ST GEORGE MINING LIMITED — Capital/Financing Update 2016

Jun 28, 2016

ASX / MEDIA RELEASE

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29 June 2016

NICKEL‐COPPER SULPHIDE DISCOVERY CONFIRMED AT STRICKLANDS PROSPECT

HIGHLIGHTS:

• Assays for the first ever drilling at the Stricklands Prospect confirm nickel‐copper sulphide mineralisation intersected at three separate targets

• A new discovery of mineralisation that substantially extends the mineralised ultramafics in the Cathedrals Belt and highlights the potential for further discoveries at the Mt Alexander Project

• Nickel‐copper sulphides intersected at shallow depths 50m below surface:

• MAD20: 9.3m of weak‐moderate disseminated mineralisation from 44.2m grading into matrix and massive sulphides with 0.93m @ 2.5%Ni, 0.68%Cu, 0.16%Co and 1.1g/t total PGEs from 53.52m

• MAD22: 7.95m of moderate disseminated‐blebby sulphide mineralisation from 41.9m grading into stringer and massive sulphides with 2.78m @ 1.62%Ni, 2.51%Cu, 0.07%Co and 1.88g/t PGEs from 49.85m including 0.23m @ 13.1%Cu, 43g/tAg from 52.4m

• MAD23: 3.75m of moderate blebby‐disseminated sulphides from 53.7m grading into matrix sulphides with 1.5m @ 1.29%Ni, 0.57%Cu, 0.06%Co and 1.11g/t total PGEs from 55.55m and massive sulphides with 0.25m @ 4.18%Ni, 3.4%Cu, 0.18%Co and 4.29g/t PGEs from 57.45m

• The mineralisation intersected in drill holes MAD20 and MAD23 is the first in situ massive nickel‐copper sulphide mineralisation encountered in the Cathedrals Belt and supports the potential for additional primary nickel‐copper sulphide mineralisation at the Mt Alexander Project

• Downhole electromagnetic (DHEM) surveys of MAD22 and MAD24 have identified several off‐hole EM conductors that warrant immediate testing

• Drilling of new targets at Stricklands, Cathedrals and Investigators to commence soon

NEW DISCOVERY AT STRICKLANDS PROSPECT

St George Mining Limited (ASX: SGQ ) (‘St George Mining’ or ‘the Company’) is pleased to announce that laboratory assays for the first ever drill holes completed at the Stricklands Prospect have confirmed that nickel‐copper sulphides have been discovered at this previously untested target at the Mt Alexander Project in Western Australia.

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Drill holes MAD20, MAD22 and MAD23 targeted separate EM conductors at the Stricklands Prospect, located 1km west‐southwest of the high grade nickel‐copper sulphide discovery made by BHP Billiton at the Cathedrals Prospect in 2008. Each of the new drill holes at Stricklands intersected high grade nickel‐copper sulphide mineralisation, an excellent result for the first drill programme in a new target area.

St George’s discovery of massive nickel‐copper sulphides at Stricklands is considered very important in the evolving exploration model at Mt Alexander and confirms that the high grade mineral system in the Cathedrals Belt is much more extensive than previous drilling had indicated.

The discovery of in situ komatiite hosted nickel‐copper sulphide mineralisation also has positive implications for the multiple ultramafic belts to the south of the Cathedrals Belt, at least one of which has never been drill tested with the others remaining under‐explored.

Assays have confirmed the following significant intersections (length and density weighted) for drill holes MAD20, MAD22 and MAD23 at Stricklands. Results for drill hole MAD19, the last drill hole completed by St George at the Cathedrals Prospect to test a deep off‐hole DHEM plate, have now been received and the significant intersection is also included below:

