ST GEORGE MINING LIMITED — Capital/Financing Update 2015

Dec 17, 2015

ASX / MEDIA RELEASE

18 December 2015

MASSIVE NICKEL SULPHIDE TARGET AT WINDSOR

HIGHLIGHTS:

• Drill hole WINDD004 targeting the very strong electromagnetic (EM) plate WINRC016_v1 (210,469 Siemens) has been completed
• Elevated nickel values identified at target depth of conductor from XRF analysis of drill core
• Thick ultramafic intersected with komatiite spinifex textures
• Favourable geological setting for potential massive nickel sulphides
• Downhole EM (DHEM) survey in WINDD004 to be completed this week

FURTHER DRILLING AT WINDSOR HAS POSITIVE RESULTS

St George Mining Ltd ("St George" or "the Company") is pleased to announce encouraging interim results from the drilling of DHEM plate WINRC016_v1 (210,469 Siemens) at the Windsor nickel sulphide prospect, one of the high priority prospects at its 100% owned East Laverton Project in Western Australia.

Drill hole WINDD004, which was designed to test the highly conductive DHEM plate WINRC016_v1, has been completed to a depth of 151m. The hole has intersected thick ultramafic between 65‐151m (end of hole). Importantly, the ultramafic intersected by WINDD004 has been identified as spinifex‐textured komatiite, which occurs with high grade massive nickel sulphide deposits in the Agnew‐Wiluna belt as well as at Kambalda and Windarra.

Elevated nickel values were recorded by portable XRF analysis of the drill core at and around the modelled depth of the EM plate. The highest spot values from portable XRF analysis were 0.55%Ni at 96m and 0.59%Ni at 115m down hole. A conclusive determination of the nickel content will be confirmed when laboratory assays are available.

There was no conductive material observed in the drill core capable of providing the extremely high EM response that was modelled for DHEM plate WINRC016_v1 (210,469 Siemens). WINDD004 appears to have come close to testing the conductive source but has not intersected it.

Newexco's modelling of DHEM plate WINRC016_v1 was considered accurate in terms of identifying the orientation and depth of the EM plate. There was less certainty in the model regarding the actual distance of the plate from the surveyed hole. A DHEM survey in WINDD004 will be completed this week to identify a more precise location for the strong EM conductor.

John Prineas, Executive Chairman of St George Mining, said:

"The results from WINDD004 are very encouraging.

"The identification of spinifex‐textured komatiite in combination with elevated nickel values proximal to a powerful EM conductor, is a compelling scenario for potential massive nickel sulphide mineralisation."

ASX / MEDIA RELEASE

Drill hole WINDD004 has identified spinifex‐textured komatiite in the western (upper) contact of the Windsor ultramafic. Often this area of the komatiite can be destroyed by shearing along the margins of the ultramafic. The presence of the intact upper horizon suggests that any nickel sulphide mineralisation within this part of the channel flow would have been preserved.

Significantly, spinifex‐textured komatiite flows occur with major massive nickel sulphide deposits in the Agnew‐Wiluna belt ‐ including Perseverance, Rocky's Reward, Harmony and Cliffs ‐ as well as those at Kambalda and Windarra.

Further announcements regarding this massive nickel sulphide target at Windsor will be made once the DHEM survey data from WINDD004 has been modelled by Newexco. A new drill hole to test this compelling target will be planned at the earliest opportunity.

ONGOING DRILLING PROGRAMME

The diamond drill rig is currently at drill hole WINRC014 where diamond drilling will extend the hole by 100 metres to test an off‐hole EM plate identified by Newexco. The target is modelled as being 50m below the current depth of WINRC014; see Figure 1.

The reverse circulation (RC) rig is currently at Windsor where it is re‐opening drill holes WINRC019, WINRC020 and WINRC022 to allow DHEM surveys to be completed in these holes this week.

Drilling at East Laverton will be suspended this weekend for the Christmas break, and will resume again in early January 2016. A further update on the planned drilling will be provided shortly.

Figure 1 – the modelled DHEM plate for the off‐hole conductor to be tested by the extension of WINRC014. WINRC013 did not intersect the conductor.

