ST GEORGE MINING LIMITED — Capital/Financing Update 2016

Apr 26, 2016

ASX / MEDIA RELEASE

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27 April 2016

ST GEORGE INTERSECTS HIGH GRADE NICKEL-COPPER SULPHIDES AT MT ALEXANDER

HIGHLIGHTS:

• Drilling intersects new high grade intervals of nickel-copper sulphide mineralisation in two previously untested electromagnetic (EM) conductors

• Massive nickel-copper sulphides discovered at shallow depth 30m below surface

• High success rate of drilling EM conductors in the Cathedrals shear zone

• New surface EM survey at the Investigators target has identified three strong EM conductors located over 2km west of Cathedrals

• Anomaly 2 at Investigators has an extremely high conductivity of 47,000 Siemens which is the strongest conductor ever detected at Mt Alexander

• Drilling of high priority EM conductors at Cathedrals and Stricklands is continuing

DRILLING SUCCESS AT MT ALEXANDER

St George Mining Limited (ASX: SGQ ) (‘St George Mining’ or ‘the Company’) is pleased to announce that high grade massive nickel-copper sulphide mineralisation has been intersected at the Mt Alexander Project in Western Australia.

Three diamond holes have been drilled and two EM conductors have been tested at the Cathedrals Prospect so far in the current drill programme. Both of the EM conductors have been confirmed as nickelcopper sulphide mineralisation. Together with the three EM conductors successfully drilled by BHP Billiton in 2008, the Cathedrals Prospect has an extraordinary success rate of testing EM conductors.

Drill holes MAD15 and MAD16 have been completed by St George to a downhole depth of 100m and 120m, respectively. Diamond core drilling was completed from surface to the end of hole in both cases.

MAD15 intersected approximately 9m of sulphide mineralisation from 22.4m to 31.34m . This intersection includes 2.17m of heavy disseminated and stringer sulphides from 28 to 30.17m, and 1.17m of massive nickel-copper sulphides between 30.17 to 31.34m. The nickel values of the massive sulphide range from 6.7%Ni to 10.9%Ni and average 8.9%Ni. Copper values in the massive sulphide range from 1.24%Cu to 5.85%Cu and average 3.2%Cu. These metal values are based on XRF analysis at 10cm spaced readings.

MAD16 intersected approximately 9.5m of sulphide mineralisation from 51.7m to 61.25m. This intersection includes 2.25m of moderate-heavy disseminated and blebby sulphides with multiple massive sulphide stringers from 59m. The stringer and blebby sulphides have nickel and copper values up to 1015%Ni and 10-15%Cu (based on XRF analysis).

Both MAD15 and MAD16 intersected nickel-copper sulphide mineralisation exactly where predicted by the modelled EM conductors.

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Results from these drill holes provide added confidence that the remaining EM conductors, located in prospective geological positions and still to be drilled in this programme, have excellent potential to also intersect nickel-copper sulphide mineralisation.

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Figure 1 – photograph of drill core from MAD15 interval between 30.17m to 31.34m. Core comprises massive nickel-copper sulphides (pentlandite, chalcopyrite) with average 8.9%Ni and 3.2%Cu (based on XRF analysis)

SHALLOW HIGH-GRADE NICKEL-COPPER SULPHIDE MINERALISATION

The successful intersection of nickel-copper sulphide mineralisation in MAD15 and MAD16 confirms the presence of a high grade mineral system within the Cathedrals Shear Zone at Mt Alexander.

The combination of shallow depth and high grade of the nickel, copper and PGE mineralisation is rarely seen in other komatiite-hosted nickel sulphide deposits in Western Australia and is likely to be very favourable for the potential economics of the Project.

The fertile ultramafic that hosts the Cathedrals and Stricklands EM conductors is defined by strong magnetic anomalies in the Cathedrals Shear Zone, which is currently interpreted over a strike length of 1.5km. The addition of the Investigators area, which is discussed below, could extend this prospective mineral trend for over 2.5km.

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In regard to MAD15, field logging and XRF analysis have indicated:

• 22.4 – 26.6m: 4.2m of weak disseminated NiS

• 26.6 – 28m: 1.4m of moderate disseminated NiS

• 28 – 30.17m: 2.17m of heavy disseminated NiS (up to 1%Ni, 0.4%Cu) with multiple stringers from 5mm to 10cm thickness (with 7-8.3%Ni, 2.7–6.7%Cu)

• 30.17 – 31.34m: 1.17m of massive Ni-Cu sulphide (average 8.9%Ni, range 6.7-10.9%Ni and average 3.2%Cu, range 1.24-5.85%Cu)

In regard to MAD16, field logging and XRF analysis have indicated:

• 51.7 – 58m: 6.3m of weak disseminated NiS

• 58 – 59m: 1m of moderate disseminated NiS

• 59 – 61.25m: 2.25m of mod-heavy disseminated and blebby Ni-Cu sulphides with multiple stringer veins with high grade Ni-Cu sulphides (1-5cm thick with up to 10-15%Ni and 10-15%Cu in the stringer sulphides)

Based on the intersection angle of the drilling and interpreted EM plates, down-hole widths are interpreted to approximate true widths.

