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IONDRIVE LIMITED Capital/Financing Update 2012

Mar 21, 2012

65132_rns_2012-03-21_0922c9e2-f6f6-4a3a-bab1-4075bf02c904.pdf

Capital/Financing Update

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22 March 2012

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By E‐mail: ASX On‐line

Manager Companies Company Announcements Office ASX Limited

Dear Sir/Madam

ASX Code: SAU Notice of dispatch of Rights Issue Offer Memorandum

Southern Gold Limited refers to the Offer Memorandum lodged with ASX on 7 March 2012 for a fully underwritten two (2) for seven (7) non‐renounceable pro‐rata entitlement issue of up to approximately 77 million new shares in Southern Gold Limited (without taking into account the impact of rounding) priced at $0.043 per new share ( Rights Issue ).

The Offer Memorandum was dispatched to shareholders today.

Please note that paragraph 12 of section 1 of the Offer Memorandum as lodged with ASX on 7 March 2012 has been amended due to an alteration in the process by which the broker handling fee may be claimed by qualifying brokers. A copy of the amended Offer Memorandum is attached. Please refer to paragraph 12 of section 1 of the amended Offer Memorandum for full details of the broker handling fee.

Yours sincerely,

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Nanette Anderson Managing Director

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