IONDRIVE LIMITED — Capital/Financing Update 2020

Jan 27, 2020

Reconnaissance sampling continues to extend project pipeline

• New high grade assays from mineralised outcrop, float and historical mine dump samples from the November 2019 reconnaissance field programs, South Korea.

Shares on Issue: 88.3m Share Price: $0.175 Market Capitalisation: $15.4m

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

• New assays return a peak of 4.75g/t gold from Yeongdong District and 930g/t silver from Seongju District, both from historical mine working dumps.

• New discovery in South Jeolla District at Daeam Valley , with peak assay of 4.36g/t gold in Float, exhibiting classic high-level low-sulphidation epithermal textures similar to SAU’s Neungju Project

• Tenure applications lodged in all areas and follow up work planned from February 2020

Project Generation produces further High Grade Gold - Silver Results

Extensive field work completed during November 2019 in three separate districts ( Figure 1 ) has produced several anomalous gold and silver results. The intensive reconnaissance sampling program involved 653 new samples being taken and submitted for analysis. A number of rock chip and float samples as well as dump samples from historical workings returned anomalous grade gold-silver results ( Figures 2 – 4, Table 1 - 5 ).

Table 1: Highlights from the reconnaissance sampling

Sample ID	**Aug/t **	**Ag g/t **	**Sample Type **	Location
KRS207025	0.84	206	Dump	Seongju
KRS207194	0.67	930	Dump	Seongju
KRS207027	0.45	763	Dump	Seongju
KRS207064	0.22	700	Dump	Seongju
KRS207313	4.36	1.5	Float	Daeam Valley
KRS207314	1.97	5.2	Float	Daeam Valley
KRS208169	4.75	5	Dump	Yeongdong
KRS208167	1.84	0.9	Dump	Yeongdong

See Tables 2-4 for more details, including location data.

Work included field traversing and extensive rock sampling ( Figures 1 - 4 ). This process has succeeded in finding multiple untested vein systems in addition to historical mine workings.

Southern Gold Managing Director, Mr. Simon Mitchell: “ These anomalous results show that there are an incredible number of project opportunities in South Korea. We know where our target areas are, and it is basically just a matter of putting boots on the ground to cover the areas required and conduct this first pass reconnaissance sampling. We intend to increase this effort in 2020 to build a long pipeline of quality projects to unlock the enormous exploration potential of South Korea.”

Regional Locations

The three regions investigated were the South Jeolla District surrounding SAU’s Neungju Project, the Seongju District on the margin of the Gyeongsang Basin and the Yeongdong District surrounding SAU’s Weolyu Project ( Figure 1 ).

==> picture [359 x 535] intentionally omitted <==

The South Jeolla and Yeongdong districts feature Cretaceous ‘pullapart’ basins proximal and bound by sinistral northeast trending structures. Basin geology is comprised of volcanic, sub-volcanic and volcaniclastic rocks.

The Seongju District occurs on the intersection of major regional structures within the western margin of the Gyeongsang basin. Low to intermediate sulphidation epithermal mineralisation was targeted on structures proximal to major structures.

Dense vegetative cover prevents easy access during the summer months. The reported work was completed as soon as possible in Autumn once vegetation was dying off. Access and outcrop visibility will further improve post winter thaw from February.

Figure 1 – Locations of November reconnaissance sampling in relation to SAU Projects (in red)

-2-

Seongju District Project Generation

Attention was drawn to this area after review of historical KORES records that quoted ore grades from the Seongju Mine averaging 10 g/t gold and 1.5 % silver. This, combined with the location proximity to the junction of multiple regional scale structures on the margin of the Cretaceous Gyeongsang Basin, warranted its field review.

Northwest-southeast striking quartz-sulphide vein-hosted silver-basemetal-gold mineralised corridors (Tongdo-Odong, Number 2, and Daeyoung) were assessed and have a combined traversed strike extent of at least one kilomotre and associated sheeted vein corridor widths commonly exceeding twenty metres.

