ST GEORGE MINING LIMITED — Capital/Financing Update 2015

Jul 16, 2015

ASX / MEDIA RELEASE

17 July 2015

HIGH IMPACT DRILLING CAMPAIGN ‐ UPDATE

HIGHLIGHTS:

• Hole DDNDD0001 at Desert Dragon North drilled to 225m
• Ultramafic sequences and sulphidic sediments intersected with anomalous nickel, copper and zinc values in spot XRF analysis
• Detailed geological logging and XRF analysis of the drill hole is ongoing
• Downhole electromagnetic (DHEM) survey to be completed on DDNDD0001 prior to potential extension of the hole
• Drilling of hole DDRDD0004 at Desert Dragon Central has commenced

DRILLING CAMPAIGN ‐ UPDATE

St George Mining Limited (ASX: SGQ) ('St George Mining' or 'the Company') is pleased to provide the latest update on the high impact drilling campaign at its 100% owned East Laverton Property in Western Australia.

Hole DDNDD0001 has been drilled to a down hole depth of 225m, and intersected two distinct ultramafic units between approximately 72m to 82m and 187m to 200m in the hole. The ultramafic is in contact with sulphidic sediments that include sulphide stringers and some anomalous nickel, copper and zinc values. These are provisional results based on visual logging and spot XRF analysis. Laboratory assays will provide a more definitive assessment of the metal content of these zones.

The geology intersected by DDNDD0001 is strongly indicative of a major shear zone. This is particularly evident from rock fabric and related geochemistry.

DDNDD0001 was drilled underneath the massive nickel sulphide stringers encountered in hole DDNRC002, which intersected 2m @ 1.08% Ni from 55m and 2m @ 0.43%Ni from 59m. This mineralisation is interpreted to be a fragment that has been dislocated from a larger body of ultramafic that is hosting massive nickel sulphides.

The strong shear zone encountered by DDNDD0001 provides further support to this geological model of structural remobilisation of the nickel sulphides by the shear zone.

The primary source of the nickel sulphide mineralisation is interpreted to be locally situated, probably no more than a few hundred metres either laterally and/or vertically, from the massive nickel sulphide stringers encountered in DDNRC002.

A DHEM survey will be completed shortly at DDNDD0001 to test for any EM anomalies, located either laterally and/or at depth. Any such DHEM anomaly has potential to represent the primary source of the nickel sulphide mineralisation in DDNRC002. Drilling of DDNDD0001 has been suspended until the results of the DHEM survey are received and a decision can be made to either extend the hole or to drill a new hole to target a DHEM conductor.

ASX / MEDIA RELEASE

DESERT DRAGON CENTRAL ‐ DRILLING HAS COMMENCED

The drill rig has now moved to the Desert Dragon Central prospect. Drilling has commenced at hole DDRDD0004 which will test for an extension of the thick interval of disseminated nickel sulphides intersected in DRAC35 ‐ 18m @ 0.40% Ni, including 4m @ 0.56% Ni.

DRAC35 was drilled towards the west. DDRDD0004 will be drilled from the same collar as DRAC35 but to the east. The latest interpretation of the recent and historical drilling at Desert Dragon Central has provided a vector to the east for potential higher grade mineralisation.

This suggests that the nickel sulphide zone intersected in DRAC35 may extend to the east with potential increases in grade.

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

"Our work at Desert Dragon North shows how our technical team is reacting to drilling data in a dynamic way and quickly adapting our targeting to provide us with the best chance of exploration success.

"While we complete the downhole EM survey at Desert Dragon North, we have commenced the much anticipated second phase of drilling at Desert Dragon Central.

"The next three targets have probably created the most interest for shareholders. We are very pleased to now be drilling these targets."

