IONDRIVE LIMITED — Capital/Financing Update 2019

Sep 15, 2019

High-grade gold results and multiple veined zones identified at the Neungju Project

• New high-grade outcrop and float assays received from the June 2019 field program at Neungju Project, South Korea

Shares on Issue: 83.4m Share Price: $0.22 Market Capitalisation: $18.35m

South Korea Exploration (100%) Weolyu Au-Ag Project Deokon Au-Ag Project Beopseongpo Au Project Aphae Au-Ag Project Neungju Au-Ag Project Hampyeong Au-Ag Project

South Korea Development BMV[#] JV (50%) Gubong Project JV Co Ltd Kochang Project JV Co Ltd # Bluebird Merchant Ventures is LSE listed

Directors

Greg Boulton AM (Chairman) Simon Mitchell (MD) Peter Bamford David Turvey Bee Jay Kim

Head Office Southern Gold Ltd 10 George St Stepney SA 5069 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

• New assays return a peak of 31.8g/t gold and 6.6g/t silver in subcrop and 13.4g/t gold and 13.1g/t silver in float

• Five epithermal veined zones identified, ranging from 2m100m wide with interpreted combined strike continuity of 1km

• Maiden diamond drilling to commence as soon as practicable

Neungju sampling returns High Grade Gold

Field work recently completed at Southern Gold’s 100%-owned Neungju Project has returned significant results from surface rock chip and float sampling as part of a detailed mapping exercise at the project. This work builds on the initial first pass work previously reported last year (see ASX release dated 4 September 2018).

Five corridors of sheeted and network vein development have been tentatively mapped within the area: they are called the Naesin, Oesin, Yeppeuda, Lee Spur and Jidong vein corridors. They exhibit widths of 2 to (in excess of) 100 metres, and have traceable exposed outcrop, subcrop and float train segments ranging between 25 and 650 metres in strike extent with a combined strike of over 1 kilometre and are open in both strike directions ( Figure 1 , next page).

All five vein corridors have returned samples >1g/t Au with the Naesin, Yeppeuda and Lee Spur vein systems returning high grade samples the highlights of which are presented in Table 1 .

Table 1: High grade highlights from the recent sampling

Sample ID	**Aug/t **	**Ag g/t **	Vein System	**Sample Type **
KRS206458	31.8	6.6	Naesin	Subcrop
KRS206455	13.4	13.1	Naesin	Float
KRS206478	6.79	9.8	Yeppueda	Float
KRS206492	6.44	10.9	Yeppueda	Float
KRS206529	6.17	25.2	Lee Spur	Outcrop

See Table 2 for more details, including location data.

Southern Gold Managing Director, Mr. Simon Mitchell:

“ These latest high-grade gold results continue to validate our project generation work that has been undertaken to date in South Korea. We are building a significant and very high-quality ‘drill ready’ portfolio while continuing to make new gold mineralised discoveries with each completed field program.

Our 100% owned Neungju Project target area has now expanded with these latest results and in an area which, to our knowledge, has never been previously drilled. Southern Gold’s technical team continues to believe that there is more to be found at district scale at Neungju into the medium term but, for now, the project is added to our ‘drill ready’ list.”

New outcrop and float sample assay results

An intensive sampling program was completed at Neungju with over 130 new samples being taken and submitted for analysis. Two outcrop rock chip and three float samples returned high grade (>5g/t) gold results (Figure 1 and Table 1 and 2). The peak outcrop rock chip sample at Neungju was 31.8g/t Au and 6.6g/t Ag .

Work to date included systematic field traversing, extensive rock sampling and 1:2,000 geological mapping (Figure 1) . This work has identified three new vein corridors (The Oesin, Jidong , and Lee Spur vein zones), and has extended both the Naesin (southern) vein corridor and Yeppeuda (northern) vein corridors.

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Figure 1: Neungju Project sampling results and geology.