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Figure 2 – photograph of drill core from MAD15. The interval with massive nickel-copper sulphides (30.17m to 31.34m) is in the centre of the core tray below heavy disseminated and stringer mineralisation (increase in depth left to right).

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All three completed diamond holes have been cased with PVC-piping to allow for downhole EM surveys. These surveys will investigate the potential for extensions to the massive sulphide mineralisation around the holes.

In particular, the stringer mineralisation intersected in MAD16 may have been locally remobilised from massive nickel sulphides and suggests that there may be additional exploration potential around this drill hole. Downhole EM will also be important for drill hole MAD14 which appears to have just missed the upper target EM plate and may be redrilled later in the programme.

The drill core for MAD15 and MAD16 has been dispatched to Perth for detailed logging and priority assaying. A conclusive determination of the nickel and copper content of the massive sulphide mineralisation will be confirmed when laboratory assays are available.

Previous intersections of high-grade nickel-copper sulphides at Cathedrals suggest that the new massive sulphide intersection will also contain elevated values of PGEs (which cannot be detected by XRF analysis). Drill core samples will be submitted for metallurgical testing at the completion of the current drill programme to confirm the potential of this high grade mineralisation to produce a high value concentrate.

NEW, STRONG EM CONDUCTORS AT INVESTIGATORS

A ground moving loop EM (MLEM) survey commenced at the Investigators target in late March 2016. Investigators is located in the western section of the Cathedrals Shear Zone and directly along strike from the Stricklands Prospect and the Cathedrals discovery (see Figure 3). This area is unexplored with no prior EM coverage or drill testing.

The MLEM survey has been very successful to date with three strong EM anomalies identified that are interpreted as bedrock conductors and could represent massive sulphides. The MLEM survey is ongoing.

Anomaly 2 is the most significant of the new EM targets with a strong EM response that is modelled by Newexco as having an extremely high conductivity of 47,000 Siemens. This level of conductivity is 3 to 4 times higher than any other conductor yet identified in the Cathedrals Shear Zone.

Anomaly 3 is located directly northwest of Anomaly 2, and is modelled with a conductivity of 10,000 Siemens. Anomaly 3 may be a separate conductor or could possibly be an extension of Anomaly 2. An infill MLEM survey will be completed between the two new EM anomalies to better constrain the EM responses and further model these conductors.

Anomaly 5 is located 750m to the west of Anomaly 2, and is modelled with a conductivity of 14,500 Siemens.

Modelling of these new EM conductors is continuing, and a further announcement will be made once a more definitive interpretation has been completed.

Once the MLEM survey at Investigators is completed, the EM crew will move to the New Target Area where further MLEM surveys will be completed over several EM anomalies identified from the EM survey completed by BHP Billiton in 2014.

The new EM conductors at Investigators and the New Target Area provide an exciting pipeline of targets for the discovery of further nickel-copper sulphide mineralisation. The 100% success rate of drilling EM conductors in the Cathedrals Shear Zone provides strong encouragement for the potential of these new targets.

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Figure 3 – a plan view of the Mt Alexander Project area over RTP magnetics showing the location of the Investigators area where new, strong EM conductors have recently been identified.

CURRENT DRILL PROGRAMME

Table 1 shows drill hole details for the current drill programme, with holes completed to date located at the Cathedrals Prospect.

Drill hole MAD14 was completed to a depth of 101.3m and was designed to intersect two EM conductors modelled at 39m and 61m respectively downhole. There was no conductive material in the drill core to explain the EM conductors. A DHEM survey will be completed in this hole and a new drill hole will be designed to test any conductors.

Drilling is currently underway at MAD17 which will test an EM conductor modelled at a downhole depth of 167m.

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Hole ID	East	North	RL	Dip	Azimuth	Depth(m)
MAD14	233767.0	6806965.0	420.0	-60	155	101.3
MAD15	233860.66	6806945.96	422.2	-60	180	100
MAD16	233844.35	6807004.46	421.4	-60	180	120
MAD17	233694.59	6807037.16	421.1	-60	180	200(planned)

Table 1 – Details for drill holes completed or in progress at the Cathedrals Prospect

Once MAD17 is completed, the drill rig will mobilise to the Stricklands Prospect to test the modelled EM conductors. This will be the first ever drilling completed at this target.

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Figure 4 – a plan view of the Cathedrals and Stricklands Prospects over TMI magnetics showing the untested EM conductors and the drill hole collar locations in the current programme.

St George Mining Executive Chairman, John Prineas said:

“Our maiden drilling programme has commenced successfully with two new discoveries of nickel-copper sulphide mineralisation in the two EM conductors tested so far.

