IONDRIVE LIMITED — Capital/Financing Update 2007

Feb 4, 2007

5th February 2007

Southern Uranium

SOUTHERN URANIUM IPO UNDERWRITTEN

The Directors of Southern Gold Limited (ASX Code : SAU) and Southern Uranium Limited (Proposed ASX Code : SNU) are pleased to announce the upcoming Southern Uranium initial Public Offering (IPO) is to be jointly underwritten by Taylor Collison Limited and Lands Kirwan Tong Stockbrokers Pty Limited. These brokers were also joint underwriters for the successful Toro Energy Limited (ASX code : TOE) uranium IPO in 2006.

Southern Uranium has reserved \$10,000,000 of the IPO for Southern Gold shareholders registered on the 12 February 2006. Southern Gold is finalising cornerstone investors for commitment to at least \$4,000,000 in the IPO.

The Southern Uranium IPO is expected to open later in February with the listing of the shares on the ASX anticipated to be later in March. Southern Uranium Limited is issuing 70,000,000 shares to raise \$14,000,000 cash as part of its IPO.

Southern Gold will retain 39% equity (45,000,000 shares) of the 115,000,000 shares on issue when Southern Uranium Ltd lists on the ASX.

Southern Uranium initial focus is on uranium exploration projects covering over 10,000km² in one of the worlds leading uranium provinces, the Gawler Craton, which hosts over a third of the world uranium resources at Olympic Dam.

For Further information please contact:

Mr Stephen Biggins Managing Director Southern Gold Limited

Or

Mr John Anderson Managing Director Southern Uranium Limited

Tel: +61 (0) 8 8132 0044 Fax: +61 (0) 8 8132 0199

Please visit our website at www.southerngold.com.au And new website www.southernuranium.com.au

Southern Gold Limited ABN 30 107 424 519

58 North Terrace Kent Town South Australia 5067

PO Box 750 Kent Town South Australia 5071 email: info@southerngold.com.au telephone 08 8132 0044 www.southerngold.com.au

facsimilie 08 8132 0199