The 2019 field program as announced to the ASX on 3rd April 2019, ‘South Korean Field Work Commences’, was a detailed field mapping and sampling exercise that focused initially on Southern Gold’s Beopseongpo and Deokon project areas. Two ASX announcements have so far been released, firstly on the 29th May, an ASX announcement ‘ Extensive mineral system at Beopseongpo defined as major epithermal gold target ’, and on the 17[th] July ‘Golden-Surprise High-Grade Gold Silver Discovery confirmed at the Deokon Project’, which outlined the success of this field program at the first two projects.

Neungju was the third and final phase of this initial field work and the program included the production of a Semi-detailed, 1 : 2,000 scale geological and structural mapping of the central segment of license Neungju 33, carried out by one epithermal consulting geologist, assisted by two Southern Gold Korea geologists.

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Background and Regional Geology

The Neungju Project ( Figure 2 ) is located approximately 280km south of Seoul in the Yeongdong Province and approximately 180km SSW of the major city of Daejeon, where Southern Gold operations are based. The Neungju Project has one granted tenement (red graticule Figure 2 )and the surrounding area is covered by four applications (green graticules Figure 2 ).

The geology of the project area is characterised by a northeast-southwest trending, eleven-kilometre-wide pull-apart basin or graben, filled by a complex sequence of intermediate- to felsic-tuffs, tuff breccias and local conglomeratic basin fills. The current target area falls along the eastern flank of a large caldera-like volcanoplutonic complex and consists of a complex series of dacitic to rhyodacitic flow domes and late andesitic lavas that have all undergone varying degrees of hydrothermal alteration.

Low sulphidation epithermal mineralisation has been mapped within a currently assessed 1.5 square kilometre section of this broadly north-northwest – south-southeast trending fault-fracture system.

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Figure 2: Neungju Project Location.

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Photo 1 : Subcrop at ‘Jindong Vein Zone’ , site of sample KRS206538 (1.15g/t Au, 5g/t Ag)

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Photo 2 : Subcrop at ‘Naesin Vein Zone’ , site of recent sample KRS206458 (31.8g/t Au, 6.6g/t Ag).

The programme was hampered by thick late spring season scrub and undergrowth cover, obscuring exposures and limiting rapid traversing, but outcrop-subcrop samples were eventually located ( Photo 1 cf Photo 2 ). The photo on the right was taken on an initial reconnaissance trip during October 2017 – highlighting the greater ease of access after vegetation die-off.

Neungju displays the typical geological and structural complexity seen in highly prospective back-arc extensional basin-hosted volcano-plutonic sequences (a similar setting to the Company’s Weolyu, Deokon Beopseongpo and Hampyeong project areas in South Korea).

Neungju June Field Program Detail

Final significant assay results returned from the recent mapping program are presented in Table 2 . Peak result returned was 31.8g/t gold and 6.6g/t silver ( Photo 2 ) from within the Naesin Vein Corridor. All five vein systems have returned >1g/t Au.

