IONDRIVE LIMITED — Capital/Financing Update 2019

Sep 10, 2019

Gubong Project ‘Permit to Develop’ Approved

• Development approval received by the Gubong Joint Venture company

Shares on Issue: 83.3m Share Price: $0.20 Market Capitalisation: $16.6m

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

South Korea Development (50%) BMV[#] JV

Gubong Project JV Co Ltd Kochang Project JV Co Ltd # Bluebird Merchant Ventures is LSE listed

Directors

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

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

• Formal documentation from regulators to be received in coming weeks

Southern Gold Ltd (Southern Gold) has been advised by its Joint Venture partner, London listed Bluebird Merchant Ventures Ltd (Bluebird), that it has received confirmation that the Permit to Develop for the Gubong Gold Mine has been approved by the Ministry of Trade, Industry and Energy (MOTIE). Formal documentation relating to the approval will be received from MOTIE over the next few weeks.

It is Southern Gold’s understanding that this is the first Permit to Develop issued to a foreign operator since Indochina Goldfields (which changed name to Ivanhoe Mines in 1999) received its approval for the Eunsan gold deposit in the late 1990’s.

Southern Gold and Bluebird each hold a 50% equity interest in Singaporean company Gubong Project JV Co Ltd which in turn holds 100% of South Korean company Gubong Project Co Ltd which holds the Gubong gold development project. Joint Venture costs are shared 50/50 while Bluebird is responsible for day to day operations.

A similar corporate joint venture arrangement is in place for the Kochang Project which is currently still in the approval process for its Permit to Develop. An update on the status of this project will be provided as soon as notification is received from regulators, expected over the coming months.

Southern Gold Managing Director, Mr Simon Mitchell:

“This is a very important milestone for the Joint Venture, and I congratulate Bluebird as operators in securing the Permit to Develop for Gubong, the first in many years for a foreign operator, at least as far as we are aware. This approval paves the way for the Joint Venture to take the Gubong project forward and target first gold pour in 2020, another very important milestone that is now closer to being achieved.

Compared to other regulatory systems, such as we see in Australia, this is an extremely rapid approval process, taking less than one year since its initial submission. The South Korean centralised regulatory approach has resulted in an efficient turn around while retaining a comprehensive review system. This bodes well to other future potential developments that will be in Southern Gold’s pipeline down the track.”

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 projects in South Korea that are largely greenfield epithermal gold-silver 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 epithermal gold-silver deposits in a jurisdiction that has seen very little modern exploration.

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

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 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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