ABN 30 107 424 519

SOUTHERN GOLD LIMITED NOTICE OF ANNUAL GENERAL MEETING ACN 107 424 519

NOTICE IS HEREBY GIVEN that the Annual General Meeting of Southern Gold Limited will be held at Grant Thornton,

Level 3, 170 Frome Street, Adelaide, SA, 5000 on Friday 29 October 2021 at 1230pm (CST).

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NOTICE OF ANNUAL GENERAL MEETING

Ordinary Business

Financial Report

To receive and consider the Company’s financial statements and independent audit report for the year ended 30 June 2021.

The 2021 Annual Report will be available to view online at www.southerngold.com.au and dispatched to those Shareholders who elected to receive the report by mail by 28[th] September 2021.

Resolution 1 - Adoption of the Remuneration Report for the year ended 30 June 2021

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

That, for the purposes of Section 250R(2) of the Corporations Act, the Company adopt the Remuneration Report for the period ended 30 June 2021 as set out in the Directors’ Report in the 2021 Annual Report.

Voting Exclusion

The Company will disregard any votes cast (in any capacity) on Resolution 1 by any Key Management Personnel, the details of whose remuneration are included in the Remuneration Report, and any Closely Related Party of such Key Management Personnel.

However, a person described above may cast a vote on Resolution 1 if the vote is not cast on behalf of a person described above and either:

(a) the person does so as proxy appointed in writing that specifies how the proxy is to vote on the proposed resolution; or
(b) the Chair of the meeting is appointed as proxy and the proxy form expressly authorises the Chair to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of a member of the Key Management Personnel.

Resolution 2 - Re-election of Mr Peter Bamford as a Director

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

That Mr Peter Bamford, having retired by rotation in accordance with Listing Rule 14.4 and rule 117 of the Company’s Constitution and being eligible and having offered himself for reelection, is re-elected as a Director of the Company with immediate effect.

Other Business

Resolution 3 - Approval of Employee Share Option Plan

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

That, for the purpose of Listing Rule 7.2 Exception 13(b) and for all other purposes, any issue of securities made within the period ending on the third anniversary of the date of the passing of this Resolution under the terms and conditions of the Southern Gold Limited Employee Share Option Plan (as amended from time to time to the extent permitted for the purposes of Listing Rule 7.2 Exception 13(b)), is approved as an exception to Listing Rule 7.1.

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Voting Exclusion Statement

The Company will disregard any votes cast in favour of Resolution 3:

(a) by any person eligible to participate in the Employee Share Option Planand any of their respective associates; or
(b) by a person appointed as proxy if that person is either a member of the Key Management Personnel or a Closely Related Party of a member of the Key Management Personnel and the appointment does not specify the way the proxy is to vote on the relevant Resolution.

However, this does not apply to a vote cast in favour of a resolution by:

(a) a person as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with directions given to the proxy or attorney to vote on the resolution in that way; or
(b) the chair of the meeting as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with a direction given to the chair to vote on the resolution as the chair decides; or
(a) a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary provided the following conditions are met:
i) the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from voting, and is not an associate of a person excluded from voting, on the resolution; and
ii) the holder votes on the resolution in accordance with directions given by the beneficiary to the holder to vote in that way.

Resolution 4 - Approval of the issue of Options to Mr Greg Boulton or his nominee

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

That for the purpose of Listing Rule 10.11 and for all other purposes, the grant by the Company of 900,000 unlisted Options to Director, Mr Greg Boulton, or his nominee, on the terms and conditions set out in the Explanatory Memorandum, is approved.

Voting Exclusion Statement

The Company will disregard any votes cast on Resolution 4 by a person who may participate in the proposed issue and a person who might obtain a benefit, except a benefit solely in the capacity of a holder of ordinary securities, if the resolution is passed, and any of their respective associates.

However, this does not apply to a vote cast in favour of a resolution by:

(a) a person as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with directions given to the proxy or attorney to vote on the resolution in that way; or
(b) the chair of the meeting as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with a direction given to the chair to vote on the resolution as the chair decides; or
(c) a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary provided the following conditions are met:
i) the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from voting, and is not an associate of a person excluded from voting, on the resolution; and
ii) the holder votes on the resolution in accordance with directions given by the beneficiary to the holder to vote in that way.

Resolution 5 - Approval of the issue of Options to Mr Peter Bamford or his nominee

To consider, and if thought fit, pass the following resolution as an ordinary resolution, on the basis Resolution 2 is approved:

That for the purpose of Listing Rule 10.11 and for all other purposes, the grant by the Company of 600,000 unlisted Options to Director, Mr Peter Bamford, or his nominee, on the terms and conditions set out in the Explanatory Memorandum, is approved.

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Voting Exclusion Statement

The Company will disregard any votes cast on Resolution 5 by a person who may participate in the proposed issue and a person who might obtain a benefit, except a benefit solely in the capacity of a holder of ordinary securities, if the resolution is passed, and any of their respective associates.

However, this does not apply to a vote cast in favour of a resolution by:

(a) a person as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with directions given to the proxy or attorney to vote on the resolution in that way; or
(b) the chair of the meeting as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with a direction given to the chair to vote on the resolution as the chair decides; or
(c) a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary provided the following conditions are met:
i) the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from voting, and is not an associate of a person excluded from voting, on the resolution; and
ii) the holder votes on the resolution in accordance with directions given by the beneficiary to the holder to vote in that way.

Resolution 6 - Approval of the issue of Options to Mr Doug Kirwin or his nominee

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

That for the purpose of Listing Rule 10.11 and for all other purposes, the grant by the Company of 600,000 unlisted Options to Director, Mr Doug Kirwin, or his nominee, on the terms and conditions set out in the Explanatory Memorandum, is approved.

Voting Exclusion Statement

The Company will disregard any votes cast on Resolution 6 by a person who may participate in the proposed issue and a person who might obtain a benefit, except a benefit solely in the capacity of a holder of ordinary securities, if the resolution is passed, and any of their respective associates.

However, this does not apply to a vote cast in favour of a resolution by:

(a) a person as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with directions given to the proxy or attorney to vote on the resolution in that way; or
(b) the chair of the meeting as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with a direction given to the chair to vote on the resolution as the chair decides; or
(c) a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary provided the following conditions are met:
i) the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from voting, and is not an associate of a person excluded from voting, on the resolution; and
ii) the holder votes on the resolution in accordance with directions given by the beneficiary to the holder to vote in that way.

Resolution 7 - Approval of the issue of Options to Mr Michael McNeilly or his nominee

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

That for the purpose of Listing Rule 10.11 and for all other purposes, the grant by the Company of 600,000 unlisted Options to Director, Mr Michael McNeilly, or his nominee, on the terms and conditions set out in the Explanatory Memorandum, is approved.

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Voting Exclusion Statement

The Company will disregard any votes cast on Resolution 7 by a person who may participate in the proposed issue and a person who might obtain a benefit, except a benefit solely in the capacity of a holder of ordinary securities, if the resolution is passed, and any of their respective associates.

However, this does not apply to a vote cast in favour of a resolution by:

(a) a person as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with directions given to the proxy or attorney to vote on the resolution in that way; or
(b) the chair of the meeting as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with a direction given to the chair to vote on the resolution as the chair decides; or
(c) a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary provided the following conditions are met:
i) the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from voting, and is not an associate of a person excluded from voting, on the resolution; and
ii) the holder votes on the resolution in accordance with directions given by the beneficiary to the holder to vote in that way.

Resolution 8 - Approval of the issue of Options to Mr Bee Jay Kim or his nominee

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

That for the purpose of Listing Rule 10.11 and for all other purposes, the grant by the Company of 1,000,000 unlisted Options to Executive Director, Mr Bee Jay Kim, or his nominee, on the terms and conditions set out in the Explanatory Memorandum, is approved.

Voting Exclusion Statement

The Company will disregard any votes cast on Resolution 8 by a person who may participate in the proposed issue and a person who might obtain a benefit, except a benefit solely in the capacity of a holder of ordinary securities, if the resolution is passed, and any of their respective associates.

However, this does not apply to a vote cast in favour of a resolution by:

(a) a person as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with directions given to the proxy or attorney to vote on the resolution in that way; or
(b) the chair of the meeting as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with a direction given to the chair to vote on the resolution as the chair decides; or
(c) a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary provided the following conditions are met:
i) the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from voting, and is not an associate of a person excluded from voting, on the resolution; and
ii) the holder votes on the resolution in accordance with directions given by the beneficiary to the holder to vote in that way.