ASX / MEDIA RELEASE

XRF ANALYSIS

References to XRF results and to portable XRF analysis relate to analysis using a hand‐held Olympus Innov‐X Spectrum Analyser. This portable device provides immediate analysis of modal mineralogy of drill samples. The device is unable to reliably detect precious metals in samples but is considered to be more reliable for base metal assessment.

Unless otherwise stated, values determined by XRF analysis are based on one spot reading per one metre of drill samples. As such, results from XRF analysis are stated as indicative only and are preliminary to subsequent confirmation by geochemical analysis at Intertek Genalysis Laboratories.

The XRF data is useful in assisting in the interpretation of the geological character of the rocks being encountered during drilling. The data may not be representative of the actual metal content in that sample.

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 report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Timothy Hronsky, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hronsky is employed by Essential Risk Solutions Ltd which has been retained by St George Mining Limited to provide technical advice on mineral projects.

Mr Hronsky has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Hronsky consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The following section is provided for compliance with requirements for the reporting of exploration results under the JORC Code, 2012 Edition.

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Natureandqualityofsampling(egcutchannels, random chips, or specific specialisedindustrystandardmeasurementtoolsappropriatetothemineralsunderinvestigation,suchasdownholegamma	This ASX Release dated 18 December 2015 reports on progress inthe major drilling campaign underway at the Company's EastLaverton Project, and includes a discussion of some past explorationresults particularly drilling programs and electromagnetic surveyscompleted recently at the Project.
	sondes, or handheld XRF instruments, etc).These examples should not be taken as limitingthe broad meaning of sampling.	Drilling programs have included diamond core drilling completed byDDH1 Drilling Pty Ltd and reverse circulation (RC) drilling completedby VM Drilling Pty Ltd.
		Diamond drilling was undertaken by DDH1 in 2014 and 2015 using aSandvik 1200 Multipurpose truck mounted drill rig. RC drilling wasundertaken by VM Drilling in 2014 using a Schramm 685 truckmounted drill rig. The current RC drilling program will also be carriedout by VM Drilling using the same rig, and the current diamond coredrilling will be completed by DDH1 using the same kind of SandvikMultipurpose rig.
		Diamond Core Sampling: The core is removed from the drill rig andlaid out for initial analysis in the field. The core is measured andmarked up at 1m intervals against the drillers blocks, which arethemselves checked against the drillers log books where required.The visible structural features on the core are measured against thecore‐orientation lines.
		Onsite XRF analysis is conducted using a hand‐held Olympus Innov‐XSpectrum Analyser. The XRF analysis is used to systematically reviewdiamond drill core, with a single reading taken every metre, exceptin the case of core loss. These results are only used for onsiteinterpretation and preliminary base metal assessment subject tofinal geochemical analysis by laboratory assays.
		The sections of the core that are selected for assaying are markedup and recorded on a "cut‐sheet" which provides a control on theintervals that will be cut and sampled at a duly certified assaylaboratory. Core is prepared for analysis at 1m intervals or at lesserintervals of geological significance. Core is cut in half lengthways andthen numbered samples are taken as per the "cut‐sheet".
		Diamond core provides high quality samples that are logged forlithological, structural, geotechnical, density and other attributes.Sampling is under QAQC procedures as per industry best practice.
		RC Sampling: All samples from the RC drilling are taken as 1msamples. Samples are sent to Intertek Laboratories for assaying.
		Appropriate QAQC samples (standards, blanks and duplicates) areinserted into the sequences as per industry best practice. Samplesare collected using cone or riffle splitter. Geological logging of RCchips is completed at site with representative chips being stored indrill chip trays.
		Onsite XRF analysis is conducted on the fines from RC chips using ahand‐held Olympus Innov‐X Spectrum Analyser. These results areonly used for onsite interpretation and preliminary assessmentsubject to final geochemical analysis by laboratory assays.
		Moving loop electromagnetic (MLEM) survey: The MLEM survey isdesigned and managed by Newexco, with field work contracted toBushgum Pty Ltd and/or Merlin Geophysical Solutions. The MLEMsurvey is conducted at several prospects within the project area.

