ST GEORGE MINING LIMITED — Capital/Financing Update 2016

May 24, 2016

ASX / MEDIA RELEASE

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25 May 2016

ST GEORGE COMMENCES DRILL PROGRAMME FOR PRIORITY GOLD TARGETS AT EAST LAVERTON

HIGHLIGHTS:

• Major gold focused drill programme has commenced at East Laverton Project

• First ever drilling of bedrock geology at priority gold targets

• Targets are located in a favourable structural setting with strong associated gold anomalism established by shallow historical drilling

• Ascalon is the first gold target to be drill tested with drilling costs co‐funded by a WA Government grant under the Exploration Incentive Scheme

• Opportunity for a new discovery in this prospective but underexplored region that contains the most recent world‐class gold discoveries in Western Australia at Tropicana (+8MozAu) and Gruyere (+6MozAu)

HIGH IMPACT GOLD DRILLING COMMENCES AT EAST LAVERTON

St George Mining Limited (ASX: SGQ ) (‘St George Mining’ or ‘the Company’) is pleased to announce that a major drill programme is underway to test priority gold targets at its 100% owned East Laverton Project in Western Australia.

A total of 2,300m of reverse circulation (RC) drilling is planned in the first phase of this gold‐focused drill programme, which will test two priority targets – Ascalon and Bristol. Table 1 contains details of the planned drill holes.

The Ascalon target has never been drilled. It is situated in a favourable structural setting for gold mineralisation that has strong associated gold anomalism identified by shallow reconnaissance drilling completed to the north‐west of the main target area.

The Bristol target has only been tested by shallow drilling with an average drill hole depth of 40m. Many end of hole drill samples had anomalous gold with values upto 2.5ppmAu.

St George’s drill programme is the first ever test of the bedrock geology at both targets and has the potential to deliver a major breakthrough for gold exploration at East Laverton.

Our field team has mobilised to the Project and is finalising preparation of drill sites. The RC drill rig will arrive at East Laverton on Thursday this week, with drilling to commence by Friday.

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

“We are very excited to begin drilling of our highly rated gold targets at East Laverton which satisfy key exploration targeting criteria for significant gold deposits.

“The targets have never been systematically explored for gold and provide us with an opportunity to make an important discovery.”

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ASX / MEDIA RELEASE

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FAVOURABLE GEOLOGICAL FEATURES FOR LARGE SCALE GOLD MINERALISATION

Early fundamental structures that were developed during greenstone formation are first‐order controls on the localisation of gold mineralisation associated with Archean Orogenic gold deposits. The presence of these deep mantle tapping structures are prominent at the East Laverton Project and are demonstrated by the extensive ultramafic sequences which have been formed by mantle sourced high MgO komatiite magmas.

A ground gravity survey completed in August 2015 provided effective mapping of these important structures and the associated magmatic and hydrothermal centres, which are highly prospective for gold mineralisation.

In particular, the Minigwal Fault is a regional northwest trending structure that extends for over 40km through the East Laverton Project. The Minigwal greenstone belt has formed in the hanging wall of the Fault and is situated along the margin of a major regional‐scale gravity anomaly, which indicates a major and deep magmatic centre. The Minigwal Fault is interpreted as a deep (trans‐lithospheric) structure that provides a pathway for the transport of gold‐rich mantle‐derived hydrothermal fluids to the upper crust.

Figure 1 illustrates the camp‐scale model synthesis for Orogenic gold mineralisation and highlights the importance of fundamental basement structures for the formation of Orogenic gold deposits. The Ascalon gold target, which is situated on the Minigwal Fault, is an excellent conceptual fit to this Orogenic gold model.

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Figure 1 – Orogenic Gold Model Synthesis (Dr J Hronsky, 2011). The cross section illustrated is in the plane of a major cross‐cutting fundamental structure which will have had a significant influence on lateral segmentation of the rift during formation. Note also the role of the antiformal culmination in sealing the inferred underlying over‐pressured reservoir.

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MULTIPLE PRIORITY GOLD TARGETS AT EAST LAVERTON

The 2015 gravity survey completed at the East Laverton Project provided an opportunity to review the gold targeting process and reassess the numerous occurrences of anomalous gold across the Project area. Most importantly, the ground survey allowed the recognition of camp scale and regional scale positive gravity features, which indicate deep magmatic centres that are prospective for gold mineralisation.

Major Orogenic gold deposits commonly occur where major fundamental north‐west trending faults are deflected on the gradient (margins) of positive gravity features. The deflection of the north‐west trending greenstone belts and major faults is related to reactivation and dilation of the intersecting fundamental northwest‐southeast and northeast‐southwest faults. (“Fundamental” refers to a deep fault structure that formed early in the structural history of the Earth).