Figure 1 – drill rig at Desert Dragon Central

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 specialised	This ASX Release dated 17 July 2015 reports on interim explorationresults from the Company's 2015 nickel sulphide drilling campaign.
	industrystandardmeasurementtoolsappropriatetothemineralsunderinvestigation,suchasdownholegammasondes, or handheld XRF instruments, etc).	Drilling is being undertaken by DDH1 Drilling Pty Ltd using a Sandvik1200 Multipurpose truck mounted drill rig. This rig has capability fordiamond core, reverse circulation (RC) and mud rotary drilling.
These examples should not be taken as limitingthe broad meaning of sampling.	The initial drilling program is planned to include diamond core holeswith RC pre‐collars. The actual holes to be completed will be subjectto ongoing management of the drilling program based on groundconditions and exploration results.
		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, Intertek Genalysis. Core is prepared for analysis at 1mintervals or at lesser intervals of geological significance. Core is cutin half lengthways and then 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 carried out under QAQC procedures as per industry bestpractice.
		RC Sampling: All samples from the RC drilling are taken as 1msamples. Samples are sent to Intertek Genalysis for assaying.
		Appropriate QAQC samples (standards, blanks and duplicates) wereinserted into the sequences as per industry best practice.
		In this program the multi‐purpose diamond and RC drill rig did nothave an industry standard splitter attached to facilitate collection ofsamples.RCsamplesweretakenmanuallyinthemostrepresentative way. Should any sample return any values that areanomalous, then a portable riffle splitter will be utilised to selectanother representative sample for assaying from the bulk sample ofRC chips retained by the Company.
		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 base metalassessment subject to final geochemical analysis by laboratoryassays.
		Down‐hole electromagnetic (DHEM) survey: A DHEM survey isplanned for each diamond hole. The DHEM survey is designed andmanaged by Newexco Services Pty Ltd, with field work contracted to

Criteria	JORC Code explanation	Commentary
		Bushgum Holdings Pty Ltd.
		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,certifiedsample 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 be
		RC Sampling: For RC drill samples, geological logging of RC chips iscompleted at site with representative chips being stored in drill chiptrays. Downhole surveys of dip and azimuth follow the sameprotocol as for diamond core holes.
		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.
In cases where 'industry standard' work hasmaywarrant	Aspects of the determination of mineralisationthat are Material to the Public Report.	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 on
	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)disclosureofdetailedinformation.	surveyed to a greater degree of accuracy.geological control.Assays are completed at Intertek Genalysis Laboratories in Perth.Samples are sent to Intertek where they are crushed to 6 mm andthen pulverised to 75 microns. A 30 g charge of the sample is 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 forthese elements within this specific mineral environment. However,should Au, Pt or Pd levels reported exceed these levels an additionalassay 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 byIntetrtekfollows the same protocol as for diamond core sampling.
Drillingtechniques	Drill type (eg core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka,	Diamond Core Sampling: The collars of the diamond holes weredrilled using RC drilling down through the regolith to the point of

Criteria	JORC Code explanation	Commentary
	sonic, etc) and details (eg core diameter, tripleor standard tube, depth of diamond tails, face‐sampling bit or other type, whether core is	refusal or to a level considered geologically significant to change tocore. The hole was then continued using HQ diamond core until thedrillers 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 normally collected using a cone and rifflesplitter. However, in this program, the multi‐purpose diamond andRC drill rig did not have an industry standard splitter attached. RCsamples were taken manually in the most representative way. If anysample returns any values that are anomalous, then a portable rifflesplitter will be utilised to select another representative sample forassaying from the bulk sample of RC chips retained by the Company.
	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 this drillprogram. This analysis will be conducted following any economicdiscovery.
		The use of diamond drilling capturing whole rock cores reduceserrors associated with varying size fraction loss of the sample. Verycompetent rocks have been recovered to date.
		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 diamond core and RC drillholes with lithology, alteration, mineralisation, structure and veiningrecorded.
	Whether logging is qualitative or quantitativeinnature.Core(orcostean,channel,etc)photography.	Logging of diamond core and RC samples recorded lithology,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 were geologically logged in full and detailed litho‐geochemical information was collected by the field XRF unit. Thedata relating to the elements analysed is used to determine furtherinformation regarding the detailed rock composition.

Criteria	JORC Code explanation	Commentary
Sub‐samplingtechniques andsamplepreparation	If core, whether cut or sawn and whetherquarter, half or all core taken.	The HQ and NQ2 core will be cut in half length ways at site using anautomatic core saw. All samples will be collected from the same sideof the core. The half‐core samples will be submitted to Intertek foranalysis.
	If non‐core, whether riffled, tube sampled,rotary split, etc and whether sampled wet ordry.	RC samples were taken manually in the most representative way asthe multipurpose drill rig did not have a riffle splitter to facilitatecollection of samples. If any sample returns any values that aredeemed anomalous, then a portable riffle splitter will be utilised toselect another representative sample for assaying from the bulksample of RC chips retained by the Company. RC samples arecollected in dry form.
	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 is the same as fordiamond core.
	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 both diamond core and RC sampling, a 30 gram sample will befire assayed for gold, platinum and palladium. The detection rangefor gold 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.

