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IONDRIVE LIMITED Capital/Financing Update 2013

Jan 17, 2013

65132_rns_2013-01-17_f05f7e17-ce29-4ab6-81ba-1a1816cd0c5c.pdf

Capital/Financing Update

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==> picture [595 x 96] intentionally omitted <==

18 January 2013

The Manager Companies Announcements Office Australian Stock Exchange 20 Bridge Street SYDNEY, NSW 2000

Dear Sir,

FORTHCOMING RELEASE OF SECURITIES SUBJECT TO VOLUNTARY ESCROW

Pursuant to ASX Listing Rule 3.10A, Southern Gold advises that 26,967,644 fully paid ordinary shares will be released from voluntary escrow on 2 February 2013. These shares were issued to Integra Mining Limited, now a wholly owned subsidiary of Silver Lake Resources Limited, on 2 February 2012 under a placement to provide funds to advance evaluation studies on the Cannon Gold Project.

Southern Gold currently has 346,726,851 fully paid ordinary shares on issue, all of which are quoted.

Yours faithfully,

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Nick Harding Company Secretary

Southern Gold Limited ABN 30 107 424 519

Ground Floor, Unit 1 PO Box 255 229 Greenhill Road Kent Town Dulwich SA 5065 SA 5071

email [email protected] telephone 08 8368 8888 web southerngold.com.au facsimile 08 8431 5619