IONDRIVE LIMITED — Interim / Quarterly Report 2012

Apr 29, 2012

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98

Name of entity

Name of entity
SOUTHERN GOLD LIMITED
ACN or ARBN ACN 107 424 519	Quarter ended (“current quarter”)
ACN 107 424 519	31 MARCH 2012

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – R&D Refund net of JV reimbursement of expenses Net Operating Cash Flows	Current quarter $A'000	Year to Date (9 months) $A'000
	0 (753) 0 0 (253) 0 18 0 0 0	0 (2,224) 0 0 (803) 0 100 0 0 252
	(988)	(2,675)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	0 0 (48) 0 0 0 0 0 0	0 0 (56) 0 0 0 0 0 0
	(48)	(56)
	(1,036)	(2,731)

• See chapter 19 for defined terms.

Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,036)	(2,731)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - prospectus issue costs (placement) Net financing cash flows	1,348 0 0 0 0 (47)	1,348 0 0 0 0 (47)
	1,301	1,301
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	265 1,239	(1,430) 2,934
	1,504	1,504

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A’000
		121
		0
1.25 Explanation necessaryfor an understandingof the transactions Amount of $121,039 at 1.23 comprises salaries, director fees and consulting fees paid to directors or related corporations of directors of the Company during the Quarter Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows None 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest JOGMEC $119,012	Explanation necessaryfor an understandingof the transactions
	Amount of $121,039 at 1.23 comprises salaries, director fees and consulting fees paid to directors or related corporations of directors of the Company during the Quarter
	None
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
	JOGMEC $119,012

• See chapter 19 for defined terms.

Appendix 5B Page 2

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

Financing facilities available Add notes as necessary for an understanding of the position.
3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A'000	Amount used $A'000
	Nil	Nil
	Nil	Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A'000
	550
	-
	-
	230
Total	780

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A'000	Previous quarter $A'000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	1,489	724
	15	515
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,504	1,239

Changes in interests in mining tenements

		Tenement reference	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
			(note(2))
6.1	Interests in mining tenements relinquished, reduced or lapsed	Nil
6.2	Interests in mining tenements acquired or increased	Refer attached schedule

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted		Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference+securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	Nil
	Nil
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	269,676,440	269,676,440		N/A		Fully Paid
	26,967,644	26,967,644				Fully Paid
7.5 +Convertible debt securities(description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases througfh securities matured, converted	Nil
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter Cancelled during quarter	50,000 500,000 100,000 300,000 1,500,000 150,000 500,000 500,000 1,000,000	- - - - - - - - -		Exercise Price 35 75 20 15 15 30 15 10.5 10.5	Expiry Date 21 October 2012 28 November 2012 25 May 2013 30 September 2013 29 June 2012 30 June 2014 30 October 2013 1 December 2014 1 December 2015
	Nil
	Nil
	1,000,000 250,000	- -		50 15	7 February 2012 20 October 2014
7.11 Debentures (totals only)	Nil
7.12 Unsecured notes(totals)	Nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here:

==> picture [159 x 64] intentionally omitted <==

Print name:

Nick Harding Date: 30 April 2012 Company Secretary

Notes

• 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

• See chapter 19 for defined terms.

Appendix 5B Page 5

Appendix 5B Mining exploration entity quarterly report

Schedule of changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	M25/00059 M25/00111 M25/00134 M25/00145 M25/00161 M25/00162 M25/00171 M25/00206 M25/00207 M25/00208 M25/00209 M25/00210 M25/00220 P25/01058 P25/01061 P25/01062 P25/01063 P25/01175 P25/01176 P25/01177 P25/01179 P25/01235 P25/01236 P25/01237 P25/01238 P25/01239 P25/01422 P25/01853 P25/02050 P25/02062 M25/00165 M25/00191 M25/00226 M25/00234 M25/00260 M25/00341 P25/2170 P25/2171	All minerals other than Ni-Laterite minerals (for all listed tenements)	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%	60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%

• See chapter 19 for defined terms.

Appendix 5B Page 6