IONDRIVE LIMITED — Capital/Financing Update 2018

Jun 27, 2018

Exciting shallow high-grade gold intersected in RC drilling at Transfind South, WA

Drilling Results from recent campaigns highlight high grade gold at Transfind South and encouraging potential for the Cowarna Project

Shares on Issue: 49.15m

Share Price: $0.23 Market Capitalisation: $11.3m

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%) Currently under BMV farm-in

Transfind South Gold Project

• Shallow high grade gold mineralisation successfully intersected south of Transfind open pit. Gold mineralisation intersected in all 13 drillholes.

• Best intersections: 1m @ 133.7 g/t Au and 2m @ 24.4 g/t Au .

• Follow-up infill drilling to define a mineral resource in accordance with the JORC code.

Cowarna Gold Project

• Gold mineralisation intersected in the anticline at Pryde and Logan.

• Best intersection: 8m @ 1.05 g/t Au at Logan.

• Potential for deeper mineralisation to be tested with diamond drilling in the second half of 2018 and co-funded under the Exploration Incentive Scheme (EIS).

Transfind South Project

Directors

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

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 Ltd has an Option to Purchase Agreement for the Transfind South tenements from 2 Kalgoorlie-based prospectors provided 2,000m of drilling has been completed (see ASX Release 18[th] January 2017). To date a 984m RC drilling program was completed to follow up on high-grade rock chips, high-grade historical drilling, and gold-in-soil anomalism. A second program of approximately 1,000m is currently being planned for the second half of 2018.

The aim of the first pass drilling was to intersect high-grade gold mineralisation amenable to open-pit mining along strike from the Transfind Pit and to test a 230ppb soil anomaly.

Southern Gold Managing Director, Mr Simon Mitchell “ Nice to see some high grade intercepts out of our first pass drilling at Transfind South. And by high grade I mean in excess of 20g/t gold. Our target here is a deposit with very high grades that will be amenable to trucking some distance to a plant. So far it seems to be shaping up nicely vindicating the potential highlighted by the Kalgoorlie-based prospectors.

And at Cowarna it is great to hit mineralisation in our very first drill programme. It needs to be remembered that we have more than 20 strike kilometers of prospective BIF unit and we have only started on a small section of it in two locations. There is huge potential here.”

Transfind South historical work

Mineralisation at Transfind was discovered in the 1920's. Shallow workings and alluvials from the Dawn of Hope, a prospect contained within Special Lease 36, are recorded to have produced 29,790oz of gold from 445 tons of ore, an average grade of 204.9g/t of gold. Gold mineralisation is hosted by andesitic and dacitic tuffs containing relict fresh pyrite, and by narrow quartz veins. Both styles of gold mineralisation contain free gold, the quartz veins containing angular fragments of coarse free gold and external films of secondary gold. Isolated intersections of mineralised quartz veining were reported to return assay values of over 1,000g/t of gold.

Between 1975 and 1985 Hampton Gold Mining Areas, Hill Minerals and ACM mapped and sampled the area. In 1986 Hampton Areas Ltd carried out a small scale RAB and RC drilling program which was followed in 1987 by one minor and two major Reverse Circulation and diamond core drilling programs.

Recently (ASX release 11[th] May 2017), Overland Resources conducted a program of RC drilling under and around the historic Transfind open pit, immediately north of the Southern Gold program. This program confirmed the continuity of the structures hosting the mineralisation, as well as the potential for repeats of the structures at depth. Targeting of drilling at structural junctions has the potential to intersect thickened zones of high grade mineralisation similar to SAU’s intersections south of the pit.

Transfind South current results

Previously, only wide spaced drilling had taken place over the project and reported a peak interval of 4 m @ 6.14 g/t Au. Based on this previous work completed in the area, the exploration target was a small, high-grade system hidden between and below previous drilling.

The drilling was targeted at intersections of structural features coinciding with anomalous soil geochemistry. Mineralisation was successfully intersected in all drillholes, highlights of which are summarized in Table 1 , and defined continuously mineralised structures of similar orientation to those mined in the Transfind open pit in the mid 1990’s.

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Figure 1: Photo of coarse free gold panned from TFRC011, 21 to 24m, Gallon Prospect.

