ST GEORGE MINING LIMITED — Capital/Financing Update 2016

Feb 10, 2016

ASX / MEDIA RELEASE

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11 February 2016

DRILL PROGRAMME AT EAST LAVERTON TO TEST MASSIVE NICKEL SULPHIDE TARGET

HIGHLIGHTS:

• Positive results from the ongoing exploration at the high priority massive nickel sulphide target at Windsor

• New and highly conductive downhole electromagnetic (DHEM) plate modelled at Windsor based on DHEM survey data from drill hole WINDD004 which targeted EM plate WINRC016_v1 (210,469 Siemens)

• Nickel sulphides identified in drill core of WINDD004 support potential for new DHEM plate to represent massive nickel sulphides

• Additional nickel sulphide targets at East Laverton planned for drill testing

• Nickel sulphide focused diamond drill programme at East Laverton scheduled to commence in Q1 2016

NICKEL SULPHIDE DRILLING TO RE‐COMMENCE AT EAST LAVERTON

St George Mining Ltd (“St George” or “the Company”) is pleased to announce that it will shortly re‐ commence a nickel sulphide drill programme at its 100% owned East Laverton Project in Western Australia.

The primary target of the drill programme will be the highly prospective DHEM target at Windsor.

Drill hole WINDD004 was completed in December 2015 to test the highly conductive DHEM plate WINRC016_v1 (210,469 Siemens). There was no conductive material in the drill core capable of providing the extremely high EM response that was modelled for DHEM plate WINRC016_v1 . This suggests that WINDD004 came close to testing the conductive source but did not intersect it.

Further modelling of DHEM data from drill holes WINDD004 and WINRC016 continues to identify a highly conductive body that remains untested by drilling. The very high conductivity/thickness response from the EM survey of this target, and the position of the EM plate on the contact of the prospective Windsor ultramafic, are consistent with this conductor being massive nickel sulphide mineralisation.

Additional targets at East Laverton will be included in the upcoming nickel sulphide drill programme and these will be announced shortly. A major nickel exploration programme is also being planned for the Mt Alexander Project and a further announcement on this exciting exploration will be made soon.

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

“Further DHEM modelling at the Windsor target is very promising and supports the potential for massive nickel sulphide mineralisation.

“The very high conductivity of the target at Windsor continues to be very intriguing, with further XRF results of the cut drill core returning elevated nickel values around the depth of the EM conductor.

“The DHEM plate at Windsor is becoming an even more compelling target.”

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ASX / MEDIA RELEASE

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WINDSOR – HIGHLY CONDUCTIVE EM TARGET

The DHEM survey data from WINDD004 has identified a strong off‐hole EM anomaly about 5 metres to the north of WINDD004.

Further detailed modelling by Newexco of the DHEM survey data from both WINRC016 and WINDD004 has produced a number of plate models for this off‐hole anomaly with conductivity ranging between 60,000 to 200,000 Siemens.

The focus of the recent modelling has been to determine the geometry and orientation for the conductive source that honours the data from both WINDD004 and WINRC016. This sophisticated modelling has generated DHEM plate WINDD004_v1 as the new EM plate for the highly conductive body at Windsor. This DHEM plate has dimensions of up to 10m x 50m, and dips moderately to the south‐west.

Figure 1 is a cross section of drilling at Windsor which illustrates the location of DHEM plate WINDD004_v1 on the western contact of the Windsor ultramafic, a favourable setting for potential nickel sulphide mineralisation.

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Figure 1 – Interpreted geological cross section of WINDD004, WINRC016 and WINRC015 (+‐50m) showing the location of the highly conductive WINDD004_v1 plate on the western contact of the Windsor ultramafic.

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ASX / MEDIA RELEASE

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The cutting of the drill core for WINDD004 was finalised last week, and samples have now been provided to Intertek Genalysis for laboratory assays. Spot values from portable XRF analysis of the cut core recorded elevated nickel values between 85m to 138m. Values were generally between 0.50%Ni to 0.60%Ni with the highest spot value of 1.29%Ni at 134.8m. A conclusive determination of the nickel content for the drill core will be confirmed when laboratory assays are available.

The presence of nickel sulphides in the drill core of WINDD004 provides additional support for the potential for the highly conductive plate at Windsor to represent higher‐grade nickel sulphide mineralisation.

The design of the drill hole to target DHEM plate WINDD004_v1 will be finalised once the laboratory assays are received.

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 in samples but is considered to be more reliable for base metal assessment.

Unless otherwise stated, values determined by XRF analysis are based on one spot reading per one metre of drill samples. As such, results from XRF analysis are stated as indicative only and are preliminary to subsequent confirmation by geochemical analysis at Intertek Genalysis Laboratories.

