IONDRIVE LIMITED — Capital/Financing Update 2007

Sep 25, 2007

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26[h] September 2007

Macquarie Bank takes a placement in Southern Gold

Macquarie Bank Limited has become Southern Gold’s first major Institutional Investor through a placement in Southern Gold shares. Southern Gold’s largest shareholders Citic Australia Pty Ltd (Citic) and Talbot Group Holdings Pty Ltd (TGH) are also participating in the placement and have increased their combined interest in Southern Gold to 16.5% as a result.

5,000,000 shares are being issued at a price $0.30 to raise a total of $1,500,000. 2,500,000 shares are being issued to Macquarie Bank and 1,250,000 shares each to Citic and TGH. Southern Gold will have a total of 79,360,074 shares on issue as a result.

“Macquarie Bank’s investment in Southern Gold is a vote of confidence in Southern Gold’s upcoming drilling programs and long term growth. We expect to build our relationship with Macquarie as we go forward.” said Stephen Biggins, Managing Director.

Southern Gold is drilling a number of advanced gold and base metal exploration projects in Australia. Southern Gold is also leading the mining industry into Cambodia where it has identified high grade gold mineralisation. The Company holds uranium interests through 45 million shares (39%) in Southern Uranium (ASX:SNU)

For Further information please contact:

Mr Stephen Biggins Managing Director Phone: +61 (0) 8 8132 0044 Fax: +61 (0) 8 8132 0199

Please visit our website at www.southerngold.com.au

Southern Gold Limited 58 North Terrace PO Box 750 email: info@southerngold.com.au telephone 08 8132 0044 ABN 30 107 424 519 Kent Town Kent Town www:southerngold.com.au facsimilie 08 8132 0199 South Australia 5067 South Australia 5071