ST GEORGE MINING LIMITED — Capital/Financing Update 2017

Mar 12, 2017

ASX / MEDIA RELEASE

==> picture [119 x 55] intentionally omitted <==

13 March 2017

ST GEORGE ANNOUNCES 2017 GOLD PROGRAMME AT EAST LAVERTON PROJECT

HIGHLIGHTS:

• Technical review by gold expert confirms the gold prospectivity of East Laverton

• Gold prospects identified on each of the three major greenstone belts at East Laverton

• Pipeline of drill targets being planned and prioritised

• 2017 gold drilling programme to commence in late March 2017

GOLD POTENTIAL AT EAST LAVERTON

St George Mining Limited (ASX: SGQ ) (‘St George Mining’ or ‘the Company’) is pleased to announce the 2017 gold exploration programme for its 100% owned East Laverton Project in Western Australia.

The 2016 gold drill programme at East Laverton was focused on the Ascalon and Bristol gold prospects. The drilling was successful in identifying the potential for gold mineralisation at and around these prospects, and has generated robust targets for follow-up drilling in 2017.

St George engaged Dr Walter Witt to review both the broader gold potential at East Laverton and to complete detailed assessments of the numerous gold targets at the Project. Dr Witt has over 40 years’ experience in exploration and is recognised as a leading expert on gold mineralisation and targeting in the Yilgarn Craton of Western Australia. In addition, Dr Witt is a Research Fellow at the Centre for Exploration Targeting (CET) where he has recently compiled a Yilgarn Gold Exploration Atlas for the CET and Geological Survey of Western Australia.

The technical review has confirmed the strong gold potential at East Laverton, and prioritised the multiple targets at the Project for exploration in 2017.

A reverse circulation (RC) drill programme will commence at East Laverton later this month and will initially focus on the highest rated targets in the Stella Range Belt, which are at Desert Dragon, Cambridge and Cambridge North.

A further announcement regarding the drill programme and drill targets will be issued soon.

St George Mining Executive Chairman, John Prineas said:

“Reconnaissance exploration by St George has recognised the significant gold potential at East Laverton. We are pleased to see this prospectivity confirmed by one of Western Australia’s leading gold experts.

“We will systematically progress gold exploration in 2017, working through the pipeline of attractive targets.

“With drilling due to start this month at both Mt Alexander and at East Laverton, we are entering a very exciting period for St George and its shareholders.“

1

ASX / MEDIA RELEASE

==> picture [119 x 55] intentionally omitted <==

The technical review by Dr Witt incorporated all the company’s digital database, including the significant geochemical data from past drilling and soil surveys. An integrated review of the geochemical data was completed utilising all relevant geological, structural and geophysical data.

Figure 1 illustrates the priority gold targets at East Laverton. Phase 1 of the 2017 gold drilling programme will focus on Bristol, Cambridge, Cambridge North and Desert Dragon.

==> picture [483 x 300] intentionally omitted <==

Figure 1 – the East Laverton tenements against FVD Bouguer gravity data with priority gold prospects highlighted.

CAMBRIDGE NORTH GOLD PROSPECT

The Cambridge North target is located on the northern extension of the Stella Range greenstone belt.

Historical shallow drilling at the prospect area has intersected significant gold anomalism that warrants follow-up exploration.

Of particular interest are two drill holes, SRAB081 and SRAB083, completed on the eastern magnetic trend. Drill hole SRAB081 intersected 3m @ 0.97g/t Au from 27m within a larger gold halo of 10m @ 0.37g/t Au. Drill hole SRAB083, drilled 80m to the northeast of SRAB081, intersected 3m @ 0.51g/t Au from 36m. The gold anomalism in both drill holes occurred at the end of hole.

Figure 2 illustrates the prospective target area on the strong eastern magnetic (and gravity) trend. Three extensive moving loop electromagnetic (MLEM) plates occur over 6km strike along this trend.

The proposed drill targets at Cambridge North are coincident with “breaks” in the MLEM anomalies. These “breaks” may be due to the structurally controlled hydrothermal alteration of iron and sulphur that may be associated with gold mineralisation.

2

ASX / MEDIA RELEASE

==> picture [119 x 55] intentionally omitted <==

==> picture [483 x 382] intentionally omitted <==

Figure 2 – the Cambridge North prospect (against TMI magnetics). The eastern magnetic trend is prospective for gold mineralisation and is untested.