Table 1: Transfind Significant RC Drill Intersections >1.0 g/t Au

Hole ID	Prospect		m from	m to	interval (m)		Au average (g/t)
TFRC001	Transfind South		17	29	12	@	0.91
		including	25	29	4	@	1.74
TFRC003	Transfind South		17	18	1	@	7.13
TFRC004	Transfind South		16	23	7	@	19.57
		including	18	19	1	@	133.67
TFRC008	Transfind South		38	41	3	@	2.35
		including	39	40	1	@	6.22
TFRC009	Transfind South		64	70	6	@	3.14
		including	65	66	1	@	11.30
TFRC011	Gallon		21	29	8	@	6.79
		including	22	24	2	@	24.95

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Figure 2: Plan of drilling and significant gold occurrences at the Transfind prospect.

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A follow up program is planned once additional anomalous (>0.1 g/t) composite interval results have been returned on peripheral holes. As can be seen in the following series of cross sections, there is excellent continuity of high grade down along strike and down dip. Further drilling will be planned to test the depth extensions and geological model of high grade lenticular pods along strike.

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While there may be continuity between the Gallon Prospect and Transfind South this is constrained by the main N-S structure (Footwall Lode shear) that bounds the mineralisation to the west, but the Gallon quartz vein appears to be a separate splay structure. This will be tested in the follow up drilling.

Figure 3: Cross-section, Gallon Prospect.

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Figure 4: Cross-section 6 581 900mN.

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Figure 5: Cross-section 6 581 940mN.
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Figure 6: Cross-section 6 581 980mN.

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Cowarna Project

A reverse-circulation (RC) drill program was undertaken to test the Southern Gold 100% owned Pryde and Logan gold prospects. Gold targets were outlined by several rounds of historical soil geochemistry and rockchip samples, and recent rock chip sampling and geological mapping completed by Southern Gold in mid2017.

Drilling at Cowarna was comprised of 16 RC holes for a total of 1649m. Drilling at Pryde and Logan confirmed the presence of gold mineralised zones which may be secondary indications to significant mineralisation at depth. Best intersections at Logan include COWRC003 that returned 8m @ 1.05g/t Au and at Pryde COWRC010 returned 2m @ 1.51g/t Au. See Table 2 below for details.

Anomalous composite intervals (>0.1g/t Au and >30 ppm As) were re-assayed on the original individual metre samples and all assays have been received and are reported below.

The drilling has delineated the location and dip of the prospective BIF horizons within the northern limits of the Eastern BIF unit. This will allow accurate targeting of the more prospective, stratigraphically lower Maxwell’s BIF Member in the upcoming EIS co-funded deep diamond drilling.

Table 2: Cowarna Significant RC Drill Intersections >0.1 g/t Au

Hole ID	Prospect		m from	m to	interval (m)		Au (g/t)
COWRC002	Logan		31	32	1	@	0.17
			85	96	10	@	0.24
		including	88	89	1	@	0.81
COWRC003	Logan		32	40	8	@	1.05
		including	32	33	1	@	3.68
		and	35	37	2	@	1.50
COWRC004	Logan		79	80	1	@	0.16
COWRC010	Pryde		42	43	2	@	1.51
COWRC011	Pryde		38	40	2	@	0.46
COWRC011	Pryde		50	51	1	@	0.13
COWRC014	Pryde		12	14	1	@	0.43
COWRC014	Pryde		16	17	1	@	0.11

Pryde Target

Eight holes (COWRC009 to COWRC016) were drilled for 824m along two sections approximately 100m apart, targeting a NNW trending 300m x 100m +50 ppb gold-in-soil anomaly with coincident rock chip gold results up to 4.5 g/t Au. The anomaly is situated within the Santa BIF unit which includes interbedded siliceous magnetite BIF, mudstone and micaceous greywacke and is aligned along the anticlinal fold axis ( Figures 8 and 9 ). Gold grades report to altered and quartz veined BIF and mudstone lithologies. Stratigraphy in the area is folded into a tight anti-form and is strongly folded and faulted. Unlike the Logan prospect, the soil anomaly does not appear to be associated with E-W, cross-cutting faults common in the area.

Anomalous gold grades were concentrated at the base of weathering but coincided with BIF units containing mineralisation in surface rock chips ( Figure 9 ). All these occurrences are in the lowest stratigraphic BIF horizons tested in the current phase of drilling. This is highly encouraging for the potential presence of mineralisation within the lower Maxwell’s BIF Member. This unit will be targeted in the upcoming EIS cofunded diamond drilling planned for the second half of 2018.

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Figure 8: Plan of drilling and significant Au occurrences at the Pryde and Logan prospects.

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Figure 9: Cross-section Pryde Prospect.