Criteria	JORC Code explanation	Commentary
			Key specifications of the MLEM survey are:
		Stations Spacing:	100m
		Loop:	400m, 200m
		Line Spacing: 400m
		Components:	x y z
		Orientation:	X along line (local east ‐ positive).
		Line direction:	58.35, 90 degrees
		Frequency:	0.5, 0.25 Hz
		Channels:	SMARTem Standard.
		Receiver:	Fluxgate
		Number turns:	1
		Current:	Typically 50 A.
		Repeats:	Minimum 3 consistent readings per station.
			Down‐hole electromagnetic (DHEM) survey: A DHEM survey will becompleted for certain drill holes. The DHEM survey is designed andmanaged by Newexco Services Pty Ltd, with field work contracted toBushgum Holdings Pty Ltd and/or Merlin Geophysical Solutions.
			Key specifications of the DHEM survey are:
			System: Atlantis (analogue)
		Components:	A, U, V
		Component direction:
			Ba – Parallel to hole axis, positive up hole.Bu – Perpendicular to hole axis: toward 12 o' clock whenlooking down hole.
			Bv – Perpendicular to hole axis: toward 9 o' clock whenlooking down hole.
	Include reference to measures taken to ensuresamplerepresentivityandtheappropriatecalibrationofanymeasurementtoolsorsystems used.	DiamondCoreSampling:Fordiamondcoresamples,sample standards were added as every 25th sample. Core recoverycalculations are made through a reconciliation of the actual coreand the driller's records. Downhole surveys of dip and azimuthwere conducted using a single shot camera every 30m to detectdeviations of the hole from the planned dip and azimuth. The drill‐hole collar locations were recorded using a hand held GPS, whichhas an accuracy of +/‐ 5m. At a later date the drill‐hole collar will besurveyed to a greater degree of accuracy.
		calicosample	RC Sampling: The RC drilling rig has a cone splitter built into thecyclone on the rig. Samples are taken on a one meter basis andcollected directly from the splitter into uniquely numbered calicobags. The calico bag contains a representative sample from the drillreturn for that metre. This results in a representative sample beingtaken from drill return, for that metre of drilling. The remainingmajority of the sample return for that metre is collected and storedin a green plastic bag marked with that specific metre interval. Thecyclone is blown through with compressed air after each plastic andbagisremoved.Ifwetsampleorclaysareencountered then the cyclone is opened and cleaned manually andwith the aid of a compressed air gun.
			A large auxiliary compressor ("air‐pack") is mounted on a separatetruck and the airstream is connected to the rig. This provides anaddition to the compressed air supplied by the in‐built compressorsmounted on the drill rig itself. This auxiliary compressor maximisesthe sample return through restricting air pressure loss, especially in