Ascalon is a classic example of this structural setting and is located at the intersection of the Minigwal Fault and the NE‐SW Southern Lineament, on the gradient of a regional‐scale gravity feature. Bristol is also favourably situated on the intersection of the Central Fault and the Churchill Lineament, which is a major transform fault that trends in a NE‐SW direction.

Figure 2 illustrates the priority gold targets at East Laverton and their association with strong gravity anomalies. Ascalon and Bristol will be drill tested in the first phase of the gold drill programme with other targets to be prioritised for drilling in follow‐on phases of the programme.

Five drill holes are planned for each of Ascalon and Bristol. Follow‐up drilling, including deeper drill holes, will be planned after the results from the initial drilling are reviewed. The first phase of the gold drill programme is expected to be completed within approximately 3 weeks and laboratory assays will be available shortly thereafter.

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Figure 2 – the East Laverton tenements against FVD Bouguer gravity data. All targets are associated with strong gravity anomalies, which can indicate fundamental structures that are a control on the concentration of gold mineralisation.

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ASCALON – HIGH PRIORITY GOLD TARGET

Historical exploration drilling was completed mainly to the north of the Ascalon target by WMC Resources in the early 1990s. This drilling was relatively shallow with the majority of the drill hole depths being less than 100m. The main Ascalon target was never drilled.

The historical drilling defined linear zones of anomalous gold and copper in the regolith that extend over 1,300m and are open to the south towards the Ascalon target.

Figure 3 illustrates the thickest part of the Minigwal greenstone belt, which we have named the ‘Lydda Domain’. Most of the anomalous gold intersected by shallow and reconnaissance drilling is located within this Lydda Domain, as is the Ascalon target. Large Orogenic gold deposits are typically situated in the thickest sections of the greenstone belts as they are a site of greater preservation of the lower metamorphic grade rocks, which are more favourable hosts for large‐scale gold formation.

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Figure 3 – the Ascalon target shown against FVD Bouguer gravity data with key structural and geological features highlighted.

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A deep drill hole, OXFRC003, was drilled to the north‐west of Ascalon by St George in February 2016. The hole was completed to a downhole depth of 306m and intersected a number of zones of gold and copper mineralisation; see our ASX Release dated 30 March 2016 ‘Large Gold Zone at East Laverton’ .

Importantly, OXFRC003 confirmed that the gold and copper anomalism previously only intersected in the regolith, was also present as significant bedrock mineralisation. The geochemical and alteration signature from the drilling is interpreted to be consistent with the peripheral setting around a large gold deposit.

A prominent deflection in the rift‐axial structure of the Minigwal belt is present at the Ascalon target. This is a very favourable structural setting for gold mineralisation in the Yilgarn and indicates the reactivation of the intersecting fundamental NW and NE‐SW transform faults during the late gold event. These structures are a primary control on gold mineralisation.

The target area has never been drilled and presents an opportunity for a major discovery.

St George Mining has been awarded a drilling grant under the West Australian Government’s Exploration Incentive Scheme (EIS) that will be applied towards the direct costs of drilling at Ascalon. The Company appreciates the financial support from the Western Australian Government and the Geological Survey of Western Australia for the testing of this strategically important prospect.

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Figure 4 – the Ascalon target shown against Bouguer tilt gravity data with planned drill holes illustrated.

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Hole ID	Target	Easting (m)	Northing (m)	Dip (deg)	Azimuth (deg)	Depth (m)
ASCProp1	Ascalon	553210	6730520	‐60	225	240
ASCProp2	Ascalon	553330	6730670	‐60	225	240
ASCProp3	Ascalon	553460	6730810	‐60	225	340
ASCProp4	Ascalon	553590	6730960	‐60	225	240
ASCProp5	Ascalon	553720	6731110	‐60	225	240
BRProp1	Bristol	534510	6739575	‐60	270	200
BRProp2	Bristol	534375	6739575	‐60	270	200
BRProp3	Bristol	534510	6739415	‐60	270	200
BRProp4	Bristol	534425	6739415	‐60	270	200
BRProp5	Bristol	534505	6739700	‐60	270	200

Table 1 – Planned holes at the Ascalon and Bristol gold targets

IMPORTANT REGIONAL LOCATION

St George’s East Laverton Project is located in the Yilgarn Craton, which is a world class gold province with an endowment of over 300 million ounces of gold. Figure 5 shows that two of the most recent large greenfields gold discoveries in Australia ‐ the +8MozAu Tropicana deposit and the +6MozAu Gruyere deposit – are located near the eastern margin of the North Eastern Goldfields, as is the East Laverton Project.