Resolution 9 - Approval of 10% Placement Facility

To consider, and if thought fit, pass the following resolution as a special resolution:

That, for the purposes of Listing Rule 7.1A and all other purposes, Shareholders authorise the Company to have the additional capacity to issue Equity Securities comprising up to 10% of the issued capital of the Company under Listing Rule 7.1A calculated in accordance with the formula prescribed in Listing Rule 7.1A.2 and on the terms and conditions set out in the Explanatory Memorandum.

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Voting Exclusion: The Company will disregard any votes cast in favour of Resolution 9 by any person who is expected to participate in, or might obtain a material benefit as a result of a proposed issue, except a benefit solely in the capacity of a holder of ordinary securities in the Company, if Resolution 9 is passed, and any Associates of those persons. However, this does not apply to a vote cast in favour of Resolution 9 by:

(a) a person as proxy or attorney for a person who is entitled to vote on the Resolution, in accordance with directions given to the proxy or attorney to vote on the Resolution in that way; or
(b) the chair of the meeting as proxy or attorney for a person who is entitled to vote on the Resolution, in accordance with a direction given to the chair to vote on the resolution as the chair decides; or
(c) a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary provided the following conditions are met:
(1) the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from voting, and is not an associate of a person excluded from voting, on the Resolution; and
(2) the holder votes on the Resolution in accordance with directions given by the beneficiary to the holder to vote in that way.

By order of the Board

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D Hill Company Secretary Dated this 24[th] Day of September 2021

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Voting Entitlements

Pursuant to Regulation 7.11.37 of the Corporations Regulations 2001, made pursuant to Section 1074E(2)(g) of the Corporations Act, the Directors have determined that the shareholding of each Shareholder for the purposes of ascertaining the voting entitlements for the Annual General Meeting will be as it appears in the share register on Wednesday 27 October 2021 at 1230pm (CST).

Proxies

A Shareholder entitled to attend and vote at the meeting has the right to appoint a proxy, who need not be a Shareholder of the Company. If a Shareholder is entitled to cast two or more votes they may appoint two proxies and may specify the percentage of votes each proxy is appointed to exercise. The Proxy Form must be posted to the Company at PO Box 255, Kent Town, SA 5071, by email at [email protected] or sent by facsimile to Southern Gold Ltd on +61 8 8363 0697, not later than 48 hours before the commencement of the Annual General Meeting.

Corporate Representative

A corporation that is a Shareholder or a proxy may elect to appoint a person to act as its corporate representative at the meeting, in which case the corporate Shareholder or proxy (as applicable) must provide that person with a certificate or letter executed in accordance with the Corporations Act authorising him or her to act as that Shareholder’s or proxy’s (as applicable) corporate representative. The authority must be sent to the Company and/or the Company’s Share Registry (detailed above) in advance of the meeting or handed in at the meeting when registering as a corporate representative.

Explanatory Memorandum

The Explanatory Memorandum accompanying this Notice of Annual General Meeting is incorporated in and comprises part of this Notice of Annual General Meeting and should be read in conjunction with this Notice. The Explanatory Memorandum contains a glossary that defines capitalised terms as used in both this Notice of Annual General Meeting and the Explanatory Memorandum.

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EXPLANATORY MEMORANDUM

This Explanatory Memorandum has been prepared to assist Shareholders in consideration of resolutions proposed for the Annual General Meeting of the Company to be held on Friday, 29[th] October 2021 at the Southern Gold Ltd, Level 3, 170 Frome Street, Adelaide, South Australia, commencing at 1230pm (Adelaide time).

It should be read in conjunction with the accompanying Notice of Annual General Meeting.

Resolution 1 – Adoption of the Remuneration Report for the year ended 30 June 2021

In accordance with Section 250R(2) of the Corporations Act, Shareholders are required to vote on the Company’s Remuneration Report for the year ended 30 June 2021.

The Remuneration Report is contained in the Directors’ Report in the 2021 Annual Report, which will be available to view online at the Company’s website www.southerngold.com.au and dispatched to those Shareholders who did not elect to receive Company reports electronically.

The Remuneration Report describes the underlying policies and structure of the remuneration arrangements of the Company and sets out the remuneration arrangements in place for Directors and senior executives for the year ended 30 June 2021.

The Corporations Act requires that a resolution to adopt the Remuneration Report be put to the vote at the annual general meeting of the Company. Members should note that the vote on Resolution 1 is not binding on the Company or the Directors.

Since 1 July 2011, if more than 25% of the votes cast on a resolution to adopt the remuneration report are against the adoption of the remuneration report for two consecutive annual general meetings, Shareholders will be required to vote at the second of those annual general meetings on a resolution (“Spill Resolution”) that another meeting be held within 90 days, at which all of the Company’s Directors must go up for re-election.

At the 2020 AGM, the Company’s remuneration report for the year ended 30 June 2020 did not receive a ‘no’ vote of 25% or more.

The Directors unanimously recommend Shareholders vote in favour of Resolution 1. The Chairman intends to vote undirected proxies in favour of Resolution 1.

Important information for Shareholders:

Please note, in accordance with sections 250R(4) and (5) of the Corporations Act, the Chair will not vote any undirected proxies in relation to Resolution 1 unless the Shareholder expressly authorises the Chair to exercise the proxy even though it is connected directly or indirectly with the remuneration of a member of Key Management Personnel . Please note that if the Chair of the meeting is your proxy (or becomes your proxy by default), by completing the attached proxy form, you will expressly so authorise the Chair.

Alternatively, if you appoint the Chair as your proxy, you can direct the Chair to vote for or against or abstain from voting on Resolution 1 by marking the appropriate box on the proxy form.

As a further alternative, Shareholders can nominate as their proxy for the purposes of Resolution 1, a proxy who is not a member of the Company’s Key Management Personnel or any of their Closely Related Parties. That person would be permitted to vote undirected proxies (subject to the Listing Rules).

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Resolution 2 – Re-election of Mr Peter Bamford as a Director

In accordance with Listing Rule 14.4 and rule 117 of the Constitution, at every annual general meeting, one third of the Directors for the time being must retire from office and are eligible for re-election. The Directors to retire are to be those who have been in office for 3 years since their appointment or last re-appointment or who have been longest in office since their appointment or last re-appointment or, if the Directors have been in office for an equal length of time, by agreement. This rule does not apply to the Managing Director.

The Directors presently in office are Mr Greg Boulton AM, Mr Simon Mitchell, Mr Peter Bamford, Mr Bee Jay Kim, Mr Doug Kirwin and Mr Michael McNeilly.

Mr Bamford was appointed on 13 February 2018. Mr Bamford is eligible for, and has offered himself, for election.

The resume of Mr Bamford is as follows:-

Peter Bamford BSc (Eng) Mining, ARSM, MAICD, FAusIMM

Mr Bamford has 40 years’ experience in the industry initially as a mining engineer/underground manager with Mt Isa Mines. This was followed by operational and executive management roles with various ASX listed companies with responsibilities for feasibility studies, project development, merger and acquisitions and fund raising, including serving as an executive and non-executive director for twenty years. His responsibilities have included the turnaround of difficult mines and accountability for establishing three new successful gold mines in Australia. He also served for nine years on the WA Chamber of Minerals and Energy Executive Council as well as Chair of the Mines Security Service Committee overseeing security within the WA gold industry.

An assessment of the performance of Mr Bamford has been conducted in the context of his skills, experience, knowledge and understanding of the Company’s business. The Directors (other than Mr Bamford) recommend Shareholders vote in favour of Resolution 2. The Chairman intends to vote undirected proxies in favour of Resolution 2.

Resolution 3 - Approval of Employee Share Option Plan

The Company currently has in place the Southern Gold Employee Share Plan under which Eligible Persons may be offered the opportunity to receive Options in order to assist in the attraction, retention and motivation of employees and Directors. The Directors consider that Options are a cost effective and efficient means of incentivising employees and Directors.

Under the Plan, the Board may offer Eligible Persons the opportunity to receive such number of Options in the Company as the Board may decide on the terms and conditions set out in Annexure A of the Explanatory Memorandum.

Listing Rule 7.1 restricts the number of the equity securities a listed entity can issue without shareholder approval. Listing Rule 7.2 contains a number of exceptions to Listing Rule 7.1. Exception 13(b) of Listing Rule 7.2 provides that Listing Rule 7.1 does not apply to an issue under an employee incentive scheme if within 3 years before the date of issue, holders of ordinary securities have approved the issue of securities under the scheme as an exception to Listing Rule 7.1. In order for future issues of securities made under the Plan and within the three year period from the date of the passing of Resolution 3 to come within Exception 13(b) of Listing Rule 7.2, the Company is seeking Shareholder approval for such issues of securities. If approval is not passed, any Options issued to employees, that are not Directors, will be issued out of the Company’s 7.1 placement capacity.

