IONDRIVE LIMITED — Capital/Financing Update 2018

Jul 18, 2018

New tenements granted over large gold and silver mineralised epithermal vein system in south-western South Korea

Highlights

Shares on Issue: 49.15m Share Price: $0.24 Market Capitalisation: $11.8m

Asset Base – WA, Australia Cannon Gold Mine (100%) Glandore Gold Project (75%) Cowarna Gold Project (100%) Transfind South (Option) currently earning 90%

Asset Base – South Korea Gubong Project (100%/BMV) Taechang Project (100%/BMV) Kochang Project (100%/BMV) Weolyu Au-Ag Project (100%) Hampyeong Au-Ag Proj. (100%) Aphae Au-Ag Proj. (100%) Beopseongpo Au-Ag Proj. (100%) Currently under BMV farm-in

Directors

Greg Boulton AM (Chairman) Simon Mitchell (MD) Peter Bamford Michael Billing David Turvey

• [T] wo new tenements granted 100% to Southern Gold at the recently identified large Beopseongpo Au-Ag epithermal target in south western South Korea.

• Recent rock chip sampling of vein outcrop and float material, returning grades up to 21.8 g/t Au and 19 g/t Ag (float); 3.0g/t and 1 g/t Ag (outcrop).

• The vein system has been traced for 3.8 km along strike and is of a high-level low-sulphidation style.

• No known previous drilling into the vein system.

Tenure granted over Beopseongpo Project

Southern Gold Limited is pleased to announce the Company has been granted formal tenure over the large-scale Beopseongpo gold-silver epithermal vein system in the central-southwest of South Korea ( Figure 1 ).

Detailed ground assessment work late in 2017 identified Beopseongpo as one of several very prospective epithermal gold-silver targets with no known drilling to date. The new tenements, Beopseongpo 29 and 30, are a significant addition to the Southern Gold portfolio with a 4km traceable strike length, 1m plus vein widths within a 30m wide alteration zone and the preservation of mineralised vein intervals suggesting that it is an extensive low-sulphidation epithermal Au-Ag system.

Beopseongpo is one of multiple epithermal discoveries recently achieved through regional project generation exercises being conducted throughout South Korea.

Head Office

Southern Gold Ltd Level 1, 8 Beulah Rd Norwood SA 5067 Telephone: (08) 8368 8888 Facsimile: (08) 8363 0697 info@southerngold.com.au www.southerngold.com.au ABN: 30 107 424 519

Postal Address

Southern Gold Ltd PO Box 255 Kent Town SA 5071

Southern Gold Managing Director, Mr Simon Mitchell: “Beopseongpo is another example of Southern Gold’s ability to explore for exciting new projects in South Korea that have both size and high-grade potential. I am very excited by the granting of tenure at Beopseongpo as this is a first class Au-Ag target and allows for more thorough surface mapping and sampling along strike and to conduct scout diamond drilling. The target here is probably about 150m below surface so would have been missed by the historic miners.

“Beopseongpo has the potential to be a very large system. The work by a world expert consultant in epithermal systems indicates that this discovery on surface is relatively high in the epithermal system model and could represent an opportunity for a bonanza-grade system at depth given the textures that are analogous to the top zones of the Gladstone-Favona vein system.”

Figure 1: Location of Beopseongpo Gold Project, granted tenure and recent rock chip results.

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Beopseongpo – History

The Beopseongpo project is located approximately 40km east-northeast of Gwangju city in the southern Jeolla Province, in the south west of South Korea. The region hosts several known gold occurrences including the current Eunsan-Moisan operating goldmine to the south. This region is an ongoing focus for exploration by Southern Gold Korea for epithermal Au-Ag deposits. The Company has engaged experienced independent epithermal consultant and ex-Ivanhoe geologist, Mr Craig Panther, to undertake field exploration and project generation targeting.

Previous work was originally completed around the Beopseongpo Project area in 1999 by Indochina Goldfields Ltd with the area reinvestigated early in 2000 by Ivanhoe Mining as part of a general field review of hydrothermal clay deposits and associated vein systems on islands surrounding the Jeolla-nam do coastline. It was identified as a high-level low-sulfidation epithermal vein system, with well-developed lattice quartz after calcite and was traced for more than three kilometres.

Geology

Beopseongpo project is defined by a wide vein zone that has an interpreted strike length of over 3.8km. This low-sulfidation adularia-sericite type epithermal vein system (akin to the Southern Gold owned Weolyu project) is localised proximal to a faulted contact between basement gneiss and schist and cretaceous rhyolite volcanics.

