM Presentation 10 October 2019

Disclaimer

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SOUTHERN GOLD

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 regardingestimatesor future events are forwardlookingstatements. These may include,without limitation:

• Estimatesof future cash flows, the sensitivityof cash flowsto metal pricesand foreignexchange rate movements;

• Estimatesof future metal production;and

• Estimatesof the resource base and statements regardingfuture explorationresults and increasingthe 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 estimatedresults.

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 enquiriesin relationto any investment decisionsfrom a licensedinvestmentadvisor.

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 consultant of Southern Gold Limited and a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy, has sufficient experience which is relevantto the style of mineralisationand type of depositunder considerationand to the activityhe has undertaken to qualify as a Competent Person as definedin the 2012 Editionof the AustralasianCode for the Reportingof ExplorationResults, MineralResourcesand Ore Reserves. Dr Bowden consents to the inclusionin this presentation of the matters based on the informationin the form and context in which it appears.

Additional information in this report that relates to Exploration Results has been compiled under the supervision of Paul Wittwer. Mr Wittwer, who is an employee of Southern Gold Limited has sufficient experience which is relevantto the style of mineralisationand type of depositunder considerationand to the activityhe has undertaken to qualifyas a Competent Person as definedin the 2012 Editionof the AustralasianCode for the Reportingof ExplorationResults, MineralResourcesand Ore Reserves. Mr Wittwer consents to the inclusionin this presentation of the matters based on the informationin 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 AustralasianCode for the Reportingof MineralResourcesand Ore Reserves. Mr Androvic consents to the inclusionin this presentation of the matters based on the information in the form and context in which it appears.

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South Korea Focus

SOUTHERN GOLD GOLD

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Bluebird Merchant Ventures 50/50 JV Gubong and Kochang Projects Aim: first gold pour 2020

Exploration 100% Southern Gold Weolyu, Deokon, Beopseongpo, Neungju, Aphae Projects Aim: discovery & JORC resource

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Strategy

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SOUTHERN GOLD GOLD

Eunsan Au Mine, South Korea, 2019

“Discovery, definition and development of high-grade precious metal deposits in South Korea.”

❑ Focus on South Korea

• ❑ Focus on high-grade gold-silver

• ❑ Building a team of good people with a…

• ❑ ‘boots on the ground’ exploration culture that is…

• ❑ backed by technically driven drilling programs.

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Strategy (II)

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SOUTHERN GOLD GOLD

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Drilling at Beopseongpo, South Korea, September 2019
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Building Asset Value in SK Project Generation – continue project assessments, expand footprint Drilling – confirm discovery (maybe several), develop JORC Resources Modest team expansion – use of experienced contractors where appropriate Deals in SK – leverage better exploration coverage

Improve Corporate Profile

Targeted marketing and promotion – select conferences only, roadshows Additional investors and/or funding options – short term funding strategy Increase investor profile into North America – mid term funding strategy Cultivate relationships with Korean corporates – long term funding strategy

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The Board

Non - Executive Directors

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Greg Boulton, Chairman Businessman Capital markets and investment expertise

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Peter Bamford, NED Engineer Narrow vein underground mining expertise

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SOUTHERN GOLD GOLD

Executive Directors

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Simon Mitchell, Managing Director Geologist,Finance Exploration and development geologist with applied finance

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Bee Jay Kim Executive Director South Korean Project management expertise

Recent appointment

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David Turvey, NED Geologist Geological and metallurgical expertise

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Corporate Overview

Number of ordinary shares onissue	83.4m
Share price (4 Oct.2019)	AUD$0.25
Market capitalisation(undiluted)	AUD$20.8m
Proforma Cash (post AGM approval)	~AUD$4.5m
Debt (matures Sept. 2020)	AUD$0.75m
Enterprisevalue	~AUD$16m
Company Assets
100% South Korean (SK) Exploration Portfolio
50% SK JV LSE-listed Bluebird Merchant	Ventures (BMV)

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SOUTHERN GOLD

= AUD$2.3m rights + AUD$0.44m placement + AUD$2.5m asset sale Backed by 4,411,765 17c options

Major Shareholders:

• PS Super Nominees (Sydney based HNW) 10%

• • Ilwella PL (Flannery Family Office) 8.4% • Potenza Gromadka (French HNW) 5.6%++ • Valbonne II (French Family Office) 5.5%++

• Valbonne II (French Family Office)

Very supportive major shareholders: Underwrote recent $2.3m rights issue and completed $0.44m placement (subject to shareholder approval). Collectively holding 33%

Board:

• Greg Boulton (Chair) 2.7%

• • Simon Mitchell (MD) 1.0% • David Turvey 0.8% • Peter Bamford 0.3% • Bee Jay Kim (ED) [recent appointment]

Board collectively holds 4.8% MD, Chair and Bamford on-market purchases

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Share Price – Past 5 Years SOUTHERN GOLD GOLD

5 Year Price Graph

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South Korea – Developed Nation

