IONDRIVE LIMITED — Capital/Financing Update 2005

May 3, 2005

SOUTHERN GOLD RECEIVES DRILL FUNDING UNDER S.A. GOVERNMENT PACE PROGRAM

The Directors of Southern Gold are pleased to announce today that Southern Gold has been granted drill funding on two projects in the Gawler Craton in South Australia.

A total of \$146,000 has been awarded by the South Australian Government through its PACE program.

In the first allocation, \$80,000 has been awarded for the drilling of the Olympic Damstyle (copper, uranium, gold) gravity target at Victory Prospect on the Southern Gawler Arc Project, EL 3158. Drilling of the Victory Gravity target is planned for July 2005.

Under a second allocation, \$46,000 has been awarded for the drilling of gold targets within the Yarlbrinda Shear Zone (YSZ) system on the Yarlbrinda (EL 3217) Project.

EL 3217 is positioned 30km south of the Tunkillia 730,000oz gold resource which is subject to a joint venture between Helix and Minotaur. Drilling at Yarlbrinda will commence once further calcrete and geophysical surveys have been completed.

For further information please contact

Stephen Biggins, Managing Director $(08)$ 8227 1103