ST GEORGE MINING LIMITED — Capital/Financing Update 2015

Mar 16, 2015

ASX / MEDIA RELEASE

==> picture [120 x 55] intentionally omitted <==

17 March 2015

HIGH QUALITY NICKEL SULPHIDE TARGETS IDENTIFIED AT DESERT DRAGON NORTH

HIGHLIGHTS:

• Multiple high quality targets for massive nickel sulphides identified at Desert Dragon North

• Strong EM conductors with favourable geological, geochemical and structural attributes

• Interpretative work is continuing to generate more targets for ongoing drilling campaign

• Drilling is planned to re‐commence in March/April 2015

DESERT DRAGON NORTH – KNOWN MASSIVE NICKEL SULPHIDES

St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) is pleased to announce the identification of additional high quality nickel sulphide targets at the Desert Dragon North prospect, situated within its 100% owned East Laverton Nickel Sulphide Project in Western Australia (“St George’s Project” or “the Project”).

Desert Dragon North is within an 18km strike length of the Stella Range belt which the recently completed Technical Review of the Project, led by global nickel expert Dr Jon Hronsky, selected as being the most prospective area for nickel sulphide mineralisation within the Project tenements.

Drill hole DDNRC002 lies within the Desert Dragon North area, and intersected 2m @ 1.08%Ni from 55m and 2m @ 0.43%Ni from 59m. A downhole analysis of DDNRC002 is illustrated in Figure 1.

The DDNRC002 intersection is very significant as it is evidence of the formation of massive nickel sulphides at St George’s East Laverton Project, and confirms the potential for the large high‐MgO ultramafic complexes at the Project to host massive nickel sulphides.

A photograph of the massive nickel sulphides intersected by DDNRC002, which are in the form of stringer veinlets, is shown in Figure 2. Importantly, a high Iridium/Palladium ratio for this mineralisation confirms that it is a fragment of a larger body of massive sulphides and not the product of alteration and shearing locally concentrating disseminated mineralisation.

The ultramafic at DDNRC002 is in contact with a shear zone. The geological and structural evidence suggests the lens of ultramafic hosting this significant intersection was mechanically remobilised by the shear zone, and is from a proximal source.

Exploration targeting at Desert Dragon North has been escalated following the findings of the Technical Review, and already 3 exciting targets have been established. These are discussed below.

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

“The recent Technical Review has identified the Desert Dragon area as having the potential to emerge as a new nickel camp.

“It’s therefore very encouraging to see the high quality targets with strong EM conductors being generated at Desert Dragon North, an area where massive nickel sulphide veinlets have already been intersected.

“The anticipation for our next drilling program is building.”

1

ASX / MEDIA RELEASE

==> picture [120 x 55] intentionally omitted <==

==> picture [485 x 307] intentionally omitted <==

Figure 1 – Downhole profile of drill hole DDNRC002. The hole passed through sheared ultramafic (higher MgO to lower MgO), sulphidic sediments, mafic rocks, and further sulphidic sediments. The shear zone identified in the hole is important, and is the likely mechanism for the remobilisation of the nickel sulphides encountered in DDNRC002.

==> picture [483 x 200] intentionally omitted <==

Figure 2 – Visible massive nickel sulphide stringers intersected in DDNRC002 between 55m – 56m down hole. The sulphides lie within a fresh rock intersection of 2m @ 1.08% Ni from 55m.

2

ASX / MEDIA RELEASE

==> picture [120 x 55] intentionally omitted <==

TARGET 1 – IS THIS THE PRIMARY SOURCE OF THE REMOBILISED NICKEL ?

Target 1 has been identified as a high priority target to test for the primary source of the nickel sulphides in drill hole DDNRC002.

Target 1 is a high amplitude and isolated section of an EM conductor identified by Newexco and labelled Conductor 11. The conductor is favourably situated on the margin of a high‐MgO komatiite channel flow, which has been inferred from the strong coincident TMI magnetic response.

Three lines of the MLEM survey at Conductor 11 returned a very powerful EM response, which contrasted with the lower responses to the north and south along this conductor. The conductance of the high amplitude section of Conductor 11 was 5500 Siemens in contrast with the remainder of the conductor with a conductance of 670 Siemens. This is a significant variance within the long strike EM response that is modelled as a continuous sequence of sulphidic sediments.

The three lines with the powerful EM response, 333200, 333600 and 334000, could represent an isolated source in close proximity – such as a nickel sulphide deposit on the contact between the ultramafics and underlying sediments.