Criteria	JORC Code explanation	Commentary
		deeper holes. In addition, the high and consistent levels of airpressure minimise the number of drill samples.
		GeologicalloggingofRCchipsiscompletedatsitewithrepresentative chips being stored in drill chip trays. Downholesurveys of dip and azimuth are conducted using a single shot cameraevery 30m to detect deviations of the hole from the planned dip andazimuth. The drill‐hole collar locations were recorded using a handheld GPS, which has an accuracy of +/‐ 5m. At a later date the drill‐hole collar will be surveyed to a greater degree of accuracy.
		MLEM Survey: Field calibration of the survey instruments usingstandards is undertaken each day. A minimum of 3 consistentreadings per station are taken to ensure accuracy of data collected.
		DHEM Survey: For the DHEM survey, the polarity of each componentis checked to ensure the system was set up using the correctcomponentorientations.Theholepositioniscorrectedfortrajectory using orientation survey data.
	Aspects of the determination of mineralisationthat are Material to the Public Report.In cases where 'industry standard' work has	Diamond Core Sampling: Core is drilled with HQ and NQ2 size andsampled as half core to produce a bulk sample for analysis. Intervalsvary from 0.3 – 1m maximum and are selected with an emphasis ongeological control.
	been done this would be relatively simple (eg'reverse circulation drilling was used to obtain1 m samples from which 3 kg was pulverised toproduce a 30 g charge for fire assay'). In othercases more explanation may be required, suchas where there is coarse gold that has inherentsampling problems. Unusual commodities ormineralisation types (eg submarine nodules)maywarrantdisclosureofdetailedinformation.	Assays have been completed at either SGS Laboratories or IntertekGenalysis ("Lab") in Perth. Samples are sent to the Lab where theyare crushed to 6 mm and then pulverised to 75 microns. A 30 gcharge of the sample is fire assayed for gold, platinum andpalladium. The detection range for gold is 1 – 2000 ppbAu, and 0.5 –2000 ppb for platinum and palladium. This is believed to be anappropriate detection level for these elements within this specificmineral environment. However, should Au, Pt or Pd levels reportedexceed these levels an additional assay method will be used to re‐test samples.
		All other metals will be analysed using an acid digest and an ICPfinish. The sample is digested with nitric, hydrochloric, hydrofluoricand perchloric acids to effect as near to total solubility of the sampleas possible. The solution containing samples of interest, includingthose that need further review, will then be presented to an ICP‐OESfor the further quantification of the selected elements.
		RC Sampling: A 1m composite sample is taken from the bulk sampleof RC chips that may weigh in excess of 40 kg. Assay preparation isfor the current drilling program will be completed by Intertek.
		Assays are undertaken at Intertek in Kalgoorlie and Perth. Samplesare sent to Intertek where they are crushed to 6 mm and thenpulverised to 75 microns. A 30 g charge of the sample is fire assayedfor gold, platinum and palladium. The detection range for gold is 1 –2000 ppbAu, and 0.5 – 2000 ppb for platinum and palladium. This isbelieved to be an appropriate detection level for these elementswithin this specific mineral environment. However, should Au, Pt orPd levels reported exceed these levels an additional assay methodwill be used to re‐test samples.
		All other metals will be analysed using an acid digest and an ICPfinish. The sample is digested with nitric, hydrochloric, hydrofluoricand perchloric acids to effect as near to total solubility of the sampleas possible. The solution containing samples of interest, includingthose that need further review, will then be presented to an ICP‐OESfor the further quantification of the selected elements.
Drillingtechniques	Drill type (eg core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka,sonic, etc) and details (eg core diameter, tripleor standard tube, depth of diamond tails, face‐	Diamond Core Sampling: The collars of the diamond holes weredrilled using RC drilling down through the regolith to the point ofrefusal or to a level considered geologically significant to change tocore. The hole was then continued using HQ diamond core until the

Criteria	JORC Code explanation	Commentary
	sampling bit or other type, whether core is	drillers determined that a change to NQ2 coring was required.
	oriented and if so, by what method, etc).	The core is oriented and marked by the drillers. The core is orientedusing ACT Mk II electric core orientation.
		RC Sampling: The RC drilling uses a 140 mm diameter face hammertool. High capacity air compressors on the drill rig are used toensure a continuously sealed and high pressure system duringdrilling to maximise the recovery of the drill cuttings, and to ensurechips remain dry to the maximum extent possible.
Drill samplerecovery	Method of recording and assessing core andchip sample recoveries and results assessed.	Diamond Core Sampling: Diamond core recoveries/core loss arerecorded during drilling and reconciled during the core processingand geological logging. No significant sample recovery problems arethought to have occurred in any holes drilled to date. There hasbeen a notable and consistent competency encountered in the rocksduring drilling.
		RC Sampling: RC samples are visually checked for recovery, moistureand contamination. Geological logging is completed at site withrepresentative RC chips stored in chip trays.
	Measures taken to maximise sample recoveryand ensure representative nature of thesamples.	Diamond Core Sampling: Depths are checked against the depth onthe core blocks and rod counts are routinely carried out by thedrillers. Core loss was recorded by St George geologists andsampling intervals were not carried through core loss.
		RC Sampling: Samples are collected using cone or riffle splitter.GeologicalloggingofRCchipsiscompletedatsitewithrepresentative chips being stored in drill chip trays.
	Whether a relationship exists between samplerecovery and grade and whether sample biasmayhaveoccurredduetopreferentialloss/gain of fine/coarse material.	To date, no detailed analysis to determine the relationship betweensample recovery and grade has been undertaken for any drillprogram. This analysis will be conducted following any economicdiscovery.
		Thenatureofmagmaticsulphidedistributionhostedbythecompetent and consistent rocks hosting any mineralised intervalsare considered to significantly reduce any possible issue of samplebias due to material loss or gain.
Logging	Whether core and chip samples have beengeologically and geotechnically logged to alevel of detail to support appropriate MineralResourceestimation,miningstudiesandmetallurgical studies.	Geological logging is carried out on all drill holes with lithology,alteration, mineralisation, structure and veining recorded.
	Whether logging is qualitative or quantitativeinnature.Core(orcostean,channel,etc)photography.	LoggingofdiamondcoreandRCsamplesrecordslithology,mineralogy,mineralisation,structures(coreonly),weathering,colour and other noticeable features. Core was photographed inboth dry and wet form.
	The total length and percentage of the relevantintersections logged.	All drill holes are geologically logged in full and detailed litho‐geochemical information is collected by the field XRF unit. The datarelating to the elements analysed is used to determine furtherinformation regarding the detailed rock composition.
Sub‐samplingtechniques andsamplepreparation	If core, whether cut or sawn and whetherquarter, half or all core taken.	The HQ and NQ2 core is cut in half length ways in Kalgoorlie using anautomatic core saw. All samples are collected from the same side ofthe core. The half‐core samples are submitted to the Lab foranalysis.
	If non‐core, whether riffled, tube sampled,rotary split, etc and whether sampled wet ordry.	RC samples are collected in dry form. Samples are collected usingcone or riffle splitter when available. Geological logging of RC chipsis completed at site with representative chips being stored in drillchip trays.