Hole ID	East (GDA94)	North (GDA94)	Dip	Azi	Depth (m)	From (m)	To (m)	Width	Ni (%)	Cu (%)	Co (%)	Total PGEs	Au **g/t **	Ag **g/t **
MAD19	233749.50	6807056.04	‐60	180	200	156.8	159.9	3.11	2.61	0.75	0.09	1.96	0.06	2.67
					Including	158.7	159.3	0.55	5.91	1.18	0.2	5.61	0.08	3.5
MAD20	232740.44	6806665.65	‐75	180	100.1	44.20	53.52	9.32	0.29	0.12	0.02	0.27	0.03	0.29
						53.52	54.45	0.93	2.5	0.68	0.16	1.1	0.03	1.54
MAD22	232525.87	6806526.92	‐60	40	138.9	41.90	49.85	7.95	0.55	0.3	0.02	0.58	0.06	1.48
						49.85	52.63	2.78	1.62	2.51	0.07	1.88	0.17	8.44
					Including	52.40	52.63	0.23	0.9	13.1	0.04	3.94	0.16	43
MAD22	232525.87	6806526.92	‐60	40	138.9	52.63	53.72	1.09	0.46	0.27	0.02	0.98	0.07	1
MAD23	232470.35	6806468.94	‐60	355	124.3	53.70	57.45	3.75	0.81	0.36	0.04	0.73	0.03	1.35
					Including	55.55	57.05	1.5	1.29	0.57	0.06	1.11	0.03	2
MAD23	232470.35	6806468.94	‐60	355	124.3	57.45	57.70	0.25	4.18	3.4	0.18	4.29	0.11	9

St George Mining Executive Chairman, John Prineas said:

“St George’s discovery at Stricklands strongly supports the potential for further high grade massive nickel‐copper sulphide mineralisation at this under‐explored Project.

“We are seeing high grades of nickel and copper in multiple intersections across the Project area, which highlights the fertility of the large mineral system at the Cathedrals Belt. The sulphides are also high in cobalt and PGEs, further enhancing the potential value of this mineralisation.

“The downhole EM targets at Stricklands are shaping up as very attractive for further massive nickel‐ copper sulphide mineralisation, and will be drilled soon along with the new strong EM conductors at Investigators.

“We are increasingly confident that our upcoming drill programme will deliver further exploration success.”

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The discovery of high grade nickel‐copper sulphides at Stricklands confirms that mineralised ultramafics in the Cathedrals Belt extend intermittently for over 2km. Together with the unexplored Investigators Prospect, the mineralised ultramafics in the Cathedrals Belt are interpreted to extend intermittently for over 3km.

The intersections of nickel‐copper sulphides at Stricklands are at shallow depths in fresh rock just below the base of weathering, which averages 35m at Stricklands. As with the Cathedrals Prospect, drilling has not yet tested for mineralisation at depth (beyond about 120m from surface) where there may be potential for further mineralised ultramafics.

Drill holes MAD21 and MAD24 were also completed at Stricklands in the recent drill programme. These holes did not intersect the target EM conductors and the assays indicated no significant intersections for these holes. The modelling of the conductor targeted by MAD21 was revised and subsequently successfully intersected by MAD23.

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Figure 1 – a plan view of the Cathedrals and Stricklands Prospects over TMI magnetics showing the successful nickel sulphide drill holes along the Cathedrals Belt.

STRONG EXPLORATION UPSIDE AT STRICKLANDS

The sulphide mineralisation intersected in MAD20 at Stricklands has a profile that is typical of komatiite hosted nickel sulphide mineralisation with a gradation from disseminated nickel sulphides, into matrix and stringers and then into high grade massive sulphides.

The DHEM survey in MAD20 indicated that the drill hole had intersected the edge of the EM conductor, with the centre of the conductor being approximately 10m to the east of the massive sulphide intersection. A second DHEM plate was identified below the MAD20 end of hole, suggesting that mineralisation may also be present at depth. A further fixed loop EM survey will be completed over this target next month to refine the conductors for drill testing.

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MAD22 intersected a complex section of blebby‐disseminated, brecciated, stringer and massive nickel‐ copper sulphides over 11.8m. The stringer and massive sulphides are interpreted to have been remobilised from a primary source of massive sulphide mineralisation.