In accordance with the requirements of Listing Rule 7.2 Exception 13(b) the following information is provided:

(a) A copy of the terms and conditions of the Plan is attached as Annexure A to this Explanatory Memorandum.
(b) 3.510,000 options have been issued under the Plan since the date of its last approval on 30 November 2018 and 1,620,000 options have been cancelled. There are currently 1,890,000 options on issue un the Plan.

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The Board has the power to vary the terms of the Plan (other than in respect of the maximum number of Options that may be issued under the Plan). The maximum number of Options that may be issued under the Plan is 10,666,437. There has been no changes made to the terms at Annexure A.

As the Directors are excluded from voting on Resolution 3 they do not wish to make a recommendation as to how shareholders ought to vote in respect of this Resolution. The Chairman intends to vote any undirected proxies in favour of Resolution 3.

Important information for Shareholders

The Chair will not vote any undirected proxies in relation to Resolution 3 unless the Shareholder expressly authorizes the Chair to exercise the proxy even though it is connected directly or indirectly with the remuneration of a member of Key Management Personnel. Please note that if the Chair of the meeting is your proxy (or becomes your proxy by default), by completing the attached proxy form, you will expressly so authorize the Chair.

Alternatively, if you appoint the Chair as your proxy, you can direct the Chair to vote for or against or abstain from voting on Resolution 3 by marking the appropriate box on the proxy form.

As a further alternative, Shareholders can nominate as their proxy for the purposes of Resolution 3, a proxy who is not a member of the Company’s Key Management Personnel or any of their Closely Related Parties. That person would be permitted to vote undirected proxies (subject to the Listing Rules).

Resolution 4 – Approval of the issue of Options to Mr Greg Boulton or his nominee

Listing Rule 10.11 prohibits the issue of Options by the Company to a Director without prior Shareholder approval.

It is proposed that 900,000 Options be granted by the Company to Mr Greg Boulton or his nominee. The Options will have a four year term expiring on 31 October 2025, being the proposed date of issue. They may be exercised at any time during the term at an exercise price at 12 cents. The full terms of the Options are set out in Annexure A to this Explanatory Memorandum.

The Board considers it reasonable to grant 900,000 Options on the terms set out in Annexure A to Mr Greg Boulton or his nominee, as part of Mr Boulton’s remuneration, having regard to the circumstances of the Company and the responsibilities of his position as Director and as a means of incentivising Mr Boulton. Mr Boulton’s current remuneration is a Director fee of $90,000 pa.

The Options will not be quoted on the ASX, will lapse if Mr Boulton ceases to be a Director, will be transferable only with the consent of the Board and will otherwise be issued on standard terms set out in Listing Rules insofar as treatment of the Options in the case of reconstructions, bonus and rights issues.

If approval is given under Listing Rule 10.11 approval is not required under Listing Rule 7.1, and the Options issued pursuant to this Resolution will not be included in the calculation of the Company’s 15% annual placement capacity pursuant to Listing Rule 7.1.

If approval is not passed, the Options will not be issued.

The following information is provided to Shareholders for the purposes of Listing Rule 10.13:

(a) 900,000 Options will be granted to Mr Greg Boulton or his nominee;
(b) The Options will be issued on 1 November 2021;
(c) The Options will be issued for no consideration;
(d) The terms and conditions of the Options are set out in Annexure A to this Explanatory Memorandum.
(e) No funds will be raised by the grant of the Options. In the event of exercise of the Options, funds

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raised will be used to augment the working capital of the Company.

(f) A voting exclusion statement is set out in the Notice of Annual General Meeting.

The Directors (other than Mr Boulton) recommend Shareholders vote in favour of Resolution 4. The Chairman intends to vote undirected proxies in favour of Resolution 4. Important information for Shareholders

The Chair will not vote any undirected proxies in relation to Resolution 4 unless the Shareholder expressly authorises the Chair to exercise the proxy even though it is connected directly or indirectly with the remuneration of a member of Key Management Personnel. Please note that if the Chair of the meeting is your proxy (or becomes your proxy by default), by completing the attached proxy form, you will expressly so authorise the Chair.

Alternatively, if you appoint the Chair as your proxy, you can direct the Chair to vote for or against or abstain from voting on Resolution 4 by marking the appropriate box on the proxy form.

As a further alternative, Shareholders can nominate as their proxy for the purposes of Resolution 4, a proxy who is not a member of the Company’s Key Management Personnel or any of their Closely Related Parties. That person would be permitted to vote undirected proxies (subject to the Listing Rules).

Resolution 5 – Approval of the issue of Options to Mr Peter Bamford or his nominee

Listing Rule 10.11 prohibits the issue of Options by the Company to a Director without prior Shareholder approval.

It is proposed that 600,000 Options be granted by the Company to Mr Peter Bamford or his nominee. The Options will have a four year term expiring on 31 October 2025, being the proposed date of issue. They may be exercised at any time during the term at an exercise price at 12 cents. The full terms of the Options are set out in Annexure A to this Explanatory Memorandum.

The Board considers it reasonable to grant 600,000 Options on the terms set out in Annexure A to Mr Peter Bamford or his nominee, as part of Mr Bamford’s remuneration, having regard to the circumstances of the Company and the responsibilities of his position as Director and as a means of incentivising Mr Bamford. Mr Bamford’s current remuneration is a Director fee of $45,000 pa.

The Options will not be quoted on the ASX, will lapse if Mr Bamford ceases to be a Director, will be transferable only with the consent of the Board and will otherwise be issued on standard terms set out in Listing Rules insofar as treatment of the Options in the case of reconstructions, bonus and rights issues.

If approval is not passed, the Options will not be issued.

The following information is provided to Shareholders for the purposes of Listing Rule 10.13:

(a) 600,000 Options will be granted to Mr Peter Bamford or his nominee;
(b) The Options will be issued on 1 November 2021;
(c) The Options will be issued for no consideration;
(d) The terms and conditions of the Options are set out in Annexure A to this Explanatory Memorandum.
(e) No funds will be raised by the grant of the Options. In the event of exercise of the Options, funds raised will be used to augment the working capital of the Company.
(f) A voting exclusion statement is set out in the Notice of Annual General Meeting.

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The Directors (other than Mr Bamford) recommend Shareholders vote in favour of Resolution 5. The Chairman intends to vote undirected proxies in favour of Resolution 5.

Important information for Shareholders

The Chair will not vote any undirected proxies in relation to Resolution 5 unless the Shareholder expressly authorises the Chair to exercise the proxy even though it is connected directly or indirectly with the remuneration of a member of Key Management Personnel. Please note that if the Chair of the meeting is your proxy (or becomes your proxy by default), by completing the attached proxy form, you will expressly so authorise the Chair.

Alternatively, if you appoint the Chair as your proxy, you can direct the Chair to vote for or against or abstain from voting on Resolution 5 by marking the appropriate box on the proxy form.

As a further alternative, Shareholders can nominate as their proxy for the purposes of Resolution 5, a proxy who is not a member of the Company’s Key Management Personnel or any of their Closely Related Parties. That person would be permitted to vote undirected proxies (subject to the Listing Rules).

Resolution 6 – Approval of the issue of Options to Mr Doug Kirwin or his nominee

Listing Rule 10.11 prohibits the issue of Options by the Company to a Director without prior Shareholder approval.

It is proposed that 600,000 Options be granted by the Company to Mr Doug Kirwin or his nominee. The Options will have a four year term expiring on 31 October 2025, being the proposed date of issue. They may be exercised at any time during the term at an exercise price at 12 cents. The full terms of the Options are set out in Annexure A to this Explanatory Memorandum.

The Board considers it reasonable to grant 600,000 Options on the terms set out in Annexure A to Mr Doug Kirwin or his nominee, as part of Mr Kirwin’s remuneration, having regard to the circumstances of the Company and the responsibilities of his position as Director and as a means of incentivising Mr Kirwin. Mr Kirwin’s current remuneration is a Director fee of $45,000 pa.

The Options will not be quoted on the ASX, will lapse if Mr Kirwin ceases to be a Director, will be transferable only with the consent of the Board and will otherwise be issued on standard terms set out in Listing Rules insofar as treatment of the Options in the case of reconstructions, bonus and rights issues.

If approval is not passed, the Options will not be issued.

The following information is provided to Shareholders for the purposes of Listing Rule 10.13:

(a) 600,000 Options will be granted to Mr Doug Kirwin or his nominee;
(b) The Options will be issued on 1 November 2021;
(c) The Options will be issued for no consideration;
(d) The terms and conditions of the Options are set out in Annexure A to this Explanatory Memorandum.
(e) No funds will be raised by the grant of the Options. In the event of exercise of the Options, funds raised will be used to augment the working capital of the Company.
(f) voting exclusion statement is set out in the Notice of Annual General Meeting.