There are many examples in Western Australia, including at Forrestania and at the nickel camps of the Agnew‐Wiluna belt, where sulphide‐rich sediments are intimately associated with nickel sulphide mineralisation. One such example is the Windarra nickel sulphide deposit; see Figure 3.

The EM conductor at Target 1 is to the north of DDNRC002 and linked to the drill hole by an interpreted shear zone (see Figure 4). The remobilisation of the massive nickel sulphides and associated lens of ultramafic may have occurred along this shear zone.

Target 1 has geophysical, structural and geological attributes which are favourable for nickel sulphide mineralisation. The high amplitude section of the EM conductor is a compelling target that could be the source of the nickel sulphide mineralisation in DDNRC002.

TARGET 2 – STRONG EM CONDUCTOR IN UNIQUE STRUCTURAL SETTING

Target 2 is situated to the south of drill hole DDNRC002 (2m @ 1.08% Ni from 55m) and covers part of an EM conductor identified by Newexco and labelled ‘Anomaly 12’ (see Figure 4).

All conductors identified at Desert Dragon dip to the west other than Anomaly 12, which dips to the east. The easterly dip is consistent with the interpreted thrust folding in the area. The geometry of the conductive plate is structurally anomalous and may be significant.

The section of the EM conductor that is being targeted is at the southern portion of Anomaly 12. This section is coincident with the western margin of a very strong gravity anomaly that could represent dense, sulphide‐rich rocks (see Figure 5). In addition, the target is situated in the fold closure of a south plunging fold – an area that is favourable for the structural concentration of massive nickel sulphide mineralisation.

The geological and structural attributes of this prospect support the significance of this high quality EM target as a potential massive nickel sulphide deposit.

3

ASX / MEDIA RELEASE

==> picture [120 x 55] intentionally omitted <==

==> picture [371 x 40] intentionally omitted <==

==> picture [371 x 40] intentionally omitted <==

==> picture [371 x 39] intentionally omitted <==

==> picture [371 x 40] intentionally omitted <==

==> picture [371 x 39] intentionally omitted <==

==> picture [371 x 40] intentionally omitted <==

==> picture [371 x 40] intentionally omitted <==

==> picture [371 x 39] intentionally omitted <==

==> picture [371 x 40] intentionally omitted <==

==> picture [371 x 39] intentionally omitted <==

==> picture [371 x 40] intentionally omitted <==

==> picture [371 x 39] intentionally omitted <==

==> picture [371 x 40] intentionally omitted <==

==> picture [371 x 39] intentionally omitted <==

Figure 3 – this map of the geology at the Windarra nickel sulphide deposit illustrates the close association between sulphidic sediments and nickel sulphide mineralisation at Windarra. The map is based on the geological map for the Windarra nickel sulphide deposit in Marston, R.J., (1984): Nickel Mineralisation in Western Australia, Geological Survey of Western Australia. Mineral Resources Bulletin, 14

4

ASX / MEDIA RELEASE

==> picture [120 x 55] intentionally omitted <==

==> picture [392 x 42] intentionally omitted <==

==> picture [392 x 41] intentionally omitted <==

==> picture [392 x 42] intentionally omitted <==

==> picture [392 x 42] intentionally omitted <==

==> picture [392 x 41] intentionally omitted <==

==> picture [392 x 42] intentionally omitted <==

==> picture [392 x 42] intentionally omitted <==

==> picture [392 x 41] intentionally omitted <==

==> picture [392 x 42] intentionally omitted <==

==> picture [392 x 42] intentionally omitted <==

==> picture [392 x 41] intentionally omitted <==

==> picture [392 x 42] intentionally omitted <==

==> picture [392 x 42] intentionally omitted <==

==> picture [392 x 41] intentionally omitted <==

Figure 4 – The Desert Dragon North prospect area shown against RTP magnetics (reduction to the pole magnetics). The three priority targets for massive nickel sulphide mineralisation are illustrated.

.