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Photo 1: North Beopseongpo vein, a massive quartz vein hosted within intensely limonite-hematite oxidised and clay altered rhyolitic volcanics.

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Photo 2: Central Beopseongpo vein outcrop above local farming area.

Veining is hosted within both basement granitic gneiss/schist and rhyolitic dome tuff facies volcanics (Figure 1, Photo 1 and 2) . The vein corridor is up-to 30 metres wide in known exposed width (Figure 1 and Photo 2) and hosts at least three quartz veins between one and two metres in width, with numerous subordinate parallel vein sets.

Textural descriptions of quartz veining within the prospect area has helped inform the understanding of the epithermal zonation across the vein system. Structural measurements obtained from insitu outcrop, provided strike and dip of the quartz veining and the faulted contact of the basement schist-gneiss and younger rhyolite volcanics. These measurements indicate that the system is more than 4km in strike length extending over the two granted tenure blocks and dips 70-85 degrees to the west.

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Photo 3: KRS203143. 0.38 g/t Au, <1 g/t Ag. Hydraulic vein breccia comprised of angular rhyolitic wall-rock fragments set in a white mesocrystalline quartz flood matrix. North Beopseongpo Vein Segment.

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Photo 4: KRS203114. Results below detection limits Multi-phase vein sample comprised of rhythmically banded chalcedonic silica with a core of chalcedonic quartz cemented quartz pseudomorphs after bladed calcite. Central Beopseongpo Vein Segment.

Gold-silver anomalism show relationships associated with quartz textural and absolute elevation differences (the original paleo water table) along this extensive vein system. The northern vein segment with the most anomalous gold values is at a lower elevation than the central and southern vein segments.

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Photo 5: KRS203071. Precious metals below detection limits. Multiphase hydraulic vein breccia with quartz pseudomorphs after bladed calcite. Central Beopseongpo Vein Segment.

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Photo 6: KRS203043. Precious metals below detection limits. Vein sample comprised solely of quartz pseudomorphs after bladed calcite, indicative of flash boiling. Central Beopseongpo Vein Segment.

The North and Central Vein sections are comprised of polyphasal, massive to crudely banded mesocrystalline, crystalline and chalcedonic quartz, hosting zones of pronounced hydraulic brecciation (Photo 3) . Black to grey fine-grained unresolvable sulphides are present, and bladed quartz pseudomorphs after calcite are common (Figure 1 and Photo 4, 5 and 6) . The latter is an indicator of a gas-rich, boiling hydrothermal fluid and quartz textures in general are indicative of dynamic formation at a level no more than fifty metres below the paleowatertable. Host rhyolites are pervasively silica-illite ± adularia-clay altered, and the presence of sulfide is indicated by extensive limonitic, goethitic and local haematitic oxide stain development (Photo 7 and 8) .

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Photo 7: KRS203141. 1.56 g/t Au, <2 g/t Ag Limonitic to haematitic recrystallised chalcedonic quartz with a cockade band rimmed rhyolitic wall-rock fragment. North Beopseongpo Vein Segment.

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Photo 8 : KRS203059. 0.13 g/t Au, <2 g/t Ag Hydraulic vein breccia comprised of chalcedonic quartz vein fragments cemented by chalcedonic silica. Note wisps of fine-grained grey-black sulphide & limonitic band fragments. Central Beopseongpo Vein Segment.

The South Vein section is characterised by voluminous crystalline, saccharoidal to lesser mesocrystalline quartz vein float, with pronounced quartz pseudomorphs after bladed calcite (Figure 1, Photo 8) . The weakly anomalous gold assay results reported for the South Vein area is significant considering the very shallow exposure level that the quartz texture observations indicate.

SampleID	NAT_Grid_ID	NAT_North	NAT_East	NAT_RL	Au_ppm	Ag_ppm
KRS203145	WGS84_52N	3916152	268900	30	21.8	19
KRS203042	WGS84_52N	3914762	268789	61	3.85	14
KRS202343	WGS84_52N	3907412	267140	13	3.0	1
KRS203141	WGS84_52N	3916152	268893	30	1.56	1
KRS203140	WGS84_52N	3916149	268891	31	1.05	1

Table 1: Significant Assays (>1g/t Au or >1g/t Ag) from rock samples at Beopseongpo.

Planned Activities

Follow-up project scale lithology, alteration and geo-structural mapping of granted tenure is planned as a first stage. Recommendations from regional mapping and sampling exercises will inform a maiden diamond core drilling program. Drilling will primarily test vein continuity and define veining trends and quartz vein textural variations to vector towards significant gold-silver mineralization targets at depth.

