IONDRIVE LIMITED — Capital/Financing Update 2009

Oct 18, 2009

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19 October 2009

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

Dear Sir,

CANCELLATION OF OPTIONS

The following options to acquire ordinary shares in Southern Gold Limited have been cancelled due to employees ceasing to be associated with the company.

Number of Options Exercise Price Expiry Date 125,000 15 cents 30 September 2013 125,000 15 cents 30 September 2013

Regards Nick Harding Company Secretary

Southern Gold Limited 47 Tynte Street PO Box 1016 emailinfo@southerngold.com.au telephone 08 8368 8888 ABN 30 107 424 519 North Adelaide North Adelaide web southerngold.com.au facsimile 08 8368 8899 South Australia 5006 South Australia 5006