Figure 2 is a photo of massive chalcopyrite intersected in MAD22 between 52.4m and 52.63m. The grade of copper in this interval is 13.1%Cu. Figure 3 is a photo of nickel‐copper stringers intersected by MAD22 from 50.26m to 50.8m that graded 2.05%Ni and 1.05%Cu over the interval. Figure 4 shows the primary igneous contact of the massive sulphide in MAD23 with the mafic footwall at 57.7m.

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Figure 2 – drill core from MAD22 with massive chalcopyrite (yellow‐green) in contact with ultramafic (dark grey). Assays for this interval (52.4m to 52.63m) returned 13.1%Cu and 43g/tAg.

The DHEM survey in MAD22 identified two strong off‐hole EM conductors to the east and west of the drill hole. These new conductors are likely to represent nickel‐copper sulphide mineralisation and may be the primary source of the remobilised massive sulphides seen in MAD22.

The new conductors are modelled with conductivities of 8,551 and 6,578 Siemens, and are located laterally to the mineralisation intersected by MAD22 at around 50m below surface.

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Figure 3 – drill core from MAD22 (50.26 to 50.8m) showing nickel‐copper stringers (the light yellow is chalcopyrite and the tan brown is pentlandite‐pyrrhotite). These stringers likely remobilised from massive sulphides that may be the off‐hole DHEM conductors near MAD22.

MAD24 was designed to test a large EM plate modelled from a surface EM survey. The drill hole did not intersect any conductive material that could explain the strong EM response. The DHEM survey in MAD24 identified two off‐hole EM conductors on either side of the drill hole, rather than one large conductor that was modelled from the surface EM survey.

These DHEM conductors are consistent with massive sulphide bodies with conductivity of 13,871 Siemens and 12,026 Siemens respectively. The targets are located approximately 48m and 80m below surface and will be tested in the next drill programme at Mt Alexander.

A further announcement regarding the drill targets for the upcoming drill programme will be announced next week, with drilling planned to commence late next week.

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Figure 4 – primary igneous contact of massive nickel‐copper sulphides against footwall mafics in MAD23 (57.7m). Lobate plumes of massive sulphide have projected into the footwall mafic and indicate in situ ultramafic‐mafic contact.

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 (e.g. gold, PGEs) in samples but is considered to be more reliable for base metal assessment.

Portable XRF analysis is able to detect base metals, like nickel and copper, though values are considered less reliable in disseminated sulphides due to the finer grain and interstitial textures. The XRF device is more reliable for detection of base metals, like nickel and copper, within massive sulphides.

Results from XRF analysis are stated as indicative only and are preliminary to subsequent confirmation by laboratory assays.

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ABOUT THE MT ALEXANDER PROJECT:

The Mt Alexander Project is located 120km south‐southwest of the Agnew‐Wiluna belt which hosts numerous world class nickel deposits. The Project comprises three granted exploration licences – E29/638, E29/548 and E29/962.

The Cathedrals nickel‐copper discovery as well as the Stricklands and Investigators Prospects are located on E29/638, which is held in joint venture by Western Areas Limited (25%) and St George (75%). St George is the Manager of the Project with Western Areas retaining a 25% non‐contributing interest in the Project (in regard to E29/638 only) until there is a decision to mine.

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 Matthew McCarthy, a Competent Person who is a Member of The Australian Institute of Geoscientists. Mr McCarthy is employed by St George Mining Limited.

