IONDRIVE LIMITED — Capital/Financing Update 2016

Jul 7, 2016

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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 6,294,942 fully paid ordinary shares in SAU issued to Asiatic Gold Limited on 7 July 2016 ( 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 7[th] Day of July 2016

By order of the Board

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Greg Boulton Chairman

Southern Gold Limited

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

Southern Gold Limited Level 1 PO Box 255 ABN 30 107 424 519 8 Beulah Road Kent Town Norwood SA 5067 SA 5071