5

ASX / MEDIA RELEASE

==> picture [120 x 55] intentionally omitted <==

==> picture [413 x 33] intentionally omitted <==

==> picture [413 x 34] intentionally omitted <==

==> picture [413 x 33] intentionally omitted <==

==> picture [413 x 34] intentionally omitted <==

==> picture [413 x 33] intentionally omitted <==

==> picture [413 x 34] intentionally omitted <==

==> picture [413 x 34] intentionally omitted <==

==> picture [413 x 33] intentionally omitted <==

==> picture [413 x 34] intentionally omitted <==

==> picture [413 x 33] intentionally omitted <==

==> picture [413 x 34] intentionally omitted <==

==> picture [413 x 34] intentionally omitted <==

==> picture [413 x 33] intentionally omitted <==

==> picture [413 x 34] intentionally omitted <==

==> picture [413 x 33] intentionally omitted <==

==> picture [413 x 33] intentionally omitted <==

Figure 5 – Desert Dragon North against gravity data. Target 2 is a strong late‐time conductor that lies along the western margin of a strong gravity high, which is likely to represent sulphide‐rich rocks

TARGET 3 – UNTESTED KOMATIITE CHANNEL

The northern most komatiite channel complex at Desert Dragon North and its associated conductors remain untested. This large channel complex presents as a positive magnetic anomaly and is a particularly favourable structural site given its location immediately adjacent to the intersection of a major NE trending structure and the Stella Range fault.

This type of structural intersection is important as it is typically the site of high magma volumes and flow rates, producing hot and turbulent conditions for the komatiite flows and enhanced conditions for nickel sulphide formation.

6

ASX / MEDIA RELEASE

==> picture [120 x 55] intentionally omitted <==

Target 3 is a strong EM conductor with a location modelled on the ultramafic contact of this untested channel complex (see Figure 4).

PREPARATION FOR DRILLING

Final planning to design optimal sites for the drill holes that will test these targets is scheduled to be completed this week.

The preparations for re‐commencement of drilling are advanced with drilling planned to begin later this month or early April, depending on the timing for the mobilisation of the drill rig to site.

.

For further information, please contact:

John Prineas Colin Hay Executive Chairman Professional Public Relations St George Mining Limited (+61) 08 9388 0944 mob 0404 683 355 (+61) 411 421 253 colin.hay@ppr.com.au John.prineas@stgm.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 information in this announcement that relates to Exploration Results and Mineral Resources as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ is based on information compiled by Mr Hronsky. Mr Hronsky 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.

7

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	JORC Code explanation	JORC Code explanation		Commentary
Sampling	Nature and quality		of sampling (eg cut		This ASX Release dated 17 March 2015 reports on new targets
techniques	channels, random chips, or specific specialised				generated at the Company’s East Laverton Nickel Sulphide Project.
	industry	standard	measurement	tools	The ASX Release does not report any new exploration results, and
	appropriate	to	the minerals	under	the targets are generated by a review of past exploration results
	investigation, such		as down hole	gamma	particularly drilling programs and electromagnetic surveys
	sondes, or	handheld XRF instruments, etc).			completed recently at the Project.
	These examples should not be taken as limiting the broad meaning of sampling.				Drilling programs have included diamond core drilling completed by DDH1 Drilling Pty Ltd and reverse circulation (RC) drilling completed
					by VM Drilling Pty Ltd.
					Diamond drilling was undertaken by DDH1 in 2014 using a Sandvik
					1200 Multipurpose truck mounted drill rig. RC drilling was
					undertaken by VM Drilling in 2014 using a Schramm 685 truck
					mounted drill rig.
					_Diamond Core Sampling:_The core is removed from the drill rig and
					laid out for initial analysis in the field. The core is measured and
					marked up at 1m intervals against the drillers blocks, which are
					themselves checked against the drillers log books where required.
					The visible structural features on the core are measured against the
					core‐orientation lines.
					Onsite XRF analysis is conducted using a hand‐held Olympus Innov‐X
					Spectrum Analyser. The XRF analysis is used to systematically review
					diamond drill core, with a single reading taken every metre, except
					in the case of core loss. These results are only used for onsite
					interpretation and preliminary base metal assessment subject to
					final geochemical analysis by laboratory assays.
					The sections of the core that are selected for assaying are marked
					up and recorded on a “cut‐sheet” which provides a control on the
					intervals that will be cut and sampled at a duly certified assay
					laboratory, SGS Laboratories. Core is prepared for analysis at 1m
					intervals or at lesser intervals of geological significance. Core is cut
					in half lengthways and then numbered samples are taken as per the
					“cut‐sheet”.
					Diamond core provides high quality samples that are logged for
					lithological, structural, geotechnical, density and other attributes.
					Sampling is carried out under QAQC procedures as per industry best
					practice.
					RC Sampling: All samples from the RC drilling are taken as 1m
					samples. Samples are sent to Intertek Laboratories for assaying.
					Appropriate QAQC samples (standards, blanks and duplicates) are
					inserted into the sequences as per industry best practice.
					Samples are collected using cone or riffle splitter. Geological logging
					of RC chips is completed at site with representative chips being
					stored in drill chip trays.
					Onsite XRF analysis is conducted on the fines from RC chips using a
					hand‐held Olympus Innov‐X Spectrum Analyser. These results are
					only used for onsite interpretation and preliminary assessment
					subject to final geochemical analysis by laboratory assays.
					Moving loop electromagnetic (MLEM) survey: The MLEM survey is
					designed and managed by Newexco, with field work contracted to
					Bushgum PtyLtd. The MLEM surveyis conducted at several