Criteria	JORC Code explanation	Commentary
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	Diamond Core Sampling: Diamond core was drilled with HQ andNQ2 size and sampled as complete half core to produce a bulksamplefor analysis. Intervals selected varied from 0.3 – 1m(maximum) with a strong geological control (as is possible indiamond core) to ensure grades are representative, i.e. remove anybias through projecting assay grades beyond appropriate geologicalboundaries.
		Assay preparation procedures ensure the entire sample is pulverisedto 75 microns before the sub‐sample is taken. This removes thepotentialforthesignificantsub‐samplingbiasthatcanbeintroduced at this stage.
		RC Sampling: Sample preparation for RC chips follows a standardprotocol.
		Assay preparation procedures ensure the entire sample is pulverisedto 75 microns before the sub‐sample is taken. This removes thepotentialforthesignificantsub‐samplingbiasthatcanbeintroduced at this stage.
	Quality control procedures adopted for all sub‐sampling stages to maximise representivity ofsamples.	Diamond Core Sampling: Drill core is cut in half lengthways and thetotalhalf‐coresubmittedasthesample. Thismeetsindustrystandards where 50% of the total sample taken from the diamondcore is submitted.
		RC Sampling: Field QC procedures maximise representivity of RCsamples and involve the use of certified reference material as assaystandards, along with blanks, duplicates and barren washes.
	Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second‐half sampling.	Diamond Core Sampling: The retention of the remaining half‐core isan important control as it allows assay values to be determinedagainst the actual geology; and where required a quarter coresample may be submitted for assurance. No resampling of quartercore or duplicates has been done at this stage of the project.
		RC Sampling: Field duplicates were taken on 1m composites for RCsamples.
	Whether sample sizes are appropriate to thegrain size of the material being sampled.	The sample sizes are considered to be appropriate to correctlyrepresent the sulphide mineralisation at the East Laverton Propertybased on: the style of mineralisation (massive and disseminatedsulphides), the thickness and consistency of the intersections andthe sampling methodology.
Quality ofassay data andlaboratorytests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.	For diamond core and RC sampling, a 30 gram sample will be fireassayed for gold, platinum and palladium. The detection range forgold is 1 – 2000 ppbAu, and 0.5 – 2000 ppb for platinum andpalladium. This is believed to be an appropriate detection level forthelevelsoftheseelementswithinthisspecificmineralenvironment. However, should Au, Pt or Pd levels reported exceedthese levels; an alternative assay method will be selected.
		All other metals will be analysed using an acid digest and an ICPfinish. The sample is digested with nitric, hydrochloric, hydrofluoricand perchloric acids to effect as near to total solubility of the sampleas possible. The solution containing samples of interest, includingthose that need further review, will then be presented to an ICP‐OESfor the further quantification of the selected elements.
	For geophysical tools, spectrometers, handheldXRF instruments, etc, the parameters used indetermining the analysis including instrumentmake and model, reading times, calibrationsfactors applied and their derivation, etc.	A handheld XRF instrument (Olympus Innov‐X Spectrum Analyser) isused to systematically analyse the drill core and RC chips onsite.Reading time was 60 seconds. The instruments are serviced andcalibratedatleastoncea year.FieldcalibrationoftheXRFinstrument using standards is undertaken each day.
		For the EM surveys, specifications and quality control measures arenoted above.