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Logan Target

At the Logan prospect eight holes (COWRC001 to COWRC008) were drilled for 824m along two sections approximately 90m apart, targeting a NW trending 300 x 80 m +50 ppb gold in soil anomaly with coincident rock chip gold results up to 6.5 g/t Au. The anomaly is situated within the Santa BIF unit which includes interbedded siliceous magnetite BIF, mudstone and micaceous greywacke ( Figure 8 and 10 ). Gold grades report to altered and quartz veined BIF and mudstone lithologies. Stratigraphy in the area is folded into a tight anti-form and is strongly folded and faulted.

Figure 10: Cross-section, Logan Prospect.

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As with the Pryde drilling, the intended outcome of this first-pass, wide-spaced drill program was to determine the geometry of the BIF horizons, intersect economic gold mineralisation below the soil anomalism and high-grade rock-chips and to inform a second round of targeted diamond or RC drilling.

Similar to the Pryde mineralisation, the anomalous gold grades were strongly confined to a single BIF horizon which was also the stratigraphically lowest BIF unit intersected. The strongest gold intersections (COWRC003 and COWRC002) are also seen in the core of the anticlinal fold but are closely associated with a NW trending, cross-cutting fault. Further drilling, including diamond drilling will be required to clearly define the nature of the structural controls on mineralisation.

Monument South Project

Monument South drilling was completed on the 9th of April with 16 holes on four sections totaling 1332m ( Figure 11 ). The program was designed to test the Southern Gold 100% owned Monument South biogeochemical gold anomaly ( Figure 12 ). Two gold targets were outlined by recent biogeochemical sampling completed by Southern Gold in mid-2017. The sampling was designed to test for deeper targets either under transported cover or under barren bedrock. Unfortunately, assay results show very little anomalous gold despite strong zones of alteration and sulphide being present.

Main Target

A total of 12 holes along three sections were designed to test the cover and basement for 100m around the anomalous biogeochemistry. Because significant zones of alteration and sulphides were intersected, it was decided to drill four additional holes into a second anomaly on the western side of the creek.

To further determine the origin of the biogeochemical anomaly, the entire surface of the area was covered with a metal detector to determine if any surface gold is present and contributing to the anomaly. This was a significant factor in the Monument Prospect to the north where over 4,000 ounces of gold were recovered in the top soil by prospectors. However, no significant mineralisation was intersected.

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Secondary Target

This feature is a second biogeochemical gold anomaly running parallel to the Monument trend on the western side of the main creek system. The anomalous gold trend on this side of the creek, paralleling the main Monument trend, can also be seen in the auger soil sampling further to the north.

An additional 4 holes were drilled at the same orientation and depth over the anomaly on the western side of the creek. These holes intersected a major fault zone with strong alteration and common sulphides. Unfortunately no significant gold anomalism was reported in the assays.

Figure 11: Plan of drilling (previous and current) and geology in the vicinity of the Monument South prospect.

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Figure 12: Plan of biogeochemical anomalism at the Monument and Tooting Bec prospects. Grid values were calculated from the individual point show.

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Future Work

Southern Gold intends to follow up with a second RC drill program at Transfind South and a follow up review of the Cowarna targets after the completion of an EIS funded diamond drill program targeted for the last quarter of CY2018.

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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 Australia has been compiled under the supervision of Mr. Justin Gum (MAIG). Mr Gum who is an employee of Southern Gold Limited and a Member of the Australasian Institute of Geoscientist, 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. Mr Gum 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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APPENDIX 1: Drill hole data and significant results