1

Criteria	JORC Code explanation	Commentary
		prospects within the project area.
		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 be
		completed for certain drill holes. The DHEM survey is designed and
		managed by Newexco Services Pty Ltd, with field work contracted to
		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 when
		looking down hole.
		 Bv – Perpendicular to hole axis: toward 9 o’ clock when
		looking down hole.
	Include reference to measures taken to ensure	_Diamond Core Sampling:_For diamond core samples, certified
	sample representivity and the appropriate	sample standards were added as every 25thsample. Core recovery
	calibration of any measurement tools or	calculations are made through a reconciliation of the actual core
	systems used.	and the driller’s records. Downhole surveys of dip and azimuth
		were conducted using a single shot camera every 30m to detect
		deviations of the hole from the planned dip and azimuth. The drill‐
		hole collar locations were recorded using a hand held GPS, which
		has an accuracy of +/‐ 5m. At a later date the drill‐hole collar will be
		surveyed to a greater degree of accuracy.
		_RC Sampling:_The RC drilling rig has a cone splitter built into the
		cyclone on the rig. Samples are taken on a one meter basis and
		collected directly from the splitter into uniquely numbered calico
		bags. The calico bag contains a representative sample from the drill
		return for that metre. This results in a representative sample being
		taken from drill return, for that metre of drilling. The remaining
		majority of the sample return for that metre is collected and stored
		in a green plastic bag marked with that specific metre interval. The
		cyclone is blown through with compressed air after each plastic and
		calico sample bag is removed. If wet sample or clays are
		encountered then the cyclone is opened and cleaned manually and
		with the aid of a compressed air gun.
		A large auxiliary compressor (“air‐pack”) is mounted on a separate
		truck and the airstream is connected to the rig. This provides an
		addition to the compressed air supplied bythe in‐built compressors

2

Criteria	JORC Code explanation		Commentary
			mounted on the drill rig itself. This auxiliary compressor maximises
			the sample return through restricting air pressure loss, especially in
			deeper holes. In addition, the high and consistent levels of air
			pressure minimise the number of drill samples.
			Geological logging of RC chips is completed at site with
			representative chips being stored in drill chip trays. Downhole
			surveys of dip and azimuth are conducted using a single shot camera
			every 30m to detect deviations of the hole from the planned dip and
			azimuth. The drill‐hole collar locations were recorded using a hand
			held 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 using
			standards is undertaken each day. A minimum of 3 consistent
			readings per station are taken to ensure accuracy of data collected.
			_DHEM Survey:_For the DHEM survey, the polarity of each component
			is checked to ensure the system was set up using the correct
			component orientations. The hole position is corrected for
			trajectory using orientation survey data.
	Aspects of the determination of mineralisation		_Diamond Core Sampling: C_ore is drilled with HQ and NQ2 size and
	that are Material to the Public Report.		sampled as half core to produce a bulk sample for analysis. Intervals
	In cases where ‘industry standard’ work has been done this would be relatively simple (eg		vary from 0.3 – 1m maximum and are selected with an emphasis on geological control.
	‘reverse circulation drilling was used to obtain		Assays are completed at SGS Laboratories in Perth. Samples are sent
	1 m samples from which 3 kg was pulverised to		to SGS where they are crushed to 6 mm and then pulverised to 75
	produce a 30 g charge for fire assay’). In other		microns. A 30 g charge of the sample is fire assayed for gold,
	cases more explanation may be required, such		platinum and palladium. The detection range for gold is 1 – 2000
	as where there is coarse gold that has inherent		ppbAu, and 0.5 – 2000 ppb for platinum and palladium. This is
	sampling problems. Unusual commodities or		believed to be an appropriate detection level for these elements
	mineralisation types (eg submarine	nodules)	within this specific mineral environment. However, should Au, Pt or
	may warrant disclosure of	detailed	Pd levels reported exceed these levels an additional assay method
	information.		will be used to re‐test samples.
			All other metals will be analysed using an acid digest and an ICP
			finish. The sample is digested with nitric, hydrochloric, hydrofluoric
			and perchloric acids to effect as near to total solubility of the sample
			as possible. The solution containing samples of interest, including
			those that need further review, will then be presented to an ICP‐OES
			for the further quantification of the selected elements.
			_RC Sampling:_A 1m composite sample is taken from the bulk sample
			of RC chips that may weigh in excess of 40 kg. Assay preparation is
			completed by Intertek.
			Assays are undertaken at Intertek in Kalgoorlie and Perth. Samples
			are sent to Intertek where they are crushed to 6 mm and then
			pulverised to 75 microns. A 30 g charge of the sample is fire assayed
			for gold, platinum and palladium. The detection range for gold is 1 –
			2000 ppbAu, and 0.5 – 2000 ppb for platinum and palladium. This is
			believed to be an appropriate detection level for these elements
			within this specific mineral environment. However, should Au, Pt or
			Pd levels reported exceed 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 ICP
			finish. The sample is digested with nitric, hydrochloric, hydrofluoric
			and perchloric acids to effect as near to total solubility of the sample
			as possible. The solution containing samples of interest, including
			those that need further review, will then be presented to an ICP‐OES
			for the further quantification of the selected elements.
Drilling	Drill type (eg core, reverse circulation, open‐		_Diamond Core Sampling:_The collars of the diamond holes were
techniques	hole hammer, rotary air blast, auger, Bangka,		drilled using RC drilling down through the regolith to the point of
	sonic, etc) and details(eg core diameter, triple		refusal or to a level consideredgeologicallysignificant to change to

