ST GEORGE MINING LIMITED — Capital/Financing Update 2018

Oct 18, 2018

ASX / MEDIA RELEASE

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19 October 2018

FURTHER EXTENSIONS OF HIGH-GRADE NICKEL-COPPER SULPHIDES DOWN DIP AT INVESTIGATORS

HIGHLIGHTS:

Exploration along the 1.5km east-west strike of the Investigators Prospect confirms that the large mineral system continues at depth with additional massive nickel-copper sulphides as well as new electromagnetic (EM) targets identified in the northerly down dip direction:

• MAD112 Line:

• Assays confirm a high-grade intersection in MAD112 that returned:

  • 3.55m @ 4.67%Ni, 2.27%Cu, 0.20%Co and 2.94g/t total PGEs from 116m

• MAD112 high-grade mineralisation is part of the 120m plunge on the north-south MAD112 Line which remains open to the north

• Downhole EM (DHEM) surveys in drill holes MAD112 and MAD117 identify a strong offhole conductor (12,700 Siemens) down plunge of the known high-grade nickel-copper sulphides indicating potential for a further extension in the down dip direction

• MAD60 Line:

• DHEM survey in drill hole MAD119 – a deep step out hole to the north on the northsouth MAD60 Line – has identified a strong off-hole conductor (30,000 Siemens) located down plunge from known high-grade nickel-copper sulphides

• The new conductor, MAD119:X1, is interpreted to be a continuation of the massive nickel-copper sulphides intersected in MAD108

• Potential for an extended 380m northerly plunge of mineralisation on the MAD60 Line

• MAD111 Line:

• Drilling of very strong EM conductors on the north-south MAD111 Line is underway

• DHEM survey in drill hole MAD121 – a deep step out hole to the north on the MAD111 Line – has identified a weak, very large anomalous EM response (modelled as 400m x 350m) located down plunge from the very strong conductors

• The new target, MAD121:X1, is interpreted to represent a continuation of the large mineral system at depth and will be prioritised for drilling in the current campaign

Emerging Western Australian nickel company St George Mining Limited (ASX: SGQ ) (“ St George ” or “ the Company ”) is pleased to provide an update on significant exploration results at the Mt Alexander Project, located near Leonora in the north-eastern Goldfields.

The mineralised ultramafic at the Investigators Prospect has an east-west strike of 1.5km and dips to the north at an angle of about 30 degrees. Our geological model supports the potential for continuity of highgrade mineralisation at depth in the northerly down dip direction.

Current exploration at Investigators is successfully testing this model, providing confidence that the large mineral system continues at depth with potential for significant increases to the known high-grade mineralisation.

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ASX / MEDIA RELEASE

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John Prineas, St George Mining’s Executive Chairman, said: “Our methodical exploration strategy at Investigators, using drilling and DHEM surveys concurrently to identify potential extensions of massive nickel-copper sulphides, is delivering excellent results.

“The DHEM surveys at Investigators have been successful in identifying further conductors down plunge from known high-grade mineralisation. This is a textbook fit to our geological model, which envisages potential for additional significant nickel-copper sulphides at depth in the down dip direction.

“The results of the DHEM survey in MAD119 are particularly exciting with potential for the new conductor to extend the plunge of mineralisation on the MAD60 Line to a very significant 380m.

“The east-west strike of mineralisation at Investigators is more than 1.5km, suggesting that any extension of mineralisation to the north will substantially increase the volume of high-grade mineralisation at Investigators.”

Figure 1 below is a plan view map of the Investigators Prospect set against SAMSON EM data. The three lines where recent drilling has been focused are highlighted, and illustrate the extensions of nickel-copper sulphide mineralisation to the north.

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Figure 1 - plan view of Investigators Prospect with drill hole collar locations over the large SAMSON total field EM anomalies (red/pink colours). SAMSON EM image is shown in Channel 18 (44ms). The three north-west lines which are the priority for current drilling are highlighted. Step-out drilling along these lines is continuing to extend mineralisation to the north.

