IONDRIVE LIMITED — Capital/Financing Update 2013

Dec 3, 2013

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4 December 2013

Dear Option Holder,

Exercise price of options from Rights Issue

Southern Gold Limited (ASX : SAU) has recently undertaken a three (3) for eight (8) nonrenounceable rights issue priced at $0.015 per new share to raise approximately A$2.03 million before costs (Rights Issue). The Rights Issue closed on 3 December 2013.

As a result of the Rights Issue, we can advise that there is no change in the exercise price of your Southern Gold options.

If you have any queries in relation to this please contact me of 08 8368 8888

Yours sincerely

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Dan Hill Company Secretary 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

email info@southerngold.com.au telephone 08 8368 8888 web southerngold.com.au facsimile 08 8431 5619