3

Criteria	JORC Code explanation	Commentary
	or standard tube, depth of diamond tails, face‐	core. The hole was then continued using HQ diamond core until the
	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 oriented
		using ACT Mk II electric core orientation.
		_RC Sampling:_The RC drilling uses a 140 mm diameter face hammer
		tool. High capacity air compressors on the drill rig are used to
		ensure a continuously sealed and high pressure system during
		drilling to maximise the recovery of the drill cuttings, and to ensure
		chips remain dry to the maximum extent possible.
Drill sample	Method of recording and assessing core and	_Diamond Core Sampling:_Diamond core recoveries/core loss are
recovery	chip sample recoveries and results assessed.	recorded during drilling and reconciled during the core processing
		and geological logging. No significant sample recovery problems are
		thought to have occurred in any holes drilled to date. There has
		been a notable and consistent competency encountered in the rocks
		during drilling.
		_RC Sampling:_RC samples are visually checked for recovery, moisture
		and contamination. Geological logging is completed at site with
		representative RC chips stored in chip trays.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	_Diamond Core Sampling:_Depths are checked against the depth on the core blocks and rod counts are routinely carried out by the drillers. Core loss was recorded by St George geologists and
		sampling intervals were not carried through core loss.
		_RC Sampling:_Samples are collected using cone or riffle splitter.
		Geological logging of RC chips is completed at site with
		representative chips being stored in drill chip trays.
	Whether a relationship exists between sample	To date, no detailed analysis to determine the relationship between
	recovery and grade and whether sample bias	sample recovery and grade has been undertaken for any drill
	may have occurred due to preferential	program. This analysis will be conducted following any economic
	loss/gain of fine/coarse material.	discovery.
		The nature of magmatic sulphide distribution hosted by the
		competent and consistent rocks hosting any mineralised intervals
		are considered to significantly reduce any possible issue of sample
		bias due to material loss or gain.
Logging	Whether core and chip samples have been	Geological logging is carried out on all drill holes with lithology,
	geologically and geotechnically logged to a	alteration, mineralisation, structure and veining recorded.
	level of detail to support appropriate Mineral
	Resource estimation, mining studies and
	metallurgical studies.
	Whether logging is qualitative or quantitative	Logging of diamond core and RC samples records lithology,
	in nature. Core (or costean, channel, etc)	mineralogy, mineralisation, structures (core only), weathering,
	photography.	colour and other noticeable features. Core was photographed in
		both dry and wet form.
	The total length and percentage of the relevant	All drill holes are geologically logged in full and detailed litho‐
	intersections logged.	geochemical information is collected by the field XRF unit. The data
		relating to the elements analysed is used to determine further
		information regarding the detailed rock composition.
Sub‐sampling	If core, whether cut or sawn and whether	The HQ and NQ2 core is cut in half length ways in Kalgoorlie using an
techniques and	quarter, half or all core taken.	automatic core saw. All samples are collected from the same side of
sample		the core. The half‐core samples are submitted to SGS for analysis.
preparation
	If non‐core, whether riffled, tube sampled,	RC samples are collected in dry form. Samples are collected using
	rotary split, etc and whether sampled wet or	cone or riffle splitter when available. Geological logging of RC chips
	dry.	is completed at site with representative chips being stored in drill
		chip trays.