Quartz vein textures, and the presence of locally abundant basemetal sulfides reflected in geochemical results have an Intermediate-Sulfidation to Low-Sulfidation epithermal signature, similar in many respects to the Main Mine and Shin polymetallic vein system at Southern Gold’s Deokon project.

A total of 299 samples were taken and sent for geochemical analysis. Final significant assay results returned from the reconnaissance program are presented in Table 2 . Peak results of 0.84g/t gold and 206g/t silver ( Photo 1 ) and 0.67 g/t gold and 930g/t silver ( Photo 2) were returned. In addition, several anomalous Pb and Zn values were received.

Six applications were lodged over the area and the District significance is being reviewed.

==> picture [485 x 333] intentionally omitted <==

Figure 2 – Seongju Project Generation rock sampling results

-3-

Sample No	Au g/t	Ag g/t	Pb ppm	Zn ppm	Sample Type	Location	Easting	Northing	Elevation
KRS207194	0.67	930	160	215	Dump	Tongdo Gully	442229	3974241	95
KRS207027	0.45	763	5470	4820	Dump	Daeyoung No.1 Vein	441300	3974316	69
KRS207064	0.22	700	2160	23400	Float	Sonnam Mine Road	442236	3974377	66
KRS207185	0.15	353	155	61	Outcrop	Tongdo Gully	442252	3974311	73
KRS207025	0.84	206	8180	20800	Dump	Daeyoung No.1 Vein	441301	3974312	68
KRS207186	0.15	190	162	59	Dump	Tongdo Gully	442234	3974303	76
KRS207256	0.13	180	382	39	Float	Number 2 Vein	442372	3974907	116
KRS207102	0.05	175	84	35	Float	Water Access Cut	442305	3974397	88
KRS207195	0.12	111	183	153	Dump	Tongdo Gully	442227	3974238	95
KRS207070	0.02	100	329	314	Float	Sonnam Road Cut	442298	3974438	98
KRS207029	0.33	42	3160	1370	Dump	Daeyoung No.1 Vein	441302	3974315	68
KRS207023	0.23	36	2710	852	Dump	Daeyoung No.1 Vein	441299	3974311	68
KRS207021	0.33	26	5940	4050	Dump	Daeyoung No.1 Vein	441303	3974316	69

Table 2: Significant reconnaissance surface rock sample results from Seongju (>0.5g/t Au or >100g/t Ag, along with anomalous Pb and Zn values in bold ). All location data is WGS84_Z52N Grid.

==> picture [231 x 150] intentionally omitted <==

Photo 1: Dump sample KRS207025, 0.84g/t Au and 206/t Ag. Hydraulic vein breccia, comprised of early white mesocrystalline quartz & ghosted, oxidised limonitic clasts, flooded by mesocrystalline to chalcedonic quartz with fine sulfides. Seongju Mine .

==> picture [230 x 150] intentionally omitted <==

Photo 2: Dump sample KRS207194, 0.67g/t Au and 930g/t Ag. Hydraulic vein breccia, comprised of quartz-bearing sandstone & commutated granite clasts that have been streamed within a multi-phase matrix of mesocrystalline to chalcedonic criudely banded quartz with sulfide. Seongju Mine .

South Jeolla District Project Generation

Reconnaissance sampling in the Neungju Basin has uncovered a new discovery at Daeam Valley , with no reported gold occurrences in this area or recognised historical mine workings. Sheeted epithermal quartz veining within a series of tectonic to hydraulic vein breccia exposures were identified, and vein and vein breccia blocks, up to thirty centimetres in true width are present. Quartz veining appears to be closely associated with and parallel to injection-foliated rhyolite dyking, and the discovery outcrop consists of an injection-foliated rhyolite dyke and sheared carbonaceous schist or phyllite contact, approximately one metre in width. Further sheeted anastomosing quartz veining and vein breccias crop out over an approximate exposed width of twenty to thirty metres perpendicular to vein strikes.