The XRF data is useful in assisting in the interpretation of the geological character of the rocks being encountered during drilling. The data may not be representative of the actual metal content in that sample.

For further information, please contact:

John Prineas

Colin Hay

Executive Chairman Professional Public Relations St George Mining Limited (+61) 08 9388 0944 mob 0404 683 355 (+61) 411 421 253 colin.hay@ppr.com.au John.prineas@stgm.com.au

Competent Person Statement:

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Timothy Hronsky, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hronsky is employed by Essential Risk Solutions Ltd which has been retained by St George Mining Limited to provide technical advice on mineral projects.

Mr Hronsky has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hronsky consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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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 11 February 2016 reports on exploration
techniques	channels, random chips, or specific specialised				targets at the Company’s East Laverton Project, and includes a
	industry	standard	measurement	tools	discussion of some past exploration results particularly drilling
	appropriate	to	the minerals	under	programs and electromagnetic surveys completed recently at the
	investigation, such		as down hole	gamma	Project.
	sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.				Drilling programs have included diamond core drilling completed by DDH1 Drilling Pty Ltd and reverse circulation (RC) drilling completed by VM Drilling Pty Ltd.
					Diamond drilling was undertaken by DDH1 in 2014 and 2015 using a
					Sandvik 1200 Multipurpose truck mounted drill rig. RC drilling was
					undertaken by VM Drilling in 2014 using a Schramm 685 truck
					mounted drill rig.
					_Diamond Core Sampling:_The core is removed from the drill rig and
					laid out for initial analysis in the field. The core is measured and
					marked up at 1m intervals against the drillers blocks, which are
					themselves checked against the drillers log books where required.
					The visible structural features on the core are measured against the
					core‐orientation lines.
					Onsite XRF analysis is conducted using a hand‐held Olympus Innov‐X
					Spectrum Analyser. The XRF analysis is used to systematically review
					diamond drill core, with a single reading taken every metre, except
					in the case of core loss. These results are only used for onsite
					interpretation and preliminary base metal assessment subject to
					final geochemical analysis by laboratory assays.
					The sections of the core that are selected for assaying are marked
					up and recorded on a “cut‐sheet” which provides a control on the
					intervals that will be cut and sampled at a duly certified assay
					laboratory. 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:

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Criteria	JORC Code explanation	Commentary
		Stations Spacing: 100m
		Loop: 400m, 200m
		Line Spacing: 400m
		Components: x y z
		Orientation: X along line (local east ‐ positive).
		Line direction: 58.35, 90 degrees
		Frequency: 0.5, 0.25 Hz
		Channels: SMARTem Standard.
		Receiver: Fluxgate
		Number turns: 1
		Current: Typically 50 A.
		Repeats: Minimum 3 consistent readings per station.
		Down‐hole electromagnetic (DHEM) survey: A DHEM survey will be
		completed for certain drill holes. The DHEM survey is designed and
		managed by Newexco Services Pty Ltd, with field work contracted to
		Bushgum Holdings Pty Ltd 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 sample representivity and the appropriate calibration of any measurement tools or systems used.

Diamond Core Sampling: For diamond core samples, certified sample standards were added as every 25[th] sample. Core recovery calculations are made through a reconciliation of the actual core 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

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Criteria	JORC Code explanation		Commentary
			pressure minimise the number of drill samples.
			Geological logging of RC chips is completed at site with
			representative chips being stored in drill chip trays. Downhole
			surveys of dip and azimuth are conducted using a single shot camera
			every 30m to detect deviations of the hole from the planned dip and
			azimuth. The drill‐hole collar locations were recorded using a hand
			held GPS, which has an accuracy of +/‐ 5m. At a later date the drill‐
			hole collar will be surveyed to a greater degree of accuracy.
			_MLEM Survey:_Field calibration of the survey instruments using
			standards is undertaken each day. A minimum of 3 consistent
			readings per station are taken to ensure accuracy of data collected.
			_DHEM Survey:_For the DHEM survey, the polarity of each component
			is checked to ensure the system was set up using the correct
			component orientations. The hole position is corrected for
			trajectory using orientation survey data.
	Aspects of the determination of mineralisation		_Diamond Core Sampling: C_ore is drilled with HQ and NQ2 size and
	that are Material to the Public Report.		sampled as half core to produce a bulk sample for analysis. Intervals
	In cases where ‘industry standard’ work has been done this would be relatively simple (eg		vary from 0.3 – 1m maximum and are selected with an emphasis on geological control.
	‘reverse circulation drilling was used to obtain		Assays 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.

