ST GEORGE MINING LIMITED — Capital/Financing Update 2011

Nov 13, 2011

ASX / MEDIA RELEASE

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ST GEORGE MINING LIMITED 14 November 2011

ASX: SGQ

ACN 139 308 973

EXPLORATION UPDATE – EAST LAVERTON

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

• Drilling programme focused on high priority gold targets in progress

• Airborne magnetic survey completed over two new gold prospects

Tim Hronsky Technical Director

• Ongoing MMI multi element soil sampling on new areas along prospective gold trends

Marcus Michael Non-Executive Director and Company Secretary

East Laverton Property:

OVERVIEW OF EXPLORATION PROGRAMME

• Gold

• Nickel

• • Project Dragon (Nickel JV)

Pine Creek Property:

• Blue Thunder Gold Project

• • White Strike Uranium Project

Austra l ian gold and nickel focused explorer, St George Mining Limite d ( ASX: SGQ ) ( ‘St George Mining’ or ‘the Company’ ) is pleased to pr o vide an update on its exploration pro g ramme for the Comp a ny’s 100% owned East Laverton Property in t h e North-Eastern Goldfi e lds.

Exploration during the 2011 field se a son at East Laverton involves a large multi- p hase exploration programme focused on investigatin g high priority gold prospects and continuing t he evaluation of the property which covers more tha n 1,800 sq km.

The drilling component of the expl o ration programme will continue to test th e more advanced gold prospects at Desert Dragon an d Balmoral.

A detailed airborne magnetic surv e y covering the Red Dragon and Balmoral g o ld prospects has been completed and data is curren t ly being processed and modelled. The surve y will supplement the Company’s existing geophysical database and will assist in developing new drill targets ahead of the 2012 field season.

DRILLING UPDATE

To date, a total of 873 metres o f air-core drilling and 851 metres of RC d r illing have been completed at Desert Dragon and B a lmoral as part of the 2011 4,000 metre drilling programme. Extensive drilling is continuing at both of these gold prospects, and drill samples are being submitted for assay on an ongoing basis to SGS Australia.

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Drilling at Desert Dragon has inters e cted significant lengths of altered intervals w ith disseminated sulphide mineralisation towards the base of the holes. This kind of mineralisation and alteration is often an indicator of gold mineralisa t ion in the Laverton region.

The drill samples for seven air core holes (of the proposed 42 drill holes under the 2011 drilling programme) have been submitted to SGS Australia so far. Five of these holes w e re located in the southern extent of the Desert Drag o n prospect and because of operational chal l enges were only able to test this area to a relatively s hallow position. Drill depths achieved by th e air core drill rig were approximately 70 m on avera g e, which is well short of the 100+m target d e pths required in our drilling programme. Given the limitations of this air-core drill rig, it has be e n replaced by a reverse circulation (RC) drill rig.

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Figure 1 - The air core rig at Hole 18 of the Desert Dragon Prospect

The Company has received the as s ay results for samples submitted from these seven air core holes. While no significant gold intersections were reported in the assay results f rom these holes, both the alteration and the lower level gold response are highly encouraging. It is likely the air core holes, which did not reach t h e target depths, were too shallow to ade q uately test this southern zone.

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Five RC holes have been complete d so far at Desert Dragon, with depths achie v ed up to 130m. (One hole was to 82m and the oth e r 4 holes were between 110m and 130m). These holes also intersected significant lengths of a ltered intervals with disseminated sulphid e mineralisation. Assay results for these holes are pe n ding. Overall, the majority of the holes (bei n g 14 holes, 10 of which are RC holes) at Desert Drago n remain to be assayed and/or drilled.

RC drilling is also ongoing at Balmor a l West, part of the large and complex Balmo r al prospect. Two air core holes drilled to test a geoc h emical target in the enigmatic northern par t of the prospect did not report any significant results.

The assay results received to date h a ve not as yet been tabulated or matched to the intersections of each hole. The results will be co m piled and further reviewed in conjunction w ith other drilling results as they are received. No a s says have been received by the Company f rom the current reverse circulation drilling. We loo k forward to reporting further assay results as they become available.

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- Figure 2 the RC rig in operation at Hole 3 of the Balmoral p rospect

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AIRBORNE MAGNETIC SURVEY

Approximately 4,800 line kilometr e s have been flown by Fugro Airborne Serv i ces as part of a detailed airborne magnetic survey c o vering the Red Dragon and Balmoral gold pr o spects. The field component of the survey has been completed and data from the survey is now being processed and modelled. The Company belie v es that the survey will assist to identify fur t her high priority drill targets. Results from the surve y will be announced in due course.

MMI SURVEY

The Company has extensively used M MI multi element soil sampling to identify d rill targets at the East Laverton Property to overco m e the issues with exploring in an area wit h extensive postmineral cover.

The MMI soil sampling programme was extended this year to include some ar e as located along the extension of known gold tren d s. An area of anomalous gold was detect e d in the Golden Dragon area (north of Red Dragon), a newly acquired area where no modern gol d exploration has been conducted. The initial MMI c overage is being expanded to better defin e this zone. The Company looks forward to reporti n g results from the MMI survey on comple t ion of the 2011 survey.

For further information, please contact:

John Prineas	David Brook
Executive Chairman	Professional Public Relations
St George Mining Limited	(+61) 08 9388 0944 mob 0415	096 804
(+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.

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