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Figure 2 is a long section of the Investigators Prospect and illustrates the extensive mineralisation intersected across the 1.5km strike of the Investigators ultramafic as well as the large areas that are yet to be drilled.

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Figure 2 – schematic long section of the Investigators Prospect (facing north) based on interpretation from drill hole data. The MAD60 Line and MAD111 Line are shown, with the MAD112 Line (not shown) a further 530m to the east of the MAD111 Line. Mineralisation remains open to the north and at depth.

MAD112 LINE

MAD112 is one of four holes completed on a north-south line (approximately 232000E) within the 200m eastwest strike of the large bullseye EM anomaly at Investigators East.

All four drill holes – MAD117, MAD112, MAD32 and MAD33 – intersected high-grade nickel-copper sulphides with laboratory assays just received for MAD112 that returned:

MAD112: 3.55m @ 4.67%Ni, 2.27%Cu, 0.20%Co and 2.94g/t total PGEs from 116m

MAD112 has confirmed high-grade mineralisation 40m down dip from MAD33 and 120m down dip from MAD32 – see Figure 3.

MAD117 was drilled to a downhole depth of 140m and intersected nickel-copper sulphides between 104.29m to 110.83m downhole including intervals of massive sulphides. Assays for MAD117 are pending and a further discussion of this drill hole is in our ASX Release dated 18 September 2018 More Strong Results at Mt Alexander.

The DHEM surveys in MAD112 and MAD117 have detected an off-hole conductor located below and to the north of the drill holes.

The conductor, named MAD117:X1, is modelled with conductivity of 12,700 Siemens and plate dimensions of 14m x 8m. The conductor is interpreted to represent down dip continuity of the high-grade mineralisation intersected in MAD112 and MAD117.

Mineralisation remains open to the north along the MAD112 Line and step-out holes will be planned to test the continuity of mineralisation in the northerly down dip direction as well as to test MAD117:X1.

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Hole ID	GDA94 East	GDA94 North	Dip	Azi	Depth (m)	From (m)	To (m)	Width (m)	Ni%	Cu%	Co%	Total PGEs **g/t **
MAD112	232000	6806453	-58	174	140	116	199.55	3.55	4.76	2.27	020	2.94

Table 1 – assays received for the significant intersection in MAD112.

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Figure 3 – schematic cross section of the MAD112 Line (facing west) at Investigators based on interpretation of drill hole data. The mineralised ultramafic is open to the north with conductor MAD117:X1 located down plunge of the high-grade mineralisation intersected by MAD112 and MAD117.

MAD60 LINE

Drilling on the MAD60 Line (approximately 231225E) has already intersected extensive high-grade nickelcopper sulphides and confirmed a plunge of mineralisation over 320m to the north.

MAD119 was designed as a large step-out to the north on the MAD60 section. MAD119 successfully intersected a prospective mafic unit some 160m down plunge from the massive nickel-copper sulphides intersected in MAD108.

Confirmation of mafic rocks at the interpreted position of the mineralised system indicates the continuation of the mineralised structure down dip over 460m on the MAD60 Line.

Importantly, the DHEM survey in MAD119 detected an off-hole conductor located between MAD119 and MAD108 with properties consistent with massive sulphides.

The new conductor MAD119:X1 is modelled with conductivity of 30,000 Siemens and plate dimensions of 20m x 16m. The conductor is interpreted to be a down plunge continuation of the massive nickel-copper sulphides intersected in MAD108.

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Assay results for drill holes completed to date on the MAD60 Line are:

• MAD38, which intersected mineralisation at a shallow 25m downhole and returned assays of: 2.74m @ 3.77%Ni, 1.48%Cu, 0.1%Co and 3.85g/t total PGEs from 25.4m ;

• MAD60, which intersected mineralisation down dip from MAD38 with assays of:

• 5.3m @ 4.95%Ni, 2.75%Cu, 0.16%Co, and 4.55g/t total PGEs from 157.9m ; and

• MAD108, which intersected mineralisation down dip from MAD60 with assays of: 8.4m @ 2%Ni, 0.96% Cu, 0.06% Co, 2.59g/t total PGEs from 199m including

• 1.37m @ 6.83% Ni, 2.88% Cu, 0.21% Co, 5.58g/t total PGEs from 206.03m

The identification of conductor MAD119:X1 between MAD108 and MAD119 is an excellent exploration result. The intersection of mineralisation at this target will extend the plunge of mineralisation to 380m. The mineralisation remains open to the north with potential for additional mineralisation in the down dip direction.