These recent gold discoveries highlight the under‐explored nature of the eastern margin of the North Eastern Goldfields and its potential for further major gold discoveries.

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Figure 5 – the main gold‐bearing greenstone belts of the Yilgarn Craton, showing the East Laverton Project in the under‐explored eastern margin of the North Eastern Goldfields where Tropicana and Gruyere ‐ two of the most recent and significant gold discoveries in Australia are also located.

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ASX / MEDIA RELEASE

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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.

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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 25 May 2016 reports on the 2016 drilling
techniques	channels, random chips, or specific specialised				campaign underway at the Company’s East Laverton Project, and
	industry	standard	measurement	tools	includes a discussion of some past exploration results at the Project.
	appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting				Drilling programs have included diamond core drilling completed by DDH1 Drilling Pty Ltd and reverse circulation (RC) drilling completed by VM Drilling Pty Ltd.
	the broad meaning of		sampling.		Diamond drilling was undertaken by DDH1 in 2014 and 2015 using a
					Sandvik 1200 Multipurpose truck mounted drill rig. RC drilling was
					undertaken by VM Drilling in 2014 and 2015 using a Schramm 685
					truck mounted drill rig. The current RC drilling program is also being
					carried out by VM Drilling using the same 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. 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 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 Pty Ltd and/or Merlin Geophysical Solutions. The MLEM
					survey is conducted at several prospects within the project area.
					Key specifications of the MLEM survey are:
					Stations Spacing: 100m
					Loop: 400m, 200m

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Criteria	JORC Code explanation	Commentary
		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 and/or Merlin Geophysical Solutions.
		Key specifications of the DHEM survey are:
		System: Atlantis (analogue)
		Components: A, U, V
		Component direction:
		 Ba – Parallel to hole axis, positive up hole.
		 Bu – Perpendicular to hole axis: toward 12 o’ clock 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 by the in‐built compressors
		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.

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Criteria	JORC Code explanation		Commentary
			_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 have been completed at either SGS Laboratories or Intertek
	1 m samples from which 3 kg was pulverised to		Genalysis (“Lab”) in Perth. Samples are sent to the Lab where they
	produce a 30 g charge for fire assay’).	In other	are crushed to 6 mm and then pulverised to 75 microns. A 30 g
	cases more explanation may be required, such		charge of the sample is fire assayed for gold, platinum and
	as where there is coarse gold that has	inherent	palladium. The detection range for gold is 1 – 2000 ppbAu, and 0.5 –
	sampling problems. Unusual commodities or		2000 ppb for platinum and palladium. This is believed to be an
	mineralisation types (eg submarine	nodules)	appropriate detection level for these elements within this specific
	may warrant disclosure of	detailed	mineral environment. However, should Au, Pt or Pd levels reported
	information.		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.
			_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
			for the current drilling program will be 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 considered geologically significant to change to
	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
			extentpossible.

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Criteria	JORC Code explanation	Commentary
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 the Lab for
preparation		analysis.
	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.
	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.

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Criteria	JORC Code explanation	Commentary
		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.
	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.

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Criteria	JORC Code explanation	Commentary
	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 spacing and distribution of holes is not relevant to the drilling
and	Results.	programs which are at the exploration stage.
distribution
	Whether the data spacing and distribution is	Drilling at the East Laverton Project is at the exploration stage and
	sufficient to establish the degree of geological	mineralisation 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 assay laboratory by the Company or a competent
		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.

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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 Project comprises 28 exploration licences, and details are available in the Company’s Quarterly Activities Report which can be found on our website atwww.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. An additional two exploration licences are owned directly by St George Mining Limited, and are referred to as the Lake Minigwal Project that hosts the Atlas gold target. 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. No previous exploration has been recorded at the Atlas gold prospect.
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 • Down hole length and interception depth • Hole length	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 DRAC35, DRAC38 and DDNRC002 which were the first drill holes at the East Laverton Property to identify nickel sulphides.

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Criteria	JORC Code explanation	Commentary
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	Reports on recent exploration can be found in the following ASX
Reporting	Exploration Results is not practical,	Releases that are available on our website atwww.stgm.com.au:
	representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration	8 December 2015_‘Gold Exploration Moves Forward at East_ Laverton’
	Results.	19 January 2016_‘Gold Targets at East Laverton’_
		10 February 2016_‘Gold Targets at East Laverton’_
		30 March 2016_‘Large Gold Zone at East Laverton’_
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.

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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

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