SOUTHERN GOLD GOLD

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Infrastructure

❑ Extensive road network

❑ High speed rail network

❑ 5 x Major ports

❑ 2 x Major international airports

❑ High speed internet

• ❑ Manufacturing in Gwangju, Busan etc

❑ 23 nuclear reactors provide ~30% power

❑ SAU sample prep facility at Pohung (SGS)

❑ SAU core shed / field facility Daejeon

• ❑ SAU office in Daejeon

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Our Projects

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70km [2]
Granted
graticules
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SOUTHERN GOLD GOLD

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Priority 1

Priority 2

BMV

70km[2]

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Discovery 1: Weolyu

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SOUTHERN GOLD

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• ❑ Weolyu North is an historic small scale AgAu-Ge mine;

• ❑ Very high grade silver likely indicative of higher level of mineralised system;

• ❑ Newly discovered zone of Au-Ag epithermal veins at the top of steep ridge to the south;

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High grade shoot average: vein width ~0.43m and Au > 10g/t + Ag>350g/t

NEW DISCOVERY

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• ❑ Mineralised system is open: what’s inside the mountain?

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30.4g/t Au + 1,240g/tAg (KRS200052)

6.18g/t Au +1030g/tAg (KRS202116)

Newly discovered classic high-level low-sulphidation epithermal quartz veining

0.4m @ 32.8g/t Au and 764g/t Ag

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( KRD500635)

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Discovery 2: Deokon

SOUTHERN GOLD

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Discovery Outcrop , ‘Thorn Zone’ vein, 500m along strike of the ‘Bonanza Zone’ vein. Intense hydraulic fracturing and mesocrystalline to chalcedonic quartz flooding within a four-metre-wide core zone of sheeted and networked vein development.

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Slab photos of samples KRS205352 78.6g/t Au and 13,000g/t Ag (upper sample) and KRS206389 6.8g/t Au and 1010g/t Ag (lower sample) both float samples from the Bonanza Zone with visible native silver in hand specimen.

Discovery Sample KRS205352 – 78.6 g/t Au, 1.3% Ag (418/0z/t) Float sample of strongly hydraulically brecciated & silica-illite/adularia altered rhyolite, cut by a commutated wallrock & crystalline quartz vein. Bonanza Zone.

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Discovery 3: Beopseongpo

SOUTHERN GOLD GOLD

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❑ 5 major veined zones identified with widths in excess of 20m and strike length 2,750m;

• ❑ Small scale historic mine present;

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❑ High-level lowsulphidation style deposit with target @ 100m-500m depth;

• ❑ World-class lowsulfidation epithermal veinbreccia hosted target.

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Drilling has commenced

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SOUTHERN GOLD GOLD Discovery 4: Neungju

❑ 5 major veined zones identified with widths 2m100m and strike continuity of 1km;

❑ Open in all directions in area never previously been drilled.

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Subcrop sample KRS206458, 31.8g/t Au and 6.6g/t Ag. Naesin Vein Zone (Western end).

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Indochina Goldfields 1990’s

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SOUTHERN GOLD GOLD

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Note: this is not a Southern Gold project

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It can be done… SOUTHERN GOLD GOLD

Ivanhoe in 2000’s

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Underground Operations – Eunsan (KDB Bank Korea 2013 )

Source: Doug Kirwin, presentation 2019

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JV with BMV

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SOUTHERN GOLD GOLD

50%/50% JV with (LSE: BMV)*

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Kochang Proposed Mine Layout
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Aim of the JV is to:

• ❑ Reopen old high grade gold mines

• ❑ Extract using simple process e.g. gravityor vat leach

• ❑ Keep capitalintensity low

• ❑ Achieve cash flow to organically fund South Korea

Currently seeking regulatory approvals. Gubong ‘Permit to Develop’ now approved by MOTIE.

*BMV is a specialist development and mining company with expertise in narrow vein underground gold mining listed on the London Stock Exchange

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News Flow Next 12 Months

SOUTHERN GOLD

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First drilling of major new vein system 2019Q3 at Beopseongpo (SAU 100%)

• ❑

Modern drill testing of high-grade project 2019H2 – Deokon (SAU 100%)

• ❑

Drilling (FY2019/20) and Maiden JORC resource at Weolyu (SAU 100%)

• ❑

Other earlier stage projects drill tested 2020H1 ( Aphae, Neungju SAU 100%) Progress with the BMV JV Mine Developments ( Kochang, Gubong , SAU 50%)

• ❑

• ❑

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Summary

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SOUTHERN GOLD GOLD

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❑

• Focus on South Korea , a relatively unknown jurisdiction with a long history of gold mining that has seen very little modern exploration or recent mine development

❑

• High-grade gold-silver targets, with conceptual strategic target of Tier 1 gold-silver epithermal deposits, for example Hishikari in Japan

❑

• First class expatriate exploration team with ‘first mover advantage’ and excellent discovery record is well established in country with a small professional Korean team

❑

• Compelling investment case, tight capital structure, low valuation, quality asset base, A$5m cash base from fully underwritten rights issue, placement and asset sale

❑

• Drilling our 100% owned new targets now and with first gold pour targeted by the 50%/50% JV with LSE listed Bluebird Merchant Ventures (BMV) in 2020

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