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Figure 4 – schematic cross section of the MAD60 section (facing west) at Investigators based on interpretation of drill hole data. The mineralised ultramafic dips to the north-west, with mineralisation open in the down plunge direction where the new conductor MAD119:X1 is situated.

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MAD114 was also drilled from the same collar as MAD108 to test a proximal extension to the west of the MAD108 massive sulphides.

MAD114 intersected 13.03m of mineralisation, a thicker intercept than in MAD108 – see our ASX Release dated 5 September 2018 Mt Alexander Nickel-Copper Sulphide Project – Drilling Update. Assays for MAD114 are pending.

Drilling of conductor MAD119:X1 has been prioritised for the current drill campaign, with further step-out drilling on the MAD60 Line to be planned as ongoing drill results are reviewed.

MAD111 LINE

The MAD111 Line is located at 231475E, about 250m east of the MAD60 Line. Four strong off-hole conductors have been identified on the MAD111 Line from DHEM surveys, as announced in our ASX Release dated 3 October 2018 Downhole EM Lights Up Strong Conductors at Investigators Prospect. Drilling of the conductors is underway and is discussed further below.

A fifth target has now been identified from a DHEM survey in MAD121. This drill hole was designed as a large 150m step-out to the north on the MAD111 Line. MAD121 was completed to a downhole depth of 319m.

A mafic unit was intersected between 254m to 257m with the remainder of the hole intersecting granites. No sulphide mineralisation was visible and assays for MAD121 are pending.

As with MAD119, the confirmation of mafic rocks at the similar interpreted position of the mineralised system indicates the continuation of the mineralised structure down dip on the MAD111 Line.

The DHEM survey in MAD121 has detected a weak but very large anomalous EM response at 255m downhole. Modelling of the DHEM survey data from MAD121 indicates a large plate 400m x 350m with a weak conductivity of 9 Siemens. These parameters contrast sharply to the smaller but highly conductive plates modelled up-dip on the MAD111 Line.

The large EM response, named MAD121:X1, is interpreted to represent a continuation of the mineralised system at Investigators and may also be associated with a geological feature such as a shear zone or fault that could contain some conductive mineralisation.

The geophysical response from MAD121:X1 may be affected by the geometry of the conductive material particularly if it is situated within a shear. The very strong conductors up-dip, which are interpreted to represent massive sulphides, may be masking some of the EM response from the larger conductor.

A further review of MAD121:X1 will be completed before drilling of the target.

Two drill holes have been completed to test the very strong conductors on the MAD111 Line.

MAD123:

MAD123 was completed to a downhole depth of 220m to test conductor MAD116:X1, which had been modelled with conductivity of 208,000 Siemens. Diamond core drilling was used from surface.

The drill hole intersected an ultramafic unit between 184.17m to 192.06m with increasing disseminated sulphides at depth. Massive nickel-copper sulphides were then intersected between 192.06m to 192.34m.

The mineralisation intersected does not explain the very strong conductivity modelled for this target. MAD123 deviated from its planned trajectory and is interpreted to have clipped the eastern edge of the targeted conductor. The target will be re-drilled in the current campaign.

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ASX / MEDIA RELEASE

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MAD124:

MAD124 was completed to a downhole depth of 217.50m to test conductor MAD116:X2, which had been modelled with conductivity of 188,000 Siemens. Diamond core drilling was used from surface.

The drill hole co-ordinates were adjusted to allow for likely deviation based on results in earlier drill holes. MAD124, however, did not deviate and did not intersect the modelled plate.

The target will be re-drilled in the current campaign.

MAD125 is currently being drilled to test conductor MAD120b:X1, which is modelled with conductivity of 210,400 Siemens. Diamond core drilling is being used from surface and there has been no adjustment to the hole co-ordinates to allow for possible deviation.