Criteria	JORC Code explanation	Commentary
	Nature of quality control procedures adopted(egstandards,blanks,duplicates,externallaboratorychecks)andwhetheracceptablelevels of accuracy (ie lack of bias) and precisionhave been established.	Laboratory QAQC involves the use of internal lab standards usingcertified reference material, blanks, splits and replicates as part of inhouse procedures. The Company will also submit an independentsuite of CRMs, blanks and field duplicates (see above).
Verification ofsampling andassaying	The verification of significant intersections byeitherindependentoralternativecompanypersonnel.	Significant intersections are verified by the Company's TechnicalDirector and Consulting Field Geologist.
	The use of twinned holes.	No twinned holes have been completed.
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Geological data was collected using handwritten log sheets andimported in the field onto a laptop detailing geology (weathering,structure, alteration, mineralisation), sampling quality and intervals,sample numbers, QA/QC and survey data. This data, together withthe assay data received from the laboratory and subsequent surveydata was entered into the Company's database.
	Discuss any adjustment to assay data.	No adjustments or calibrations will be made to any primary assaydata collected for the purpose of reporting assay grades andmineralised intervals. For the geological analysis, standards andrecognised factors may be used to calculate the oxide form assayedelements, or to calculate volatile free mineral levels in rocks.
Location ofdata points	Accuracy and quality of surveys used to locatedrillholes(collaranddown‐holesurveys),	Drill hole collar locations are determined using a handheld GPS withan accuracy of +/‐ 5m.
	trenches, mine workings and other locationsused in Mineral Resource estimation.	Down hole surveys of dip and azimuth were conducted using asingle shot camera every 30m to detect deviations of the hole fromthe planned dip and azimuths.
	Specification of the grid system used.	The grid system used is GDA94, MGA Zone 51.
	Quality and adequacy of topographic control.	Best estimated RLs were assigned during drilling and are to becorrected at a later stage.
Data spacinganddistribution	Data spacing for reporting of ExplorationResults.	The drill programs target EM conductors and other high qualitytargets for massive nickel sulphide mineralisation. The spacing anddistribution of holes is not relevant to these programs.
	Whether the data spacing and distribution issufficient to establish the degree of geologicalandgradecontinuityappropriatefortheMineral Resource and Ore Reserve estimationprocedure(s) and classifications applied.	Drilling is at the exploration stage. Mineralisation at the EastLaverton Property has not yet demonstrated to be sufficient in bothgeologicalandgradecontinuityappropriatefortheMineralResourceandOreReserveestimationprocedure(s)andclassifications to be applied.
	Whether sample compositing has been applied.	Samples are taken at one metre lengths and adjusted wherenecessary to reflect local variations in geology or where visiblemineralised zonesare encountered, in order to preserve thesamples as representative.
Orientation ofdata in relationto geologicalstructure	Whether the orientation of sampling achievesunbiased sampling of possible structures andthe extent to which this is known, consideringthe deposit type.	The drill holes are drilled towards 060 at an angle of ‐60 degrees(unless otherwise stated) to intersect the modelled mineralisedzones at a near perpendicular orientation. However, the orientationof key structures may be locally variable and any relationship tomineralisation has yet to be identified.
	If the relationship between the drillingorientation and the orientation of keymineralised structures is considered to haveintroduced a sampling bias, this should beassessed and reported if material.	No orientation based sampling bias has been identified in the datato date.
Samplesecurity	The measures taken to ensure sample security.	Chain of Custody is managed by the Company until samples pass toa duly certified assay laboratory for subsampling and assaying. Thecut‐core trays and RC sample bags are stored on secure sites anddelivered to the assay laboratory by the Company or a competent

