SOUTHERN HEMISPHERE MINING LIMITED — Capital/Financing Update 2021

Aug 15, 2021

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ASX Announcement 16 August 2021

RC and Diamond Drilling Progressing Well at Colina2 Gold Project in Chile

• ➢ The current RC and DDH drilling program at Colina2 is approximately 60% completed. Diamond tails are being utilised where RC holes go wet to eliminate potential contamination from wet RC drilling

• ➢ Drilling is testing the depth and strike of gold intersected in surface trenching

• ➢ Drilling has intersected variably silica-epidote-chlorite altered hydrothermal breccia with pyrite

Southern Hemisphere Mining Limited (“Southern Hemisphere”, “SUH” or “the Company”) (ASX: SUH) advises that the maiden RC/DDH drilling exploration program at the 100% owned Colina2 Gold Project discovery in Chile is approximately 60% completed, and expected to finish in 2-3 weeks.

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Figure 1. Llahuin/Colina2 Chile Location Map

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The first assays have been submitted to the ALS laboratory in Chile and results are pending. Colina2 is located 8km to the NW of the Llahuin Project. Drilling progress is shown in Figure 2 below.

Figure 2. Colina2 RC/DDH drilling progress (red shows completed, green in progress, yellow incomplete and grey to be drilled)

Drilling has intersected variably silica-epidote-chorite altered hydrothermal breccia with pyrite. The hydrothermal breccia was intersected below the trenches with gold results previously reported to ASX on 1/9/2020.

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Figure 3. Examples of diamond core from Colina 2

The company has substantially increased its tenure adjacent to and around the Colina2 licence by staking a further 13 licences as reported in the recent quarterly report.

Llahuin Copper/Gold/Moly Project

Drilling at the Llahuin Copper/Gold Project is scheduled to follow after Colina2, for completion in H2 2021.

Approved by the Board for release.

CONTACTS:

For further information on this update or the Company generally, please visit our website at www.shmining.com.au or contact the company :

cosec@shmining.com.au

Telephone: +61 8 6144 0590

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BACKGROUND INFORMATION ON SOUTHERN HEMISPHERE MINING:

Southern Hemisphere Mining Limited is an experienced minerals explorer in Chile, South America. Chile is the world’s leading copper producing country and one of the most prospective regions of the world for major new copper discoveries. The Company’s projects include the Llahuin Porphyry Copper-Gold Project, the recently identified Colina 2 Gold prospect nearby, and the Los Pumas Manganese Project all of which were discovered by the Company.

Llahuin Copper Project: Total Measured and Indicated Resources - JORC (2004) Compliant. As announced to the market on 18 August 2013.

Resource (at 0.28% Cu Equiv cut-off) Measured Indicated Measuredplus Indicated Inferred	Tonnes	Cu %	Au g/t	Mo %	Cu Equiv*
	Millions
	112	0.31	0.12	0.008	0.42
	37	0.23	0.14	0.007	0.37
	149	0.29	0.12	0.008	0.41
	20	0.20	0.19	0.005	0.36

Note: *Copper Equivalent (“Cu Equiv”): The copper equivalent calculations represent the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result. It is the Company’s opinion that elements considered have a reasonable potential to be recovered as evidenced in similar multi-commodity natured mines. Copper equivalent conversion factors and long-term price assumptions used are stated below:

Copper Equivalent Formula= Cu % + Au (g/t) x 0.72662 + Mo % x 4.412 Price Assumptions- Cu ($3.40/lb), Au ($1,700/oz), Mo ($15/lb)

Los Pumas Manganese Project: Total Measured and Indicated Resources - JORC (2004) Compliant. As announced to the market on 25 March 2011.

Resource	Tonnes
		Mn %	SiO2 %	Fe2O3 %	Al %	K %	P %
**(at 4% Mn cut-off) **	Millions
Measured	5.27	7.39	57.85	2.78	5.62	2.88	0.05
Indicated	13.06	7.65	55	2.96	5.64	2.92	0.05
Measuredplus Indicated	18.34	7.58	55.82	2.91	5.62	2.91	0.05
Inferred Total	5.39 23.73	8.59 7.81	51.44	2.72	5.49	2.69	0.06

Metallurgical studies have demonstrated greater than 38% Mn concentrates are achievable by DMS with low impurities and high silica product.

In relation to the above resources, the Company confirms that it is not aware of any new information or data that materially affects the information in the announcements, and all material assumptions and technical parameters in the announcements underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

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COMPETENT PERSON / QUALIFIED PERSON STATEMENT:

The information in this report that relates to copper and gold exploration results for the Company’s Projects is based on information compiled by Mr Adam Anderson, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australian Institute of Geoscientists. Mr Anderson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Anderson is a consultant for the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information, please refer to the Technical Reports and News Releases on the Company’s website at www.shmining.com.au.

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