ST GEORGE MINING LIMITED — Capital/Financing Update 2013

Apr 22, 2013

ASX / MEDIA RELEASE

23 April 2013

ST GEORGE COMMENCES TARGETED DRILLING CAMPAIGN AT CAMBRIDGE NICKEL PROSPECT

HIGHLIGHTS

• 2013 drilling programme for nickel prospects commences today
• 14 RC holes planned for the initial phase of the campaign
• Several targets on strike from previous intersections of nickel sulphides

2013 DRILLING PROGRAMME

St George Mining Limited (ASX: SGQ) ("St George Mining" or "the Company") is pleased to confirm that its 2013 drilling programme commenced today. The drilling will test multiple nickel targets that are 100% owned by St George Mining at the Cambridge Nickel Prospect, located at its East Laverton Property in the North Eastern Goldfields region of Western Australia.

John Prineas, Executive Chairman of St George Mining said:

"We are very excited to be commencing our 2013 drilling programme on this auspicious day – the 23rd of April, which is St George's Day.

"Drilling will be focused at our Cambridge Nickel Prospect, and we believe that our drill targets provide an excellent opportunity for a new nickel sulphide discovery."

TARGETS AT CAMBRIDGE NICKEL PROSPECT

The first phase of the 2013 drilling programme is comprised of 14 reverse circulation (RC) drill holes that are focused on key targets at the Cambridge Nickel Prospect. The planned drill hole locations are listed in Table 1 and are illustrated in Figure 1.

Exploration drilling in 2012 confirmed the presence of extensive fertile high‐MgO ultramafic sequences within the Stella Range ultramafic belt, and identified nickel sulphides within several locations.

The 2013 drilling programme is designed to build on the success of 2012 by testing priority nickel sulphide targets at Cambridge, and establishing a comprehensive understanding of the controls on the mineralisation along this ultramafic belt.

The drilling will commence at the Cambridge South prospect. These planned drill holes are numbered from 11 to 14 in Table 1, and are situated on strike from previous drill intersections of nickel sulphide.

Drilling will then continue northwards to test the additional targets at Cambridge and Cambridge North.

The target depth for drill holes is 250 metres. The final meterage drilled at each hole, and the total number of holes drilled in this first phase of the 2013 programme, will depend upon the interactive review of drill results as well as the local geology and ground conditions.

ASX / MEDIA RELEASE

St George Mining's Technical Director, Tim Hronsky, has described the recent intersection of sulphides in a "massive" form at the Stella Range belt as a significant exploration milestone which continues to validate the potential of the East Laverton Property to become Western Australia's newest nickel mineral field.

Figure 1 – Planned drill hole locations for nickel targets at St George's 100% owned nickel tenements along the highly prospective Stella Range ultramafic belt.

ASX / MEDIA RELEASE

Hole	MGA Em	MGA Nm	Azmirth	Dip	Depth
					m
1	514540	6752990	250	‐60	250
2	514750	6753190	250	‐60	250
3	518890	6746220	250	‐60	250
4	515670	6753770	250	‐60	250
5	518240	6746760	250	‐60	250
6	518760	6746970	250	‐60	250
7	519130	6747110	250	‐60	250
8	519500	6747260	250	‐60	250
9	519890	6747250	250	‐60	250
10	520260	6747400	250	‐60	250
11	524770	6740800	250	‐60	250
12	524900	6740950	250	‐60	250
13	528700	6735800	250	‐60	250
14	526700	6740500	250	‐60	250

Table 1 – Planned drill hole locations for the first phase of the 2013 drilling programme. Locations may vary due to ground conditions.

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

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.