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IONDRIVE LIMITED Capital/Financing Update 2012

Apr 11, 2012

65132_rns_2012-04-11_88794d64-6403-4420-92a2-d09049214f43.pdf

Capital/Financing Update

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12 April 2012

Company Announcements Office ASX Securities Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam,

UNDERWRITTEN RIGHTS ISSUE SHORTFALL NOTICE

Southern Gold Limited (ASX: SAU) ( Southern Gold ) refers to its two (2) for seven (7) non‐ renounceable fully underwritten rights issue announced to the market on 7 March 2012 ( Rights Issue ).

The directors of Southern Gold are pleased to announce that the Rights Issue closed on 5 April 2012 and will raise a total of $3,313,168 (before costs and expenses and subject to receipt of the underwritten subscription monies).

Southern Gold received valid acceptances for 28,947,242 new shares at an issue price of $0.043 per share. The total shortfall under the Rights Issue was 48,103,169 new shares. The securities forming the shortfall will be allocated to BBY Limited (and/or its nominees) as underwriter of the Rights Issue in accordance with its Underwriting Agreement with Southern Gold.

The allotment and issue of new shares for which valid acceptances have been received will occur on 17 April 2012 and to the underwriter (and/or its nominees) on or shortly afterwards.

The directors of Southern Gold would like to express their thanks for the support provided by participants in the capital raising.

Yours sincerely

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Nick Harding Company Secretary Southern Gold Limited

Southern Gold Limited Ground Floor, Unit 1 PO Box 255 email [email protected] telephone 08 8368 8888 ABN 30 107 424 519 229 Greenhill Road Kent Town web southerngold.com.au facsimile 08 8431 5619 Dulwich SA 5065 SA 5071