The Directors (other than Mr Kirwin) recommend Shareholders vote in favour of Resolution 6. The Chairman

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intends to vote undirected proxies in favour of Resolution 6.

Important information for Shareholders

The Chair will not vote any undirected proxies in relation to Resolution 6 unless the Shareholder expressly authorises the Chair to exercise the proxy even though it is connected directly or indirectly with the remuneration of a member of Key Management Personnel. Please note that if the Chair of the meeting is your proxy (or becomes your proxy by default), by completing the attached proxy form, you will expressly so authorise the Chair.

Alternatively, if you appoint the Chair as your proxy, you can direct the Chair to vote for or against or abstain from voting on Resolution 6 by marking the appropriate box on the proxy form.

As a further alternative, Shareholders can nominate as their proxy for the purposes of Resolution 6, a proxy who is not a member of the Company’s Key Management Personnel or any of their Closely Related Parties. That person would be permitted to vote undirected proxies (subject to the Listing Rules).

Resolution 7 – Approval of the issue of Options to Mr Michael McNeilly or his nominee

Listing Rule 10.11 prohibits the issue of Options by the Company to a Director without prior Shareholder approval.

It is proposed that 600,000 Options be granted by the Company to Mr Michael McNeilly or his nominee. The Options will have a four year term expiring on 31 October 2025, being the proposed date of issue. They may be exercised at any time during the term at an exercise price at 12 cents. The full terms of the Options are set out in Annexure A to this Explanatory Memorandum.

The Board considers it reasonable to grant 600,000 Options on the terms set out in Annexure A to Mr Michael McNeilly or his nominee, as part of Mr McNeilly’s remuneration, having regard to the circumstances of the Company and the responsibilities of his position as Director and as a means of incentivising Mr McNeilly. Mr McNeilly’s current remuneration is a Director fee of $45,000 pa.

The Options will not be quoted on the ASX, will lapse if Mr McNeilly ceases to be a Director, will be transferable only with the consent of the Board and will otherwise be issued on standard terms set out in Listing Rules insofar as treatment of the Options in the case of reconstructions, bonus and rights issues.

If approval is not passed, the Options will not be issued.

The following information is provided to Shareholders for the purposes of Listing Rule 10.13:

(a) 600,000 Options will be granted to Mr Michael McNeilly or his nominee;
(b) The Options will be issued on 1 November 2021;
(c) The Options will be issued for no consideration;
(d) The terms and conditions of the Options are set out in Annexure A to this Explanatory Memorandum.
(e) No funds will be raised by the grant of the Options. In the event of exercise of the Options, funds raised will be used to augment the working capital of the Company.
(f) voting exclusion statement is set out in the Notice of Annual General Meeting.

The Directors (other than Mr McNeilly) recommend Shareholders vote in favour of Resolution 7. The Chairman intends to vote undirected proxies in favour of Resolution 7.

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Important information for Shareholders

The Chair will not vote any undirected proxies in relation to Resolution 7 unless the Shareholder expressly authorises the Chair to exercise the proxy even though it is connected directly or indirectly with the remuneration of a member of Key Management Personnel. Please note that if the Chair of the meeting is your proxy (or becomes your proxy by default), by completing the attached proxy form, you will expressly so authorise the Chair.

Alternatively, if you appoint the Chair as your proxy, you can direct the Chair to vote for or against or abstain from voting on Resolution 7 by marking the appropriate box on the proxy form.

As a further alternative, Shareholders can nominate as their proxy for the purposes of Resolution 7, a proxy who is not a member of the Company’s Key Management Personnel or any of their Closely Related Parties. That person would be permitted to vote undirected proxies (subject to the Listing Rules).

Resolution 8 – Approval of the issue of Options to Mr Bee Jay Kim or his nominee

Listing Rule 10.11 prohibits the issue of Options by the Company to a Director without prior Shareholder approval.

It is proposed that 1,000,000 Options be granted by the Company to Mr Bee Jay Kim or his nominee. The Options will have a four year term expiring on 31 October 2025, being the proposed date of issue. They may be exercised at any time during the term at an exercise price at 12 cents. The full terms of the Options are set out in Annexure A to this Explanatory Memorandum.

The Board considers it reasonable to grant 1,000,000 Options on the terms set out in Annexure A to Mr Bee Jay Kim or his nominee, as part of Mr Kim’s remuneration, having regard to the circumstances of the Company and the responsibilities of his position as an Executive Director and as a means of incentivising Mr Kim. Mr Kim’s current remuneration as a full time Executive Director is 180,000,000 Korean Won pa (AU$215,000 pa).

The Options will not be quoted on the ASX, will lapse if Mr Kim ceases to be a Director, will be transferable only with the consent of the Board and will otherwise be issued on standard terms set out in Listing Rules insofar as treatment of the Options in the case of reconstructions, bonus and rights issues.

If approval is not passed, the Options will not be issued.

The following information is provided to Shareholders for the purposes of Listing Rule 10.13:

(a) 1,000,000 Options will be granted to Mr Bee Jay Kim or his nominee;
(b) The Options will be issued on 1 November 2021;
(c) The Options will be issued for no consideration;
(d) The terms and conditions of the Options are set out in Annexure A to this Explanatory Memorandum.
(e) No funds will be raised by the grant of the Options. In the event of exercise of the Options, funds raised will be used to augment the working capital of the Company.
(f) voting exclusion statement is set out in the Notice of Annual General Meeting.

The Directors (other than Mr Kim) recommend Shareholders vote in favour of Resolution 8. The Chairman intends to vote undirected proxies in favour of Resolution 8.

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Important information for Shareholders

The Chair will not vote any undirected proxies in relation to Resolution 8 unless the Shareholder expressly authorises the Chair to exercise the proxy even though it is connected directly or indirectly with the remuneration of a member of Key Management Personnel. Please note that if the Chair of the meeting is your proxy (or becomes your proxy by default), by completing the attached proxy form, you will expressly so authorise the Chair.

Alternatively, if you appoint the Chair as your proxy, you can direct the Chair to vote for or against or abstain from voting on Resolution 8 by marking the appropriate box on the proxy form.

As a further alternative, Shareholders can nominate as their proxy for the purposes of Resolution 8, a proxy who is not a member of the Company’s Key Management Personnel or any of their Closely Related Parties. That person would be permitted to vote undirected proxies (subject to the Listing Rules).

Resolution 9 – Approval of 10% Placement Facility

Background to Resolution 9

Listing Rule 7.1A enables eligible entities to issue Equity Securities up to 10% of its issued share capital through placements over a 12 month period after the Annual General Meeting ( 10% Placement Facility ). The 10% Placement Facility is in addition to the Company’s 15% placement capacity under Listing Rule 7.1. An eligible entity for the purposes of Listing Rule 7.1A is an entity that is not included in the S&P/ASX 300 Index and has a market capitalisation of $300 million or less. The Company’s market capitalisation as at 17 September 2021, being the last practicable date prior to finalisation of the Notice of Meeting, was $14.08 million (213,328,756 issued shares at $0.066 closing price per share). Further, the Company is not included in the S&P/ASX 300 Index, and is therefore an eligible entity for the purposes of Listing Rule 7.1A.

The Company is now seeking shareholder approval by way of a special resolution to have the ability to issue Equity Securities under the 10% Placement Facility. The exact number of Equity Securities to be issued under the 10% Placement Facility will be determined in accordance with the formula prescribed in Listing Rule 7.1A.2. It is the Company’s intention that funds received under the 10% Placement Facility will be used for the exploration of tenements in South Korea. Funds raised under the 10% Placement Facility may also be used to supplement the Company’s working capital requirements and undertake further transactions to acquire new assets or investments should the Directors determine this to be in the best interests of the Company.