DESERT DRAGON GOLD PROSPECT

The Desert Dragon prospect was the highest ranked prospect in the technical review and has a number of compelling target areas for exploration.

Drill hole DDD010, completed by St George at Desert Dragon in 2014, intersected 6m @ 0.70g/t Au including 2m @ 1.42g/t Au from 149m. The gold mineralisation is associated with a sulphidic metasedimentary unit. The mineralised horizon is also intersected in DDRC049 (4m @ 0.3g/t Au), which is 100m east of DDD010.

Two prominent folds of the greenstone belt are situated in the Desert Dragon area, with the DDD010 gold target located on the limb of southern fold.

Drill holes are also being planned to test the hinges of these fold structures, which are prospective trap sites for gold mineralisation.

3

ASX / MEDIA RELEASE

==> picture [119 x 55] intentionally omitted <==

==> picture [483 x 381] intentionally omitted <==

Figure 3 – the DDD010 and fold hinge targets against Bouguer gravity data.

EAST LAVERTON - IMPORTANT REGIONAL LOCATION

St George’s East Laverton Project is located in the eastern margin of the North Eastern Goldfields of Western Australia.

Figure 4 illustrates the regional position of the East Laverton Project. It is surrounded by major gold mines with the +8MozAu Tropicana deposit to the east, the +6MozAu Gruyere deposit to the north and the world class Laverton gold field to the northwest.

The strong history of gold discoveries and favourable regional setting underlines the gold potential for the under-explored East Laverton Project to also host economic gold deposits.

4

ASX / MEDIA RELEASE

==> picture [119 x 55] intentionally omitted <==

==> picture [483 x 480] intentionally omitted <==

Figure 4 – a regional map showing major gold projects and the location of the East Laverton Project

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

5

ASX / MEDIA RELEASE

==> picture [119 x 55] intentionally omitted <==

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.

6

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	This ASX Release dated 13 March 2017 reports on a technical review
techniques	channels, random chips, or specific specialised	of the gold prospectivity at the East Laverton Project.
	industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.).	This ASX Release refers only to historic exploration drilling and does not report any new drilling results, assay or other sampling exploration work.
	These examples should not be taken as limiting
	the broad meaning of sampling.
	Include reference to measures taken to ensure	This ASX Release refers only to historic exploration drilling and does
	sample representivity and the appropriate	not report any new drilling results, assay or other sampling
	calibration of any measurement tools or	exploration work.
	systems used.
	Aspects of the determination of mineralisation	This ASX Release refers only to historic exploration drilling and does
	that are Material to the Public Report.	not report any new drilling results, assay or other sampling
	In cases where ‘industry standard’ work has	exploration work.
	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
	produce a 30 g charge for fire assay’). In other
	cases more explanation may be required, such
	as where there is coarse gold that has inherent
	sampling problems. Unusual commodities or
	mineralisation types (eg submarine nodules)
	may warrant disclosure of detailed
	information.
Drilling	Drill type (eg core, reverse circulation, open‐	This ASX Release refers only to historic exploration drilling and does
techniques	hole hammer, rotary air blast, auger, Bangka,	not report any new drilling results, assay or other sampling
	sonic, etc) and details (eg core diameter, triple	exploration work.
	or standard tube, depth of diamond tails, face‐
	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	This ASX Release refers only to historic exploration drilling and does
recovery	chip sample recoveries and results assessed.	not report any new drilling results, assay or other sampling
		exploration work.
	Measures taken to maximise sample recovery	This ASX Release refers only to historic exploration drilling and does
	and ensure representative nature of the	not report any new drilling results, assay or other sampling
	samples.	exploration work.
	Whether a relationship exists between sample	This ASX Release refers only to historic exploration drilling and does
	recovery and grade and whether sample bias	not report any new drilling results, assay or other sampling
	may have occurred due to preferential	exploration work.
	loss/gain of fine/coarse material.