-4-

Vein and vein breccia textures are typical of those found within the upper levels of Low-Sulfidation epithermal gold-silver vein systems and the geochemical signature (associated anomalous arsenic, antimony and barium) is very similar to that observed at Southern Gold’s Neungju epithermal gold target.

A total of 81 samples were taken and sent for geochemical analysis. Final significant assay results returned from the reconnaissance program are presented in Table 3 . Peak results of 4.36g/t gold and 1.5g/t silver ( Photo 3 ) and 1.97 g/t gold and 5.2g/t silver ( Photo 4) were returned from this reconnaissance sampling.

Sample ID	Au **g/t **	Ag **g/t **	Sample **Type **	Location	Grid ID	Easting	Northing	Elevation
KRS207313	4.36	1.5	Float	Daeam Valley	WGS84_Z52Nth	318082	3877346	138
KRS207314	1.97	5.2	Float	Daeam Valley	WGS84_Z52Nth	318080	3877346	135
KRS207316	0.85	0.3	Outcrop	Daeam Valley	WGS84_Z52Nth	318109	3877387	145
KRS207315	0.56	0.2	Outcrop	Daeam Valley	WGS84_Z52Nth	318109	3877386	144
KRS207317	0.53	0.5	Float	Daeam Valley	WGS84_Z52Nth	318120	3877431	162
KRS207319	0.52	0.5	Float	Daeam Valley	WGS84_Z52Nth	318124	3877430	162

Table 3: Significant reconnaissance surface rock sample results from Daeam Valley (>0.5g/t Au).

==> picture [488 x 337] intentionally omitted <==

Figure 3 – South Jeolla reconnaissance sampling results

-5-

==> picture [231 x 150] intentionally omitted <==

Photo 3: Float sample KRS207313, 4.36g/t Au and 1.5g/t Ag. Sheared rhyolite-streamed carbonaceous phyllite contact zone, with hydraulic brecciation and multiple quartz flooding phases. Daeum Valley, Neungju Basin.

==> picture [232 x 150] intentionally omitted <==

Photo 4: Float sample KRS207314, 1.97g/t Au and 5.2g/t Ag. Sheared carbonaceous phyllite, flooded by mesocrystalline to chalcedonic quartz. Daeum Valley, Neungju Basin.

In addition, a new discovery was made at Bongjeongsan , along the eastern fault bounded margin of the Neungju pull-apart basin, with over four sheeted vein zones attaining widths of up to 2.5 metres over a two hundred metre across-strike width. Quartz vein textures are typical of high-level Low-Sulfidation adulariasericite type quartz vein systems. These include dynamic polyphasal hydraulic brecciation and chalcedonic quartz rehealing, coarse quartz pseudomorphs after bladed calcite, crudely colloform- to cockade-banded saccharoidal to chalcedonic quartz and open-space drusy prismatic quartz vein textures. These quartz vein textures are remarkably similar to Southern Gold Ltd.’s Beopseongpo target and to those found in the upper levels of large productive vein systems, including the Waihi epithermal gold-silver district in New Zealand.

Geochemical analysis results gained from highly limited sampling are encouraging when the extremely high level of paleo-hydrological exposure is considered (likely no more than 50 m below the eroded off paleowatertable). Peak rock chip outcrop results of 0.19 g/t gold and 2.8 g/t silver, coupled with moderately anomalous antimony (peak: 11 ppm Sb) and highly anomalous arsenic (peak: 608 ppm As), fit with the texturally indicated high level of exposure. The aforementioned precious metal values attained are very similar to those gained from reconnaissance sampling along the Hand of Faith vein segment at Beopseongpo .

Follow-up exploration is warranted to trace out and systematically rock chip sample newly recognised vein zones in both strike directions, with a high probability of further vein zones to be discovered.