Sample ID	Au **g/t **	Ag **g/t **	Sample **Type **	Prospect	Grid ID	Easting	Northing	Elevation
KRS206458	31.8	6.6	Subcrop	Naesin	WGS84_Z52Nth	311619	3870827	75
KRS206455	13.4	13.1	Float	Naesin	WGS84_Z52Nth	311763	3870723	81
KRS206478	6.79	9.8	Float	Yeppueda	WGS84_Z52Nth	312019	3870975	110
KRS206492	6.44	10.9	Float	Yeppueda	WGS84_Z52Nth	311948	3870030	94
KRS206529	6.17	25.2	Outcrop	Lee Spur	WGS84_Z52Nth	312261	3870863	95
KRS206496	4.58	7.3	Float	Yeppueda	WGS84_Z52Nth	311977	3870972	97
KRS206486	3.95	1.9	Float	Yeppueda	WGS84_Z52Nth	311956	3871008	97
KRS206413	3.28	2.9	Float	Oesin	WGS84_Z52Nth	312574	3870517	111
KRS206481	2.58	15.2	Float	Yeppueda	WGS84_Z52Nth	311987	3870978	104
KRS206526	2.35	0.8	Outcrop	Lee Spur	WGS84_Z52Nth	312258	3870866	94
KRS206527	2.17	1.9	Outcrop	Lee Spur	WGS84_Z52Nth	312254	3870866	94
KRS206525	1.79	8.9	Outcrop	Lee Spur	WGS84_Z52Nth	312258	3870874	95
KRS206484	1.44	1.1	Float	Yeppueda	WGS84_Z52Nth	311964	3871001	98
KRS206485	1.32	0.8	Float	Yeppueda	WGS84_Z52Nth	311962	3871002	98
KRS206538	1.15	5	Subcrop	Jidong	WGS84_Z52Nth	312631	3870761	128
KRS206477	1.08	1.6	Float	Yeppueda	WGS84_Z52Nth	312021	3870975	110
KRS206506	1.05	0.4	Subcrop	Yeppueda	WGS84_Z52Nth	312065	3870943	114

Table 2: Significant reconnaissance surface mapping rock sample results from Neungju (>1.0g/t Au).

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Photo 3: Subcrop sample KRS206458, 31.8g/t Au and 6.6g/t Ag. Naesin Vein Zone (Western end).

Quartz-feldspar phyric dacite, intensely silica-illite (adularia) altered, with minor limonite staining & quartz vein development.

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Photo 4: Float sample KRS206492, 6.44g/t Au and 10.9g/t Ag. Yeppeuda Vein Zone.

Hydraulically brecciated, silica-illite-clay altered dacite, cut & flooded by mesocrystalline quartz. Well-developed limonite-haematite staining.

The main Neungju target area resides along the eastern flank of a large caldera-like volcano-plutonic complex and consists of a complex series of dacitic to rhyodacitic flow domes and late andesitic lavas that have all undergone varying degrees of hydrothermal alteration. Dacites, rhyodacites and associated dome-margin breccias and pyroclastics predominate to the north, and andesitic flow units to the south. The former display intense sheeted to blocky jointing and pervasive “argillic” illite/adularia-silica-kaolinite ± pyrite alteration. They are also strongly limonite-haematite stained after oxidised pyrite. In contrast, the southern andesitic sequence is relatively unaltered; however, to the north, it is variably propylitised, displaying silica-illitechlorite-haematite alteration assemblages where in contact with dacite and rhyodacite dome facies rocks.

The results of completed, semi-detailed geological mapping and surface sampling to date indicates that Neungju has the potential for the discovery of a large, potentially highly gold-silver mineralised low-sulfidation epithermal deposit. Five major vein zones have been recognised, with a minimum mapped, combined strike extent of 1,065 metres and open in both strike directions.

The 250m section of the well-developed Yeppeuda vein and breccia zone is the best-defined mineralised zone in outcrop and subcrop to date and is ready for an initial phase of scout drill testing.

The project requires further field exploration to reveal its true extent. Excellent potential exists for the discovery of further vein sets between those already mapped, especially along the northern flank of the dacitic to rhyodacitic wedge. Further assessment of the northern flank of the ridge to the east to and beyond the Jidong vein corridor is necessary and as well as investigating the Yeppeuda vein corridor for further westward extension.

Next Steps at Neungju

The Southern Gold Korean team will hold discussions with local landowners to enable drilling to commence as soon as practicable. Southern Gold is currently drilling at Beopseongpo (where full access to drill sites was first obtained, see below) and is planning to drill at the Deokon Golden Surprise Trend next once local landowners and other stakeholders have been fully informed of developments. The Neungju program will likely after the programs at Beopseongpo and Deokon have been completed and subject to review of the drill results.

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Current Drilling - Beopseongpo

Scout diamond drilling at Beopseongpo commenced at the Lotus North project area ( Photo 5 ) where 4 drill holes were completed for 654m with assays pending.