If Resolution 9 is not passed, the Company will not be able to access the additional 10% capacity to issue Equity Securities without Shareholder approval under Listing Rule 7.1A, and will remain subject to the 15% limit on issuing Equity Securities without Shareholder approval set out in Listing Rule 7.1

Description of Listing Rule 7.1A

a) Shareholder approval

The ability to issue Equity Securities under the 10% Placement Facility is subject to Shareholder approval by way of a special resolution at an annual general meeting.
b) Equity Securities

Any Equity Securities issued under the 10% Placement Facility must be in the same class as an existing quoted class of Equity Securities of the Company. The Company, as at the date of this Notice, has on issue two classes of Equity Securities being Listed Shares and Unlisted Options.

c) Formula for calculating 10% Placement Facility

Listing Rule 7.1A.2 provides that eligible entities which have obtained shareholder approval at an annual general meeting may issue or agree to issue, during the 12 month period after the date of the annual general meeting, a number of Equity Securities calculated in accordance with the following formula:

(A x D) – E

A is the number of fully paid ordinary shares on issue 12 months before the date of issue or agreement:

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(i) plus the number of Shares issued in the 12 months under an exception in Listing Rule 7.2 other than exception 9,16 or 17;
(ii) plus the number of Shares issued in the relevant period on the conversion of convertible securities under rule 7.2 exception 9 where:
- (A) the convertible securities were issued or agreed to be issued before the commencement of the relevant period; or
- (B) the issue of, or agreement to issue, the convertible securities was approved, or taken under these rules to have been approved, under rule 7.1 or rule 7.4;
(iii) plus the number of Shares issued in the relevant period under an agreement to issue securities within rule 7.2 exception 16 where:
- (A) the agreement was entered into before the commencement of the relevant period; or (B) the agreement or issue was approved, or taken under these rules to have been approved, under rule 7.1 or 7.4;
(iv) plus the number of fully paid Shares issued in the relevant period with approval under Listing Rules 7.1 and 7.4; plus the number of partly paid shares that became fully paid in the 12 months;
(v) plus the number of partly paid ordinary securities that became fully paid in the relevant period;
(vi) less the number of fully paid Shares cancelled in the 12 months.
D is 10%
E is the number of Equity Securities issued or agreed to be issued under Listing Rule 7.1A.2 in the 12 months before the date of the issue or agreement to issue that are not issued with the approval of shareholders under Listing Rule 7.1 or 7.4.

Listing Rule 7.1 and Listing Rule 7.1A

The ability of an entity to issue Equity Securities under Listing Rule 7.1A is in addition to the entity’s 15% placement capacity under Listing Rule 7.1.

At the date of this Notice, the Company has on issue 213,328,756 Shares and would have capacity to issue:

1) 31,999,313 Equity Securities under Listing Rule 7.1; and
2) 21,332,876 Securities under Listing Rule 7.1A.

The actual number of Equity Securities that the Company will have capacity to issue under Listing Rule 7.1A will be calculated at the date of issue of the Equity Securities in accordance with the formula prescribed in Listing Rule 7.1A.2.

Minimum Issue Price

The issue price of Equity Securities issued under Listing Rule 7.1A may only be issued for cash consideration and must not be less than 75% of the VWAP of Equity Securities in the same class calculated over the 15 Trading Days on which trades in that class were recorded immediately before:

1) the date on which the price at which the Equity Securities are to be issued is agreed; or
2) if the Equity Securities are not issued within 10 Trading Days of the date in paragraph (1) above, the date on which the Equity Securities are issued.

The Company may also issue Equity Securities under the 10% Placement Facility as consideration for the acquisition of a new asset, in which case the Company will release to the market a valuation of those Equity Securities that demonstrates that the issue price of the securities complies with the rule above.

10% Placement Period

Shareholder approval of the 10% Placement Facility under Listing Rule 7.1A is valid from the date of the annual general meeting at which the approval is obtained and expires on the earlier to occur of:

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1) the date that is 12 months after the annual general meeting at which the approval is obtained;
2) the time and date of the next annual general meeting;
3) the time and date of the approval by holders of Equity Securities of a transaction under Listing Rule 11.1.2 or Listing Rule 11.2
or such longer period if allowed by ASX ( 10% Placement Period ).

Listing Rule 7.1A

The effect of Resolution 9 will be to allow the Directors to issue the Equity Securities under Listing Rule 7.1A during the 10% Placement Period without using the Company’s placement capacity under Listing Rule 7.1.

Resolution 9 is a Special Resolution and therefore requires approval of 75% of the votes cast by Shareholders present and eligible to vote (in person, by proxy, by attorney or, in the case of a corporate Shareholder, by a corporate representative).

Specific information required by Listing Rule 7.3A

Pursuant to and in accordance with Listing Rule 7.3A, information is provided in relation to the approval of the 10% Placement Facility as follows:

a) the Equity Securities will be issued at an issue price of not less than 75% of the VWAP for the Company’s Equity Securities over the 15 Trading Days on which trades in that class were recorded immediately before:
1) the date on which the price at which the Equity Securities are to be issued is agreed; or
2) if the Equity Securities are not issued within 10 Trading Days of the date in paragraph (1) above, the date on which the Equity Securities are issued.
b) if Resolution 9 is approved by Shareholders and the Company issues Equity Securities under the 10% Placement Facility, existing Shareholders may be subject to both economic and voting power dilution. There is a risk that:
1) the market price for the Company’s Equity Securities may be significantly lower on the date of the issue of the Equity Securities than on the date of the Meeting;
2) the Equity Securities may be issued at a price that is at a discount to the market price for the Company’s Equity Securities on the issue date.

The below table shows the dilution of existing Shareholders on the basis of the current market price of Shares and the current number of ordinary securities for variable “A” calculated in accordance with the formula in Listing Rule 7.1A(2) as at the date of this Notice.

The table also shows:

1) two examples where variable “A” has increased, by 50% and 100%. Variable “A” is based on the number of ordinary securities the Company has on issue. The number of ordinary securities on issue may increase as a result of issues of ordinary securities that do not require Shareholder approval (for example, a pro rata entitlements issue or script issued under a takeover) or future specific placements under Listing Rule 7.1 that are approved at a future Shareholders’ meeting; and
2) two examples of where the issue price of ordinary securities has decreased by 50% and increased by 100% as against the current market price.

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Variable ‘A’ in Listing Rule 7.1A.2		Dilution	Dilution	Dilution
		$0.033 50% decrease in issueprice	$0.066 Issue price	$0.132 100% increase in issueprice
Current Variable A 213,328,756 Shares	10% voting dilution	21,332,876 Shares	21,332,876 Shares	21,332,876 Shares
	Funds raised	$703,985	$1,407,970	$2,815,940
50% increase in current Variable A 319,993,134 Shares	10% voting dilution	31,999,313 Shares	31,999,313 Shares	31,999,313 Shares
	Funds raised	$1,055,977	$2,111,955	$4,223,909
100% increase in current Variable A 426,657,512 Shares	10% voting dilution	42,665,751 Shares	42,665,751 Shares	42,665,751 Shares
	Funds raised	$1,407,970	$2,815,940	$5,631,879

The table has been prepared on the following assumptions:

  - i. the Company issues the maximum number of Equity Securities available under the 10% Placement Facility;

  - ii. no Unlisted Options (including any Unlisted Options issued under the 10% Placement Facility) are exercised into Shares before the date of the issue of the Equity Securities;

  - iii. the 10% voting dilution reflects the aggregate percentage dilution against the issued share capital at the time of issue. This is why the voting dilution is shown in each example as 10%;

  - iv. the table does not show an example of dilution that may be caused to a particular Shareholder by reason of placements under the 10% Placement Facility, based on that Shareholder’s holding at the date of the Annual General Meeting;

  - v. the table shows only the effect of issues of Equity Securities under Listing Rule 7.1A, not under the 15% placement capacity under Listing Rule 7.1. Dilution experienced by Shareholders may be greater if issues have been made utilising the capacity in Listing Rule 7.1 as well;

  - vi. the issue of Equity Securities under the 10% Placement Facility consists only of Shares;

  - vii. the issue price is $0.066, being the closing price of the Shares on ASX on 17 September 2021, being the last practicable date prior to finalisation of the Notice of Meeting;

c) the Company will only issue and allot the Equity Securities during the 10% Placement Period. The approval under Resolution 9 for the issue of Equity Securities will cease to be valid at the time and date of approval in the event that Shareholders approve a transaction under Listing Rule 11.1.2 (a significant change to the nature or scale of activities) or Listing Rule 11.2 (disposal of main undertaking).
d) the Company may seek to issue the Equity Securities for the following purposes:
i. cash consideration. In such circumstances, the Company intends to use the funds raised towards an acquisition of new assets or investments (including expenses associated with such acquisitions or investments), continued exploration and development expenditure on the Company’s current assets (including South Korea) and/or general working capital.

The Company will comply with the disclosure obligations under Listing Rules 7.1A (4) and 3.10.5A upon issue of any Equity Securities.

e) The Company’s allocation policy is dependent on the prevailing market conditions at the time of any proposed issue pursuant to the 10% Placement Facility. The identity of the allottees of Equity Securities will be determined on a case-by-case basis having regard to the factors including but not limited to the following:
i. the methods of raising funds that are available to the Company, including but not limited to,

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rights issue or other issue in which existing security holders can participate;

ii. the effect of the issue of the Equity Securities on the control of the Company;
iii. the financial situation and solvency of the Company; and
iv. advice from corporate, financial and broking advisers (if applicable).