Sample ID	Au **g/t **	Ag **g/t **	Sample **Type **	Location	Grid ID	Easting	Northing	Elevation
KRS207366	0.19	1.3	Outcrop	Bongjeongsan	WGS84_Z52Nth	3874062	327692	253
KRS207367	0.12	0.5	Outcrop	Bongjeongsan	WGS84_Z52Nth	3874062	327692	253
KRS207363	0.12	0.3	Outcrop	Bongjeongsan	WGS84_Z52Nth	3874006	327673	243
Table 4:Significant reconnaissance surface rock sample results from Bongjeongsan (>0.1g/t Au).

-6-

==> picture [236 x 154] intentionally omitted <==

Photo 5: 2.5m wide outcrop of sheeted, anastomosing mesocrystalline to chalcedonic quartz veins and hydraulic breccia. Bongjeongsan, Neungju Basin.

==> picture [236 x 154] intentionally omitted <==

Photo 6: Outcrop sample KRS207366, 0.19g/t Au and 1.3g/t Ag, of hydraulic vein breccia Bongjeongsan, Neungju Basin.

Yeongdong District Project Generation

Reconnaissance covered an 18 square kilometre area on the southern margin of the Yeongdong basin to the northeast of the Weolyu Project, covered by SAU’s Mining Licence Yeongdong 66 and a further 10 Exploration Applications. A total of 273 samples were taken and sent for geochemical analysis.

Final significant assay results returned are presented in Table 5 . Peak results of 4.75g/t gold and 5g/t silver ( Photo 7 ) and 1.84 g/t gold and 0.9g/t silver were returned.

Sample ID	Au **g/t **	Ag **g/t **	Sample **Type **	Location	Grid ID	Easting	Northing	Elevation
KRS208169	4.75	5	Dump	Yeongdong45	WGS84_Z52Nth	404082	4012927	275
KRS208167	1.84	0.9	Dump	Yeongdong45	WGS84_Z52Nth	404084	4012929	275
KRS208164	1.39	0.3	Float	Yeongdong45	WGS84_Z52Nth	403386	4012825	239
KRS208006	0.9	3.7	Outcrop	Weolyu North	WGS84_Z52Nth	400427	4010853	195
KRS208177	0.9	0.1	Float	Shinhung	WGS84_Z52Nth	405797	4014917	203
KRS208089	0.62	1.8	Outcrop	Middle School	WGS84_Z52Nth	401101	4010939	214
KRS208174	0.56	4.3	Dump	Yeongdong45	WGS84_Z52Nth	404074	4012940	272

Table 5: Significant reconnaissance surface rock sample results from Yeongdong District (>0.5g/t Au).

One of the most interesting areas was the Shinhung Prospect (Photos 8 and 9), located 7 kilometres to the northeast of Weolyu, displaying all the hallmarks of world class epithermal vein deposits. It is a classic low sulfidation epithermal quartz vein with boiling textures exposed in float, outcrop and abandoned underground workings over a one kilometre north-south strike length that transects the Yeongdong basin margin. Mineralization consists of bladed, lattice bladed, colloform banded, hydraulic breccia and cockade textured chalcedonic, recrystallized saccharoidal and fibrous quartz. Despite the sample assays being generally low, it was mined in a series of underground workings including a decline on the lowest level, two adits and a stope that daylights to surface. The vein was mined over a 60m strike length over an estimated 20m vertical extent, not including the decline (Photo 9) .

The sample results are interpreted to be not representative of the material mined from the underground workings. No previous production figures are available and further investigation is warranted.

-7-

==> picture [364 x 415] intentionally omitted <==

Figure 4 – Yeongdong District reconnaissance sampling results

==> picture [239 x 182] intentionally omitted <==

Photo 7: Dump sample KRS208169, 4.75g/t Au and 5g/t Ag. Chalcedonic white quartz. Yeongdong 45 unknown historical underground workings, Yeongdong District.