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

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

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Criteria	JORC Code explanation	Commentary
	Nature of quality control procedures adopted	Laboratory QAQC involves the use of internal lab standards using
	(eg standards, blanks, duplicates, external	certified reference material, blanks, splits and replicates as part of in
	laboratory checks) and whether acceptable	house procedures. The Company will also submit an independent
	levels of accuracy (ie lack of bias) and precision	suite of CRMs, blanks and field duplicates (see above).
	have been established.
Verification of	The verification of significant intersections by	Significant intersections are verified by the Company’s Technical
sampling and	either independent or alternative company	Director and Consulting Field Geologist.
assaying	personnel.
	The use of twinned holes.	No twinned holes have been completed.
	Documentation of primary data, data entry	Geological data was collected using handwritten log sheets and
	procedures, data verification, data storage	imported in the field onto a laptop detailing geology (weathering,
	(physical and electronic) protocols.	structure, alteration, mineralisation), sampling quality and intervals,
		sample numbers, QA/QC and survey data. This data, together with
		the assay data received from the laboratory and subsequent survey
		data was entered into the Company’s database.
	Discuss any adjustment to assay data.	No adjustments or calibrations will be made to any primary assay
		data collected for the purpose of reporting assay grades and
		mineralised intervals. For the geological analysis, standards and
		recognised factors may be used to calculate the oxide form assayed
		elements, or to calculate volatile free mineral levels in rocks.
Location of	Accuracy and quality of surveys used to locate	Drill hole collar locations are determined using a handheld GPS with
data points	drill holes (collar and down‐hole surveys),	an accuracy of +/‐ 5m.
	trenches, mine workings and other locations used in Mineral Resource estimation.	Down hole surveys of dip and azimuth were conducted using a single shot camera every 30m to detect deviations of the hole from
		the planned dip and azimuths.
	Specification of the grid system used.	The grid system used is GDA94, MGA Zone 51.
	Quality and adequacy of topographic control.	Best estimated RLs were assigned during drilling and are to be
		corrected at a later stage.
Data spacing	Data spacing for reporting of Exploration	The drill programs target EM conductors and other high quality
and	Results.	targets for massive nickel sulphide mineralisation. The spacing and
distribution		distribution of holes is not relevant to these programs.
	Whether the data spacing and distribution is	Drilling is at the exploration stage. Mineralisation at the East
	sufficient to establish the degree of geological	Laverton Property has not yet demonstrated to be sufficient in both
	and grade continuity appropriate for the	geological and grade continuity appropriate for the Mineral
	Mineral Resource and Ore Reserve estimation	Resource and Ore Reserve estimation procedure(s) and
	procedure(s) and classifications applied.	classifications to be applied.
	Whether sample compositing has been applied.	Samples are taken at one metre lengths and adjusted where
		necessary to reflect local variations in geology or where visible
		mineralised zones are encountered, in order to preserve the
		samples as representative.
Orientation of	Whether the orientation of sampling achieves	The drill holes are drilled towards 060 at an angle of ‐60 degrees
data in relation	unbiased sampling of possible structures and	(unless otherwise stated) to intersect the modelled mineralised
to geological	the extent to which this is known, considering	zones at a near perpendicular orientation. However, the orientation
structure	the deposit type.	of key structures may be locally variable and any relationship to
		mineralisation has yet to be identified.
	If the relationship between the drilling	No orientation based sampling bias has been identified in the data
	orientation and the orientation of key	to date.
	mineralised structures is considered to have
	introduced a sampling bias, this should be
	assessed and reported if material.
Sample	The measures taken to ensure sample security.	Chain of Custody is managed by the Company until samples pass to
security		a duly certified assay laboratory for subsampling and assaying. The
		cut‐core trays and RC sample bags are stored on secure sites and
		delivered to the assaylaboratorybythe Companyor a competent

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Criteria	JORC Code explanation	Commentary
		agent. When in transit, they are kept in locked premises. Transport
		logs have been set up to track the progress of samples. The chain of
		custody passes upon delivery of the samples to the assay laboratory.
Audits or	The results of any audits or reviews of sampling	Sampling techniques and procedures are regularly reviewed
reviews	techniques and data.	internally, as is data. To date, no external audits have been
		completed on the drilling programme.