Mr McCarthy 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 Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McCarthy consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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The following sections are 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
Sampling	Nature and quality of sampling (eg cut	The sections of the core that are selected for assaying are marked
techniques	channels, random chips, or specific specialised	up and then recorded on a sample sheet for cutting and sampling at
	industry standard measurement tools	the certified assay laboratory. Samples of HQ or NQ2 core are cut
	appropriate to the minerals under	just to the right of the orientation line using a diamond core saw,
	investigation, such as down hole gamma	with half core sampled lengthways for assay.
	sondes, or handheld XRF instruments, etc.).
	These examples should not be taken as limiting
	the broad meaning of sampling.
	Include reference to measures taken to ensure	Wherever possible the same side of the drill core is sampled to
	sample representivity and the appropriate	ensure sample is representative. Appropriate QAQC samples are
	calibration of any measurement tools or	inserted into the sequences as per industry best practice.
	systems used.
	Aspects of the determination of mineralisation	Diamond core (both HQ and NQ2) is half‐core sampled to geological
	that are Material to the Public Report.	boundaries no more than 1.2m and no less than 20cm. Samples less
	In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to	than 3kg are crushed to 10mm, dried and then pulverised to 75µm. Samples greater than 3kg are first crushed to 10mm then finely crushed to 3mm and input into the rotary splitters to produce a consistent output weight for pulverisation.
	produce a 30 g charge for fire assay’). In other	Pulverisation produces a 40g charge for fire assay. Elements
	cases more explanation may be required, such	determined from fire assay are gold (Au), platinum (Pt) and
	as where there is coarse gold that has inherent	palladium (Pd) with a 1ppb detection limit. To determine other PGE
	sampling problems. Unusual commodities or	concentrations (Rh, Ru, Os, Ir) a 25g charge for nickel sulphide
	mineralisation types (eg submarine nodules)	collect fire assay is used with a 1ppb detection limit.
	may warrant disclosure of detailed information.	Other elements will be analysed using an acid digest and an ICP finish. These elements are: Ag, Al, As, Bi, Ca, Cd, Co, Cr, Fe, K, Li, Mg,
		Mn, Mo, Nb, Ni, P, Pb, S, Sb, Sn, Te, Ti, V, W, Zn. The sample is
		digested with nitric, hydrochloric, hydrofluoric and perchloric acids
		to effect as near to total solubility of the sample as possible. The
		sample is then analysed using ICP‐AES or ICP‐MS.
		LOI (Loss on Ignition) will be completed on selected samples to
		determine the percentage of volatiles released during heating of
		samples to 1000°C.
Drilling	Drill type (eg core, reverse circulation, open‐	Diamond drilling is completed using HQ sized coring equipment
techniques	hole hammer, rotary air blast, auger, Bangka,	through the weathered zone (mostly saprock) with 3m barrels, and
	sonic, etc) and details (eg core diameter, triple	then HQ or NQ2 in fresh rock with 3m or 6m barrels as required. The
	or standard tube, depth of diamond tails, face‐	core is oriented using ACT II electric core orientation.
	sampling bit or other type, whether core is
	oriented and if so, by what method, etc).
Drill sample	Method of recording and assessing core and	Diamond core recoveries are recorded during drilling and reconciled
recovery	chip sample recoveries and results assessed.	during the core processing and geological logging. The core length
		recovered is measured for each run and recorded which is used to
		calculate core recovery as a percentage.