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Photo 5 : Drilling at Lotus North, Beopseongpo, South Korea

The rig has now moved to the Hand of Faith project area ( Photo 6 ). Drilling of the first hole encountered difficult drilling conditions and has required replacement parts to be sent from China. Drilling has been paused during the Chuseok National Holiday, 12 September to 15 September 2019 but will recommence shortly after.

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Photo 6 : Drilling at Hand of Faith, Beopseongpo, South Korea

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Related ASX Announcements

20180904 – ASX Project Generation Building Portfolio Value

20190403 – ASX 2019 South Korea Field Work Commences.

20190527 – ASX Beopseongpo, Major Epithermal Target Defined.

20190717 – ASX Deokon ‘Golden Surprise’ High Grade Au-Ag Discovery

Southern Gold Limited: Company Profile

Southern Gold Ltd is a successful gold explorer listed on the Australian Securities Exchange (under ASX ticker “SAU”).

Southern Gold owns 100% of a substantial portfolio of high-grade gold and silver projects in South Korea that are largely greenfield epithermal gold-silver mineralised targets in the south-west of the country. Backed by a first-class technical team, including renowned geologist Douglas Kirwin, Southern Gold’s aim is to find world-class gold-silver deposits in a jurisdiction that has seen very little modern exploration.

In addition to the elephant hunt, Southern Gold is also looking to commission a small scale mine in South Korea within the next 12-18 months with development partner London-listed Bluebird Merchant Ventures (BMV) at either the Kochang or Gubong project where Southern Gold retains a 50% equity interest.

Competent Person’s Statements

The information in this report that relates to Exploration Results has been compiled under the supervision of Mr. Paul Wittwer (AIG, AusIMM). Mr Wittwer who is an employee of Southern Gold Limited and a Member of the Australian Institute of Geoscientists and 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. Mr Wittwer 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 or ASX release, 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.	The nature of the samples and assay results in the body of this ASX Release relate to surface rock chip and grab samples taken from the Neungju Project, South Korea, within granted exploration license Neungju33 held by Southern Gold. Surface reconnaissance rock chip sampling was taken based upon geological features relevant to the target style of mineralisation. Sample sites were chosen selectively to reflect geological features relevant to the target style of mineralisation.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Surface reconnaissance rock chip samples are not considered representative and only used as an exploration tool to plan potential future representative sampling programs.
	Aspects of the determination of mineralisation that are Material to the Public Report.	Determination of mineralisation was achieved by geological logging of samples by an experienced SAU or consultant geologist or representative, with structural measurements taken where possible. Samples were geologically logged for lithology, mineralisation, alteration, veining, and structure. SAU mapping and rock sampling results has been used to inform the determination of mineralisation at an early stage of exploration.
	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.	No core drilling was completed by SAU in this release Surface reconnaissance rock chip samples are not considered representative and only used as an exploration tool to plan potential future representative sampling programs.
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 results are reported in this release. SAU did not conduct any new drilling for this release.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	No drilling results are reported in this release. SAU did not conduct any new drilling for this release.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	No drilling results are reported in this release. SAU did not conduct any new drilling for this release.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of	No drilling results are reported in this release. SAU did not conduct any new drilling for this release.