1

Criteria	JORC Code explanation	Commentary
Logging	Whether core and chip samples have been	This ASX Release refers only to historic exploration drilling and does
	geologically and geotechnically logged to a	not report any new drilling results, assay or other sampling
	level of detail to support appropriate Mineral	exploration work.
	Resource estimation, mining studies and
	metallurgical studies.
	Whether logging is qualitative or quantitative	This ASX Release refers only to historic exploration drilling and does
	in nature. Core (or costean, channel, etc)	not report any new drilling results, assay or other sampling
	photography.	exploration work.
	The total length and percentage of the relevant	This ASX Release refers only to historic exploration drilling and does
	intersections logged.	not report any new drilling results, assay or other sampling
		exploration work.
Sub‐sampling	If core, whether cut or sawn and whether	This ASX Release refers only to historic exploration drilling and does
techniques and	quarter, half or all core taken.	not report any new drilling results, assay or other sampling
sample		exploration work.
preparation
	If non‐core, whether riffled, tube sampled,	This ASX Release refers only to historic exploration drilling and does
	rotary split, etc and whether sampled wet or	not report any new drilling results, assay or other sampling
	dry.	exploration work.
	For all sample types, the nature, quality and	This ASX Release refers only to historic exploration drilling and does
	appropriateness of the sample preparation	not report any new drilling results, assay or other sampling
	technique.	exploration work.
	Quality control procedures adopted for all sub‐	This ASX Release refers only to historic exploration drilling and does
	sampling stages to maximise representivity of	not report any new drilling results, assay or other sampling
	samples.	exploration work.
	Measures taken to ensure that the sampling is	This ASX Release refers only to historic exploration drilling and does
	representative of the in situ material collected,	not report any new drilling results, assay or other sampling
	including for instance results for field	exploration work.
	duplicate/second‐half sampling.
	Whether sample sizes are appropriate to the	This ASX Release refers only to historic exploration drilling and does
	grain size of the material being sampled.	not report any new drilling results, assay or other sampling
		exploration work.
Quality of	The nature, quality and appropriateness of the	This ASX Release refers only to historic exploration drilling and does
assay data and	assaying and laboratory procedures used and	not report any new drilling results, assay or other sampling
laboratory	whether the technique is considered partial or	exploration work.
tests	total.
	For geophysical tools, spectrometers, handheld	This ASX Release refers only to historic exploration drilling and does
	XRF instruments, etc, the parameters used in	not report any new drilling results, assay or other sampling
	determining the analysis including instrument	exploration work.
	make and model, reading times, calibrations
	factors applied and their derivation, etc.

2

Criteria	JORC Code explanation	Commentary
	Nature of quality control procedures adopted	This ASX Release refers only to historic exploration drilling and does
	(eg standards, blanks, duplicates, external	not report any new drilling results, assay or other sampling
	laboratory checks) and whether acceptable	exploration work.
	levels of accuracy (i.e. lack of bias) and
	precision have been established.
Verification of	The verification of significant intersections by	This ASX Release refers only to historic exploration drilling and does
sampling and	either independent or alternative company	not report any new drilling results, assay or other sampling
assaying	personnel.	exploration work.
	The use of twinned holes.	This ASX Release refers only to historic exploration drilling and does
		not report any new drilling results, assay or other sampling
		exploration work.
	Documentation of primary data, data entry	This ASX Release refers only to historic exploration drilling and does
	procedures, data verification, data storage	not report any new drilling results, assay or other sampling
	(physical and electronic) protocols.	exploration work.
	Discuss any adjustment to assay data.	This ASX Release refers only to historic exploration drilling and does
		not report any new drilling results, assay or other sampling
		exploration work.
Location of	Accuracy and quality of surveys used to locate	This ASX Release refers only to historic exploration drilling and does
data points	drill holes (collar and down‐hole surveys),	not report any new drilling results, assay or other sampling
	trenches, mine workings and other locations	exploration work.
	used in Mineral Resource estimation.
	Specification of the grid system used.	The grid system used at the East Laverton Projecxt is GDA94 (MGA),
		zone 51.
	Quality and adequacy of topographic control.	This ASX Release refers only to historic exploration drilling and does
		not report any new drilling results, assay or other sampling
		exploration work.
Data spacing	Data spacing for reporting of Exploration	This ASX Release refers only to historic exploration drilling and does
and	Results.	not report any new drilling results, assay or other sampling
distribution		exploration work.
	Whether the data spacing and distribution is	This ASX Release refers only to historic exploration drilling and does
	sufficient to establish the degree of geological	not report any new drilling results, assay or other sampling
	and grade continuity appropriate for the	exploration work.
	Mineral Resource and Ore Reserve estimation
	procedure(s) and classifications applied.
	Whether sample compositing has been applied.	This ASX Release refers only to historic exploration drilling and does
		not report any new drilling results, assay or other sampling
		exploration work.
Orientation of	Whether the orientation of sampling achieves	This ASX Release refers only to historic exploration drilling and does
data in relation	unbiased sampling of possible structures and	not report any new drilling results, assay or other sampling
to geological	the extent to which this is known, considering	exploration work.
structure	the deposit type.

