IONDRIVE LIMITED — Capital/Financing Update 2012

Feb 8, 2012

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SOUTHERN GOLD LIMITED ACN 107 424 519

ASX ANNOUNCEMENT

NOTICE UNDER SECTION 708A(5) OF THE CORPORATIONS ACT

Southern Gold Limited (ASX: SAU) ( SAU ) gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) ( Act ) in relation to the 26,967,644 fully paid ordinary shares in SAU issued to Integra Mining Limited on 2 February 2012 ( Placement ).

SAU advises that:

• (1) the securities offered under the Placement were issued without disclosure to investors under Part 6D.2 of the Act;

• (2) as at the date of this notice SAU has complied with the provisions of Chapter 2M of the Act as they apply to SAU and section 674 of the Act; and

• (3) as at the date of this notice there is no information that is excluded information within the meaning of section 708A(7) of the Act that has not already been disclosed to investors generally.

Dated this 9[th] day of February 2012

By order of the Board

Greg Boulton Chairman Southern Gold Limited

Southern Gold Limited Ground Floor, Unit 1 PO Box 255 ABN 30 107 424 519 229 Greenhill Road Kent Town Dulwich SA 5065 SA 5071

emailinfo@southerngold.com.au telephone 08 8368 8888 web southerngold.com.au facsimile 08 8368 8899