ST GEORGE MINING LIMITED — Capital/Financing Update 2011

Apr 5, 2011

6 April 2011

UPDATED ASX RELEASE

The attached ASX Release and Investor Presentation are updated versions of the announcements lodged with the ASX on 4 April 2011. The updated ASX Release and Investor Presentation contain minor drafting amendments to the text of the announcements made on 4 April 2011 and replace these previous filings.

There has been no change to the commercial nature of the transactions referred to in the announcements of 4 April 2011.

For more information contact:

John Prineas David Brook (+61) 411 421 253 David.Brook@ppr.com.au John.prineas@stgm.com.au www.stgeorgemining.com.au

Executive Chairman Professional Public Relations St George Mining Limited (+61) 08 9388 0944 Mob 0415 096 804

ASX / MEDIA RELEASE

ST GEORGE MINING LIMITED

$\triangle$ SX: SGO

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 and Copper Projects
• Project Dragon (Nickel)

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

6 April 2011

ST GEORGE MINING SECURE NICKEL EXPLORATION DEAL

OVERVIEW OF PROJECT DRAGON

Australian gold and nickel focused explorer, St George Mining Limited (ASX: SGQ) ('St George Mining') is pleased to announce that through its wholly own subsidiary Desert Fox Resources Pty Ltd, it has entered into a Farm-in Agreement with BHP Billiton Nickel West Pty Ltd (the "Company").

Under the Farm-in Agreement, the major mining company will have the right to earn an interest in the nickel rights attaching to the tenements located at St George Mining's 100% owned East Laverton Property in the North-Eastern Goldfields region of Western Australia.

The East Laverton Property is located about 130km south-east of Laverton and 200km north-east of Kalgoorlie (see Figure 1), and covers a contiguous area of 1,810 sq km.

St George Mining, which listed on the ASX on 16 November 2010 (following an over-subscribed IPO), believes that the Farm-in Agreement is an important milestone in advancing the nickel sulphide potential of the prospective East Laverton Property.

John Prineas, Executive Chairman of St George Mining said: "The Farm-in Agreement is a giant leap forward in exploring what St George Mining believes is a new nickel sulphide district and we are delighted it has attracted a major mining company. The agreement provides an excellent strategy for St George Mining to advance the nickel sulphide project at East Laverton."

NICKEL AT THE EAST LAVERTON PROPERTY

St George Mining's tenements cover the southern continuation of the Duketon Belt. The northern part of the Duketon Belt has already yielded several recent nickel sulphide discoveries, including the Rosie Prospect (70% Independence Group NL (ASX: IGO) and 30% South Boulder Mines Limited (ASX: STB)) where drill hole TBDD098 intersected 5.20m @ 9.13% Ni, 1.09% Cu and 7.09 g/t PGE's (Platinum Group Elements) (see STB ASX Release 3 June 2010).

Geoscience Australia (a Federal Government Agency) has identified the North Eastern Goldfields as one of the top three provinces in Australia for nickel sulphide exploration ("Australia's Nickel Sulphide Deposits: Characteristics and New Ideas for Discovery", Geoscience Australia: 13 October 2004).

The potential for nickel sulphide mineralisation was initially recognised at the East Laverton Property from anomalous nickel levels detected in exploration drill holes of previous gold explorers. The nickel geochemical responses were consistent with the presence of komatiitic rocks containing 40+% volatile free MgO, which can host nickel sulphide mineralisation. There are extensive strike lengths of this high MgO komatiitic ultramafic at the East Laverton Property.

Regional geochemical soil surveys completed by St George Mining last year identified anomalous nickel and copper zones associated with settings interpreted to be komatiitic basal channel flows. The most significant of these is the Aphrodite Prospect, which showed anomalous nickel and copper geochemistry coincident with a geophysical target permissive of massive sulphides.

Tim Hronsky, Technical Director of St George Mining said: "There has been no prior dedicated nickel sulphide exploration of the East Laverton Property and the technical case for nickel sulphide mineralisation is very strong. Our tenements offer an outstanding opportunity for the discovery of major new nickel sulphide deposits."

Figure 1 - Location of East Laverton Property, WA

THE FARM-IN AGREEMENT

The key terms of the Farm-in Agreement include:

• The Company has a 2 year option over the nickel rights at 9 tenements covering in total approx. 498 sq km (the 'Core Tenements').
• An obligation on the Company to spend \$600,000 on exploration during the option period and maintain the tenements in good standing.
• On exercise of the option, a right for the Company to earn a 51% interest in the nickel rights in the tenements governed by the Farm-in Agreement by spending \$3m over 3 years.
• On exercise of the option, a right for the Company to select any or all of an additional 7 tenements, covering in total approx. 470 sq km, to also be included in the Farm-in Agreement.
• A right for the Company to subsequently increase its interest to 70% by sole funding a bankable feasibility study (BFS), in which case St George Mining is free carried for its 30% interest up to completion of the BFS.
• An obligation on the Company to update St George Mining on its exploration activities on a $\bullet$ quarterly basis.
• St George Mining retaining 100% of the rights to gold and all other metals within the tenements.
• Both parties to the agreement will share information on their respective exploration $\bullet$ activities.

