ST GEORGE MINING LIMITED — Capital/Financing Update 2012

Oct 24, 2012

ASX / MEDIA RELEASE

25 October 2012

DRILL RESULTS AT PROJECT DRAGON

St George Mining Limited ("St George Mining" or the "Company") is pleased to provide further details of the recent reconnaissance RC program completed at Project Dragon.

As reported in the Company's ASX announcement dated 23 October 2012 'Nickel Sulphides Identified at Project Dragon', two of the drill holes (DRAC35 and DRAC38) intersected disseminated nickel sulphide mineralisation.

Results for all 35 RC drill holes are now presented in Table 1 below. The Table reports drill intersections with lower cut-off grades of 0.25% Ni in fresh (i.e. unweathered) rock. Widths quoted are downhole widths using 2m samples. True widths are not known at this time. Only nickel values intersected deeper than 100 m below surface are reported so as to exclude any intersections of secondary nickel enrichment.

In addition to the two intersections of disseminated nickel sulphides in DRAC 35 and DRAC 38, there were anomalous nickel intersections in numerous drill holes. These include DRAC 33 with 36 m @ 0.25% Ni from 178m to 214 m, and DRAC 26 with 20 m @ 0.28% Ni from 194m to 214 m. These nickel values are not economically significant, but are favourable indications of the fertility of the komatiite magmas that form the ultramafic horizons being explored at Project Dragon.

St George Mining is continuing its review of the extensive drilling information from the Project Dragon reconnaissance drilling programme.

Hole ID	GDA94_51East	GDA94_51North	Dip	Azimuth	TotalDepth	From(m)	To(m)	Width(m)	Ni(%)	S(%)	Cu(ppm)	Pt+Pd(ppb)
DRAC1	545022	6742425	-60	70	310	253	254	1	0.26	0.03	2	4
and							273	7	0.25	0.02	4	4
and							294	1	0.25	0.02	2	4
DRAC2	545299	6742587	-60	70	310	No Significant Intersection
DRAC3	545594	6740525	-60	70	250	No Significant Intersection
DRAC4	546050	6740802	-60	70	304	120	124	4	0.25	0.17	4	2
and						142	144	2	0.25	0.23	4	1
and							176	14	0.25	0.12	1	2
and							296	2	0.26	0.09	1	1
DRAC5	546362	6740998	-60	70	310	No Significant Intersection
DRAC6	549378	6733161	-60	60	202	No Significant Intersection
DRAC7	549886	6733474	-60	60	250	No Significant Intersection
DRAC8	550156	6733651	-60	60	250	No Significant Intersection
DRAC10	551306	6731188	-60	60	220	No Significant Intersection
DRAC11	551668	6731419	-60	60	200	No Significant Intersection
DRAC12	552592	6729809	-60	60	202	No Significant Intersection
DRAC13	552346	6729655	-60	60	304	No Significant Intersection

St George Mining Limited ACN 139 308 973

Level 1, 115 Cambridge Street, PO Box 1305, West Leederville WA 6007 Phone + 61 8 9322 6600 Facsimile + 61 8 9322 6610

ASX / MEDIA RELEASE

Hole ID	GDA94_51East	GDA94_51North	Dip	Azimuth	TotalDepth	From(m)	To(m)	Width(m)	Ni(%)	S(%)	Cu(ppm)	Pt+Pd(ppb)
DRAC15	545669	6745570	-60	70	250	No Significant Intersection
DRAC16	546183	6745805	-60	70	250	No Significant Intersection
DRAC17	546259	6744111	-60	70	250	No Significant Intersection
DRAC18	546442	6744203	-60	70	250	No Significant Intersection
DRAC19	546597	6744285	-60	70	250	No Significant Intersection
DRAC21	547196	6742943	-60	60	298	No Significant Intersection
DRAC22A	547396	6743088	-60	60	251	No Significant Intersection
DRAC23	534845	6741590	-60	70	196	No Significant Intersection
DRAC24	535151	6741728	-60	70	190	No Significant Intersection
DRAC25	535387	6741845	-60	70	208	No Significant Intersection
DRAC26	534694	6740405	-60	70	222	154	160	6	0.27	0.26	2	1
and						174	178	4	0.26	0.15	2	1
and						180	184	4	0.26	0.21	2	1
and						194	214	20	0.28	0.11	2	1
and						218	220	2	0.28	0.15	6	1
DRAC27	535264	6740728	-60	70	262	No Significant Intersection
DRAC28	535810	6741013	-60	70	274	No Significant Intersection
DRAC29	534766	6738599	-60	80	188	No Significant Intersection
DRAC30	535212	6738707	-60	80	244	No Significant Intersection
DRAC32	518857	6748242	-60	250	250	100	134	34	0.27	0.13	1	2
and						138	144	6	0.29	0.13	1	3
DRAC33	518452	6748096	-60	250	220	160	164	4	0.26	0.08	3	3
and						170	174	4	0.25	0.11	3	3
and						178	214	36	0.25	0.08	2	4
and						218	220	2	0.26	0.05	2	2
DRAC34	518086	6747952	-60	250	244	126	128	2	0.14	0.13	14	160
DRAC35	527150	6739401	-60	250	244	100	120	20	0.39	1.22	337	189
Including						100	104	4	0.57	1.74	366	294
Including						112	114	2	0.51	1.40	584	281
DRAC36	526946	6739315	-60	250	172	No Significant Intersection
DRAC37	526653	6739169	-60	250	196	No Significant Intersection
DRAC38	530786	6733696	-60	250	298	108	138	30	0.31	0.25	10	31
Including							134	2	0.62	0.56	92	53
and							164	12	0.26	0.16	1	3
and						172	180	8	0.26	0.21	1	2
and						186	190	4	0.26	0.19	1	3
and						194	196	2	0.25	0.21	1	3
and						204	208	4	0.27	0.22	1	4
DRAC39	530617	6733595	-60	250	250	No Significant Intersection

Table 1 Details of Ni intersected in the 35 drill holes from the reconnaissance RC drill program at Project Dragon. Cut-off grade for Ni is 0.25% in fresh rock.

For further information, please contact:

John Prineas Executive Chairman St George Mining Limited (+61) 411 421 253 John.prineas@stgm.com.au Colin Hay Professional Public Relations (+61) 08 9388 0944 mob 0404 683 355 colin.hay@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 Hawker Geological Services Pty Ltd. Mr Hawker 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 Hawker 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 Hawker consents to the inclusion of information in this announcement in the form and context in which it appears.