3

Criteria	JORC Code explanation	Commentary
	If the relationship between the drilling	This ASX Release refers only to historic exploration drilling and does
	orientation and the orientation of key	not report any new drilling results, assay or other sampling
	mineralised structures is considered to have	exploration work.
	introduced a sampling bias, this should be
	assessed and reported if material.
Sample	The measures taken to ensure sample security.	This ASX Release refers only to historic exploration drilling and does
security		not report any new drilling results, assay or other sampling
		exploration work.
Audits or	The results of any audits or reviews of sampling	This ASX Release refers only to historic exploration drilling and does
reviews	techniques and data.	not report any new drilling results, assay or other sampling
		exploration work.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral	Type, name/reference number, location and	The East Laverton Project comprises 28 exploration licences, and
Tenement and	ownership including agreements or material	details are available in the Company’s Quarterly Activities Report
Land Status	issues with third parties including joint	which can be found on our website at www.stgm.com.au.
	ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	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
	The security of the tenure held at the time of	environmentally sensitive sites have been identified at any of the
	reporting along with any known impediments	tenements. The tenements are in good standing; no known
	to obtaining a licence to operate in the area.	impediments exist.
Exploration	Acknowledgment and appraisal of exploration	In 2012, BHP Billiton Nickel West Pty Ltd (Nickel West) completed a
Done by Other	by other parties.	reconnaissance RC (reverse circulation) drilling programme at the
Parties		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	The Company’s East Laverton Property located in the NE corner of
	mineralisation	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.

4

Criteria	JORC Code explanation	Commentary
Drill hole	A summary of all information material to the	This ASX Release refers only to historic exploration drilling and does
information	understanding of the exploration results	not report any new drilling results, assay or other sampling
	including tabulation of the following	exploration work.
	information for all Material drill holes:
	• Easting and northing of the drill hole collar
	•Elevation or RL (Reduced Level – elevation
	above sea level in meters) of the drill hole collar
	• Dip and azimuth of the hole
	• Down hole length and interception depth
	• Hole length
Data	In reporting Exploration Results, weighting	This ASX Release refers only to historic exploration drilling and does
aggregation	averaging techniques, maximum and/or	not report any new drilling results, assay or other sampling
methods	minimum grade truncations (e.g. cutting of	exploration work.
	high grades) and cut‐off grades are usually
	Material and should be stated.
	Where aggregated intercepts incorporate short	This ASX Release refers only to historic exploration drilling and does
	lengths of high grade results and longer	not report any new drilling results, assay or other sampling
	lengths of low grade results, the procedure	exploration work.
	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	This ASX Release refers only to historic exploration drilling and does
	metal equivalent values should be clearly	not report any new drilling results, assay or other sampling
	stated.	exploration work.
Relationship	These relationships are particularly important	This ASX Release refers only to historic exploration drilling and does
between	in the reporting of exploration results.	not report any new drilling results, assay or other sampling
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,	exploration work.
	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.
	included for any significant discovery being
	reported. These should include, but not be
	limited to a plane view of drill hole collar
	locations and appropriate sectional views.
Balanced	Where comprehensive reporting of all	This ASX Release refers only to historic exploration drilling and does
Reporting	Exploration Results is not practical,	not report any new drilling results, assay or other sampling
	representative reporting of both low and high	exploration work.
	grades and/or widths should be practiced to
	avoid misleading reporting Exploration Results.
Other	Other exploration data, if meaningful and	This ASX Release refers only to historic exploration drilling and does
substantive	material, should be reported including (but not	not report any new drilling results, assay or other sampling
exploration	limited to): geological observation; geophysical	exploration work.
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.

5

Criteria	JORC Code explanation	Commentary
	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.

6