4

Criteria	JORC Code explanation	Commentary
	For all sample types, the nature, quality and	_Diamond Core Sampling:_Diamond core was drilled with HQ and
	appropriateness of the sample preparation	NQ2 size and sampled as complete half core to produce a bulk
	technique.	sample for analysis. Intervals selected varied from 0.3 – 1m
		(maximum) with a strong geological control (as is possible in
		diamond core) to ensure grades are representative, i.e. remove any
		bias through projecting assay grades beyond appropriate geological
		boundaries.
		Assay preparation procedures ensure the entire sample is pulverised
		to 75 microns before the sub‐sample is taken. This removes the
		potential for the significant sub‐sampling bias that can be
		introduced at this stage.
		RC Sampling: Sample preparation for RC chips follows a standard
		protocol.
		Assay preparation procedures ensure the entire sample is pulverised
		to 75 microns before the sub‐sample is taken. This removes the
		potential for the significant sub‐sampling bias that can be
		introduced at this stage.
	Quality control procedures adopted for all sub‐	_Diamond Core Sampling:_Drill core is cut in half lengthways and the
	sampling stages to maximise representivity of	total half‐core submitted as the sample. This meets industry
	samples.	standards where 50% of the total sample taken from the diamond
		core is submitted.
		RC Sampling: Field QC procedures maximise representivity of RC
		samples and involve the use of certified reference material as assay
		standards, along with blanks, duplicates and barren washes.
	Measures taken to ensure that the sampling is	_Diamond Core Sampling:_The retention of the remaining half‐core is
	representative of the in situ material collected,	an important control as it allows assay values to be determined
	including for instance results for field	against the actual geology; and where required a quarter core
	duplicate/second‐half sampling.	sample may be submitted for assurance. No resampling of quarter
		core or duplicates has been done at this stage of the project_._
		_RC Sampling:_Field duplicates were taken on 1m composites for RC
		samples.
	Whether sample sizes are appropriate to the	The sample sizes are considered to be appropriate to correctly
	grain size of the material being sampled.	represent the sulphide mineralisation at the East Laverton Property
		based on: the style of mineralisation (massive and disseminated
		sulphides), the thickness and consistency of the intersections and
		the sampling methodology.
Quality of	The nature, quality and appropriateness of the	For diamond core and RC sampling, a 30 gram sample will be fire
assay data and	assaying and laboratory procedures used and	assayed for gold, platinum and palladium. The detection range for
laboratory	whether the technique is considered partial or	gold is 1 – 2000 ppbAu, and 0.5 – 2000 ppb for platinum and
tests	total.	palladium. This is believed to be an appropriate detection level for
		the levels of these elements within this specific mineral
		environment. However, should Au, Pt or Pd levels reported exceed
		these levels; an alternative assay method will be selected.
		All other metals will be analysed using an acid digest and an ICP
		finish. The sample is digested with nitric, hydrochloric, hydrofluoric
		and perchloric acids to effect as near to total solubility of the sample
		as possible. The solution containing samples of interest, including
		those that need further review, will then be presented to an ICP‐OES
		for the further quantification of the selected elements.
	For geophysical tools, spectrometers, handheld	A handheld XRF instrument (Olympus Innov‐X Spectrum Analyser) is
	XRF instruments, etc, the parameters used in	used to systematically analyse the drill core and RC chips onsite.
	determining the analysis including instrument	Reading time was 60 seconds. The instruments are serviced and
	make and model, reading times, calibrations	calibrated at least once a year. Field calibration of the XRF
	factors applied and their derivation, etc.	instrument using standards is undertaken each day.
		For the EM surveys, specifications and quality control measures are
		noted above.

