IONDRIVE LIMITED — Capital/Financing Update 2019

Jul 4, 2019

South Korean Joint Venture Update

• ‘Permit to Develop’ applications for Gubong and Kochang Gold Projects are still in process.

• The Gubong gold project application is to be considered by an administrative panel at central government level.

Shares on Issue: 62.5m 83.3m pending underwritten rights issue completion Share Price: $0.11 Market Capitalisation: $6.9m

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

Australia (100%)* Cannon Au Mine Glandore Au Project Cowarna Au Project

*currently in sales process with PCF Capital

Directors

Greg Boulton AM (Chairman) Simon Mitchell (MD) 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

• The Kochang gold project application has been delayed due to recent law reform but remains on track.

Australian gold company Southern Gold Ltd (“Southern Gold”) advises that its development partner in South Korea, London Stock Exchange listed Bluebird Merchant Ventures Ltd (“Bluebird”), has provided an update on the Gubong and Kochang gold projects in South Korea under the 50/50 Joint Venture.

Gubong Project JV (Southern Gold 50%)

The Joint Venture has received initial feedback on the submitted ‘Permit to Develop’ from local government authorities. The process has now moved to the next stage where the application is to be considered by an administrative panel at central government level.

This next stage of the process is expected to occur during August on a specific date yet to be determined.

Kochang Project JV (Southern Gold 50%)

The Kochang Project ‘Permit to Develop’ application is still in process.

Bluebird has reported a delay in the process due to a change in the Counter Measure Against Natural Disasters Act (CMANDA) which has resulted in a new proclamation that is currently being distributed to all government departments. This recent clarification of the CMANDA will enable the ‘Permit to Develop’ application to proceed to the next stage.

Bluebird has also advised that the recently announced funding support from Korean Resources Corporation (KORES) for drilling at Kochang has been put on hold pending the grant of the ‘Permit to Develop’ as outlined above.

Postal Address

Southern Gold Ltd PO Box 255, Kent Town SA 5071

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 project 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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