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Criteria	JORC Code explanation	Commentary
	Measures taken to maximise sample recovery	Measures taken to maximise core recovery include using
	and ensure representative nature of the	appropriate core diameter and shorter barrel length through the
	samples.	weathered zone, which at Cathedrals is generally <25m and
		Stricklands <40m depth. Primary locations for core loss in fresh rock
		are on geological contacts and structural zones, and drill techniques
		are adjusted accordingly, and if possible these zones are predicted
		from the geological modelling.
	Whether a relationship exists between sample	No sample recovery issues have yet been identified that would
	recovery and grade and whether sample bias	impact on potential sample bias in the competent fresh rocks that
	may have occurred due to preferential	host the mineralised sulphide intervals.
	loss/gain of fine/coarse material.
Logging	Whether core and chip samples have been	Geological logging is completed for all drill holes with lithology,
	geologically and geotechnically logged to a	alteration, mineralisation, structure and veining recorded. The
	level of detail to support appropriate Mineral	logging is recorded digitally and imported in the St George Mining
	Resource estimation, mining studies and	central database.
	metallurgical studies.
	Whether logging is qualitative or quantitative	Logging is both qualitative and quantitative depending on the field
	in nature. Core (or costean, channel, etc.)	being captured. Core is photographed with one tray per photo and
	photography.	stored digitally.
	The total length and percentage of the relevant	All drill holes are geologically logged in full.
	intersections logged.
Sub‐sampling	If core, whether cut or sawn and whether	The HQ and NQ2 core is cut in half length ways just to the right of
techniques and	quarter, half or all core taken.	the orientation line using a diamond core saw. All samples are
sample		collected from the same side of the core where practicable.
preparation
	If non‐core, whether riffled, tube sampled,	No non‐core holes were drilled in the recent drill program.
	rotary split, etc and whether sampled wet or
	dry.
	For all sample types, the nature, quality and	The entire sample is pulverised to 75µm using LM5 pulverising mills.
	appropriateness of the sample preparation	Samples are dried, crushed and pulverized to produce a
	technique.	homogenous representative sub‐sample for analysis. A grind quality
		target of 90% passing 75µm is used.
	Quality control procedures adopted for all sub‐	Quality control procedures include submission of Certified
	sampling stages to maximise representivity of	Reference Materials (standards), duplicates and blanks with each
	samples.	sample batch. QAQC results are routinely reviewed to identify and
		resolve any issues.
	Measures taken to ensure that the sampling is	Duplicate samples are selected during sampling. Samples comprise
	representative of the in situ material collected,	two quarter core samples.
	including for instance results for field
	duplicate/second‐half sampling.
	Whether sample sizes are appropriate to the	The sample sizes are considered to be appropriate for base metal
	grain size of the material being sampled.	sulphide mineralisation and associated geology.
Quality of	The nature, quality and appropriateness of the	Diamond core samples are analysed for Au, Pt and Pd using a 40g
assay data and	assaying and laboratory procedures used and	lead collection fire assay; for Rh, Ru, Os, Ir using a 25g nickel
laboratory	whether the technique is considered partial or	sulphide collection fire assay; and for Ag, Al, As, Bi, Ca, Cd, Co, Cr, Fe,
tests	total.	K, Li, Mg, Mn, Mo, Nb, Ni, P, Pb, S, Sb, Sn, Te, Ti, V, W, Zn using a
		four acid digest and ICP‐AES or MS finish. The assay method and
		detection limits are appropriate for analysis of the elements
		required.

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Criteria	JORC Code explanation	Commentary
	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 onsite. One reading is
	determining the analysis including instrument	taken per meter, however for any samples with massive sulphide
	make and model, reading times, calibrations	mineralisation then five to ten samples are taken at set intervals per
	factors applied and their derivation, etc.	meter. The instruments are serviced and calibrated at least once a
		year. Field calibration of the XRF instrument using standards is
		periodically performed.
		The handheld XRF results are only used for preliminary assessment
		and reporting of element compositions, prior to the receipt of assay
		results from the certified laboratory.
	Nature of quality control procedures adopted	Laboratory QAQC involves the use of internal lab standards using
	(eg standards, blanks, duplicates, external	certified reference material (CRMs), blanks and pulp duplicates as
	laboratory checks) and whether acceptable	part of in house procedures. The Company will also submit a suite of
	levels of accuracy (i.e. lack of bias) and	CRMs, blanks and some duplicates.
	precision have been established.	Sample preparation checks for fineness are performed by the
		laboratory to ensure the grind size of 90% passing 75µm is being
		attained.
Verification of	The verification of significant intersections by	Significant intersections are verified by the Exploration Manager of
sampling and	either independent or alternative company	St George Mining.
assaying	personnel.
	The use of twinned holes.	One twin hole (MAD18) was drilled in the recent drill program to
		test for repeatability and continuity of the massive sulphide
		intersection in MAD15.
	Documentation of primary data, data entry	Primary data is captured onto a laptop using acQuire software and
	procedures, data verification, data storage	includes geological logging, sample data and QA/QC information.
	(physical and electronic) protocols.	This data, together with the assay data, is entered into the St
		George Mining central SQL database which is managed by external
		consultants.
	Discuss any adjustment to assay data.	No adjustments or calibrations will be made to any primary assay
		data reported.
Location of	Accuracy and quality of surveys used to locate	Drill holes have been located and pegged using a DGPS system with
data points	drill holes (collar and down‐hole surveys),	an expected accuracy of +/‐0.05mmm for easting, northing and
	trenches, mine workings and other locations	elevation.
	used in Mineral Resource estimation.	Downhole surveys are conducted using a single shot camera
		approximately every 30m during drilling to record and monitor
		deviations of the hole from the planned dip and azimuth. Post‐
		drilling downhole gyroscopic surveys are conducted, which provide
		much more accurate survey results.
	Specification of the grid system used.	The grid system used at the Mt Alexander project is GDA94 (MGA),
		zone 51.
	Quality and adequacy of topographic control.	Elevation data has been acquired using DGPS surveying at individual
		collar locations and entered into the central database. A
		topographic surface has been created using this elevation data.
Data spacing	Data spacing for reporting of Exploration	The recent diamond drill program was targeting modelled EM
and	Results.	conductors and other geological criteria for massive nickel‐copper‐
distribution		PGE sulphide mineralisation. The spacing and distribution of the drill
		holes was appropriate to test the defined targets.
	Whether the data spacing and distribution is	Drilling is still largely reconnaissance exploration. Mineralisation at
	sufficient to establish the degree of geological	Cathedrals has not yet demonstrated to be sufficient in both
	and grade continuity appropriate for the	geological and grade continuity to support the definition of Mineral
	Mineral Resource and Ore Reserve estimation	Resource and Reserves and the classifications applied under the
	procedure(s) and classifications applied.	2012 JORC code.

