ST GEORGE MINING LIMITED — Capital/Financing Update 2011

Aug 28, 2011

ASX / MEDIA RELEASE

==> picture [117 x 54] intentionally omitted <==

ST GEORGE MINING LIMITED

29 August 2011

ASX: SGQ

ACN 139 308 973

GRANT OF PINE CREEK TENEMENTS

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)

HIGHLIGHTS

• Additional tenement applications at Pine Creek granted to St George Mining

• Granted tenement area increases to 1,253.50 sq km

• New tenements adjoin EL 27732 on which a large gold system has already been identified

• Recent significant uranium and rare earth discoveries by other parties are near the new tenements

• Ongoing exploration to investigate the known gold system and the mineral potential of the broader tenement area

GRANT OF NEW TENEMENTS

Pine Creek Property: • Blue Thunder Gold Project • White Strike Uranium Project

• Australian gold and nickel focused exploration Company, St George Mining Limited ( ASX: SGQ ) (“ St George Mining ” or the "Company” ) is pleased to announce that the Department of Resources of the Northern Territory (“ DoR ”) has granted Exploration Licences EL 28332, EL 28463 and EL 28465.

St George Mining, through its wholly owned subsidiary Blue Thunder Resources Pty Ltd, has an 80% interest in these tenements. Together with four existing granted tenements - EL 27732, EL 28016, EL 28017 and EL 28232 – the Company now has a total granted tenement area of 1,253.50 sq km at Pine Creek.

This represents a dominant landholding in the under-explored western part of the richly endowed Pine Creek mineral-field. The tenement area hosts the Company’s Blue Thunder Gold Project and the White Strike Uranium Project.

Figure 1 below shows the location of the Company’s tenements (“Pine Creek Property”), and highlights their close proximity to other major projects including the Hayes Creek Project (uranium) of Thundelarra Exploration Limited (ASX: THX), the Quantum Prospect (uranium and rare earths) of TUC Resources Limited (ASX: TUC) and the Cosmo Howley Mine (2+Moz gold) of Crocodile Gold Corp (TSX: CRK).

St George Mining has an ongoing exploration programme for its Pine Creek Property which will include diamond drilling in the 2011 field season. Further details regarding the exploration activities will be announced after approval of the Company’s Mine Management Plan by the DoR.

==> picture [117 x 54] intentionally omitted <==

FIGURE 1 – REGIONAL SETTING OF THE PINE CREEK PROPERTY

==> picture [538 x 380] intentionally omitted <==

For further information, please contact:

John Prineas

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

David Brook

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 Tim Hronsky. Mr Hronsky is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking. This qualifies Mr Hronsky as a “Competent Person” as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hronsky consents to the inclusion of information in this announcement in the form and context in which it appears.

2