Beopseongpo is a regional farming community with large areas of seasonal crops with defined growing periods and SAU will work around these timings to minimise any impacts. During the colder periods, the farms are fallow and the opportunity to drill is less intrusive to the community. A preliminary scout diamond drill program has been designed to test the mineralisation model down dip and confirm strike continuity.

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Southern Gold Limited: Company Profile

Southern Gold Ltd is a successful gold explorer and producer listed on the Australian Securities Exchange (under ASX ticker “SAU”). At the Cannon project near Kalgoorlie we are currently developing a small underground operation where Northern Star Resources Ltd holds a five year right-to-mine. Southern Gold is also looking to develop a much larger mine, Gubong, in South Korea within the next 12-18 months with development partner London-listed Bluebird Merchant Ventures.

We are also active explorers. Around Kalgoorlie Southern Gold is testing projects such as Glandore, Transfind Extended and Cowarna looking for additional small high grade open pit-able gold resources to maintain cash flow. In South Korea, Southern Gold also owns a portfolio of high grade gold projects that are a combination of decommissioned gold mines with orogenic gold mineralisation and greenfield epithermal gold targets. Backed by a first-class technical team, including renowned geologist Douglas Kirwin, Southern Gold’s aim is to find world-class epithermal gold deposits.

In essence, Southern Gold looks to monetise the small gold deposits while we search for the bigger ones.

Competent Person’s Statements

The information in this report that relates to Exploration Results in South Korea has been compiled under the supervision of Dr Chris Bowden, FAusIMM(CP). Dr Bowden who is an employee of Southern Gold Limited and a Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Dr Bowden consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Forward-looking statements

Some statements in this release regarding estimates or future events are forward looking statements. These may include, without limitation:

• Estimates of future cash flows, the sensitivity of cash flows to metal prices and foreign exchange rate movements;

• Estimates of future metal production; and

• Estimates of the resource base and statements regarding future exploration results.

Such forward looking statements are based on a number of estimates and assumptions made by the Company and its consultants in light of experience, current conditions and expectations of future developments which the Company believes are appropriate in the current circumstances. Such statements are expressed in good faith and believed to have a reasonable basis. However, the estimates are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from estimated results.

All reasonable efforts have been made to provide accurate information, but the Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of this presentation, except as may be required under applicable laws. Recipients should make their own enquiries in relation to any investment decisions from a licensed investment advisor.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.	Selective rock grab and rock chip sampling was undertaken at locations on identified veins, vein breccias and vein zones, to a significant data density to ensure samples represented observed features appropriately for first-pass exploration results.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Selective rock grab and rock chip sampling was undertaken at locations on identified veins, vein breccias and vein zones, to a significant data density to ensure samples represented observed features appropriately for first-pass exploration results. Sample intervals and sites were chosen selectively to reflect geological features relevant to the target style of mineralisation.
	Aspects of the determination of mineralisation that are Material to the Public Report.	Determination of mineralisation was achieved by geological logging of rock chips by experienced SAU and contractor geologists.
	In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	All samples discussed in this ASX release are derived from ‘industry standard’ laboratory preparation, element analysis and data review. Individual sample weights were in the range of 4.1kg maximum, to 0.2kg minimum, and an average of 2.05kg. All samples were prepared by SGS and analysed by ALS laboratories for gold and a multi- element suite (including silver and base metals). QAQC and laboratory processes are discussed in further detail below.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc.).	No drilling has been conducted or reported in this release.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	No drilling has been conducted or reported in this release.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	Not applicable for this release – no drilling conducted or reported in this release.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Not applicable for this release – no drilling conducted or reported in this release.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical	Not applicable for this release – no drilling conducted or reported in this release.