Criteria	JORC Code explanation	Commentary
		agent. When in transit, they are kept in locked premises. Transportlogs have been set up to track the progress of samples. The chain ofcustody passes upon delivery of the samples to the assay laboratory.
Audits orreviews	The results of any audits or reviews of samplingtechniques and data.	Sampling techniques and procedures are regularly reviewedinternally, as is data. To date, no external audits have beencompleted on the drilling programme.

Section 2 Reporting of Exploration Results (Criteria listed in section 1 will also apply to this section where relevant)

Criteria	JORC Code explanation	Commentary
MineralTenement andLand Status	Type, name/reference number, location andownership including agreements or materialissueswiththirdpartiesincludingjoint	The East Laverton Property comprises 27 exploration licences, anddetails are available in the Company's Quarterly Activities Reportwhich can be found on our website at www.stgm.com.au.
	ventures,partnerships,overridingroyalties,native title interests, historical sites, wildernessor national park and environmental settings.	Each tenement is 100% owned by Desert Fox Resources Pty Ltd, awholly owned subsidiary of St George Mining. Certain tenementsare subject to a 2% Net Smelter Royalty in favour of a third party.
	The security of the tenure held at the time ofreporting along with any known impedimentsto obtaining a licence to operate in the area.	None of the tenements are the subject of a native title claim. Noenvironmentally sensitive sites have been identified at any of thetenements.Thetenementsareingoodstanding;noknownimpediments exist.
ExplorationDone by OtherParties	Acknowledgment and appraisal of explorationby other parties.	In 2012, BHP Billiton Nickel West Pty Ltd (Nickel West) completed areconnaissance RC (reverse circulation) drilling programme at theEast Laverton Property as part of the Project Dragon farm‐inarrangement between Nickel West and the Company. That farm‐inarrangementhasbeenterminated. Thedrillingprogrammecomprised 35 RC holes for 8,560m drilled.
		The results from the Nickel West drilling programme were reportedby the Company in its ASX Release dated 25 October 2012 "DrillResultsatProjectDragon". Drillingintersectedprimarynickelsulphide mineralisation and established the presence of fertile, highMgO ultramafic sequences at the East Laverton Property.
		Prior to the Project Dragon drilling programme, there was nosystematic exploration for nickel sulphides at the East LavertonProperty. Historical exploration in the region was dominated byshallowRABandaircoredrilling,muchofwhichhadbeenincompletely sampled, assayed, and logged. This early work wasfocused on gold rather than nickel sulphide exploration.
Geology	Deposit type, geological setting and style ofmineralisation	The Company's East Laverton Property located in the NE corner ofthe Eastern Goldfields Province of the Archean Yilgarn Craton. Theproject area is proximally located to the Burtville‐Yarmana terraneboundary and the paleo‐cratonic marginal setting is consistent withthe extensive komatiites found on the property.The drilling at the East Laverton Property has confirmed extensivestrike lengths of high‐MgO olivine‐rich rocks across three majorultramafic belts. Ultramafic rocks of this composition are known tohost high grade nickel sulphides.
Drill holeinformation	A summary of all information material to the	Refer to information in the body of this announcement.
	understandingoftheexplorationresultsincludingtabulationofthefollowinginformation for all Material drill holes:• Easting and northing of the drill hole collar•Elevation or RL (Reduced Level – elevationabove sea level in meters) of the drill hole collar• Dip and azimuth of the hole	Information regarding exploration results from Project Dragon canbe found in the Company's ASX Release dated 25 October 2012"Drill Results at Project Dragon" which is available to view onwww.stgm.com.au.Table 1 to this 2012 JORC Section contains drill hole information on