The commencement of the Farm-in Agreement is conditional on the transfer of all of the tenements governed by the Farm-in Agreement to St George Mining's wholly owned subsidiary Desert Fox Resources Pty Ltd. One tenement remains to be transferred, and this condition is expected to be satisfied by late April/early May 2011.

St George Mining will continue its own exploration work at the East Laverton Property, with a focus on progressing its high priority gold prospects.

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 Mr Tim Hronsky who is a member of the Australasian Institute of Mining and Metallurgy 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.

Investor PresentationApril 2011

Our Company

Company Details:

• Listed on ASX on ¹⁶ November ²⁰¹⁰
• Gold and nickel sulphide prospects for world class deposits
• Exciting prospects for uranium and rare earths at Pine Creek

Directors:

• John Prineas – Executive Chairman
• Tim Hronsky – Technical Director
• Marcus Michael – Non-Executive Director

Growth Strategy:

• Focus on big, high value opportunities
• Exposure to key commodities of gold, nickel, uranium and rare earths
• Share exploration risks through strategic alliances on selected projects

ProjectLocations

East Laverton Property and Nickel Farm-in Agreement

St George Mining Limited | ACN 139 308 973

• • Farmin Agreement with BHP Billiton for the nickel rights at the East LavertonProperty
• • Extensive rare high MgO komatiites (ultramafic volcanics) at East Laverton
• • A material Ni discovery would be a "companymaking" project for St George Mining

NiS – Need for Discoveries

• • Large decline in new and material NiSdiscoveries
• • Existing mines are mature with declining resources
• • Some mines have specific metallurgical issues (high Mg, low Fe)
• • Accepted that Nilaterite will not reverse this downward trend in nickel resources

Komatiite NiS Deposits are Rare

• • Komatiite hosted Ni-S deposits have a very restricted distribution globally, only forming in a narrow timeframe in the Archean
• • Two of the three komatiite Ni belts in Australia are in the Eastern Goldfields and host the majority of Australia's NiSresources:
• •Norseman Wiluna (e.g. Kambalda, Leinster, Mt Keith)
• •Duketon (e.g. Collurabie, South Boulder)
• • St George Mining's tenements cover the southern extension of the Ni-rich Duketon Belt
• •No previous dedicated NiS exploration in this area of the Belt

High Value of Komatiite NiS Deposits

• • Komatiite hosted NiS deposits are smaller in size and higher grade than disseminated NiS deposits
• • They are high profit margin, stand alone deposits that produce a clean Fe and low Mg concentrate
• • Disseminated NiS deposits have low Fe and high Mg
• • Smelting of low grade disseminated NiSconcentrate is only economically feasible when blended with high quality concentrate from high grade Komatiite deposits

Project Dragon – The Potential

• • Project area is situated within southern extension of Ni and PGE rich Duketon ultramafic belt
• • Large landholding allows for multiple high value deposits in newNiS district – analogous to Kambalda in 1960's
• • Multiple Ni-rich lava channels exist and may host NiS deposits, with attractive 3000+ pmmNi intersections already detected fromprevious gold drill holes
• • Anomalous Ni ⁺ Cu geochemistry from St George's regional MMI survey confirmed these lava channel targets
• • Aphrodite Prospect: Channel target with coincident Ni ⁺ Cu anomaly over known geophysical conductor (identifiedby WMC) - permissive of ^a massive sulphide body

St George Mining Limited | ACN 139 308 973

Farm-in Agreement

• • BHP Billiton may earn ^a 70% interest by sole funding ^a bankable feasibility study (BFS), with St George Mining free carried for its 30% interest up tocompletion of the BFS
• • The interest is earned over the nickel rights at ⁹ tenements covering ⁴⁹⁸ sq km, with BHP Billiton having ^a right to add any or all of ^a further ⁷ tenements covering ⁴⁷⁰ sq km
• • Stages of the farm-in:
• ¾ Option: BHP Billiton has ^{a 2} year option over the nickel rights during which it must spend \$600,000 on exploration and maintain the tenements in good standing
• ¾ Stage One: BHP Billiton may elect to earn ^a 51% interest in the nickel rights by spending \$3m over ³ years
• ¾ Stage Two: BHP Billiton may increase its interest to 70% by sole funding ^a BFS
• •St George Mining retains 100% of the rights to gold and other metals

Gold Focus at East Laverton

• • Dominant landholding of 1,810 sq km in the under-explored margin of the Yilgarn Craton
• • Highly favourable structural setting: Focused on the major Minigwal and Stella Range Faults which are cross-cut by ^a NE-SW tensional fault system, informally known as the "Tropicana Trend"
• • In proximity to major recent gold discoveries:
• ¾Gold Road Resources Limited (ASX: GOR) at its Yamarna Gold Project
• ¾International Gold Fields Limited (ASX: IGS) at its Plumridge Project
• ¾Tropicana Joint Venture (5+ MozAu)

