IONDRIVE LIMITED — Capital/Financing Update 2007

Mar 11, 2007

12 March 2007

The Manager Companies Announcements Office Australian Stock Exchange 20 Bridge Street SYDNEY NSW 2000

Dear Sir

SOUTHERN URANIUM LIMITED SHARE OFFER TO CLOSE EARLY HEAVILY OVERSUBSCRIBED

The directors of Southern Gold Limited (ASX code SAU) along with the directors of Southern Uranium Limited advise that the Southern Uranium Limited share offer has been heavily oversubscribed and is therefore closed as of 5pm Friday 9 March 2007, in advance of the indicative timetable.

As outlined in the prospectus, the Company retains absolute discretion in allocating shares under the offer. Given that interest has well exceeded the size of the offer, applicants should note that their applications are likely to be scaled back or may be declined. If the number of shares allotted to an applicant is less that the number applied for, surplus application money will be refunded in accordance with the prospectus. Applicants to the priority offer will be treated preferentially to applicants to the public offer.

Further details on the expected despatch of holding statements to successful applicants and the expected date for quotation of shares by ASX will be advised when that information is available.

Yours Faithfully

Mick BILLING Company Secretary Southern Gold Limited and Company Secretary Southern Uranium Limited

For further details: Mick Billing +61 8 8132 0044