ST GEORGE MINING LIMITED — Capital/Financing Update 2011

Sep 1, 2011

ASX / MEDIA RELEASE

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2 September 2011

ENTITLEMENT ISSUE CLOSURE AND SHORTFALL NOTIFICATION

St George Mining Limited (ASX Code: SGQ) advises that the Entitlement Issue made pursuant to the Prospectus dated 5 August 2011 closed on 31 August 2011.

The Entitlement Issue offered approximately 10,500,000 New Shares and up to 15,750,000 Free Attaching Options on the basis of:

• one (1) New Share for every five (5) Shares held by Shareholders on the Record Date at an issue price of $0.15 per New Share; and

• three (3) Free Attaching Options for every two (2) New Shares issued,

The results of the Entitlement Issue are as follows:

Total number of shares applied for 6,911,611 Shortfall 3,588,389

The Company has received expressions of interest in the Shortfall from existing shareholders and institutional investors.

The Board is currently reviewing these expressions of interest with a view to placing the remaining Shortfall over the coming days.

For more information contact:

John Prineas

Executive Chairman St George Mining Limited (+61) 411 421 253 John.prineas@stgm.com.au www.stgeorgemining.com.au

ST GEORGE MINING LIMITED 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