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Criteria	JORC Code explanation	Commentary
	fine/coarse material.	Where historical drilling may be reported in past reporting, it is not known if a relationship exists between sample recovery andgrade,or if there is anybiaspresent.
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 studies.	No Mineral Resource estimation, mining studies or metallurgical studies have been conducted at this stage.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	Geological logging was qualitative in nature. Structural logging was quantitative in nature. Slab photography of all surface reconnaissance rock samples has been done.
	The total length and percentage of the relevant intersections logged.	No sampling reported in this release refers to sample intervals. Sampling conducted is reconnaissance in nature.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	No drilling results are reported in this release. SAU did not conduct any new drilling for this release and as such no core was processed.
	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	Samples were taken dry. Rock chip and grab samples had representative slabs cut (example, see Photos 3-4 in the body of this release) and all of the remaining offcuts of each sample were sent for assay.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	All 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. Pulp samples are then split using a micro-riffle splitter to produce 500g of pulp reject, 250g of pulp duplicate, and 250g of sample for shipment to ALS Laboratories in Laos. The nature of the laboratory preparation techniques is 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. The 1kg of pulp material is then split using a micro-riffle splitter to produce 500g of pulp reject, 250g of pulp duplicate, and 250g of sample for shipment to ALS Laboratories in Laos. Pulp rejects are retained for each sample. These procedures are considered appropriate to maximise representivityof samples,for firstpass exploration.
	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.	Given the nature of the reconnaissance rock sampling, no QAQC samples were considered appropriate for the reporting of early stage Exploration Results.
	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, for early stage Exploration Results.

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Criteria	JORC Code explanation	Commentary
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 200 to 400g) prepared by SGS in South Korea are sent through registered airfreight (e.g. DHL) to ALS laboratory in Laos for Au analysis, with a 12.5g split sent to ALS Brisbane for multielement analysis. ALS is an ISO/IEC 17025:2005 and ISO9001:2015 certified laboratory. Gold was analyzed on a 50g charge using fire assay fusion with an atomic absorption spectroscopy finish (ALS method Au- AA26). Detection limit range is 0.01ppm to 100ppm Au. A 37 multi-element suite was analyzed 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 limit 100g/t Ag. Samples returning a result above 100g/t Ag were re-analysed to ore-grade using Aqua Regia Digestion and ICP_AES (method Ag-OG46) with an upper detection limit of 1500g/t Ag Samples returning a result above 1500g/t Ag were re-analysed to ore-grade using Aqua Regia Digestion and ICP_AES – Extended Range (method Ag-OG46h) with an upper detection limit of 3000g/t Ag. Samples returning a result above 3000g/t Ag were re-analysed using Ag by Fire Assay and Gravimetric Finish, 30g nominal weight (method Ag-GRA21) with an upper detection limit of 10000g/t Ag. Samples returning a result above 10,000g/t Ag were re- analysed using Ag by Fire Assay and Gravimetric Finish, 30g nominal weight (method Ag-CON01), with an upper detection limit of 995,000g/t. The nature of the laboratory assay sampling techniques is considered ‘industry standard’ and appropriate. For any historical KORES, where mentioned, drill core and underground channel samples, the nature, quality and appropriateness of the sample assaying procedures are unknown.
	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.	No data from geophysical tools were used to determine analytical results in this ASX Release. The nature of historical KORES geophysical data, where mentioned, is not known nor locatable at time of 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.	For reconnaissance rock samples, lab duplicates analysis and standard analysis (laboratory checks) are investigated to check for potential errors. If a potential error is discovered, it is investigated, and the samples are potentially re-run with another laboratory.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Assay data has been verified by the geologist in charge of the program and a second Southern Gold employee. Significant intersections/results in this ASX Release have been verified by the Competent Person. Where referenced, any historical KORES data cannot be independentlyverified.
	The use of twinned holes.	No twinned holes have been completed as part of this ASX Release,as theprogram is at an earlystage.
	Documentation of primary data, data entry procedures, data verification, data storage	Primary SAU data is recorded into digital spreadsheets or hand-written documents. All original hardcopy logs and