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----- Start of picture text -----

Looking west
MAD121:X1 -
400x350m,
9 Siemens
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Figure 5 – On left: MAD121 DHEM data results in a large modelled plate. On right: early time (0.3ms to 2ms) linear profiles - red profiles are modelled and black profiles are observed. The sharp negative to positive cross-overs on the radial component (Bu, Bv) indicate a proximal off-hole conductor.

DRILL PROGRAMME

Table 1 contains details of the initial drill holes for the current programme at Mt Alexander.

Drill hole MAD122 was completed last week as a step-out 50m to the west of the massive nickel-copper sulphides intersected in MAD60, which returned assays of 5.3m @ 4.95%Ni, 2.75%Cu, 0.16%Co, and 4.55g/t total PGEs from 157.9m.

MAD122 was drilled to a downhole depth of 200m and intersected a thick mafic unit between 119.1m to 160.6m.

No visible sulphides were observed. Assays are pending as well as the DHEM survey results for this drill hole.

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ASX / MEDIA RELEASE

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Hole ID	GDA94_51 East	GDA94_51 North	Hole Depth (m)	Dip	Azi	Target Depth (m)	Target
MAD108	231218	6806453	250	-76	33	205	Test MAD98: X1 plate
MAD109	231422	6806421	160	-80	73	135	Test MAD100:X3 plate
MAD110	231422	6806421	170	-77	338	155	Test MAD100:X2 plate
MAD111	231482	6806487	210	-81	210	185	Test MAD100: X1 plate
MAD112	232000	6806555	140	-58	174	110	Test MAD101: X1 plate
MAD113	233696	6807050	200	-70	185	180	Test MAD102: X1 plate
MAD114	231218	6806453	250	-78	30	205	Test MAD108 plate
MAD115	230784	6806322	150	-68	290	110	Test west of $M in MAD37/34
MAD116	231482	6806487	240	-76	315	190	Test MAD111:X1 plate
MAD117	232000	6806555	140	-60	180	110	Test MAD112 Plate
MAD118	231482	6806487	220	-78	301	190	Test MAD111:X1 plate
MAD119	231200	6806700	350	-75	180	280	Deep step-out MAD60 Section
MAD120b	231450	6806570	240	-80	185	190	MAD111:X1 plate - north dip extent
MAD121	231400	6806700	320	-75	180	260	Deep step-out MAD111 Section
MAD122	231175	6806450	200	-75	180	160	Test 50 west of MAD60 $M
MAD123	231482	6806488	220	-75	311	180	Test MAD116:X1 plate
MAD124	231483	6806486	220	-79	290	190	Test MAD116:X2 plate
MAD125	231447	6806570	210	-73	186	180	Test MAD120b:X1 plate

Table 2 – planned and completed drill holes for the current drill programme at Mt Alexander. Additional drill holes will be added to this programme as results are reviewed.

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 five granted exploration licences – E29/638, E29/548, E29/962, E29/954 and E29/972.

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ASX / MEDIA RELEASE

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The Cathedrals, Stricklands and Investigators nickel-copper-cobalt-PGE discoveries are located on E29/638, which is held in joint venture by St George Mining Limited (75%) and Western Areas Limited (25%). 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 Peter Klinger Executive Chairman Media and Investor Relations St George Mining Limited Cannings Purple +61 (0) 411 421 253 +61 (0) 411 251 540 John.prineas@stgm.com.au pklinger@canningspurple.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 Benjamin Pollard, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Pollard is a director of Cadre Geology and Mining Pty Ltd which has been retained by St George Mining Limited to provide technical advice on mineral projects.

