ST GEORGE MINING LIMITED — Capital/Financing Update 2011

Sep 7, 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 8 September 2011

ASX: SGQ ACN 139 308 973

DRILLING COMMENCES AT EAST LAVERTON

HIGHLIGHTS

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

• Drilling of high priority gold targets at East Laverton has commenced

• Initial 3,000m drilling programme underway

• • Airborne magnetic survey scheduled for October 2011

• Additional drilling planned following the airborne survey

• Geochemical soil sampling of promising Red Dragon gold prospect has been completed

OVERVIEW OF DRILLING PROGRAMME

Austra l ian gold and nickel focused explorer, St George Mining Limite d ( ASX: SGQ ) ( ‘St George Mining’ or ‘the Company’ ) is pleased to co n firm that drilling of high priority gold tar g ets at its 100% owned East Laverton Property in the North-Eastern Goldfields region of We s tern Australia has commenced .

Drilling is planned for the next thre e months, with first assay results expected to be available in 4 to 6 weeks.

John Prineas, Executive Chairman of St George Mining said: “Our exploratio n results at East Laverton have been highly encoura g ing and we are excited to commence test d r illing of our very attractive gold targets.”

About Gold at the East Laverton Property

The East Laverton Property is on t h e eastern fringe of the Yilgarn Craton, abo u t 130 km southeast of Laverton. It covers 1,810 sq km and is centred on the regional Minigwal and Stella Range Faults which are cross-cut by a fun d amental north east-south west lineament s y stem, informally known as the “Tropicana Trend”. T his major structural confluence creates an o ptimal trap-site for localising gold mineralisation a t a regional scale. Regional neighbours inclu d e the Tropicana Joint Venture and the Yamarna Project of Gold Road Resources Limited.

St George Mining has generated m ultiple gold targets at the East Laverton Pr o perty which the Company believes have excellent p o tential for large scale gold discoveries.

1

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

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

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

Balmoral Prospect

The Balmoral gold prospect is the fi r st gold target to be drilled in the current dri l ling programme. Balmoral is a large and complex g o ld system where the core area has a surface expression of approx. 3 km x 2 km. Within the cor e zone are three drill target zones, as shown i n Figure 1 below.

Initially, drilling will focus on the n orthern zone where an anomalous geoche m ical response is associated with two main sub-parallel east-west structures, which in turn constrain numerous and periodic north-south structures. Pla n s to drill the southern and western target z o nes at Balmoral will be refined following the airborn e magnetic survey over the broader target ar e a of interest.

==> picture [354 x 495] intentionally omitted <==

----- Start of picture text ----- DRILL TARGET ST GEORGE MININGAREASBALMORAL PROSPECTDRILL TARGETS----- End of picture text -----

Figure 1 – Drill Target Zones at the Balmoral Gold Prospect

2

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

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

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

Desert Dragon Prospect

The Desert Dragon prospect is a highly anomalous gold system with approximat e ly 3 km of strike length identified so far. The initial f o cus for drilling will be a 1.5 km line in the so u thern section of the strike length. This area hosts thr e e anomalous gold zones.

A soil geochemical survey has be e n completed over the northern part of th e Desert Dragon prospect, and drill testing of the nor t hern area will be planned after a review of s u rvey results.

Drilling at Desert Dragon will com m ence following the completion of the ongoing Balmoral drill programme.

Red Dragon Prospect

The Red Dragon prospect is a large and structurally complex area in the south - west of the East Laverton Property. This area of interest was previously explored by a global minin g company in the 1980’s, looking for “Olympic Dam st y le” targets along the eastern margin of the Yilgarn Craton.

Soil sampling in 2010 on the ar e a immediately to the west of Red Dra g on returned an exceptionally strong geochemical r e sponse. Following the recent grant of the e x ploration licence that hosts Red Dragon, the Com p any extended the multi-element (“mobile metal ion”) soil geochemical sampling survey to the Red Dragon prospect area. Sample results from this survey are expected very shortly.

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.

3