IONDRIVE LIMITED — Capital/Financing Update 2019

Feb 21, 2019

==> picture [596 x 96] intentionally omitted <==

22 February 2019

The Manager Company Announcements Office ASX Limited

INFORMATION REQUIRED UNDER ASX LISTING RULE 3.10.5A

Southern Gold Ltd provides the following information required under ASX Listing Rule 3.10.5A.

• a) Dilution to existing holders:

The dilutive effect of the 7.1A placement of 5,583,557 fully paid ordinary shares on existing shareholders is 9%.

Further details of the approximate percentage of the issued capital post the placement held by preplacement shareholders and the new shareholders are as follows;

Shareholder category	Holding preplacement	Holding postplacement
Pre-placement securityholders who did notparticipate in theplacement	82.43%	73.65%
Pre-placement securityholders who didparticipate in theplacement	16.57%	21.02%
Participants in theplacement who were notpreviouslysecurityholders	-	5.33%
Total	100%	100%

• b) The Company has resolved to utilise the capacity available to it under ASX Listing Rule 7.1A. The Company considers this to be the most effective and expedient method for raising funds to further exploration expenditure and general working capital;

• c) No underwriting arrangement were in place for the placement; and

• d) No fees were paid in connection with the placement.

Southern Gold Limited ABN 30 107 424 519

PO Box 255

email info@southerngold.com.au telephone 08 8368 8888 web southerngold.com.au facsimile 08 8431 5619

Level 1 PO Box 255 8 Beulah Road Kent Town Norwood SA 5067 SA 5071