Gold Exploration

• • SGQ completed ^a regional (500m grid) MMI multi-element soil geochemical survey in ²⁰¹⁰
• •Infill sampling on ^a 50m spacing now completed on areas of interest
• • Two major new gold prospects discovered with potential for large scale deposits – Balmoral and Desert Dragon
• •Higher resolution infill sampling has provided focused drill targets
• • Drilling program underway (subject to weather and access conditions)

Balmoral Au Prospect

• • New prospect with large geochemical footprint
• • Indicates zoned hydrothermal system with 12 km strike
• • Core zone is 3km x 2km and contains three prominent gold targets
• • Central Au + Ag + Mo + Cu geochemistry suggests magmatic involvement
• • Surrounding area with W + As + Sb geochemistry shows major fluid flow occurred

Gold Targets

Pine Creek Property

Pine Creek Property

• • SGQ's Thunderbolt Gold Prospect discovered through Homestake's regional diamond drilling program
• • Exploration model based on Homestake's giant gold deposit at Lead, South Dakota (50+ M ozAu)
• • Material uranium discoveries in proximity: Thundelarra (ASX: THX) has a spectacular intersection of 1m @ 20.3% U308 at its Thunderball prospect (within 30km of SGQ)
• • Territory Uranium (ASX: TUC) has an exciting uranium and rare earths discovery at its Quantum Prospect (within 5km of SGQ)

N.B. Homestake was the world's 2nd largest gold miner before being taken over by Barrick to form the world's largest gold mining company

St George Mining Limited | ACN 139 308 973

Blue Thunder Gold Project

• • Western part of Au-rich Pine Creek's Central Domain
• • Excellent road, rail and gas pipeline infrastructure
• • On the under-explored Fenton Shear (the western margin of concealed Archean dome)
• • Parallel to Pine Creek Shear (the eastern margin of the Archeandome), with proven gold deposits
• • Same mineralisation style as Cosmo Howley (2+ MozAu) intersected by Homestake drilling

Blue Thunder Gold Project

• • Discovery hole FEND 18: 20m@1.74 g/t Au (incl. higher grade zones)
• • FEND 14 (17 m @ 0.72 g/t Au) is 1.2 km from FEND 18
• • Mineralisation open in all directions
• •Drill target for 2011
• • Coincident Au + Co anomaly from MMI orientation survey over this mineralised area
• • Generate new targets with geophysics and geochemistry

White Strike Uranium Project

• • On strike from U3O8 Thunderball discovery of Thundelarra
• • Radiometric anomaly: geochemical leakage from below ?
• • Similar trap sites for gold, U3O8 and REE's
• • Exploration for uranium and REE's to be included in gold drilling

Exploration Program and Targets

Exploration Targets

i L t o c a o n	i i P P t t r o r y r o s p e c s	i i l I R t n a e s o u r c e T t a r g e	i i A 2 0 1 1 t c o n s n
E L t t a s a v e r o n	l l ( ) B A a m o r a u	1 M A + o z u	l d l l i i i i I t n a r n g
E L t t a s a e r o n v	( ) D D A t e s e r r a g o n u	1 M A + o z u	d l l O i i i n g o n g r n g
k i C P n e r e e	( ) h d b l A T t u n e r o u	1 A M + o z u	l d l l I i i i i t n a r n g
k i P C n e r e e	( ) h k i S i 3 O 8 W U t t e r e	l b 2 3 0 8 M U s	d l l i T t e s r c o r e s

Loyalty Option Issue

Loyalty Options

Loyalty options, as outlined in the 2010 IPO Prospectus, to be issued around May 2011:

• to be issued to all shareholders on the register as at the record date (to be determined prior to option issue)
• one option for every two shares
• options will be issued at ¹ cent each
• exercise price of ²⁰ cents each
• expiry date of up to ² years from issue

Disclaimer

Certain statements contained in this presentation, including information as to the future financial or operating performance of St George Mining Limited(ASX:SGQ) and its projects, are forward looking statements:

-may include, among other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources andanticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures, and are or may be based on assumptions andestimates related to future technical, economic, market, political, social and other conditions;

-are necessarily based upon ^a number of estimates and assumptions that, while considered reasonable by St George Mining, are inherently subject tosignificant technical, business, economic, competitive, political andsocial uncertainties and contingencies; and

-involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements.

St George Mining disclaims any intent or obligation to update publicly any forward looking statements, whether as ^a result of new information, future events or results or otherwise. The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward looking statements.

All forward looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein.

The information in this announcement relates to exploration information compiled by Mr Timothy Hronsky who is ^a member of the Australasian Institute of Mining and Metallurgy 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 andcontext in which it appears.