==> picture [223 x 180] intentionally omitted <==

Photo 8: Float sample KRS208177, 0.90g/t Au and 0.1g/t Ag. Crustiform, colloform banded quartz, recrystallized to fibrous aggregates. Shinhung underground workings, Yeongdong District.

-8-

==> picture [488 x 307] intentionally omitted <==

Photo 9 – Shinhung Prospect historical workings

Next Stage

A strong commitment to reconnaissance sampling and Project Generation is planned for the South Jeolla and Yeongdong Districts, commencing in February post winter vegetation die-off, and will be active through to June until the vegetation becomes too restrictive for traversing. The aim is to continue to build a pipeline of Projects for drill testing once prospective areas have been thoroughly sampled, assessed and mapped.

Related ASX Announcements

20180806 – ASX Tenements granted at Deokon, South Korea.

20181002 – ASX High grade gold confirmed at Shin Adit, Deokon Project, South Korea.

20190129 – ASX High grade gold-silver zones confirmed at Weolyu South Project, South Korea.

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

20190905 – ASX High-Grade Gold results Neungju Project

20191029 – ASX Bonanza Drilling Commences

20191210 – Beopseongpo Drilling – Major Epithermal System Confirmed

20200128 – Deokon Scout Diamond Drilling Results

-9-

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.

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.

-10-

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 float samples and grab samples taken from historical Mine workings and dumps, within tenements under application 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 and underground 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 and underground 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.

-11-

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 was completed.
	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 1-8 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.

-12-

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 35 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.
	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

-13-

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.

-14-

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 tenement applications Waegwan 75, 76, 85, 86, 95 & 96 (Seongju District), Boknae 71, 81 & 91, Dongbok 80, 90, 100, 149 & 150 and Gwangju 9 & 10 (South Jeolla District) and Yeongdong 23, 24, 33, 34, 35, 44, 45, 46, 55 & 56 (Yeongdong District) as well as granted Mining tenements Yeongdong 66 & 67 (Weolyu Project – Yeongdong District) are held by Southern Gold Korea, a fully owned subsidiary of Southern Gold. 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 undertakinganymajor 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 Weolyu Project has historically had mining and adits excavated at the North Weolyu Mine, located in SAU’s southern granted license (Yeongdong 67) and operated up to mid-1990’s. Apart from small scale adits excavated by unknown parties and historical drilling by KORES and Asiatic Gold Ltd at Weolyu South, no other details of previous work in the vicinity is known to the best of our knowledge. A number of other small-scale historical workings were located

-15-

Criteria	JORC Code explanation	Commentary
		in the Yeongdong District but production records have not been able to be located. The Seongju Mine (Seongju District) was operated as a small open pit from 1978-80, and then underground from 1981-90 on four levels down to 80m depth. An EM geophysical survey was conducted by KORES in 1981 and 8 holes for 820m of drilling was conducted by KORES in 1982. KORES records state production from the Tongdo-Odong vein system in 1981 (ie. the Seongju mine) was declared as (1) 93 tonnes of mucked out ore averaging 10 g/t gold and 1.5 % silver, and (2) 231 tonnes averaging 7.5 g/t gold and 1.12% silver. A 1988 Reserve Report mentioned silver grades of 300-400g/t, most of which occurred as native silver. Historical records in general are not extensive and considered unreliable. In the 1990’s, Ivanhoe Mines conducted brief field reconnaissance in each 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.
Drill hole Information	A summary of all information material to the understanding of the exploration results including 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.	A summary of significant results above 0.5g/t Au and/or 100g/t Ag are summarized in Tables 1 to 5, except for Table 4 which is above 0.1g/t Au
	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.

-16-

Criteria	JORC Code explanation	Commentary
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 Figures 1 - 4, and Tables 1 - 5 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 reporting of Exploration Results.	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 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 follow up these results and generate new Projects. Further detailed surface ground reconnaissance to obtain more detailed geological, geochemical and structural information isplanned.
	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 Figures 2 - 4 in the main body of this ASX Report that show where sampling has been conducted.

-17-