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Criteria	JORC Code explanation	Commentary
	(physical and electronic) protocols.	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 a SQL database managed through an external consultant with proprietary software. The extracted database is backed up as part of the Company server backup protocol. Historical data exists as digital copy format of original Korean logs and transcripts but cannot be validated. It has been transcribed into SAU databases where applicable, and appropriatelytagged as such.
	Discuss any adjustment to assay data.	No adjustments are made to the assay data.
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.	SAU surface reconnaissance rock sample XYZ locations are determined with a handheld Garmin 64s GPS producing levels of accuracy +/- 3m.
	Specification of the grid system used.	The grid system used is Universal Transverse Mercator (WGS84), Zone 52 S (Northern Hemisphere).
	Quality and adequacy of topographic control.	South Korean Government 5m contour data is available and deemed suitable for topographic control on early stage exploration campaigns.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	SAU surface rock chip and grab sampling intervals were based on geological boundary and veining where possible. On occasion multiple intervals within a single vein have also been taken to identify internal variability.
	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.	Rock chip and grab sampling has been conducted in a selective manner targeting mineralised structures. Given the early stage of exploration, chip and representative grab samples across veins are considered appropriate and unbiased at this stage of the project.
	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.	The relationship between sampling orientation and the orientation of key mineralised structures is not considered to have introduced any material sample bias, as discussed above.
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: Post on-site logging and processing, samples are transported to the Company’s shed facilities under the direct supervision of a Company representative.

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Criteria	JORC Code explanation	Commentary
		Samples are further processed for dispatch by Company representatives under guidance of the Competent Person. Bagged samples are secured by ties and delivered by a Company representative to the sample preparation laboratory. The preparation laboratory sends pulp samples directly to the assay laboratory for analysis via registered courier (DHL). The samples are picked up from the Laos airport by an ALS Laboratory representative. All rejects are returned under courier service and stored in the Company’s secure lock-uplong-term core storage facility.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No external or independent reviews have been undertaken. Southern Gold’s sampling procedure conforms to industry standard practice and each assay program is reviewed internallyfor anydiscrepancies.

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 Neungju granted tenement Neungju 33 is held by Southern Gold Korea, a fully owned subsidiary of Southern Gold (see Figure 1 in this release). The Neungju mineralised structures also lie on privately held land and no known material issues exists with third parties at this time. There are no native title interests in Korea. It is a generally accepted requirement that mineral title holders gain the consent of local landowners and residents before undertaking anymajor exploration activity,such as drilling.
	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.	Upon successful conversion to an Exploration Right, the holder has 3 years to submit Exploration Results 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 Neungju Project has no known previous historical drilling. In the 1990’s, Ivanhoe Mines conducted brief field reconnaissance in the area. 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.	Exploration is targeting low- to high-sulphidation style epithermal precious metal (Au, Ag) mineralisation in Cretaceous volcanic rocks of the Korean Peninsula.
	A summary of all information material to the understanding of the exploration results including	A summary of significant results above 1g/t Au are summarized in Tables 1 to 2.

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Criteria	JORC Code explanation	Commentary
Drill hole Information	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.
	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 to the best of Southern Gold’s knowledge.
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 weighting averaging techniques, maximum and/or minimum grade truncations, or cut-off grades were used within this release. The results reported are reconnaissance rock samples and the above techniques do not apply to these early stage exploration samples.
	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.	All assay values reported are raw assays and none of the reported data has been cut or adjusted.
	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.	No mineralisation widths or intercepts are reported in this report as the sampling reported is early stage reconnaissance explorationgrab sampling.
	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	With regard to surface sampling it is not necessarily known what the relationship between mineralisation widths is as no drilling was undertaken.
	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’).	No downhole widths are reported in this release as the sampling reported is early stage reconnaissance exploration grab sampling.
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, sections, and tables have been included in this ASX Release. See Figure 1, and Table 1 to 2 in the body of this 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	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 presented in the main body of this ASX Release. Previous information is also referenced in the company’s ASX

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Criteria	JORC Code explanation	Commentary
	reporting of Exploration Results.	reports with details provided in this report.
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 has been omitted from this ASX Release.
Further work	The nature and scale of planned further work (e.g. 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. An initial scout diamond drill program on well-defined areas is being planned, as well as further detailed surface ground reconnaissance to obtain more detail geological and structural information in less-defined areas.
	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.

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