The allottees under the 10% Placement Facility have not been determined as at the date of this Notice but may include existing substantial Shareholders and/or new Shareholders who are not related parties or associates of a related party of the Company. Further, if the Company acquires new assets, it is likely that the allottees under the 10% Placement Facility will be the vendors of the new assets.

If Resolution 9 is approved by Shareholders, the Company may issue Equity Securities under the 10% Placement Facility during the Placement Period as and when the circumstances of the Company require.

f) A voting exclusion statement is included in the Notice of Annual General Meeting. At the date of the Notice of Annual General Meeting, the Company has not approached any particular existing Shareholder or security holder or an identifiable class of existing security holder to participate in the issue of the Equity Securities. No existing Shareholder’s votes will therefore be excluded under the voting exclusion in the Notice of Annual General Meeting.

The Board considers that the approval of the issue of the 10% Placement Facility described above is beneficial for the Company as it provides the Company with the flexibility to issue up to the maximum number of securities permitted under Listing Rule 7.1A in the next 12 months (without further Shareholder approval), should it be required. At the date of the Notice of Annual General Meeting, the Company has no plans to use the 10% Placement Facility should it be approved. Accordingly, the Directors unanimously recommend that Shareholders vote in favour of Resolution 9. The Chairman intends to vote all undirected proxies in favour of Resolution 9.

No other material information

Other than as set out in this document, and previously disclosed to the Shareholders, there is no other information that is known to the Directors which may reasonably be expected to be material to the making of a decision by the Shareholders whether or not to vote in favour of any of the Resolutions.

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GLOSSARY

In this Explanatory Memorandum, the following terms have the following unless the context otherwise requires:

“ Annual General Meeting ” means the annual general meeting of Shareholders convened by the Notice of Annual General Meeting.

" ASX " means ASX Limited ACN 008 624 691 or the securities exchange operated by ASX Limited (as the context requires);

" Board " means the Board of Directors from time to time.

“Closely Related Party” of a member of the Key Management Personnel means:

(a) a spouse or child of the member;
(b) a child of the member’s spouse;
(c) a dependent of the member or of the member’s spouse;
(d) anyone else who is one of the member’s family and may be expected to influence the member or be influenced by the member, in the member’s dealings with the Company; or
(e) a company that the member controls.

" Company " means Southern Gold Limited (ACN 107 424 519).

" Constitution " means the constitution of the Company.

" Corporations Act " means the Corporations Act 2001 (Cth).

" Directors " means the directors of the Company from time to time and " Director " means any one of them.

“ Equity Securities ” has the meaning given to that term in the Listing Rules.

" Explanatory Memorandum " means this explanatory memorandum.

“ Key Management Personnel ” means those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including any Director.

" Listing Rules " means the listing rules of ASX and any other rules of ASX which are applicable while the Company is admitted to the official list of ASX, each as amended or replaced from time to time, except to the extent of any express written waiver by ASX.

“ Notice of Annual General Meeting ” means the Notice of Annual General Meeting to which the Explanatory Memorandum is attached.

“ Option ” means an unlisted option to subscribe for a Share.

" related party " has the meaning given to that term in Section 228 of the Corporations Act.

“ Share ” means a fully paid ordinary share in the capital of the Company.

" Shareholder " means a holder of Shares in the Company.

“ Trading Day ” means a day determined by ASX to be a trading day in accordance with the Listing Rules.

“ VWAP ” means Volume Weighted Average Price of the Company’s ASX-listed Shares trading under the code SAU.

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ANNEXURE A

RULES OF THE SOUTHERN GOLD LIMITED EMPLOYEE SHARE OPTION PLAN

1. DEFINITIONS AND INTERPRETATION

1.1 Definitions

In these Rules, unless the contrary intention appears:

“ Associated Company” means at any time any body corporate that at that time is a related body corporate of the Company within the meaning of section 50 of the Corporations Law;

“ASX” means ASX Limited and includes any body corporate which may hereafter succeed to the powers, functions and duties of ASX Limited;

“Board” means the directors acting as the board of directors of the Company;

“Business Day” means a day on which the stock market of ASX is open for trading in securities;

“Certificate” means the certificate issued by the Company to a Holder in respect of an Option;

“Company” means Southern Gold Limited ACN 104 757 904;

“Corporations Act” means Corporations Act 2001 (Cth);

“Director” means a director of a Group Company from time to time;

“Eligible Person” means at any time a person who then is an employee, or a director of Southern Gold Limited (whether full-time or part-time);

“Exercise Price” means, in respect of an Option, the subscription price per Share, determined in accordance with clause 12, payable by a Holder on exercise of the Option;

“Expiry Date” means, in relation to an Option, the period of 5 years from and including the Issue Date of the Option;

“Group” means, collectively the Company and each of the Associated Companies;

“Group Company” means the Company or any Associated Company;

“Holder” means, in relation to an Option, the person (whether an Eligible Person or a Permitted Nominee) entered in the Company’s register of options as the holder of that Option;

“Issue Date” means, in relation to an Option, the date on which the Company grants that Option;

“Listing Rules” means the Official Listing Rules of ASX;

“Market Value” means:

a) the average closing sale price per Share (weighted by reference to volume) recorded on the stock market of ASX during the five trading days immediately preceding the day on which the Board resolves to offer an Option (excluding special crossings and overnight sales); or
b) in circumstances where there has been no trading in the Shares during the five trading days immediately preceding the day on which the Board resolves to offer an Option, the last sale price recorded on the stock market of ASX (excluding special crossings and overnight sales);

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“Option” means an Option issued under the Plan to subscribe (subject to clause 11) for a Share;

“Permanent Disablement” means, in relation to an Eligible Person, that the Eligible Person has, in the opinion of the Board, after considering such medical and other evidence as it sees fit, become incapacitated to such an extent as to render the Eligible Person unlikely ever to engage in any occupation for which he is reasonably qualified by education, training or experience;

“Permitted Nominee” has the meaning given to it by clause 5.4;

“Plan” means the Southern Gold Limited Employee Share Option Plan established in accordance with these Rules;

“Redundancy” means, in relation to an Eligible Person, a determination by the Board that the relevant Group Company’s need to employ a person for the particular kind of work carried out by that Eligible Person has ceased (but, for the avoidance of any doubt, does not include the dismissal of an Eligible Person for personal or disciplinary reasons or where the Eligible Person leaves the employ of any Group Company of his own accord);

“Retirement” means, in relation to an Eligible Person, retirement by that Eligible Person from any Group Company at age 60 or over or such earlier age as considered appropriate by the Board;

“Rules” means these rules, as amended from time to time:

“Shares” means fully paid ordinary shares in the capital of the Company.

“Trigger Event” means:

a) the despatch of a notice of meeting to consider a scheme of arrangement between the Company and its creditors or any members or members or any class thereof pursuant to section 411 of the Corporations Act;
b) the service of a bidder’s statement or a like document on the Company
c) the date upon which a person or a group of associated persons becomes entitled, subsequent to the Issue Date of the Option, to sufficient Shares to give it or them the ability in general meeting to replace all or elect a majority of the Board in circumstances where such ability was not already held by a person associated with such person or group of associated persons.

1.2 Interpretation

In these Rules, unless the contrary intention appears:

(a) where an expression is defined, another part of speech or grammatical form of that expression has a corresponding meaning;
(b) the singular includes the plural and vice versa;
(c) a reference to a gender includes all genders; and
(d) an expression defined in, or given a meaning for the purposes of, the Corporations Act or the Listing Rules has the same meaning where used in these Rules.

2. ESTABLISHMENT AND TERMINATION OF THE PLAN

2.1 The Board may establish and administer the Plan in accordance with the terms and conditions set out in these Rules and otherwise as it determines from time to time in its absolute and uncontrolled discretion.
2.2 The Board may terminate the Plan, or suspend its operation for any period it considers desirable, at any time that it considers appropriate.

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2.3 The Board may not issue any further Options after the Plan has been terminated. However, these Rules will continue to apply to Options on issue at the date of such termination until the last of those Options lapses or is exercised.