Table 3: Cowarna RC Drilling Results >0.1 g/t Au

Hole ID	Prospect	Depth (m)	Grid ID	**Easting **	**Northing **	**RL (m) **	Dip	Azi	m from	m to	interval (m)	Au (g/t)	Composite
COWRC001	Logan	100	MGA94_51	427954	6568782	351	-51.7	270.1				NSR
COWRC002	Logan	106	MGA94_51	427895	6568773	350	-51.4	266.7	31 85 86 88 91 92 95	32 86 87 89 92 93 96	1 1 1 1 1 1 1	0.171 0.123 0.365 0.813 0.31 0.162 0.429
COWRC003	Logan	106	MGA94_51	427834	6568767	349	-51.4	271.0	32 33 34 35 36 38 39	33 34 35 36 37 39 40	1 1 1 1 1 1 1	3.677 0.81 0.312 1.989 1.012 0.33 0.273
COWRC004	Logan	100	MGA94_51	427773	6568770	349	-49.8	271.8	79	80	1	0.157
COWRC005	Logan	100	MGA94_51	427908	6568857	347	-48.7	276.0				NSR
COWRC006	Logan	100	MGA94_51	427848	6568861	345	-49.9	271.4				NSR
COWRC007	Logan	112	MGA94_51	427785	6568860	344	-49.7	269.4				NSR
COWRC008	Logan	100	MGA94_51	427748	6568861	346	-50.4	269.7				NSR
COWRC009	Pryde	100	MGA94_51	427228	6570325	362	-49.6	269.8				NSR
COWRC010	Pryde	106	MGA94_51	427282	6570325	353	-50.0	283.9	42 43	43 44	1 1	1.915 1.1
COWRC011	Pryde	100	MGA94_51	427333	6570324	356	-49.1	273.0	38 39 50	39 40 51	1 1 1	0.406 0.515 0.127
COWRC012	Pryde	100	MGA94_51	427391	6570327	347	-48.7	252.2				NSR
COWRC013	Pryde	100	MGA94_51	427185	6570425	341	-48.9	267.0				NSR
COWRC014	Pryde	106	MGA94_51	427227	6570418	357	-47.0	266.9	12 13 16	13 14 17	1 1 1	0.66 0.208 0.111
COWRC015	Pryde	100	MGA94_51	427243	6570422	354	-49.2	269.8				NSR
COWRC016	Pryde	120	MGA94_51	427322	6570421	352	-50.7	262.4				NSR

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Table 4: Monument South RC Drilling Results

Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite	Hole ID Prospect Depth (m) Grid ID Easting Northing RL (m) Dip Azi m from m to interval (m) Au (g/t) Composite
BSRC306 Monument South	80	MGA94_51	381204	6588739	351	-60.0	90.0				NSR
BSRC307 Monument South	88	MGA94_51	381171	6588737	348	-59.5	88.9				NSR
BSRC308 Monument South	80	MGA94_51	381129	6588739	348	-59.0	87.7				NSR
BSRC309 Monument South	80	MGA94_51	381091	6588740	345	-59.6	88.4				NSR
BSRC310 Monument South	80	MGA94_51	381209	6588698	348	-60.1	90.4				NSR
BSRC311 Monument South	80	MGA94_51	381167	6588696	355	-59.7	93.4				NSR
BSRC312 Monument South	80	MGA94_51	381130	6588701	350	-60.3	86.1				NSR
BSRC313 Monument South	100	MGA94_51	381089	6588702	341	-60.4	90.2				NSR
BSRC314 Monument South	80	MGA94_51	381209	6588657	345	-60.0	87.1				NSR
BSRC315 Monument South	80	MGA94_51	381170	6588659	346	-58.8	87.8				NSR
BSRC316 Monument South	80	MGA94_51	381128	6588659	352	-59.9	90.7				NSR
BSRC317 Monument South	80	MGA94_51	381089	6588660	352	-60.1	92.3				NSR
BSRC318 Monument South	124	MGA94_51	380971	6588741	362	-61.5	88.7				NSR
BSRC319 Monument South	80	MGA94_51	380932	6588742	358	-59.5	88.8				NSR
BSRC320 Monument South	80	MGA94_51	380890	6588740	360	-59.7	90.1				NSR
BSRC321 Monument South	80	MGA94_51	380849	6588741	357	-60.0	90.0				NSR

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Table 5: Transfind South RC Drilling Results