Criteria	JORC Code explanation	Commentary
	• Down hole length and interception depth• Hole length	DRAC35, DRAC38 and DDNRC002 which were the first drill holes atthe East Laverton Property to identify nickel sulphides.
Dataaggregationmethods	InreportingExplorationResults,weightingaveragingtechniques,maximumand/orminimum grade truncations (e.g. cutting ofhigh grades) and cut‐off grades are usuallyMaterial and should be stated.	No top‐cuts have been applied. A nominal 0.15% Ni lower cut‐off isapplied unless otherwise indicated.
	Where aggregated intercepts incorporate shortlengthsofhighgraderesultsandlongerlengths of low grade results, the procedureused for such aggregation should be stated andsome typical examples of such aggregationsshould be shown in detail.	High grade massive sulphide intervals internal to broader zones ofsulphide mineralisation are reported as included intervals.
	The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	No metal equivalent values are used for reporting explorationresults.
Relationshipbetweenmineralisationwidths andinterceptlengths	These relationships are particularly importantin the reporting of exploration results. If thegeometry of the mineralisation with respect tothe drill hole angle is known, its nature shouldbe reported. If it is not known and only thedown hole lengths are reported, there shouldbe a clear statement to this effect.	The geometry of the mineralisation is not yet known due toinsufficient deep drilling in the targeted area.
Diagrams	Appropriate maps and sections (with scales)andtabulationsofinterceptsshouldbeincluded for any significant discovery beingreported. These should include, but not belimited to a plane view of drill hole collarlocations and appropriate sectional views.	Maps will be included with any announcement of any significantdiscovery, following review of assay results from the drillingprogramme.
BalancedReporting	WherecomprehensivereportingofallExplorationResultsisnotpractical,representative reporting of both low and high	A comprehensive report on recent drilling and targeting at the EastLaverton Property can be found in the following ASX Releases thatare available on our website at www.stgm.com.au:
	grades and/or widths should be practiced toavoidmisleadingreportingofExplorationResults.	11 February 2015 'St George Extends Nickel Sulphide Zone'.
		17 August 2015 'Assays Confirm Nickel Sulphide Zone at DesertDragon Central'
		29 September 2015 'Nickel Sulphide Targets at Desert DragonCentral'
		23 November 2015 'High Impact Exploration Continues''
Othersubstantiveexplorationdata	Otherexplorationdata,ifmeaningfulandmaterial, should be reported including (but notlimited to): geological observation; geophysicalsurvey results; geochemical survey results; bulksamples–sizeandmethodoftreatment;metallurgicaltestresults;bulkdensity,groundwater,geotechnicalandrockcharacteristics;potentialdeleteriousorcontaminating substances.	All meaningful and material information has been included in thebody of the text. No metallurgical or mineralogical assessmentshave been completed.
Further Work	The nature and scale of planned further work(e.g.testsforlateralextensionsordepthextensionsorlarge–scalestep–outdrilling).Diagrams clearly highlighting the areasofpossibleextensions,includingthemaingeological interpretations and future drillingareas,providedthisinformationisnotcommercially sensitive.	A discussion of further exploration work is contained in the body ofthe ASX Release.

HOLE ID	NORTHING(m)	EASTING(m)	DIP(deg)	AZM(deg)	DEPTH(m)	FROM(m)	TO(m)	WIDTH(m)	Ni(%)	Cu(ppm)	Pt+Pd(ppb)
DRAC35	6739401	527150	‐60	250	244	100	118	18	0.40	342	197
						100	104	4	0.57	366	294
						112	114	2	0.51	584	281
DRAC38	6733696	530786	‐60	250	298	108	138	30	0.31	10	31
						132	138	6	0.48	40	48
						132	134	2	0.62	92	53
DDNRC002	6742718	523717	‐60	59	246	53	60	7	0.54
						53	55	2	1.08

Table 1 to 2012 JORC Section – Significant intersections in DRAC35, DRAC38 and DDNRC002.

These historical holes are the first identification of nickel sulphides at the East Laverton Property. For further details on DRAC35 and DRAC38, see the ASX Release dated 25 October 2012 "Drill Results at Project Dragon". For further details on DDNRC002, see the ASX Release dated 11 April 2013 "St George Provides Exploration Update". These ASX Releases are available to view on the Company's website at www.stgm.om.au