ST GEORGE MINING LIMITED — Capital/Financing Update 2011

Oct 5, 2011

ASX / MEDIA RELEASE

ST GEORGE MINING LIMITED

HIGHLIGHTS • • • OVERVIEW Australian Limited ( the proposed the North Drill site preparation will comm ASX: SGQ ACN 139 308 973 Level 1, 115 Cambridge Street PO Box 1305, West Leederville WA 6007 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 Marcus Michael Non-Executive Director and Company Secretary East Laverton Property: • Gold • Nickel • Project Dragon (Nickel JV) Pine Creek Property: • Blue Thunder Gold Project • White Strike Uranium Project Department of Resources early October 2011 OVERVIEW Northern Territory.

6 October

October 2011

Ahead of this drilling programme, St George historical drill core from the Pine Creek Property technology. The findings of this review Property and support the Company's opinion of the potential for a large scale gold deposit at this project. the diamond St George Mining has conducted a comprehensive review of the using the industry-leading . indicate significant exploration upside at review leading CSIRO HyLogger indicate exploration at the Pine Creek

The Pine Creek Property

The previous explorer at the Pine Creek Property, Homestake Gold of Australia Limited ("HGAL"), carried out a successful regional diamond drilling programme o Shear zone that included the current EL 27732, a tenement th Mining's Pine Creek Property. HGAL was part of the Homestake Group; one of the largest global gold miners during the 1990's, which subsequently merged with Barrick Gold Corporation, presently the world's largest gold miner. the the scale at Creek Property, out over a broad area of the Fenton hear EL that now forms part of St George of the Homestake Group; one of gold during the with miner. ver the at now forms part and age of the

HGAL had noted the similarities between the geological setting, mineralisation hosted by the Koolpin Formation at Pine Creek, and the profile of the giant Homestake Gold deposit (50+ Moz similarities in the age, setting and character of the mineralisation of the the giant Obuasi (40+ Moz Au) gold deposit in southern Ghana. the character hosted Formation Pine Au) in Lead, South Dakota. St George Mining of Homestake deposit and Au) Mining also notes

• Permit for diamond drilling at Pine Creek approved UPDATEapproved by
• Diamond drilling programme scheduled to start start in
• Analysis of historical drill core indicates core of gold system at Pine Creek remains to be tested of

to confirm that the Department of Resources of the Northern Territory has approved the Company's Mine Management Plan stralian gold and nickel focused explorer, St George Mining ASX: SGQ) ('St George Mining' or 'the Company' Department of proposed 2011 drilling programme at its Pine Creek , St Mining 'the ) is pleased Plan for Creek Property in

be followed by the diamond drilling programme. preparation commence in early October October 2011 and will

Carbon and sulphide-rich gold mineralisation was intersected by HGAL at the Pine Creek Property within the extensive and highly prospective Koolpin Formation, which also hosts the Cosmo Howley gold mine (2+ Moz Au) about 30 km to the northeast. listed in Table 1. rich gold intersected by at the Formation, which about The HGAL drill intersections are

HOLEID	NORTHING	EASTING	DIP(degrees)	AZM(degrees)	DEPTH(m)	FROM(m)	TO(m)	WIDTH(m)	GRADE(g/tAu)
FEND14	8472737	746928	-68	264	650	610	627	17	0.74
FEND18	8471548	747190	-68	264	649	423	425	2	2.24
						431	433	2	4.89
					Inc.	431	432	1	8.68
						438	444	6	3.48
					Inc.	441	442	1	8.32
						463	464	1	1.81

Table 1- Higher grade intersections of FEND 18 and FEND 14 intersections of FEND 14

CSIRO HyLogger

The two historical drill cores have now logging technology. This is industry leading technology developed by the C light bands to identify the various minerals present and distinguish whether they are original to the rock, a result of metamorphism ( potentially associated with gold mineralisation. been analysed using the CSIRO HyLogger hyp by CSIRO, using different to various minerals , a result (i.e. heat and pressure changes) or are alteration minerals, the hyperspectral SIRO, different heat pressure minerals, eye. It takes

The HyLogger detects mineral occurrences readings at every 10 cm along the analysed drill core, provid record of mineralisation. This information can be correlated to alteration zoning that is known to exist in orogenic gold deposits, and can be used t highest grades are anticipated. and changes not discernible by the human eye 10 the providing a detailed and comprehensive . This that known ogenic deposits, to identify the core of the gold system where detailed he of the

The information produced by the HyLogger system at the Pine Creek Property FEND 18 within the larger gold system. review allows for a better understanding of the gold including, in particular, the relative position of FEND larger gold system. nderstanding of the FEND 14 and

Tim Hronsky, Technical Director of helped us develop a greatly improved understanding of the mineral system at our The most significant insight was that in the high grade zones in gold had been detected by HGAL, the alteration was still "patchy expected. This suggests FEND 18 intersected gold mineralisation that is s the main gold system, rather than in and higher grade gold intersections alteration and mineralisation, nearer the St George Mining said: "The findings of the HyLogger have t that in intersected in FEND 18, where visible gold by alteration "patchy" and not pervasive as would be gold mineralisation still proximal to the core of in the core itself. It follows that St George may intersections in areas associated with more pervasive deformation, , the core of the system." of Creek Property. FEND encounter larger associated

2011 Drilling Programme at Pine Creek Creek

A diamond drilling programme will be conducted in October 2011. Drilling is scheduled to commence in conducted by St George Mining at the Pine C is commence early October 2011. the Creek Property

The purpose of the orientated diamon diamond drilling programme will be to:

• Confirm the high grade intersections in FEND high grade in FEND 18
• Gain a better understanding on the local orientat better understanding orientation of the gold mineralisation ion mineralisation
• Test for lateral and vertical extensions above and below vertical extensions above the zone intersected b by FEND 18

John Prineas, Executive Chairman of the Homestake group confirmed that there is a large gold system present at our Pine Creek Property. We are excited by the confirmation of the exploration potential St George Mining said: "The previous diamond drilling by gold findings from the HyLogger review, which potential of our project, something we have always believed in." "The previous by provide further something in."

For further information, please contact: John Prineas Executive Chairman St George Mining Limited (+61) 411 421 253 John.prineas@stgm.com.au please TEMENT:

Professional Public Relations (+61) 08 9388 0944 mob 0415 096 804 David.Brook@ppr.com.au

COMPETENT PERSON STATEMENT:

The information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Andrew Hawker of H the Australasian Institute of Mining and Metallurgy mineralisation and type of deposit under consideration and to the activity, which he qualifies Mr Hawker as a "Competent Person" as defined in the 2004 edition of the 'Austr Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Hawker consents to the inclusion of information in this announcement in the form and context in which it appears. and based of Hawker Geological Services Pty Ltd. Mr Hawker is a member of Metallurgy has sufficient experience, which is relevant to the style of of to he is undertaking. This Person" the edition of 'Australasian Code for of Resources and to of this in and which David Brook a alasian