Hole ID	Prospect	Depth (m)	Grid ID	**Easting Northing **	**RL (m) **	Dip	Azi	m from	m to	interval (m)	Au (g/t)	Composite
TFRC001	Transfind South	50	MGA94_51	407364 6581981	365	-59.7	270.2	17	20	3	0.11	Y
TFRC001								20	22	2	0.94	Y
TFRC001								22	25	3	0.53	Y
TFRC001								25	29	4	1.74	Y
TFRC002	Transfind South	80	MGA94_51	407403 6581980	368	-59.0	271.8	36	40	4	0.55	Y
TFRC002								40	44	4	0.88	Y
TFRC002								44	48	4	0.21	Y
TFRC003	Transfind South	100	MGA94_51	407445 6581982	375	-59.7	270.9	17	18	1	7.13
TFRC003								27	31	4	0.33	Y
TFRC004	Transfind South	42	MGA94_51	407342 6581940	370	-58.6	272.3	16	17	1	0.58
TFRC004								17	18	1	1.13
TFRC004								18	19	1	133.67
TFRC004								19	20	1	0.70
TFRC004								20	21	1	0.66
TFRC004								21	22	1	0.11
TFRC004								22	23	1	0.14
TFRC004								30	34	4	0.13	Y
TFRC005	Transfind South	70	MGA94_51	407381 6581940	370	-60.3	269.9	16	20	4	0.20	Y
TFRC005								20	24	4	0.30	Y
TFRC005								42	43	1	0.13
TFRC005								43	44	1	0.17
TFRC005								44	45	1	0.07
TFRC005								45	46	1	0.12
TFRC005								46	50	4	0.11	Y
TFRC006	Transfind South	80	MGA94_51	407420 6581940	369	-58.4	269.0	34	38	4	0.13	Y
TFRC007	Transfind South	100	MGA94_51	407460 6581940	368	-60.5	270.0	28	32	4	0.22	Y
TFRC007								40	45	5	0.45	Y
TFRC007								57	60	3	0.59	Y
TFRC007								71	75	4	0.15	Y
TFRC008	Transfind South	50	MGA94_51	407360 6581900	370	-61.4	266.3	16	20	4	0.12	Y
TFRC008								38	39	1	0.29
TFRC008								39	40	1	6.22
TFRC008								40	41	1	0.55
TFRC009	Transfind South	80	MGA94_51	407400 6581900	370	-59.4	267.5	43	46	3	0.62	Y
TFRC009								59	60	1	0.63
TFRC009								64	65	1	1.18
TFRC009								65	66	1	11.30
TFRC009								66	70	4	3.15	Y
TFRC010	Transfind South	102	MGA94_51	407440 6581900	371	-60.0	267.0	43	47	4	0.98	Y
TFRC010								47	51	4	1.23	Y
TFRC010								51	54	3	0.59	Y
TFRC010								92	93	1	0.24
TFRC010								93	94	1	0.10
TFRC011	Gallon	50	MGA94_51	407310 6581740	367	-60.0	269.8	21	22	1	0.10
TFRC011								22	23	1	21.07
TFRC011								23	24	1	28.82
TFRC011								24	25	1	1.47
TFRC011								25	26	1	0.98
TFRC011								26	27	1	1.51
TFRC011								27	28	1	0.26
TFRC011								28	29	1	0.13
TFRC012	Gallon	80	MGA94_51	407340 6581740	368	-59.1	271.1	53	54	1	0.20
TFRC013	Inbetweens	100	MGA94_51	407580 6581840	372	-58.0	245.0	52	56	4	0.11	Y
TFRC013								68	72	4	0.12	Y
TFRC013								96	100	4	0.20	Y

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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	Commentary
Sampling	•	Nature and quality of sampling (e.g. cut	•	Drill holes were sampled using face sampling reverse
techniques		channels, random chips, or specific specialised industry standard	•	circulation (RC) percussion drilling. Drill holes were sampled at 1m intervals from a cone-
		measurement tools appropriate to the		splitter via a cyclone connected directly to the drill
		minerals under investigation, such as		stream. Individual RC drilling samples were collected
		down hole gamma sondes, or handheld		into pre-numbered calico bags. Composite samples
		XRF instruments, etc). These examples		ranging from 2 to 5m were collected by spearing
		should not be taken as limiting the		remaining sample stored in individual meter plastic
		broad meaning of sampling.		bags. Anomalous composite drill intercepts are re-
	•	Include reference to measures taken to		assayed at 1m intervals from original calico bags
		ensure sample representivity and the		collected off the cone-splitter.
		appropriate calibration of any	•	Each sample sent to the lab was greater than 500g.
		measurement tools or systems used.		Samples greater than 3kg were riffle split at the
	•	Aspects of the determination of		preparation facility to under 3kg before being
		mineralisation that are Material to the		pulverised. All samples between 500g and 3kg were
		Public Report.		completely pulverised before being split to produce a
	•	In cases where ‘industry standard’ work		50g charge for fire assay, and a 10g charge for multi-
		has been done this would be relatively		element analysis.
		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.
Drilling	•	Drill type (e.g. core, reverse circulation,	•	Face sampling reverse circulation percussion drilling
techniques		open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details		was the drilling technique used. A 4.5-inch hammer bit was used.
		(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).
Drill sample	•	Method of recording and assessing core	•	A comment field on the hard-copy and digital sample
recovery		and chip sample recoveries and results assessed.		log sheets is filled out with any information concerning sample recoveries.
	•	Measures taken to maximise sample	•	Sample loss and contamination was kept to a
		recovery and ensure representative		minimum by maintaining good sampling and drilling
		nature of the samples.		practices. Sampling intervals during RC drilling were
	•	Whether a relationship exists between		routinely checked by comparing the position of the
		sample recovery and grade and whether		drill rod against the sample bag being filled. Drilling
		sample bias may have occurred due to		of RC holes was conducted with machinery and using
		preferential loss/gain of fine/coarse		drilling techniques appropriate to the terrain and
		material.		with drillers experienced in the area. Cone splitting of
				RC holes provided good representation of the
				intervals sampled.
			•	No recovery issues were identified with drill holes
				within ore zones. Loss of fines at the cyclone was
				minimal and is not considered to have had a
				significant effect on sample recovery. No relationship