“With multiple EM conductors still to drill, the potential for more discoveries is high. We are also very excited by the new EM targets identified at the Investigators area – especially Anomaly 2 which, with its extreme conductivity, is a standout target for massive nickel-copper sulphides.

“The multiple occurrences of massive nickel-copper sulphide mineralisation across the Project suggest strong potential for further significant discoveries.”

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ASX / MEDIA RELEASE

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ST GEORGE SECURES ADDITIONAL GROUND

St George has increased the project area at Mt Alexander with the addition of two new tenements. Exploration Licence E29/962, comprising 3 sub-blocks has been granted by the Department of Mines and Petroleum. Exploration Licence E29/972, comprising 32 sub-blocks in the north of the Project area, is in the application stage and expected to be granted later this year.

The two new tenements are owned 100% by St George.

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Figure 5 – a map (over TMI magnetics) showing the location of Mt Alexander Project to the south-west of major nickel sulphide mines at the Agnew-Wiluna Belt.

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.

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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.

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 and the Stricklands Prospect 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

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 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	using a diamond core saw with half core sampled lengthways for
	investigation, such as down hole gamma	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 vertical
		depth. Primary locations for core loss 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 in both dry and wet form.
	photography.
	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 using a diamond
techniques and	quarter, half or all core taken.	core saw. All samples are collected from the same side of the core
sample		where practicable.
preparation
	If non‐core, whether riffled, tube sampled,	No non‐core holes are drilled as part of this 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 will be selected during sampling. Samples will
	representative of the in situ material collected,	comprise 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 metre, however for any samples with observed base
	make and model, reading times, calibrations	metal mineralisation then five to ten samples are taken at set
	factors applied and their derivation, etc.	intervals per metre. Reading time is 60 seconds. 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 (standards), blanks and pulp duplicates
	laboratory checks) and whether acceptable	as part of in house procedures. The Company will also submit an
	levels of accuracy (i.e. lack of bias) and	independent suite of 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.	No twinned holes for assay are currently planned as part of this drill
		program which is still largely reconnaissance exploration.
	Documentation of primary data, data entry	Primary data is captured onto paper or a laptop and includes
	procedures, data verification, data storage	geological logging, sample data, QA/QC and survey information. This
	(physical and electronic) protocols.	data, together with the assay data, is validated and 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 every
		30m during drilling to record and monitor deviations of the hole
		from the planned dip and azimuth. Post‐drilling gyroscopic
		downhole surveys will be conducted as required.
	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 will be created when further elevation data is
		acquired.
Data spacing	Data spacing for reporting of Exploration	The diamond drill program is targeting modelled EM conductors and
and	Results.	other geological criteria for massive nickel‐copper‐PGE sulphide
distribution		mineralisation. The spacing and distribution of the drill holes is
		appropriate to test the defined targets.

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Criteria	JORC Code explanation	Commentary
	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.
	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 have been planned as perpendicular as possible to the
data in relation	unbiased sampling of possible structures and	target EM plates to approximate true width. Most of the shear
to geological	the extent to which this is known, considering	hosted ultramafic units dip shallow to the north and where possible
structure	the deposit type.	drill holes have been 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. Transport of core will be 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 Western 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 Ni‐Cu
		mineralisation in granite‐hosted ultramafic units and the discovery
		was named the Cathedrals Prospect. The tenements remain
		underexplored.

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Criteria	JORC Code explanation	Commentary
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 boundary between the Kalgoorlie Terrane (and Eastern
		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	All drill hole locations are shown graphically in the ASX release.
information	understanding of the exploration results	Information on completed drill holes is also tabulated in the release.
	including tabulation of the following	Table 1 to this JORC Section contains drill hole information for
	information for all Material drill holes:	previously reported significant intersections from the Cathedrals
	• Easting and northing of the drill hole collar	Prospect. This historic drilling was reported by Western Areas
	•Elevation or RL (Reduced Level – elevation	Limited in its ASX Release dated 2 April 2008_‘Assays Confirm High_
	above sea level in meters) of the drill hole collar	Grade Nickel/Copper/PGE Discovery at Mt Alexander Joint Venture’.
	• 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 for nickel is
	Material and should be stated.	2%. For disseminated, matrix and stringer sulphide intersections the
		nominal lower cut‐off for nickel is 0.6%.
	Where aggregated intercepts incorporate short	Any high grade massive sulphide intervals internal to broader zones
	lengths of high grade results and longer	of 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.	have been planned as perpendicular as possible to intersect the
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,	target EM plates so downhole lengths are near true width. Results from this 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 scaled and oriented maps are included in the body of the
	and tabulations of intercepts should be	ASX Release. Geological interpretation is ongoing and appropriate
	included for any significant discovery being	sections will be reported soon.
	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.

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Criteria	JORC Code explanation	Commentary
	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.
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 will be planned pending the results of the
	(e.g. tests for lateral extensions or depth	current diamond drill program and surface EM geophysical program
	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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