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Criteria	JORC Code explanation	Commentary
	studies.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	Not applicable for this release – no drilling conducted or reported in this release.
	The total length and percentage of the relevant intersections logged.	Not applicable for this release – no drilling conducted or reported in this release.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	Not applicable for this release – no drilling conducted or reported in this release.
	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	Not applicable for this release – no drilling conducted or reported in this release.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	All drill core samples were sent to SGS laboratory in South Korea for sample preparation. SGS is an ISO/IEC 17025:2005 certified laboratory. Samples were dried and crushed to 75% passing 2mm, split to 1,000g, then pulverised to 85% passing 150 microns. The nature of the laboratory preparation techniques are considered ‘industry standard’ and appropriate.
	Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.	The crushing stage unit is a Rocklabs Smart Boyd-RSD Crusher capable of over 5kg primary sample in one load, with rotating sample divider (RSD) ensuring single pass crushing, producing representative coarse sample split sent to grinding, typically up to 1,000g. Coarse rejects are retained for each sample. The grinding stage unit is an Essa LM2 and utilises a large grinding bowl (1,600g) ensuring single pass grinding of the coarse split, enabling a parent pulp sample, a daughter pulp sample, and a reject pulp sample to be produced (typically each 300g) in one grind. Pulp rejects are retained for each sample. Analysis of the reject tails and size pass rates for both the crush and grind circuits indicates that the coarse and pulp split samples are considered representative of the primary sample.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	Analysis of coarse/pulp dup results required: eg analysis of coarse and pulp duplicate results are within acceptable variance thresholds (nominally 10%) and thus the sub- sampling techniques and sample preparation are considered representative and appropriate.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample size is considered appropriate for the target style of mineralisation, the requirements for laboratory sample preparation and analyses, and consideration reporting is for early stage Exploration Results.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Pulp samples (typically 300g) prepared by SGS in South Korea are sent through registered airfreight (eg DHL) to ALS laboratory in Laos for Au analysis, with a 10g split sent to ALS Brisbane for multielement analysis. ALS is an ISO/IEC 17025:2005 and ISO9001:2015 certified laboratory. Gold was analysed on a 50g charge using fire assay fusion with an atomic absorption spectroscopy finish (ALS method AuAA26). Detection limit range is 0.01ppm to 100ppm Au. A 35 multi-element suite was analysed on a 0.5g pulp sample split using aqua regia digest with an inductively coupled plasma – atomic emission spectroscopy (ICP-AES) finish (ALS method ME-ICP41). Silver was analysed as part of the multi-element aqua-regia digest ICP-AES(method ME-ICP41),with an upper detection

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Criteria	JORC Code explanation	Commentary
		limit 100g/t Ag. The nature of the laboratory assay sampling techniques are considered ‘industrystandard’ and appropriate.
	For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	Not applicable - no data from geophysical tools were used to determine analytical results in this ASX Release.
	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	Given the nature of the rock sampling, internal lab standards were considered appropriate for reconnaissance rock samples.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Assay data has been verified by the database manager responsible for importing laboratory results into the database. Logging data and core sample intervals have been compiled by the geologists directly involved in the drilling program, under guidance of the Exploration Manager (Competent Person). Significant intersections in this ASX Release have been verified by the Exploration Manager (Competent Person).
	The use of twinned holes.	No twinned holes have been completed as part of this ASX Release, as the program is at an early stage.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Primary data is recorded preferentially into proprietary data capture software or otherwise into digital spreadsheets or hand-written documents. All original hardcopy logs and sample reference sheets are kept for reference. Digital data entry is validated through the application of database validation rules and is also visually verified by the responsible geologist through GIS and other software. Any failures are sent back to the responsible geologist for correction and re- submission. Data is stored in an SQL database managed through proprietary software. The database is backed up as part of the Companyserver backup protocol.
	Discuss any adjustment to assay data.	Assay data is imported into the Company database from original lab files via automated queries, thus minimising error in tagging samples with results. No adjustments are made to the assaydata.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Sample XYZ locations are determined with a hand-held Garmin 62s GPS, producing levels of accuracy +/- 3m.
	Specification of the grid system used.	The grid system used is Universal Transverse Mercator (WGS84),Zone 52 Northern Hemisphere.
	Quality and adequacy of topographic control.	Korean governmental 5m contour data is utilized and is suitable for topographic control on early stage drilling campaigns. SAU is trialing detailed topographic survey flown over the Hampyeong drilling area using a SAU owned and operated DJI Phantom drone. The survey has an X, Y, and Z precision of <5cm with a relative accuracy to the local DTM sourced from government 5m contours, processing is completed using DroneDeploy application and outputs a Digital Terrain Model (DTM).