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Criteria	JORC	Code explanation	Commentary	Commentary
				has been noted between sample recovery and grade.
				Overall, sample recoveries were very high and did
				not present a problem.
Logging	•	Whether core and chip samples have	•	All drill holes have been geologically logged by
		been geologically and geotechnically		Company geologists using a standard format over the
		logged to a level of detail to support		whole length of each hole. Features for each sample
		appropriate Mineral Resource		or geological interval recorded, where observable,
		estimation, mining studies and		included weathering, lithology, alteration
		metallurgical studies.		mineralogy, structure, mineralisation mineralogy,
	•	Whether logging is qualitative or		veining, vein mineralogy, and proportions of non-
		quantitative in nature. Core (or costean,		economic minerals. Magnetic susceptibility was
		channel, etc) photography.		taken for each meter.
	•	The total length and percentage of the	•	Geological logging recorded factual data (e.g. colour,
		relevant intersections logged.		grain size, percentage of identifiable minerals
				present) and interpretative data (e.g. lithology).
			•	A subsample of washed and sieved RC chips from
				each metre was collected and stored sequentially in
				numbered plastic chip trays. Chips trays representing
				each RC drill hole are stored in the Company’s field
				office in Kalgoorlie.
Sub-sampling	•	If core, whether cut or sawn and	•	RC samples were sampled from a cone splitter
techniques and sample preparation	•	whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	•	attached to the drill rig at 1m intervals. The sample was dry most of the time. If wet sample was returned the cyclone and splitter were cleaned. Sample was captured in calico bags attached to the
	•	For all sample types, the nature, quality		cone splitter at one-meter intervals. Sample size
		and appropriateness of the sample		collected for analysis was approximately 2-3kg.
		preparation technique.	•	All sample intervals and corresponding sample
	•	Quality control procedures adopted for		numbers were double checked to ensure samples
		all sub-sampling stages to maximise		were representative. No selective sampling was
		representivity of samples.		undertaken.
	•	Measures taken to ensure that the	•	Field duplicates were collected every 1 in 17 drill
		sampling is representative of the in-situ		samples on each hole, and results obtained returned
		material collected, including for instance		a correlation coefficient of 0.886 (Cowarna), and 0.99
		results for field duplicate/second-half		(Transfind). As very few results were above detection
		sampling.		at Monument South, no correlation coefficient could
	•	Whether sample sizes are appropriate to		be calculated.
		the grain size of the material being	•	Preparation and analysis of samples was undertaken
		sampled.		by Minanalytical at their Kalgoorlie and Perth
				facilities. Samples were pulverised to 85% passing 75
				micron.
Quality of	•	The nature, quality and appropriateness	•	Gold was analysed by Minanalytical method
assay data and laboratory	•	of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers,		FA50AAS, consisting of a 50g charge fire assay followed by atomic absorption spectroscopy at a detection limit of 0.005ppm Au (gold). No strong nugget effect was observed in repeated assays at
tests		handheld XRF instruments, etc, the		Cowarna and Monument South. A nugget effect was
		parameters used in determining the		observed at Transfind due to coarse free-gold
		analysis including instrument make and		mineralisation style. Future programs will investigate
		model, reading times, calibrations		screening of samples prior to fire assay. An aqua
		factors applied and their derivation, etc.		regia digest was used to produce a solution which
	•	Nature of quality control procedures		was then analysed for a 61 element suite with
		adopted (e.g. standards, blanks,		detection by ICP-OES / ICP-MS (MA4031) methods.
		duplicates, external laboratory checks)	•	No data from geophysical tools were used to
		and whether acceptable levels of		determine grade control assay results. A
		accuracy (i.e. lack of bias) and precision		gravitometer was used to record the magnetic
		have been established.		susceptibility for each meter, data is used for
				lithological and mineralogical studies.