3. NUMBER OF OPTIONS TO BE ISSUED

The Company shall not offer or issue Options to any Eligible Person in accordance with the plan if the total number of shares the subject of Options, when aggregated with:

3.1 the number of shares in the same class which would be issued were each outstanding offer or invitation or option to acquire unissued shares in the Company, being an offer or invitation made or option acquired pursuant to the Plan or any other employee share scheme extended only to employees (including directors) of Group Companies, to be accepted or exercised (as the case may be); and
3.2 the number of shares in the same class issued during the previous five years pursuant to the Plan or any other employee share scheme extended only to employees (including directors) of Group Companies,

(disregarding any offer or invitation made, or option acquired or share issued following the making of an offer or invitation, to a person situated at the time of receipt of the offer or invitation outside Australia or any offer or invitation which, pursuant to Chapter 6D of the Corporations Act, does not need disclosure to investors), would exceed 5% of the total number of issued shares in that class of the Company as at the time of the proposed offer or issue.

4. ENTITLEMENT TO PARTICIPATE

4.1 The Board may from time to time determine in its absolute and uncontrolled discretion that any Eligible Person is entitled to participate in the Plan and the extent of that participation. The determination of the Board shall be binding and neither the Board nor any director of the Company shall be obliged to give any reason for a determination.
4.2 The Board may exercise its powers in relation to the participation of any Eligible Person on any number of occasions.
4.3 An Eligible Person may not participate in the Plan unless that Eligible Person has been in continuous employment with a Group Company for at least 6 months prior to the Issue Date.
4.4 Future entitlements under the Plan shall not form part of any contract of employment between any Group Company and any of its employees. Participation in the Plan by an Eligible Person shall not confer directly or indirectly on any such employee any legal or equitable right whatsoever against any Group Company.

5. OFFER OF OPTIONS

5.1 Subject to these Rules and to the Listing Rules, the Company (acting through the Board) may offer Options to any Eligible Persons at such times and on such terms as the Board considers appropriate in its absolute and uncontrolled discretion. Each offer must state:
(a) that the Eligible Person to whom it is addressed may accept the whole or any lesser number of Options offered. The offer may stipulate a minimum number of Options and any multiple of such minimum or any other number which may be accepted;
(b) the period within which the offer may be accepted;
(c)
any conditions which must be met prior to the vesting of the Options;
(d) any restrictions on the disposal of the underlying Shares that will be issued on exercise of the Options; and

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(e) any other matters which the Board may determine.

5.2 Upon receipt of an offer of Options, an Eligible Person may, within the period specified in the offer;
(a) accept the whole or any lesser number of Options offered by notice in writing to the Board;
(b) nominate a nominee in whose favour the Eligible Person wishes to renounce the offer by notice in writing to the Board. The Board may, in its absolute and uncontrolled discretion, resolve not to allow such renunciation of an offer in favour of a nominee without giving any reason for such decision; or
(c) reject the offer.
5.3 Each Option will be issued free.
5.4 Upon:
(a) receipt of the acceptance referred to in paragraph 5.2(a); or
(b) the Board resolving to allow a renunciation of an offer in favour of a nominee ( “Permitted Nominee”) and the Permitted Nominee accepting as Holder or joint Holder the whole or any lesser number of Options offered by notice in writing to the Board,

then the Eligible Person and/or the Permitted Nominee, as the case may be, will be taken to have agreed to be bound by these Rules and will be issued Options subject to these Rules.

5.5 Certificates for Options will be dispatched within 10 Business Days after their Issue Date (or within such lesser period (if any) as may be required by the Listing Rules). Certificates will be accompanied by advice of the Issue Date, Number of Options, Exercise Price, Expiry Date, and any additional terms or conditions attaching to the offer.
5.6 If Options are issued to a Permitted Nominee of an Eligible Person, the Eligible Person must, without limiting any provision in these Rules, ensure that the Permitted Nominee complies with these Rules.

6. QUOTATION

6.1 The Company will not apply for official quotation by ASX of any Options under this Plan
6.2 Application will be made to ASX within 10 business days after the date of allotment (or within such lesser period as may be required by the Listing Rules) for official quotation of Shares issued pursuant to the exercise of Options, if the Shares are listed on ASX at that time.

7. NOT TRANSFERABLE

7.1 Subject to clause 10.3, Options are not transferable.
7.2 Options will lapse upon receipt by the Company of a notice of surrender from a Holder, specifying the details of the Options to be surrendered, and accompanied by the relevant Certificate.

8. EXERCISE OF OPTIONS

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8.1 Subject to these Rules, Options may be exercised at any time during the period commencing on the later of the Issue Date and the date the Option vests in accordance with its terms and conditions of issue and ending on the Expiry Date.
8.2 Options not exercised on or before the Expiry Date will automatically lapse.
8.3 Options may only be exercised by notice in writing to the Board delivered to the registered office of the Company. The notice must specify the number of Options being exercised and must be accompanied by:
(a) the Exercise Price for the number of Options specified in the notice; and
(b) the Certificate for those Options, for cancellation by the Company.

The notice is only effective (and only becomes effective) when the Company has received value for the full amount of the Exercise Price (for example, if the Exercise Price is paid by cheque, by clearance of that cheque).

8.4 Subject to clause 8.2, within 10 Business Days after the notice referred to in clause 8.3 becomes effective (or within such lesser period (if any) as may be required by the Listing Rules), the Board must;
(a) allot and issue the number of Shares specified in the notice to the Holder;
(b) cancel the Certificate for the Options being exercised; and
(c) if application, issue a new Certificate for any remaining Options covered by the Certificate accompanying the notice.

9. SHARES ALLOTTED ON EXERCISE OF OPTIONS

All Shares allotted upon exercise of Options rank pari passu in all respects with Shares previously issued and, in particular, entitle the Holders to participate fully in;

9.1 dividends declared by the Company after the date of allotment; and
9.2 all issues of securities made or offered pro rata to holders of Shares.

10. CEASING TO BE AN ELIGIBLE PERSON

10.1(a) If at any time prior to the Expiry Date of any Options, an Eligible Person ceases to be an Eligible Person for any reason other than Retirement, Permanent Disability, Redundancy or death, all Options held by such Eligible Person or his Permitted Nominee (as the case may be), will, to the extent that they have not been exercised beforehand, automatically lapse on the first to occur of;
i. The expiry of the period of 3 calendar months form the date of such occurrence, and
ii. The Expiry Date.
10.1 (b) Notwithstanding the provisions of Clause 10.1(a), in the event that in the reasonable opinion of the Board an Eligible Person is dismissed for a reason which entitles a Group Company to dismiss that person without notice, or in circumstances of an act of fraud, defalcation or gross misconduct in relation to the affairs of a Group Company or doing any act which brings a Group Company into disrepute, then Options held by the person or their nominee will lapse forthwith
10.2 A certificate signed by the company secretary of the Company stating that a person ceased for any reason to be an Eligible Person shall (in the absence of manifest error) be conclusive for the purposes of the Plan, both as to such occurrence and the date of such occurrence.

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10.3 If at any time prior to the Expiry Date of any Options a Holder dies, the deceased Holder’s legal personal representative may:
(a) elect to be registered as the new Holder of the deceased Holder’s Options;
(b) whether or not he becomes so registered, exercise those Options as if it were the Holder of them in accordance with these Rules; and
(c) if the deceased Holder had already given the Company a notice of exercise of his Options, pay the Exercise Price in respect of those Options.

11. ENTITLEMENT TO PARTICIPATE IN FUTURE ISSUES

11.1 New Issues

Holders may only participate in new issues of securities to holders of Shares if an Option has been exercised and Shares allotted in respect of the Option before the record date for determining entitlements to the issue. The Company must give at least four Business Days’ notice (or such greater period of notice (if any) as may be required by the Listing Rules) to Holders of any new issue before the record date for determining entitlements to the issue in accordance with the Listing Rules.

11.2 Bonus Issues

If there is a bonus share issue ( “Bonus Issue” ) to the holders of Shares, the number of Shares over which an Option is exercisable will be increased by the number of Shares which the Holder would have received if the Option had been exercised before the record date for the Bonus Issue ( “Bonus Shares” ). Upon issue the Bonus Shares will rank pari passu in all respects with the other shares of that class on issue at the date of issue of the Bonus Shares.

11.3 Pro Rata Issue

If there is a pro rata issue (other than a Bonus Issue) to the holders of Shares, the Exercise Price of an Option will be reduced according to the following formula:

A = O – E[P – (S+D)]

N + 1

A = the new exercise price of the Option

O = the old exercise price of the Option

E = the number of Shares into which one Option is exercisable

P = the volume weighted average market price per Share, calculated over the 5 trading days immediately preceding the ex rights date or ex entitlements date

S = the subscription price for a security under the pro rata issue

D = the dividend due but not yet paid on the existing underlying securities (except those to be issued under the pro rate issue).

N = the number of securities with rights or entitlements that must be held to receive a right to one new security.