Mr Pollard 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 Pollard 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 techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.	The sections of the core that are selected for assaying are marked up and then recorded on a sample sheet for cutting and sampling at the certified assay laboratory. Samples of HQ or NQ2 core are cut just to the right of the orientation line where available using a diamond core saw, with half core sampled lengthways for assay.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Wherever possible the same side of the drill core is sampled to ensure sample is representative. Appropriate QAQC samples are inserted into the sequences as per industry best practice.
	Aspects of the determination of mineralisation that are Material to the Public Report. 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 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.	Diamond core (both HQ and NQ2) is half‐core sampled to geological boundaries no more than 1.5m and no less than 10cm. Samples less 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. Pulverisation produces a 40g charge for fire assay. Elements determined from fire assay are gold (Au), platinum (Pt) and palladium (Pd) with a 1ppb detection limit. To determine other PGE concentrations (Rh, Ru, Os, Ir) a 25g charge for nickel sulphide collect fire assay is used with a 1ppb detection limit. 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 techniques	Drill type (eg core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face‐ sampling bit or other type, whether core is oriented and if so, by what method, etc).	Diamond drilling is completed using HQ sized coring equipment through the weathered zone (mostly saprock) with 3m barrels, and then HQ or NQ2 in fresh rock with 3m or 6m barrels as required. The core is oriented using ACT II electric core orientation.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Diamond core recoveries are recorded during drilling and reconciled 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.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	Measures taken to maximise core recovery include using appropriate core diameter and shorter barrel length through the weathered zone, which at Cathedrals and Investigators is mostly <20m and Stricklands <40m depth. Primary locations for core loss in fresh rock are on geological contacts and structural zones, and drill techniques are adjusted accordingly, and if possible these zones are predicted from the geological modelling.

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Criteria	JORC Code explanation	Commentary
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	No sample recovery issues have yet been identified that would impact on potential sample bias in the competent fresh rocks that host the mineralised sulphide intervals.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Geological logging is completed for all drill holes with lithology, alteration, mineralisation, structure and veining recorded. The logging is recorded digitally and imported in the St George Mining central database.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	Logging is both qualitative and quantitative depending on the field being captured. Core is photographed with one tray per photo and stored digitally.
	The total length and percentage of the relevant intersections logged.	All drill holes are geologically logged in full.
Sub‐sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	The HQ and NQ2 core is cut in half length ways just to the right of the orientation line where available using a diamond core saw. All samples are collected from the same side of the core where practicable.
	If non‐core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	Reverse circulation holes have been rotary cone split, and wetness recorded during drilling.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	The entire sample is pulverised to 75µm using LM5 pulverising mills. Samples are dried, crushed and pulverized to produce a homogenous representative sub‐sample for analysis. A grind quality target of 90% passing 75µm is used.
	Quality control procedures adopted for all sub‐ sampling stages to maximise representivity of samples.	Quality control procedures include submission of Certified Reference Materials (standards), duplicates and blanks with each sample batch. QAQC results are routinely reviewed to identify and resolve any issues.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second‐half sampling.	Duplicate samples are selected during sampling. Samples comprise two quarter core samples, or for RC comprise a one meter sample equally split into two bags and taken at set meter intervals.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	The sample sizes are considered to be appropriate for base metal sulphide mineralisation and associated geology.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Diamond core samples are analysed for Au, Pt and Pd using a 40g lead collection fire assay; for Rh, Ru, Os, Ir using a 25g nickel sulphide collection fire assay; and for 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 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.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	A handheld XRF instrument (Olympus Innov‐X Spectrum Analyser) is used to systematically analyse the drill core and RC sample piles onsite. One reading is taken per meter, however for any core samples with matrix or massive sulphide mineralisation then multiple samples are taken at set intervals per meter. The instruments are serviced and calibrated at least once a year. Field calibration of the XRF instrument using standards is periodically performed (usually daily). 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.