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Criteria	JORC	Code explanation	Commentary	Commentary
			•	The QAQC protocol used consisted of certified
				reference materials plus blanks, each inserted at a
				rate of 1:20, Totalling 3 QAQC samples per 17 Drill
				samples submitted. Field duplicates were collected
				every 17th drill sample and returned an Au
				correlation coefficient of 0.886 (Cowarna) and 0.99
				(Transfind). As very few results were above detection
				at Monument South, no correlation coefficient could
				be calculated. Blanks were inserted 1 for every 17
				drill samples and returned no Au results greater than
				four times the detection limit in all three programs.
				External standards were inserted 1 in every 17 drill
				samples and no results were outside of three
				standard deviations of the expected value for all
				three programs. 30 lab repeats at Transfind returned
				a correlation coefficient of 0.99, 30 lab repeats at
				Cowarna returned a correlation coefficient of 0.96.
				As very few results were above detection at
				Monument South, no correlation coefficient could be
				calculated on the results.
Verification	•	The verification of significant	•	Significant intersections were verified by the
of sampling and assaying	•	intersections by either independent or alternative company personnel. The use of twinned holes.	• •	Competent Person (Dr Justin Gum). Twinned holes have not been drilled. All geological logging and sampling data is recorded
	•	Documentation of primary data, data		on computer software. Sampling data is also
		entry procedures, data verification, data		recorded by hand onto sampling sheets and re-
		storage (physical and electronic)		checked before submission to the lab. Data is then
		protocols.		stored on the Company database after validation.
	•	Discuss any adjustment to assay data.		Original sampling sheets are filed in the Company’s
				Adelaide Office. The assay database is stored
				securely on the Company’s server which is backed up
				routinely both on and offsite.
			•	No adjustments are made to the assay data after
				review of QAQC measures as stated above.
Location of	•	Accuracy and quality of surveys used to	•	Drill hole collar positions have been surveyed by
data points		locate drill holes (collar and down-hole surveys), trenches, mine workings and		Handheld GPS to an accuracy of +/- 3m. Holes were down-hole surveyed by Gyro tool (Axis Mining
		other locations used in Mineral Resource		CHAMP Gyro) in the rod stream by WDA of Darwin,
		estimation.		N.T. and Kalgoorlie, W.A.
	•	Specification of the grid system used.	•	The grid system used for locating the collar positions
	•	Quality and adequacy of topographic		of drill holes is the Geocentric Datum of Australia
		control.		(GDA94), Zone 51 (MGA Projection). Elevations are
				recorded in Australian Height Datum (AHD).
			•	Topographic control in the area is provided by point
				measurement using a handheld GPS.
Data spacing	•	Data spacing for reporting of	•	The average drill hole spacing was approximately
and		Exploration Results.		60m for Cowarna and 40m for Transfind and
distribution	•	Whether the data spacing and distribution is sufficient to establish the	•	Monument South. No Mineral Resource has been calculated.
		degree of geological and grade	•	Sample compositing (4m intervals) was applied
		continuity appropriate for the Mineral		where sampling interpreted, non-mineralised
		Resource and Ore Reserve estimation		lithologies. Where anomalous results were obtained
		procedure(s) and classifications applied.		(>0.1g/t Au and 30 ppm As) the originally sampled
	•	Whether sample compositing has been		individual meter samples were submitted to the lab
		applied.		for analysis as described above. All mineralised
				intervals at Cowarna have been reported on un
				composited samples. Results for individual intervals
				at Transfind are stillpendingso composited intervals

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Criteria	JORC	Code explanation	Commentary	Commentary
				are reported and are noted were reported. No
				anomalous composites were reported at Monument
				South.
Orientation	•	Whether the orientation of sampling	•	Interpreted orientations from current and historic
of data in		achieves unbiased sampling of possible		drilling indicate that drilling is at a high enough angle
relation to geological	•	structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling		to lithological boundaries and structural trends to indicate that sampling is unbiased by the direction of drilling.
structure		orientation and the orientation of key
		mineralised structures is considered to
		have introduced a sampling bias, this
		should be assessed and reported if
		material.
Sample	•	The measures taken to ensure sample	•	RC samples are placed into pre-numbered calico bags
security		security.		directly from the splitter under the supervision of the rig geologist. The Field Technician placed the calico
				bags containing the drill sample into polyweave bags
				under the supervision of the Company Geologist.
				Polyweave bags were then securely shut and
				transported to the sample preparation laboratory
				where a sample submission form is completed by the
				Geologist. The details entered onto the sample
				submission form are the means by which the samples
				are tracked through the laboratory. The laboratory
				provides the Company with a reconciliation of
				samples submitted compared to samples received.
Audits or	•	The results of any audits or reviews of	•	No audits or reviews have been undertaken.
reviews		sampling techniques and data.