11.4 Reorganisation of Capital

(a) If, prior to the expiry or lapse of any Options, there is a reorganisation of the issued capital of the Company, those Options will be reorganised to the extent necessary to comply with the Listing Rules.
(b) If, prior to the expiry or lapse of any Options, the Company offers other securities to shareholders, the Board will, subject to compliance with the Listing Rules and without derogating from clause 11.1, determine in its absolute discretion whether the other securities are to be offered to Holders upon the exercise of Options or whether any other equivalent securities, interest or rights will be offered to them, and the basis thereof, to the intent that on the Exercise of the Options, the Holders may be treated whenever possible as if they were Shareholders at the Issue Date.

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(c) If a Trigger Event occurs, the Board may determine:

(i) that a Holder may Exercise the Options at any time after the date of such an event until a date determined by the board acting bona fide so as to permit the holder to participate in any change of control rising from a Trigger Event provided that the Board will as soon as practicable advise each Holder in writing of such determination. Thereafter Options which have not been exercised and have not expired shall lapse.

(ii) to use its reasonable endeavors to procure that an offer is made to Holders on like terms (having regard to the nature and value of the Options) to the terms proposed under the Trigger Event in which case the Board shall determine an appropriate period during which Holders may elect to accept the offer and, if the Holder has not so elected at the end of that period, the Options shall immediately become exercisable, and if not exercised within 10 days or otherwise expired, shall lapse.

11.5 Advice

In accordance with the Listing Rules, the Company must give notice to each Holder of any adjustment to the number of Shares for which the Holder is entitled to subscribe or to the Exercise Price pursuant to the provisions of clauses 11.2, 11.3 or 11.4.

12. EXERCISE PRICE OF OPTIONS

The Exercise Price of each Option will be determined by the Board when it resolves to offer the Option and will be not less than 90% of the Market Value of a Share at that time.

13. AMENDMENTS TO THE RULES

The Board may alter, delete or add to these Rules at any time (save for the provisions of clause 3), but, where the Company is admitted to the Official List of ASX, its resolution to do so has no effect unless the requirements of the Listing Rules in relation to the alteration, deletion or addition have been complied with.

14. NOTICES

Where possible notices will be dispatched to Holders electronically to relevant addresses supplied by holders. Otherwise, notices may be given by the Company to any Holder either personally or by sending by post to his address as noted in the Company’s records or to the address (if any) within the Commonwealth of Australia supplied by him to the Company for the giving of notices. Notices of any overseas Holders shall be forwarded and posted by airmail. Where a notice is sent by post the notice shall be deemed to be served on the second day after posting. The signature of any notice may be given by any Director or Secretary of the Company. A notice of exercise of Options shall not be deemed to be served on the Company until actually received.

15. DEFERRED TAX TREATMENT APPLICABLE TO PLAN

Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) applies to the Plan (subject to the requirements of the Income Tax Assessment Act 1997 (Cth)).

16. ADVICE

Eligible Persons are to obtain their own advice at their own expense on financial, taxation and other consequences to them of or in relation to their participation in the Plan. By accepting an offer under the Plan, a person acknowledges that they have not relied on representation made by the Company, the Board or any member of the Board.

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SOUTHERN GOLD LIMITED

ACN 107 424 519

ANNUAL GENERAL MEETING FRIDAY 29 OCTOBER 2021 AT 1230PM (CST)

PROXY FORM

Company Secretary Southern Gold Limited PO Box 255, Kent Town SA 5071 FACSIMILE: +61 (0) 8 8363 0697 EMAIL: [email protected]

I/We

Being a member of Southern Gold Limited,

of (address)

hereby appoint

or failing him/her, the Chairman of the meeting as my/our proxy to vote on my/our behalf at the annual general meeting of the Company to be held on 29 October 2021 at Grant Thornton, Level 3, 170 Frome Street, Adelaide, South Australia, and at any adjournment thereof. If no voting directions are given, the Chairman will vote in favour of each resolution.

Instructions on Voting	Instructions on Voting	FOR	AGAINST ABSTAIN	AGAINST ABSTAIN
Resolution 1	Adoption of the Remuneration Report for the year ended 30 June 2021
Resolution 2	Re‐election of Mr Peter Bamford as a Director
Resolution 3	Approval of Employee Share Option Plan
Resolution 4	Approval of the issue of Options to Mr Greg Boulton or Nominee
Resolution 5	Approval of the issue of Options to Mr Peter Bamford or Nominee
Resolution 6	Approval of the issue of Options to Mr Doug Kirwin or Nominee
Resolution 7	Approval of the issue of Options to Mr Michael McNeilly or Nominee
Resolution 8	Approval of the issue of Options to Mr Bee Jay Kim or Nominee
Resolution 9	Approval of 10% Placement Facility

==> picture [452 x 4] intentionally omitted <==

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Where I/we have appointed the Chairman as my our/proxy (or the Chairman becomes my/our proxy).	Where I/we have appointed the Chairman as my our/proxy (or the Chairman becomes my/our proxy).
Dated this day of	2021
Individuals and joint holders to sign:	Companies to sign (affix common seal if applicable):
Signature	Director, or sole Director / Secretary
Signature	Director / Company Secretary

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AI assistant

IONDRIVE LIMITED — AGM Information 2021

65132_rns_2021-09-26_ab88b43a-1a3b-494c-82e7-8ff3042bf315.pdf

Ordinary Business

Financial Report

Resolution 1 - Adoption of the Remuneration Report for the year ended 30 June 2021

Voting Exclusion

Resolution 2 - Re-election of Mr Peter Bamford as a Director

Other Business

Resolution 3 - Approval of Employee Share Option Plan

Voting Exclusion Statement

Resolution 4 - Approval of the issue of Options to Mr Greg Boulton or his nominee

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

Voting Exclusion Statement

Resolution 5 - Approval of the issue of Options to Mr Peter Bamford or his nominee

Voting Exclusion Statement

Resolution 6 - Approval of the issue of Options to Mr Doug Kirwin or his nominee

Voting Exclusion Statement

Resolution 7 - Approval of the issue of Options to Mr Michael McNeilly or his nominee

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

Voting Exclusion Statement

Resolution 8 - Approval of the issue of Options to Mr Bee Jay Kim or his nominee

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

Voting Exclusion Statement

Resolution 9 - Approval of 10% Placement Facility

Voting Entitlements

Proxies

Corporate Representative

Explanatory Memorandum

EXPLANATORY MEMORANDUM

Resolution 1 – Adoption of the Remuneration Report for the year ended 30 June 2021

Important information for Shareholders:

Resolution 2 – Re-election of Mr Peter Bamford as a Director

Resolution 3 - Approval of Employee Share Option Plan

Important information for Shareholders

Resolution 4 – Approval of the issue of Options to Mr Greg Boulton or his nominee

Resolution 5 – Approval of the issue of Options to Mr Peter Bamford or his nominee

Important information for Shareholders

Resolution 6 – Approval of the issue of Options to Mr Doug Kirwin or his nominee

Important information for Shareholders

Resolution 7 – Approval of the issue of Options to Mr Michael McNeilly or his nominee

Important information for Shareholders

Resolution 8 – Approval of the issue of Options to Mr Bee Jay Kim or his nominee

Important information for Shareholders

Resolution 9 – Approval of 10% Placement Facility

Background to Resolution 9

Description of Listing Rule 7.1A

a) Shareholder approval

c) Formula for calculating 10% Placement Facility

(A x D) – E

Listing Rule 7.1 and Listing Rule 7.1A

Minimum Issue Price

10% Placement Period

Listing Rule 7.1A

Specific information required by Listing Rule 7.3A

The table also shows:

No other material information

GLOSSARY

ANNEXURE A

RULES OF THE SOUTHERN GOLD LIMITED EMPLOYEE SHARE OPTION PLAN

1. DEFINITIONS AND INTERPRETATION

1.1 Definitions

1.2 Interpretation

2. ESTABLISHMENT AND TERMINATION OF THE PLAN

3. NUMBER OF OPTIONS TO BE ISSUED

4. ENTITLEMENT TO PARTICIPATE

5. OFFER OF OPTIONS

6. QUOTATION

7. NOT TRANSFERABLE

8. EXERCISE OF OPTIONS

9. SHARES ALLOTTED ON EXERCISE OF OPTIONS

10. CEASING TO BE AN ELIGIBLE PERSON

11. ENTITLEMENT TO PARTICIPATE IN FUTURE ISSUES

11.1 New Issues

11.2 Bonus Issues

11.3 Pro Rata Issue

A = O – E[P – (S+D)]

11.4 Reorganisation of Capital

(c) If a Trigger Event occurs, the Board may determine:

11.5 Advice

IONDRIVE LIMITED AGM Information 2021