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Criteria	JORC Code explanation	Commentary
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	Laboratory QAQC involves the use of internal lab standards using certified reference material (CRMs), blanks and pulp duplicates as part of in house procedures. The Company also submits a suite of CRMs, blanks and selects appropriate samples for duplicates. Sample preparation checks for fineness are performed by the laboratory to ensure the grind size of 90% passing 75µm is being attained.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Significant intersections are verified by the Exploration Manager of St George Mining.
	The use of twinned holes.	No twin holes are currently planned for the upcoming drill program.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Primary data is captured onto a laptop using acQuire software and includes geological logging, sample data and QA/QC information. This data, together with the assay data, is entered into the St George Mining central SQL database which is managed by external consultants.
	Discuss any adjustment to assay data.	No adjustments or calibrations will be made to any primary assay data reported.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down‐hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Drill holes have been located and pegged using a DGPS system with an expected accuracy of +/‐0.05mmm for easting, northing and elevation. Downhole surveys are conducted using a single shot camera approximately every 30m during drilling to record and monitor deviations of the hole from the planned dip and azimuth. Post‐drilling downhole gyroscopic surveys will be conducted, which provide more accurate survey results.
	Specification of the grid system used.	The grid system used at the Mt Alexander project is GDA94 (MGA), zone 51.
	Quality and adequacy of topographic control.	Elevation data has been acquired using DGPS surveying at individual collar locations and entered into the central database. A topographic surface has been created using this elevation data.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	The diamond drill program is testing modelled EM conductors and geological criteria for massive nickel‐copper‐PGE sulphide mineralisation. The spacing and distribution of the planned drill holes is appropriate to test the defined targets.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	The completed drilling at Cathedrals, Stricklands and Investigators is not sufficient to establish the degree of geological and grade continuity to support the definition of Mineral Resource and Reserves and the classifications applied under the 2012 JORC code.
	Whether sample compositing has been applied.	No compositing has been applied to the exploration results.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Drill holes are planned as perpendicular as possible to the target EM plates and geological units to approximate true width. Most of the ultramafic units in the Cathedrals Belt dip shallow to the north (and occasionally south) and where possible drill holes are planned to intersect perpendicular to this dip. The orientation of key structures may be locally variable.

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Criteria	JORC Code explanation	Commentary
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	No orientation based sampling bias has been identified in the data to date.
Sample security	The measures taken to ensure sample security.	Chain of custody is managed by St George Mining. Core samples are stored in the secure facilities at Bureau Veritas laboratory in Perth. Transportation of core is managed by St George contractors and Bureau Veritas and actively track monitored.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No audits or reviews have been conducted at this stage.

Section 2 Reporting of Exploration Results

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 Mt Alexander Project is comprised of five granted Exploration Licences (E29/638, E29/548, E29/954, E29/962 and E29/972). Tenement E29/638 is held in Joint Venture between St George (75% interest) and Western Areas (25% interest). E29/638 and E29/548 are also subject to a royalty in favour of a third party that is outlined in the ASX Release dated 17 December 2015 (as regards E29/638) and the ASX release dated 18 September 2015 (as regards E29/548). 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 four tenements are in good standing with no known impediments..
Exploration Done by Other Parties	Acknowledgment and appraisal of exploration by other parties.	Exploration on tenements E29/638 and E29/962 has been largely for komatiite‐hosted nickel sulphides in the Mt Alexander Greenstone Belt. Exploration in the northern section of E29/638 (Cathedrals Belt) and also limited exploration on E29/548 has been for komatiite‐ hosted Ni‐Cu sulphides in granite terrane. No historic exploration has been identified on E29/954 or E29/972. High grade nickel‐copper‐PGE sulphides were discovered at the Mt Alexander Project in 2008. Drilling was completed to test co‐incident electromagnetic (EM) and magnetic anomalies associated with nickel‐PGE enriched gossans in the northern section of current tenement E29/638. The drilling identified high grade nickel‐copper mineralisation in granite‐hosted ultramafic units and the discovery was named the Cathedrals Prospect.
Geology	Deposit type, geological setting and style of mineralisation	The Mt Alexander Project is at the northern end of a western 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 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	Drill hole collar locations are shown in the maps and tables included in the body of the relevant ASX release.