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Criteria	JORC Code explanation	Commentary
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Not Applicable – samples have been taken for a first pass surface exploration strategy and no samples have been taken in any pre-defined sequence or spacing.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	No Mineral Resource or Ore Reserve have been estimated in this ASX Release.
	Whether sample compositing has been applied.	No sample compositing has been applied.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Sampling was undertaken to prepare maps of lithological boundaries and structural trends. The sampling undertaken targeted all rock types present. Structural recordings have been integrated into the conceptual model.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	Not Applicable – No drilling has been completed at Beopseongpo.
Sample security	The measures taken to ensure sample security.	From the point of sample generation to laboratory, samples (and reject returns) are under the full security and Chain of Custody of the Company. This is done by the following procedures: Samples are securely locked overnight in an on-site secure facility or a locked Vehicle. Post on-site logging and processing, samples are transported to the Company’s long- term core storage facility under the direct supervision of a Company representative. Samples are securely locked at the long-term storage. Samples are further processed and each sample slabbed and split for sampling by Company representatives under guidance of the Competent Person. Bagged samples are secured by tags and delivered by a Company representative to a courier service to deliver to the sample preparation laboratory. The preparation laboratory sends pulp samples directly to the assay laboratory for analysis via door-to-door courier service. All rejects are returned under courier service and stored in the Company’s secure lock-up long-term core storage facility.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No audits or reviews of sampling techniques and data have been undertaken at this time.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	The tenements, Beopseongpo 29 and Beopseongpo 30 are held by Southern Gold Korea, a fully owned subsidiary of Southern Gold (see Figure 1). There are no native title interests in Korea. It is a generally accepted requirement that mineral title holders gain the consent of local land owners and residents before undertaking any major exploration activity, such as drilling. The Beopseongpo mineralised structures lie on privately held farm and government forest land. There are no known material issues with thirdparties

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Criteria	JORC Code explanation	Commentary
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.	Following the submission of a Mineral Deposit Report for a tenement application, it is reviewed by the MRO who determine if the application meets specified criteria for approval and if so, grant an Exploration Right. The holder then has 1 year to submit an Exploration Plan to the Ministry outlining planned work. An initial 3 year exploration period is given to complete the exploration work, which can be extended to 6 years upon a successful submission to the Ministry. After the exploration period and upon an Exploration Results Report being accepted, the Exploration Right is converted to an Extraction Right. Results are from Beopseongpo 29 and Beopseongpo 30, which is an Exploration Right granted on the 10/07/2018. Upon successful conversion to an Extraction Right, the holder has 3 years to submit and have an Extraction Plan authorised. An application can be made to extend this period by 1 year. The Extraction Plan is submitted to the Local Government and requires approvals from a number of stakeholders. The term of an Extraction Right is 20 years. This can be extended upon application, provided all statutory requirements have been met over the life of the mine. From the date the Extraction Plan is approved, the title holder has a 3 year period in which mine production must commence. During this 3 year period, the title holder must make a minimum level of investment on plant and mine infrastructure in the amount of KRW100 million (~AUD$120,000) and meet certain minimum annual production levels, which are dependent on the commodity being mined. There are no known impediments to obtaining a license to operate
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	The Beopseongpo Project has historically had small scale adits excavated by unknown parties. No known previous historical drilling. Prior, Ivanhoe Mines conducted brief field reconnaissance in the area. Indochina Goldfields Ltd explored the area in 1999 originally identified the area as a well large well-developed lattice quartz after calcite zone. No other details of previous work in the vicinity is known to the best of our knowledge.
Geology	Deposit type, geological setting and style of mineralisation.	This Low-Sulfidation adularia-sericite type epithermal vein system, localised along a Jurassic basement mica granite, leucogranite and granitic gneiss and carbonaceous phyllite set against a structural contact with a Cretaceous rhyolitic dome and tuff facies volcanic of the Korean Peninsula.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in meters) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length.	Not Applicable – No drilling has been completed at Beopseongpo.
	If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	No information has been excluded from this release for Beopseongpo 29 and Beopseongpo 30 to the knowledge of the competent person.

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Criteria	JORC Code explanation	Commentary
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	No data aggregation methods have been used. No minimum or maximum cut-off has been applied.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	No data aggregation methods have been used.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalent values have been reported in this ASX Release.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results.	Not Applicable – No drilling or channel sampling has been completed at Beopseongpo.
	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	Not Applicable – No drilling or channel sampling has been completed at Beopseongpo
	If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not _known’). _	Not Applicable – No drilling or channel sampling has been completed at Beopseongpo
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Appropriate maps and tables have been included in this ASX Release.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Not all sample assay data has been included in this report as it is not considered material beyond the representatively reported high and low grade results tabled in the main body of this ASX Release.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	To the best of our knowledge, no meaningful and material exploration data have been omitted from this ASX Release.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).	Southern Gold is reviewing the data to determine the best way to advance the projects and will notify such plans once confirmed.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Refer to figure 1 in the main body of this ASX Report that show where sampling has been conducted, Southern Gold is still reviewing the data and determining where scout diamond drillingwill be best situated.

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