5

Criteria	JORC Code explanation	Commentary
	Nature of quality control procedures adopted	Laboratory QAQC involves the use of internal lab standards using
	(eg standards, blanks, duplicates, external	certified reference material, blanks, splits and replicates as part of in
	laboratory checks) and whether acceptable	house procedures. The Company will also submit an independent
	levels of accuracy (ie lack of bias) and precision	suite of CRMs, blanks and field duplicates (see above).
	have been established.
Verification of	The verification of significant intersections by	Significant intersections are verified by the Company’s Technical
sampling and	either independent or alternative company	Director and Consulting Field Geologist.
assaying	personnel.
	The use of twinned holes.	No twinned holes have been completed.
	Documentation of primary data, data entry	Geological data was collected using handwritten log sheets and
	procedures, data verification, data storage	imported in the field onto a laptop detailing geology (weathering,
	(physical and electronic) protocols.	structure, alteration, mineralisation), sampling quality and intervals,
		sample numbers, QA/QC and survey data. This data, together with
		the assay data received from the laboratory and subsequent survey
		data was entered into the Company’s database.
	Discuss any adjustment to assay data.	No adjustments or calibrations will be made to any primary assay
		data collected for the purpose of reporting assay grades and
		mineralised intervals. For the geological analysis, standards and
		recognised factors may be used to calculate the oxide form assayed
		elements, or to calculate volatile free mineral levels in rocks.
Location of	Accuracy and quality of surveys used to locate	Drill hole collar locations are determined using a handheld GPS with
data points	drill holes (collar and down‐hole surveys),	an accuracy of +/‐ 5m.
	trenches, mine workings and other locations used in Mineral Resource estimation.	Down hole surveys of dip and azimuth were conducted using a single shot camera every 30m to detect deviations of the hole from
		the 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 be
		corrected at a later stage.
Data spacing	Data spacing for reporting of Exploration	The drill programs target EM conductors and other high quality
and	Results.	targets for massive nickel sulphide mineralisation. The spacing and
distribution		distribution of holes is not relevant to these programs.
	Whether the data spacing and distribution is	Drilling is at the exploration stage. Mineralisation at the East
	sufficient to establish the degree of geological	Laverton Property has not yet demonstrated to be sufficient in both
	and grade continuity appropriate for the	geological and grade continuity appropriate for the Mineral
	Mineral Resource and Ore Reserve estimation	Resource and Ore Reserve estimation procedure(s) and
	procedure(s) and classifications applied.	classifications to be applied.
	Whether sample compositing has been applied.	Samples are taken at one metre lengths and adjusted where
		necessary to reflect local variations in geology or where visible
		mineralised zones are encountered, in order to preserve the
		samples as representative.
Orientation of	Whether the orientation of sampling achieves	The drill holes are drilled towards 060 at an angle of ‐60 degrees
data in relation	unbiased sampling of possible structures and	(unless otherwise stated) to intersect the modelled mineralised
to geological	the extent to which this is known, considering	zones at a near perpendicular orientation. However, the orientation
structure	the deposit type.	of key structures may be locally variable and any relationship to
		mineralisation has yet to be identified.
	If the relationship between the drilling	No orientation based sampling bias has been identified in the data
	orientation and the orientation of key	to date.
	mineralised structures is considered to have
	introduced a sampling bias, this should be
	assessed and reported if material.
Sample	The measures taken to ensure sample security.	Chain of Custody is managed by the Company until samples pass to
security		a duly certified assay laboratory for subsampling and assaying. The
		cut‐core trays and RC sample bags are stored on secure sites and
		delivered to the assaylaboratorybythe Companyor a competent

6

Criteria	JORC Code explanation	Commentary
		agent. When in transit, they are kept in locked premises. Transport
		logs have been set up to track the progress of samples. The chain of
		custody passes upon delivery of the samples to the assay laboratory.
Audits or	The results of any audits or reviews of sampling	Sampling techniques and procedures are regularly reviewed
reviews	techniques and data.	internally, as is data. To date, no external audits have been
		completed 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
Mineral Tenement and Land Status Type, name/reference number, location and ownership including agreements or material issues with third parties including joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The East Laverton Property comprises 27 exploration licences, and details are available in the Company’s Quarterly Activities Report which can be found on our website at www.stgm.com.au. Each tenement is 100% owned by Desert Fox Resources Pty Ltd, a wholly owned subsidiary of St George Mining. Certain tenements are subject to a 2% Net Smelter Royalty in favour of a third party. None of the tenements are the subject of a native title claim. No environmentally sensitive sites have been identified at any of the tenements. The tenements are in good standing; no known impediments exist.
Exploration Done by Other Parties Acknowledgment and appraisal of exploration by other parties.	In 2012, BHP Billiton Nickel West Pty Ltd (Nickel West) completed a reconnaissance RC (reverse circulation) drilling programme at the East Laverton Property as part of the Project Dragon farm‐in arrangement between Nickel West and the Company. That farm‐in arrangement has been terminated. The drilling programme comprised 35 RC holes for 8,560m drilled. The results from the Nickel West drilling programme were reported by the Company in its ASX Release dated 25 October 2012 “Drill Results at Project Dragon”. Drilling intersected primary nickel sulphide mineralisation and established the presence of fertile, high MgO ultramafic sequences at the East Laverton Property. Prior to the Project Dragon drilling programme, there was no systematic exploration for nickel sulphides at the East Laverton Property. Historical exploration in the region was dominated by shallow RAB and aircore drilling, much of which had been incompletely sampled, assayed, and logged. This early work was focused on gold rather than nickel sulphide exploration.
Geology Deposit type, geological setting and style of mineralisation	The Company’s East Laverton Property located in the NE corner of the Eastern Goldfields Province of the Archean Yilgarn Craton. The project area is proximally located to the Burtville‐Yarmana terrane boundary and the paleo‐cratonic marginal setting is consistent with the extensive komatiites found on the property. The drilling at the East Laverton Property has confirmed extensive strike lengths of high‐MgO olivine‐rich rocks across three major ultramafic belts. Ultramafic rocks of this composition are known to host high grade nickel sulphides.
Drill hole information A summary of all information material to the understanding of the exploration results including tabulation of the following information for all Material drill holes: • Easting and northing of the drill hole collar •Elevation or RL (Reduced Level – elevation above sea level in meters) of the drill hole collar • Dip and azimuth of the hole	Refer to information in the body of this announcement. Information regarding exploration results from Project Dragon can be found in the Company’s ASX Release dated 25 October 2012 “Drill Results at Project Dragon” which is available to view on www.stgm.com.au. Table 1 to this 2012 JORC Section contains drill hole information on