Section 2 Reporting of Exploration Results (Criteria listed in section 1 will also apply to this section where relevant)

Criteria JORC Code explanation	Commentary
Mineral Tenement and Land Status Type, name/reference number, location and ownership including agreements or material issues with third parties including joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The East Laverton Property comprises 28 exploration licences, and details are available in the Company’s Quarterly Activities Report which can be found on our website at www.stgm.com.au. Each tenement is 100% owned by Desert Fox Resources Pty Ltd, a wholly owned subsidiary of St George Mining. Certain tenements are subject to a 2% Net Smelter Royalty in favour of a third party. None of the tenements are the subject of a native title claim. No environmentally sensitive sites have been identified at any of the tenements. The tenements are in good standing; no known impediments exist.
Exploration Done by Other Parties Acknowledgment and appraisal of exploration by other parties.	In 2012, BHP Billiton Nickel West Pty Ltd (Nickel West) completed a reconnaissance RC (reverse circulation) drilling programme at the East Laverton Property as part of the Project Dragon farm‐in arrangement between Nickel West and the Company. That farm‐in arrangement has been terminated. The drilling programme comprised 35 RC holes for 8,560m drilled. The results from the Nickel West drilling programme were reported by the Company in its ASX Release dated 25 October 2012 “Drill Results at Project Dragon”. Drilling intersected primary nickel sulphide mineralisation and established the presence of fertile, high MgO ultramafic sequences at the East Laverton Property. Prior to the Project Dragon drilling programme, there was no systematic exploration for nickel sulphides at the East Laverton Property. Historical exploration in the region was dominated by shallow RAB and aircore drilling, much of which had been incompletely sampled, assayed, and logged. This early work was focused on gold rather than nickel sulphide exploration.
Geology Deposit type, geological setting and style of mineralisation	The Company’s East Laverton Property located in the NE corner of the Eastern Goldfields Province of the Archean Yilgarn Craton. The project area is proximally located to the Burtville‐Yarmana terrane boundary and the paleo‐cratonic marginal setting is consistent with the extensive komatiites found on the property. The drilling at the East Laverton Property has confirmed extensive strike lengths of high‐MgO olivine‐rich rocks across three major ultramafic belts. Ultramafic rocks of this composition are known to host high grade nickel sulphides.
Drill hole information A summary of all information material to the understanding of the exploration results including tabulation of the following information for all Material drill holes: • Easting and northing of the drill hole collar •Elevation or RL (Reduced Level – elevation above sea level in meters) of the drill hole collar • Dip and azimuth of the hole	Refer to information in the body of this announcement. Information regarding exploration results from Project Dragon can be found in the Company’s ASX Release dated 25 October 2012 “Drill Results at Project Dragon” which is available to view on www.stgm.com.au. Table 1 to this 2012 JORC Section contains drill hole information on

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Criteria	JORC Code explanation	Commentary
	• Down hole length and interception depth	DRAC35, DRAC38 and DDNRC002 which were the first drill holes at
	• Hole length	the East Laverton Property to identify nickel sulphides.
Data	In reporting Exploration Results, weighting	No top‐cuts have been applied. A nominal 0.15% Ni lower cut‐off is
aggregation	averaging techniques, maximum and/or	applied unless otherwise indicated.
methods	minimum grade truncations (e.g. cutting of
	high grades) and cut‐off grades are usually
	Material and should be stated.
	Where aggregated intercepts incorporate short	High grade massive sulphide intervals internal to broader zones of
	lengths of high grade results and longer	sulphide mineralisation are reported as included intervals.
	lengths of low grade results, the procedure
	used for such aggregation should be stated and
	some typical examples of such aggregations
	should be shown in detail.
	The assumptions used for any reporting of	No metal equivalent values are used for reporting exploration
	metal equivalent values should be clearly	results.
	stated.
Relationship	These relationships are particularly important	The geometry of the mineralisation is not yet known due to
between	in the reporting of exploration results. If the	insufficient deep drilling in the targeted area.
mineralisation	geometry of the mineralisation with respect to
widths and	the drill hole angle is known, its nature should
intercept	be reported. If it is not known and only the
lengths	down hole lengths are reported, there should
	be a clear statement to this effect.
Diagrams	Appropriate maps and sections (with scales)	Maps will be included with any announcement of any significant
	and tabulations of intercepts should be	discovery, following review of assay results from the drilling
	included for any significant discovery being	programme.
	reported. These should include, but not be
	limited to a plane view of drill hole collar
	locations and appropriate sectional views.
Balanced	Where comprehensive reporting of all	A comprehensive report on recent drilling and targeting at the East
Reporting	Exploration Results is not practical,	Laverton Property can be found in the following ASX Releases that
	representative reporting of both low and high	are available on our website atwww.stgm.com.au:
	grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	29 September 2015_‘Nickel Sulphide Targets at Desert Dragon_ Central’
		23 November 2015_‘High Impact Exploration Continues’_
		8 December 2015_‘Gold Exploration Moves Forward at East_
		Laverton’
		18 December 2015_‘Massive Nickel Sulphide Target at Windsor’_
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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