ST GEORGE MINING LIMITED — Capital/Financing Update 2011

Nov 21, 2011

ASX / MEDIA RELEASE

==> picture [107 x 18] intentionally omitted <==

==> picture [107 x 17] intentionally omitted <==

==> picture [107 x 16] intentionally omitted <==

ST GEORGE MINING LIMITED 22 November 2011

ASX: SGQ

ACN 139 308 973

EXPLORATION UPDATE – PINE CREEK

Level 1, 115 Cambridge Street PO Box 1305, West Leederville WA 6007

HIGHLIGHTS

www.stgeorgemining.com.au

Phone +618 9322 6600 Facsimile +618 9322 6610 Email info@stgm.com.au

John Prineas Executive Chairman

Tim Hronsky Technical Director

• Diamond drilling programme completed for 2011

• Drilling intersected mineralised zone at a higher level than discovery hole

• Drill core to be analysed by CSIRO HyLogger and then assayed by SGS Australia

Marcus Michael Non-Executive Director and Company Secretary

• MMI multi element soil sampling completed over original discovery area and adjacent “area of interest”

East Laverton Property:

• Gold

• Nickel

OVERVIEW OF EXPLORATION PROGRAMME

• Project Dragon (Nickel JV)

Austra l ian gold and nickel focused explorer, St George Mining Pine Creek Property: • Blue Thunder Gold Project Limite d ( ASX: SGQ ) ( ‘St George Mining’ or ‘the Company’ ) is pleased • White Strike Uranium Project to pro v ide an update on the exploration progra m me for it’s Pine Creek P roperty in the Northern Territory.

Exploration in 2011 was a multi-phase programme designed to confirm t he known gold mineralisation at Pine Creek and tes t the broader area for extensions of this mine r alisation.

A combination of orientated diamond drilling and a multi-element MMI soil ge o chemical survey have been completed with the intention of:

• Confirming the high grade in t ersections in the existing discovery hole (FEND18)

• Gaining a better understanding on the local orientation of the gold mineralisation

• Testing for vertical and later a l extensions from the higher grade zone (FEND 18)

John Prineas, Executive Chairman of St George Mining said:

“We believe the 2011 exploration p r ogramme will add substantial value to the C o mpany’s project by improving the definition of the large gold system at Pine Creek and confirming the potential for the establishment of a significant gold resource.”

1

==> picture [107 x 18] intentionally omitted <==

==> picture [107 x 17] intentionally omitted <==

==> picture [107 x 16] intentionally omitted <==

DRILLING UPDATE

The first diamond drill hole planned under the 2011 drilling programme, nam e d PCDD001, has been completed to a depth of 550 metres. Due to the unusually early onset o f wet weather at site, the balance of the drilling prog r amme has now been suspended until the 2012 field season.

Visual inspection of the drill core i ndicates that the marker unit and the target formation for mineralisation were intersected at a higher elevation than encountered with t he older angled discovery hole (FEND 18). This is consistent with the moderate folding in the area being an important local control on the d i stribution of mineralised zones. Structura l logging of the orientated diamond drill core will commence shortly.

==> picture [178 x 494] intentionally omitted <==

==> picture [193 x 494] intentionally omitted <==

Figure 1 – The diamond drill rig at the P i ne Creek Property

2

==> picture [107 x 18] intentionally omitted <==

==> picture [107 x 17] intentionally omitted <==

==> picture [107 x 16] intentionally omitted <==

Once the drill core has been processed, it will be transported to Darwin to be a n alysed using the CSIRO HyLogger – a hyperspectra l logging unit. The CSIRO developed this industry-leading technology, which uses various b ands in the light spectrum to identify various mineral assemblages to a scale and detail not possible with the human eye.

Mapping the minerals present in th e drill core assists in focusing exploration tow a rds the centre of any gold system where the highest grades are expected. Analysis of FEND18 by the HyLogger indicated that this hole was not t h e centre of the gold system at Pine Cree k . The Company expects that analysis of PCDD001 by the HyLogger to provide an indication as to the position of this hole relative to the centre of t he gold system and will guide the continua t ion of drilling in 2012.

Following the HyLogger analysis, the drill core will be cut and sampled wit h samples to be submitted to SGS Australia (Perth ) for assaying. Results will be announced as they become available.

==> picture [178 x 371] intentionally omitted <==

==> picture [223 x 371] intentionally omitted <==

==> picture [94 x 371] intentionally omitted <==

Figure 2 – Tim Hronsky, Technical Dire c tor, inspecting drill core at site from St George’s first diamond drill hole at the Pine Creek Prope r ty (PCDD 001)

3

==> picture [107 x 18] intentionally omitted <==

==> picture [107 x 17] intentionally omitted <==

==> picture [107 x 16] intentionally omitted <==

MMI SURVEY

Homestake Gold Australia Ltd (HG A L), which made the original gold discovery a t the Pine Creek Property, reported successfully co m pleting a MMI soil geochemical orientation survey over the discovery area. The HGAL MMI sur v ey identified a prominent gold anomaly over the higher-grade drill intersection (FEND18) at Pine C r eek.

The Company has now completed i ts own MMI multi element soil geochemical survey over the discovery area as well as an expand e d area to the east and south. The intention o f this survey is to confirm HGAL’s results regarding g old mineralisation over the discovery area and to test for possible extensions to the known gold mineralisation in the expanded areas to th e east and south.

A successful outcome from this sur v ey will assist in drill planning for the 2012 f ield season. The Company looks forward to reportin g results from the MMI survey in due course.

For further information, please contact:

John Prineas David Brook Executive Chairman Professional Public Relations St George Mining Limited (+61) 08 9388 0944 mob 0415 0 96 804 (+61) 411 421 253 David.Brook@ppr.com.au John.prineas@stgm.com.au www.stgeorgemining.com.au

COMPETENT PERSON STATEMENT:

The information in this announcement t h at relates to Exploration Results and Mineral Resources is based on information compiled by Andrew Hawker of Hawker Geological Services Pty Ltd. Mr Hawker is a member of the Australasian Institute of Mining and M e tallurgy has sufficient experience, which is relev a nt to the style of mineralisation and type of deposit under c o nsideration and to the activity, which he is undertaking. This qualifies Mr Hawker as a “Competent Person” as define d in the 2004 edition of the ‘Australasian Code for Rep o rting of Exploration Results, Mineral Resources and Ore Re s erves’. Mr Hawker consents to the inclusion of information in this announcement in the form and context in w hich it appears.

4