IONDRIVE LIMITED — Capital/Financing Update 2013

Dec 5, 2013

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6 December 2013

Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam,

RIGHTS ISSUE SHORTFALL NOTICE

Southern Gold Limited (ASX: SAU) ( Southern Gold ) refers to its three (3) for eight (8) partially underwritten, non‐renounceable rights issue announced to the market on 6 November 2013 ( Rights Issue ).

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

The Directors of Southern Gold are pleased to announce that the Rights Issue closed on 3 December 2013 and will raise a total of $364,783 (before costs and expenses and subject to receipt of subscription monies from the underwriter).

Southern Gold received valid acceptances for 17,318,926 new shares at a total price of $0.015 per share. The total shortfall under the Rights Issue was 117,905,427 new shares ( Shortfall Shares ). 7,000,000 Shortfall Shares will be allocated to Ms Nanette Anderson (and/or her nominees) in accordance with her agreement to partially underwrite the Rights Issue.

The allotment and issue of new shares to accepting shareholders and the underwriter will occur on 11 December 2013. Holding statements for the new shares will be despatched shortly thereafter.

Having reserved the right to do so, the Board intends to place the remaining 110,905,427 Shortfall Shares (being those new shares not issued to accepting shareholders or the underwriter) at its discretion within the 3 month period following the close of the Rights Issue and at a price not less than the issue price under the Rights Issue (being $0.015). Southern Gold has engaged BBY Limited, Lead Manager to the Rights Issue, to assist to place the remaining Shortfall Shares.

Net proceeds from the Rights Issue will be applied as described in the Offer Memorandum lodged with ASX on 6 November 2013.

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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Dan Hill Company Secretary

Southern Gold Limited Ground Floor, Unit 1 PO Box 255 email info@southerngold.com.au 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