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Criteria	JORC Code explanation	Commentary
	Whether sample compositing has been applied.	No compositing has been applied to the exploration results.
Orientation of	Whether the orientation of sampling achieves	Drill holes were planned as perpendicular as possible to the target
data in relation	unbiased sampling of possible structures and	EM plates to approximate true width. Most of the ultramafic units
to geological	the extent to which this is known, considering	dip shallow to the north and where possible drill holes have been
structure	the deposit type.	planned to intersect perpendicular to dip. The orientation of key
		structures may be locally variable.
	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 St George Mining. Core samples will
security		be stored in the secure facilities at Bureau Veritas laboratory in
		Perth. Transportation of core is managed by St George contractors
		and Bureau Veritas and actively track monitored.
Audits or	The results of any audits or reviews of sampling	No audits or reviews have been conducted at this stage.
reviews	techniques and data.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral	Type, name/reference number, location and	The Mt Alexander Project is comprised of three granted Exploration
Tenement and	ownership including agreements or material	Licences (E29/638, E29/548 and E29/962). Tenement E29/638 is
Land Status	issues with third parties including joint	held in Joint Venture between St George (75% interest) and Western
	ventures, partnerships, overriding royalties,	Areas (25% interest). E29/638 and E29/548 are also subject to a
	native title interests, historical sites, wilderness	royalty in favour of a third party that is outlined in the ASX Release
	or national park and environmental settings.	dated 17 December 2015 (as regards E29/638) and the ASX release
		dated 18 September 2015 (as regards E29/548).
	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.	No environmentally sensitive sites have been identified on the tenements. A registered Heritage site known as Willsmore 1 (DAA identification 3087) straddles tenements E29/548 and E29/638.
		All three tenements are in good standing and no known
		impediments exist.
Exploration	Acknowledgment and appraisal of exploration	Exploration on tenements E29/638 and E29/962 has been largely for
Done by Other	by other parties.	komatiite‐hosted nickel sulphides in the Mt Alexander Greenstone
Parties		Belt. Exploration in the northern section of E29/638 (Cathedrals
		Prospect) and also limited exploration on E29/548 has been for
		komatiite‐hosted Ni‐Cu sulphides in granite terrane.
		The target lithological unit in the Mt Alexander Greenstone belt is
		the Central Ultramafic Unit, which has been explored by a number
		of parties, most recently by Nickel West.
		High grade nickel‐copper sulphides were discovered at the Mt
		Alexander Project in 2008. Drilling was completed to test co‐incident
		electromagnetic (EM) and magnetic anomalies associated with
		nickel‐PGE enriched gossans in the northern section of current
		tenement E29/638. The drilling identified high grade nickel‐copper
		mineralisation in granite‐hosted ultramafic units and the discovery
		was named the Cathedrals Prospect. The tenements remain
		underexplored.
Geology	Deposit type, geological setting and style of	The Mt Alexander Project is at the northern end of a western
	mineralisation	bifurcation of the Mt Ida Greenstones. The greenstones are bound
		to the west by the Ida Fault, a significant Craton‐scale structure that
		marks the boundarybetween the Kalgoorlie Terrane(and Eastern