Criteria	JORC Code explanation	Commentary
	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 DHEM survey, specifications and quality control measuresare noted above.
	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 in diamond core are verified by theCompany's Technical Director and Consulting Field Geologist.
	The use of twinned holes.	No twinned holes have been completed in this drilling programme.
	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),trenches, mine workings and other locations	Drill hole collar locations are determined using a handheld GPS withan accuracy of +/‐ 5m. Drill hole collars will be preserved andsurveyed to a greater of accuracy after the drilling programme.
	used 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 programme is targeting EM conductors and other highquality targets for massive nickel sulphide mineralisation. Thespacing and distribution of holes is not relevant to this programme.
	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 (diamond core), andadjusted where necessary to reflect local variations in geology orwhere visible mineralised zones are encountered, in order topreserve the samples are 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 diamond core holes are drilled towards 060 at an angle of ‐60degrees to intersect the modelled mineralised zones at a nearperpendicular orientation unless otherwise stated. However, theorientation of key structures may be locally variable and anyrelationship to mineralisation at has yet to be identified.

Criteria	JORC Code explanation	Commentary
	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 competentagent. 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.For diamond core, a predetermined "cut sheet" serves as a trackingtool and provides a further control for any subsequent checks.
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	Phase 1 of the 2015 nickel sulphide drilling programme will testprospects located on several of the 27 Exploration Licences thatcomprise the East Laverton Property.
	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 impediments	None of the tenements are the subject of a native title claim. Noenvironmentally sensitive sites have been identified at any of thetenements.
to obtaining a licence to operate in the area.		The tenements are in good standing and no known impedimentsexist.
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 program at the EastLavertonPropertyaspartoftheProjectDragonfarm‐inarrangement between Nickel West and the Company. That farm‐inarrangement has been terminated. The drilling program comprised35 RC holes for 8,560m drilled.
		The results from the Nickel West drilling program were reported bythe Company in its ASX Release dated 25 October 2012 "Drill Resultsat Project Dragon". Drilling intersected primary nickel sulphidemineralisation and established the presence of fertile, high MgOultramafic sequences at the East Laverton Property.
		PriortotheProjectDragondrillingprogram,therewasnosystematic 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 ofWestern Australia.

Criteria	JORC Code explanation	Commentary
		The project area is proximally located to the Burtville‐Yarmanaterraneboundaryandthepaleo‐cratonicmarginalsettingisconsistentwiththeextensivekomatiitesandcarbonatitemagmatism found on the property.
		The area is largely covered by Permian glaciogene sediments(Patterson Formation), which area is subsequently overlain by athinner veneer of more recent sediments and aeolian sands. As aresult the geological knowledge of the belt has previously beenlargely inferred from gravity and magnetic data and locally verifieddrill‐holemulti‐elementbyinformationandsoilgeochemicalsurveys.
		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 theunderstandingoftheexplorationresultsincludingtabulationofthefollowinginformation 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• Down hole length and interception depth• Hole length	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.
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.
Relationshipbetweenmineralisation	These relationships are particularly importantin the reporting of exploration results.	The geometry of the mineralisation is not yet known due toinsufficient deep drilling in the targeted area.
widths andinterceptlengths	If the geometry of the mineralisation withrespect to the drill hole angle is known, itsnature should be reported. If it is not knownand only the down hole lengths are reported,there should be a clear statement to this effect(e.g.'downholelength,truewidthnotknown').
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.

Criteria	JORC Code explanation	Commentary
BalancedReporting	WherecomprehensivereportingofallExplorationResultsisnotpractical,	A balanced report on the interim exploration results is contained inthe body of the ASX Release.
	representative reporting of both low and highgrades and/or widths should be practiced toavoidmisleadingreportingofExplorationResults.	A comprehensive report on recent drilling at the East LavertonProperty can be found in the following ASX Releases that areavailable on our website at www.stgm.com.au:
		3 September 2014 'Nickel Sulphide Drilling – Update on Phase 1'
		11 February 2015 'St George Extends Nickel Sulphide Zone'.
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.testsforlateralextensionsordepthextensions or large – scale step – out drilling).	A discussion of further exploration work is contained in the body ofthe ASX Release.
	Diagramsclearlyhighlightingtheareasofpossibleextensions,includingthemaingeological interpretations and future drillingareas,providedthisinformationisnotcommercially sensitive.

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