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Section 2 Reporting of Exploration Results

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

Criteria	JORC	Code explanation	Commentary	Commentary
Mineral	•	Type, reference name/number, location and	Cowarna Project:
tenement and		ownership including agreements or material issues	•	The Pryde Prospect is secured by E25/474
land tenure		with third parties such as joint ventures, partnerships, overriding royalties, native title		and the Logan Prospect is secured by E25/497 and are located ca. 80km ESE of Kalgoorlie,
status		interests, historical sites, wilderness or national park		WA. The tenements are held by Southern
		and environmental settings.		Gold Ltd. The Pryde and Logan Prospects fall
	•	The security of the tenure held at the time of		within the Department of Biodiversity,
		reporting along with any known impediments to		Conservation and Attractions Randell Timber
		obtaining a licence to operate in the area.		Reserve. A Conservation Management Plan is
				required to be approved by the Minister for
				Environment and the Minister for Mining
				before ground disturbing works can be
				undertaken. Further consultation is required
				for future works to be approved.
			Transfind Project:
			•	The Transfind Project tenure that was drilled
				on is secured by P25/2152 and P25/2197 and
				are located ca. 50km E of Kalgoorlie, WA. The
				tenements are held by Roger Lindsay.
				Southern Gold has negotiated an option to
				buy the tenements if it completes 2000m of
				drilling before the end of January 2019.
			Monument South Project:
			•	The Monument South Prospect is secured by
				the 100% Southern Gold Ltd owned M25/333
				and is located ca. 30km E of Kalgoorlie, WA.
Exploration	•	Acknowledgment and appraisal of exploration by	Cowarna:
done by other parties		other parties.	•	The Pryde and Logan Prospects had no historical drilling testing the same target. Historical surface geochemistry and airborne
				magnetic data were studied when designing
				the drill program.
			Transfind:
			•	The Transfind South Prospect has had 2 or
				more rounds of wide spaced historical drilling
				completed, historical soil sampling and
				historical rock chip sampling. Historical
				information was consulted when designing
				the SAU drilling program. The historical
				drilling was appraised by SAU staff as not
				adequately testing the Transfind South,
				Gallon, or Inbetweens prospects.
			Monument South Project:
			•	The Monument South prospect has had
				regional soil sampling and detailed soil auger
				sampling across the area. SAU staff appraised
				the data and assessed that the surface soil
				sampling has not adequately tested the
				potential for mineralisation under cover in
				the majority of the prospect area.
Geology	•	Deposit type, geological setting and style of	•	The Cowarna prospects are BIF-hosted,
		mineralisation.		orogenic gold mineralisation. The Transfind
				prospects are volcanic and volcanoclastic,
				shear zone hostedquartz vein orogenicgold

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Criteria	JORC	Code explanation	Commentary	Commentary
				mineralisation. The		Monument South
				prospects are felsic intrusive, shear			zone
				hosted quartz	vein	orogenic	gold
				mineralisation.
Drill hole	•	A summary of all information material to the	•	A summary of exploration results showing the
Information		understanding of the exploration results including a		drill hole collar details and range of downhole
		tabulation of the following information for all		intercept widths	and associated grades is
		Material drill holes:		shown inTables 3, 4and5of this release.
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation
		above sea level in metres) of the drill hole
		collar
		o dip and azimuth of the hole
		o down hole length and interception depth
	•	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.
Data	•	In reporting Exploration Results, weighting averaging	•	No weighting average techniques or grade
aggregation methods		techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.	•	aggregations have been reported in this release in relation to Exploration Results. No metal equivalent values have been
	•	Where aggregate intercepts incorporate short		reported.
		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.
	•	The assumptions used for any reporting of metal
		equivalent values should be clearly stated.
Relationship	•	These relationships are particularly important in the	•	Modelling of results indicate drill direction is
between		reporting of Exploration Results.		at a high enough angle to lithological contacts
mineralisatio n widths and	•	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.		and structural trends as to provide biased sampling.			non-
intercept	•	If it is not known and only the down hole lengths are
lengths		reported, there should be a clear statement to this
		effect(eg ‘down hole length, true width not known’).
Diagrams	•	Appropriate maps and sections (with scales) and	•	Appropriate maps	and sections are presented
		tabulations of intercepts should be included for any		in the body of the report.
		significant discovery being reported These should
		include, but not be limited to a plan view of drill hole
		collar locations and appropriate sectional views.
Balanced	•	Where comprehensive reporting of all Exploration	•	Results from all holes have been reported.
reporting		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.
Other	•	Other exploration data, if meaningful and material,	•	All relevant observations		have been noted in
substantive		should be reported including (but not limited to):		the release.
exploration data		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.

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