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Criteria	JORC Code explanation	Commentary
		Goldfields Superterrane) to the east and the Youanmi Terrane to the
		west.
		The Mt Alexander Project is prospective for further high‐grade
		komatiite‐hosted nickel‐copper‐PGE mineralisation (both
		greenstone and granite hosted) and also precious metal
		mineralisation (i.e. orogenic gold) that is typified elsewhere in the
		Yilgarn Craton.
Drill hole	A summary of all information material to the	Table 1 to this JORC Section contains drill holes with significant
information	understanding of the exploration results	intersections from historic exploration at the Cathedrals Prospect.
	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
	• Down hole length and interception depth
	• Hole length
Data	In reporting Exploration Results, weighting	Reported assay intersections are length and density weighted.
aggregation	averaging techniques, maximum and/or	Significant intersections are determined using both qualitative (i.e.
methods	minimum grade truncations (e.g. cutting of	geological logging) and quantitative (i.e. lower cut‐off) methods. For
	high grades) and cut‐off grades are usually	massive sulphide intersections the nominal lower cut‐off is 2% for
	Material and should be stated.	either nickel or copper. For disseminated, matrix and stringer
		sulphide intersections the nominal lower cut‐off for nickel is 0.3%.
	Where aggregated intercepts incorporate short	Any high grade 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 have yet been used for reporting
	metal equivalent values should be clearly	exploration results.
	stated.
Relationship	These relationships are particularly important	Assay intersections are reported as down hole lengths. Drill holes
between	in the reporting of exploration results.	were planned as perpendicular as possible to intersect the target
mineralisation widths and intercept lengths	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported,	EM plates so downhole lengths are near true width. Results from the recent drill program will be reviewed further to confirm the relationship between downhole lengths and true widths.
	there should be a clear statement to this effect
	(e.g. down hole length, true width not known).
Diagrams	Appropriate maps and sections (with scales)	Relevant maps are shown in the ASX release.
	and tabulations of intercepts should be
	included for any significant discovery being
	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	The exploration results reported are representative of the
Reporting	Exploration Results is not practical,	mineralisation style with grades and/or widths reported in a
	representative reporting of both low and high	consistent manner.
	grades and/or widths should be practiced to
	avoid misleading reporting Exploration Results.
Other	Other exploration data, if meaningful and	No other exploration data collected to date is considered material or
substantive	material, should be reported including (but not	meaningful at this stage.

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Criteria	JORC Code explanation	Commentary
exploration	limited to): geological observation; geophysical
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	Further exploration is being planned from the ongoing results of the
	(e.g. tests for lateral extensions or depth	recent diamond drill program and EM geophysical programs
	extensions or large – scale step – out drilling).	outlined in the ASX Release.
	Diagrams clearly highlighting the areas of
	possible extensions, including the main
	geological interpretations and future drilling
	areas, provided this information is not
	commercially sensitive.

HOLE ID	EASTING	NORTHING	DIP	AZM	DEPTH	FROM	TO	WIDTH	Ni	Cu	Total PGEs
	(m)	(m)	(deg)	(deg)	(m)	(m)	(m)	(m)	(%)	(%)	(g/t)
MAD012	233885	6806995	‐70	170	111.5	81.5	95.5	14	1.9	0.8	1.8
		including				91.4	95.4	4	4.9	1.7	3.9
MAD013	233805	6806955	‐70	170	93.3	56.3	59.3	3	3.8	1.6	2.7
		including				57.6	59	1.4	7.1	3.0	2.9
MARC49	233759	6806979	‐55	180	142	60	66	6	3.3	1.5	2.7

Table 1 to 2012 JORC Section: Significant intersections at the Cathedrals Prospect on E29/638.

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