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Criteria	JORC Code explanation	Commentary
	• Dip and azimuth of the hole • Down hole length and interception depth • Hole length
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut‐off grades are usually Material and should be stated.	Reported assay intersections are length and density weighted. Significant intersections are determined using both qualitative (i.e. geological logging) and quantitative (i.e. lower cut‐off) methods. For massive sulphide intersections, the nominal lower cut‐off is 2% for either nickel or copper. For disseminated, blebby and matrix sulphide intersections the nominal lower cut‐off for nickel is 0.3%.
	Where aggregated intercepts incorporate short lengths of high grade results and longer 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.	Any high‐grade sulphide intervals internal to broader zones of sulphide mineralisation are reported as_included_intervals. Any disseminated, matrix, brecciated or stringer sulphides with (usually) >1% nickel or copper on contact with massive sulphide mineralisation are grouped with the massive sulphides for calculating significant intersections and the massive sulphide mineralisation is reported as an_including_intersection.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalent values have yet been used for reporting exploration results.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of exploration results. 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, there should be a clear statement to this effect (e.g. down hole length, true width not known).	Assay intersections are reported as down hole lengths. Drill holes are planned as perpendicular as possible to intersect the target EM plates and geological targets so downhole lengths are usually interpreted to be near true width.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plane view of drill hole collar locations and appropriate sectional views.	A prospect location map, cross section and long section are shown in the body of relevant ASX Releases.
Balanced Reporting	Where comprehensive reporting of all Exploration Results is not practical, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting Exploration Results.	The exploration results reported are representative of the mineralisation style with grades and/or widths reported in a consistent manner.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observation; geophysical 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.	All material or meaningful data collected has been reported. Appendix A contains details of significant intersections at the Investigators Prospect announced by the Company.
Further Work	The nature and scale of planned further work (e.g. tests for lateral extensions or depth 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.	Further exploration in the Cathedrals Belt is currently being planned based on results from the recent drill program. Further exploration is also warranted north of the Cathedrals Belt on E29/548, and also in the Mt Alexander greenstone belt to the south.

