IONDRIVE LIMITED — Capital/Financing Update 2005

Jun 19, 2005

SOUTHERN GOLD INCREASES URANIUM INTERESTS

Diversified metals explorer, Southern Gold Limited (ASX code "SAU") has added to its uranium exploration portfolio with the acquisition of an interest in the Yarlbrinda South licence in far west South Australia.

Southern Gold has acquired 35% of the 470km² Yarlbrinda South Project (EL 3160) through the payment of \$15,000 and the issue of 50,000 SAU shares.

Southern Gold also has the right to earn up to 70% of the project through the expenditure of a further \$300,000 on the acreage over the next three years.

"Yarlbrinda South is a valuable addition to our Yarlbrinda package of tenements by extending our potential for uranium and base metal discoveries. The terms of the latest acquisition are highly favourable to Southern Gold, and are a highly cost competitive entry into this tenement," Southern Gold's Managing Director, Mr Stephen Biggins, said today.

"Yarlbrinda South exhibits the same potential for uranium in Olympic Dam-style mineralisation as the adjacent Yarlbrinda Project, which we recently joint ventured with uranium explorer Hindmarsh Resources Limited," Mr Biggins said.

"Value of this project will increase as new government gravity surveys are completed over these tenements in the next few weeks at no cost to Southern Gold. Gravity is one of the keys to finding another Olympic Dam or Prominent Hill." Mr Biggins said.

The newly acquired licence area also includes the uranium mineralised Narlaby Palaeochannel that drains off the nearby uranium rich Hiltaba granites.

A project location map appears on the following page.

MEDIA CONTACT:

Stephen Biggins, Southern Gold (08) 8227 1103 / M 0419 859 600

SOUTHERN GOLD LIMITED ABN 30 107 424 519 262-266 Pirie St, ADELAIDE SA 5000 Ph: 08 8227 1103 Fax: 08 8223 5290 info@southerngold.com.au