IONDRIVE LIMITED — Capital/Financing Update 2009

Jan 29, 2009

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Notice under Appendix 7A of the ASX Listing Rules

Southern Gold Limited (ASX: SAU) ( SAU ) refers to its Offer Memorandum and Appendix 3B lodged with ASX on 24 December 2008 in relation to a one for three non‐renounceable pro‐ rata rights issue priced at $0.05 per new SAU share ( Rights Issue ).

This notice is given in accordance with Appendix 7A of the ASX Listing Rules.

SAU advises that the Rights Issue of 31,173,122 shares (taking into account the impact of rounding) was undersubscribed by 19,811,429 shares ( Shortfall Shares ).

The Rights Issue was fully underwritten by Talbot Group Holdings Pty Ltd ( Talbot ). In accordance with the terms of the underwriting agreement, Talbot will subscribe for all of the Shortfall Shares.

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Michael Billing Company Secretary Southern Gold Limited

Southern Gold Limited 47 Tynte Street PO Box 1016 email: info@southerngold.com.au telephone 08 8368 8888 ABN 30 107 424 519 North Adelaide North Adelaide www:southerngold.com.au facsimilie 08 8368 8899 South Australia 5006 South Australia 5006