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Hole ID	GDA94 East	GDA94 North	Dip	Azimuth	Depth (m)	From (m)	To (m)	Width (m)	Ni%	Cu%	Co%	Total PGEs **g/t **	Au g/t	Ag g/t
MAD29	231559.5	6806419.6	‐60	160	201.6	104.00	105	1	0.36	0.18	0.01	1.02	0.12	1.50
MAD31	231559.4	6806416.5	‐63	133	160	108.00	111.67	3.67	0.56	0.28	0.02	1.22	0.16	1.98
MAD31						111.67	113.24	1.57	6.26	2.71	0.18	4.91	0.19	8.10
		Including				112.08	113.09	1.01	7.98	3.13	0.22	5.90	0.14	9.06
MAD32	232040.2	6806403	‐73	220	92.7	44	51.6	7.6	0.44	0.19	0.02	0.59	0.03	0.88
MAD32						51.6	53.52	1.92	4.58	1.52	0.14	3.83	0.12	4.43
		Including				52.75	53.52	0.77	7.82	2.50	0.24	6.31	0.13	6.82
MAD33	232038.2	6806412	‐57	330	129.7	87.45	96.48	9.03	0.43	0.14	0.02	0.44	0.03	1.08
MAD33						96.48	97.49	1.01	5.81	2.33	0.22	4.32	0.12	7.30
MAD34	230769	6806330	‐70	25	152.5	94	96.1	2.1	0.52	0.25	0.02	0.57	0.07	2.04
MAD34						96.1	98.89	2.79	1.63	0.53	0.05	1.24	0.11	3.62
		Including				98.7	98.89	0.19	7.34	1.53	0.22	3.27	0.05	24.00
MAD37	230772.7	6806327	‐84	335	156	110	122	12	0.41	0.13	0.02	0.35	0.04	1.22
MAD37						122	123.27	1.27	5.63	2.16	0.17	3.86	0.10	6.83
		Including				122.55	123.27	0.72	7.93	2.75	0.23	4.81	0.07	9.00
		And, Including				123.27	123.6	0.33	0.81	0.69	0.03	2.33	0.14	2.50
MAD38	231205.1	6806248	‐70	90	65.5	25.4	28.14	2.74	3.77	1.48	0.10	3.85	0.17	5.49
		Including				26.3	26.4	0.1	12.80	5.54	0.25	11.52	0.38	36.50
		And, Including				27.6	28.14	0.54	8.59	3.43	0.24	6.73	0.14	10.00
MAD40	231575.7	6806427	‐68	160	142.3	105.35	106.79	1.44	0.46	0.16	0.02	0.60	0.07	1.32
MAD40						106.79	108.75	1.96	5.09	2.11	0.16	3.46	0.39	6.04
		Including				107.75	108.75	1	7.88	3.11	0.24	5.04	0.53	8.00
MAD43	231528.9	6806508	‐70	160	180	149.7	157.22	7.52	0.43	0.20	0.02	0.55	0.05	1.13
MAD43						157.22	157.9	0.68	7.09	2.73	0.23	3.54	0.14	9.50
MAD43						170.43	170.53	0.1	4.25	0.98	0.13	2.91	0.11	6.00
MAD43						171.1	171.25	0.15	1.88	1.27	0.06	1.65	0.11	6.50
MAD44	231482.4	6806488	‐70	180	180	155.66	156.11	0.45	5.59	1.27	0.18	4.28	0.24	11.70
		Including				155.84	156.11	0.27	8.49	1.67	0.27	5.24	0.20	16.50
MAD45	231004.9	6806368	‐81	355	229	174	178.23	4.23	0.39	0.13	0.02	0.35	0.04	0.85
MAD45						178.23	180.14	1.91	3.60	1.04	0.11	2.56	0.19	2.71
		Including				178.87	179.08	0.21	5.44	0.51	0.17	2.55	0.09	2.50
		And, Including				179.76	180.14	0.38	7.10	2.84	0.21	5.42	0.21	7.00
MAD47	231659.8	6806394	‐70	175	142.1	42.2	43	0.8	1.77	2.85	0.05	4.31	0.21	8.34
		Including				42.2	42.35	0.15	0.92	6.85	0.02	5.35	0.24	21.00
		And, Including				42.9	43	0.1	7.54	7.02	0.28	10.04	0.33	14.00
MAD47	231659.8	6806394	‐70	175	142.1	43.95	44.2	0.25	1.65	0.74	0.03	2.71	0.13	2.50
MAD48	231559.7	6806410	‐70	181	127.1	89.35	91.98	2.63	0.58	0.33	0.02	0.97	0.10	4.36
MAD48						91.98	92.89	0.91	7.23	2.42	0.20	4.51	0.18	8.00
MAD60	231225.2	6806451	‐70	178	190	156	157.9	1.9	0.60	0.28	0.02	1.49	0.29	2.63
MAD60						157.9	163.2	5.3	4.95	2.75	0.16	4.55	0.25	8.95
		Including				159.38	162.38	3	6.40	3.55	0.21	5.25	0.17	12.18
		And, Including				162.9	163.2	0.3	5.93	3.54	0.20	4.36	0.12	11.00
MAD61	231249.4	6806423	‐70	180	160.1	133	135.6	2.6	0.37	0.17	0.01	0.48	0.04	0.65
MAD61						135.94	136.18	0.24	0.73	0.61	0.02	1.64	0.14	2.50

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MAD62	231587.4	6806445	‐70	0	220	195.84	197.25	1.41	0.82	0.31	0.04	0.92	0.07	1.28
MAD62						197.25	197.56	0.31	6.07	2.81	0.23	2.94	0.03	6.50
MAD63	230796.9	6806312	‐75	355	128.1	106	110.33	4.33	0.81	0.35	0.03	1.26	0.17	2.66
MAD63						110.33	110.62	0.29	7.73	2.57	0.24	3.26	0.04	5.50
MAD63						110.62	110.77	0.15	0.82	1.05	0.03	6.13	0.08	3.50
MAD72	231242.1	6806418	‐75	180	154.7	131.3	135.79	4.49	0.38	0.09	0.02	0.28	0.02	0.55
MAD72						135.79	136	0.21	5.90	0.32	0.19	1.08	0.01	3.00
MAD72						136	136.71	0.71	0.53	0.15	0.02	0.40	0.03	7.00
MAD72						136.71	136.96	0.25	6.23	7.48	0.21	2.52	0.01	18.00

Appendix A ‐ Significant Intersections at the Investigators Prospect

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