7

Criteria	JORC Code explanation	Commentary
	• Down hole length and interception depth	DRAC35, DRAC38 and DDNRC002 which were the first drill holes at
	• Hole length	the East Laverton Property to identify nickel sulphides.
Data	In reporting Exploration Results, weighting	No top‐cuts have been applied. A nominal 0.15% Ni lower cut‐off is
aggregation	averaging techniques, maximum and/or	applied unless otherwise indicated.
methods	minimum grade truncations (e.g. cutting of
	high grades) and cut‐off grades are usually
	Material and should be stated.
	Where aggregated intercepts incorporate short	High grade massive sulphide intervals internal to broader zones of
	lengths of high grade results and longer	sulphide mineralisation are reported as included intervals.
	lengths of low grade results, the procedure
	used for such aggregation should be stated and
	some typical examples of such aggregations
	should be shown in detail.
	The assumptions used for any reporting of	No metal equivalent values are used for reporting exploration
	metal equivalent values should be clearly	results.
	stated.
Relationship	These relationships are particularly important	The geometry of the mineralisation is not yet known due to
between	in the reporting of exploration results. If the	insufficient deep drilling in the targeted area.
mineralisation	geometry of the mineralisation with respect to
widths and	the drill hole angle is known, its nature should
intercept	be reported. If it is not known and only the
lengths	down hole lengths are reported, there should
	be a clear statement to this effect.
Diagrams	Appropriate maps and sections (with scales)	Maps will be included with any announcement of any significant
	and tabulations of intercepts should be	discovery, following review of assay results from the drilling
	included for any significant discovery being	programme.
	reported. These should include, but not be
	limited to a plane view of drill hole collar
	locations and appropriate sectional views.
Balanced	Where comprehensive reporting of all	A comprehensive report on recent drilling at the East Laverton
Reporting	Exploration Results is not practical,	Property can be found in the following ASX Releases that are
	representative reporting of both low and high	available on our website atwww.stgm.com.au:
	grades and/or widths should be practiced to avoid misleading reporting of Exploration	3 September 2014 ‘Nickel Sulphide Drilling – Update on Phase 1’
	Results.	11 February 2015_‘St George Extends Nickel Sulphide Zone’_.
Other	Other exploration data, if meaningful and	All meaningful and material information has been included in the
substantive	material, should be reported including (but not	body of the text. No metallurgical or mineralogical assessments
exploration	limited to): geological observation; geophysical	have been completed.
data	survey results; geochemical survey results; bulk
	samples – size and method of treatment;
	metallurgical test results; bulk density,
	groundwater, geotechnical and rock
	characteristics; potential deleterious or
	contaminating substances.
Further Work	The nature and scale of planned further work	A discussion of further exploration work is contained in the body of
	(e.g. tests for lateral extensions or depth	the ASX Release.
	extensions or large – scale step – out drilling).
	Diagrams clearly highlighting the areas of
	possible extensions, including the main
	geological interpretations and future drilling
	areas, provided this information is not
	commercially sensitive.

8

HOLE ID	NORTHIN G (m)	EASTIN G (m)	DIP (deg)	AZM (deg)	DEPT H (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

9