IONDRIVE LIMITED — Capital/Financing Update 2005

Apr 26, 2005

SOUTHERN GOLD IN \$2.5M JOINT VENTURE

TO DEVELOP S.A. URANIUM PROJECTS

Newly listed Southern Gold Limited (ASX code: "SAU") has finalised a \$2.5 million joint venture package to explore its uranium assets in South Australia.

Southern Gold has secured separate agreements for its uranium interests close to the Challenger gold mine, and on the Yarlbrinda and Southern Gawler Arc projects on the Gawler Craton.

The joint ventures are with Newcastle Stock Exchange listing Hindmarsh Resources Limited which took a 4.9% stake in the new Southern Gold listing. Hindmarsh is currently in the process of acquiring an extensive uranium exploration portfolio in South Australia and has cash resources of some \$2.5 million. Hindmarsh's Chairman, Mr Richard Bonython, is also a Director of Minotaur Exploration Ltd.

Southern Gold has drilling targets for a range of high value mineral commodities within its tenements and to attract such early financial and fieldwork support for uranium exploration work is assuring and welcome.

This will allow Southern Gold to conduct a number of exploration programs in parallel and at higher levels of activity than previously envisaged for the first two year work program.

Terms of Agreement

Under the joint ventures announced today, Hindmarsh Resources (NSX code: HDL) can earn a 51% interest in each of the Challenger West project EL's 3080, 3097 and 3308 (previously ELA 654/04) in far northwestern South Australia, in respect of uranium only.

Hindmarsh may then spend \$250,000 on each of the three tenements within two years and can increase its stake to 80% by spending an additional \$250,000 on each block within an additional 18 month period – a total commitment of \$1.5 million over 3.5 years.

Uranium mineralisation of 0.64kg/t $U_3O_8$ , downstream from Southern Gold tenements, has been identified within the 80 kilometres of ancient river beds (paleochannels) which are known to be highly prospective for uranium deposits similar to the Beverley and Honeymoon projects in the Cumamona Craton to the east.

Primary targets will be drilled into the Garford and Anthony Bend which contain 40-80 metre deep channels with potential for uranium mineralisation.

Successful discovery would likley employ in-situ leach technology similar to that operating at the Beverlev mine.

Hindmarsh Resources has also agreed to spend a minimum of \$250,000 per tenement to earn a 25% interest in each of Yarlbrinda (EL 3217) and Southern Gawler Arc (EL 3158). two Olympic Dam style uranium/copper/gold targets in the Gawler Craton.

Hindmarsh can build this to 35% by spending an additional \$250,000 on each tenement $- a$ total expenditure of \$1.0 million.

The Southern Gawler Arc project contains an untested drill-ready gravity and calcrete anomaly with potential for a new copper/gold/uranium discovery similar to Prominent Hill to the north.

Drilling of this target will commence mid year.

Hindmarsh also holds ELAs 96/05 and 199/05 adiacent to Southern Gold's Challenger West project. Southern Gold has the right to earn a 30% interest in respect of uranium only by expending \$400,000 within 2 years. These tenements contain extensions of the paleochannels considered to be highly prospective for high-grade sedimentary uranium deposits suitable for insitu leach mining technology.

The directors of Southern Gold believe that these joint ventures provide maximum exposure for both parties for the mutual exploration, discovery and commercialisation of uranium deposits on the Gawler Craton, a province hosting 38% of the world's uranium.

For further information, please contact:

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