ST GEORGE MINING LIMITED — Capital/Financing Update 2019

Aug 12, 2019

ASX / MEDIA RELEASE

==> picture [107 x 49] intentionally omitted <==

13 August 2019

HIGH-GRADE NICKEL-COPPER SULPHIDE DRILLING AT MT ALEXANDER – UPDATE

HIGHLIGHTS:

• Drilling of electromagnetic (EM) conductors brings more exploration success:

• Multiple intersections of nickel-copper sulphide mineralisation with four drill holes completed so far in the current drill programme

• Significant extensions confirmed to known zones of high-grade mineralisation

• Early drilling success supports the potential to significantly increase the volume of high-grade mineralisation at Mt Alexander, with a large number of EM conductors lined up for drilling

• New EM targets identified in underexplored area of the Cathedrals Belt:

• Moving loop EM (MLEM) survey underway has identified two strong bedrock conductors consistent with a massive sulphide source in the underexplored area to the east of the Cathedrals Prospect

• These new targets offer an excellent opportunity for a new discovery of nickel-copper sulphides, and drilling of the targets has been fast-tracked for next week

• MLEM survey over the very strong nickel and copper soil anomaly identified at the Fish Hook Prospect will commence later this week

Growth-focused Western Australian nickel company St George Mining Limited (ASX: SGQ ) (“ St George ” or “ the Company ”) is pleased to announce further strong results from exploration programmes underway at its flagship Mt Alexander Project, located in the north-eastern Goldfields.

Four diamond drill holes have been completed in the current programme, all of which were located at the Investigators Prospect, with multiple intersections of nickel-copper sulphides and prospective ultramafic rocks reported. Details of all drill results are discussed below.

The thickest interval of mineralisation was delivered by MAD146, which intersected 15.1m of sulphide mineralisation that comprised 14.8m of disseminated and blebby sulphides and 0.3m of massive sulphides, with the latter section recording an average XRF reading of 8.1%Ni and 3.9%Cu. (XRF readings are preliminary and subject to verification by laboratory assays). The photo on the right is of the drill core from MAD146 with massive sulphides at 187m downhole.

==> picture [245 x 249] intentionally omitted <==

1

ASX / MEDIA RELEASE

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

Exciting results have also been delivered by the extensive EM surveys in progress at the Cathedrals Belt. The MLEM survey completed in the underexplored area to the east of the Cathedrals Belt has identified two strong EM conductors that are interpreted as likely to be associated with nickel-copper sulphides.

One conductor is located 1km to the east of the Cathedrals Prospect and adjacent to a nickel-copper gossan. The other is located a further 1km east at the Bullets Prospect and along strike from a historical drill intersection of nickel-copper sulphides made by BHP.

John Prineas, St George Mining’s Executive Chairman, said:

“Initial drill results in the current programme have confirmed further continuity to the mineralisation at Investigators and support the potential to significantly bulk up the scale of the mineralised envelope in this area, which covers a 1.5km east-west strike.

“The new EM conductors identified in the Cathedrals Belt are a great reward for our ongoing methodical exploration of the Belt. Any drill intersection of high-grade nickel-copper sulphides in this underexplored area of the Cathedrals Belt would represent a new discovery with the potential to significantly increase the endowment of high-grade mineralisation in the Belt.

“Exploration programmes continue in full swing at Mt Alexander with drilling 24/7 and further EM surveys underway.”

EXTENSIONS OF HIGH-GRADE MINERALISATION AT INVESTIGATORS CONFIRMED BY DRILLING

Figure 1 below shows the location of the first four drill holes completed in the current programme. Three of the drill holes have intersected nickel-copper sulphides and have confirmed further continuity to the high-grade mineralisation at the Investigators Prospect.

==> picture [483 x 329] intentionally omitted <==

Figure 1 - plan view of Investigators over SAM (MMC) survey data. The first four drill holes in the current programme are shown along with untested DHEM plates and priority areas for resource extension.

2

ASX / MEDIA RELEASE

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

MAD144 Increases Continuity of Mineralisation on the MAD45 Line:

MAD144 was completed to a depth of 240.7m and targeted a strong electromagnetic (EM) conductor modelled with conductivity of approximately 82,000 Siemens. A 10m thick unit of ultramafic rocks was intersected by MAD144 from 185.5m downhole, followed by 2.7m of sulphide mineralisation from 195.5m downhole – including 0.35m of high-grade nickel-copper sulphides from 197.65m downhole.

The drill hole is interpreted to have intersected the eastern edge of the EM conductor (modelled as a 30m x 7m plate) with potential for stronger mineralisation towards the centre of the conductor, which would be more consistent with the high conductivity modelled for the conductor. A downhole EM (DHEM) survey will be completed in MAD144 to aid targeting of further sulphide mineralisation around the hole.

MAD144 has successfully confirmed the continuity of mineralisation between the high-grade intersections in MAD45 and MAD109, with the plunge length of high-grade mineralisation on the MAD45 Line continuing for more than 150m in the northerly down-plunge direction.

Geological logging of MAD144 is set out below, with a schematic cross section in Figure 2.

MAD144 Interval	Geological Logging
185.5m to 195.5m	Ultramafic, serpentinised cumulate(no visible sulphides)
195.5m to 197.65m	Ultramafic with disseminated and blebby sulphides, sulphide content increasing with depth(>1% nickel sulphides)
197.65m to 198m	Massive sulphides, average XRF readings of 5.06%Ni and 3.36%Cu
198m to 198.2m	Remobilised sulphides infootwall(>1% nickel sulphides)

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

Figure 2 – a schematic cross-section of MAD144 is shown above left. Drill core with massive sulphides at 197.7m downhole is shown on the right.

3

ASX / MEDIA RELEASE

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

MAD145 – EM Conductor Not Tested:

MAD145 was completed to a depth of 232m and targeted a strong EM conductor modelled with conductivity of approximately 20,000 Siemens. The conductor is located 75m to the east of the MAD62 Line, where highgrade mineralisation has been intersected over a strike of 125m in the down-plunge northerly direction.

Ultramafic rocks were intersected by MAD145 from 168.5m to 171.5m, with the remainder of the hole intersecting mainly granites. There was no conductive material in the drill core to explain the strong conductor being targeted. A DHEM survey will be completed in MAD145 to identify the conductive source around the hole and to revise the modelling of the conductor.

MAD146 Confirms Large Step-Out Extension of Mineralisation:

MAD146 was drilled in an area of the Investigators Prospect where there has been very limited drilling. The collar for MAD146 is approximately 100m to the east of the MAD60 Line, representing a large step-out to the east from the MAD60 Line where high-grade mineralisation has already been extended to a down-plunge depth of 380m.

The hole targeted a strong EM conductor modelled with conductivity of approximately 34,000 Siemens and was designed to test for further nickel-copper sulphides downdip from known high-grade mineralisation.

MAD146 was completed to a depth of 220.1m and intersected 15.1m of sulphide mineralisation from 172.2m downhole including disseminated, blebby and massive sulphides – on the right is a photo of drill core with massive sulphides at 187m downhole.

Geological logging of MAD146 is set out below. XRF analysis of this drill core recorded high values for nickel and copper with spot readings of 14.14%Ni and 3.02%Cu in the middle of the core, and a spot reading of 6.3%Ni and 5.8%Cu at the top contact of the drill core. (XRF readings are preliminary and subject to verification by laboratory assays).

MAD146 Interval	Geological Logging
168.6m to 172.2m	Ultramafic, cumulate (no visible sulphides)
	Ultramafic with fine
172.2m to 186.5m	disseminated sulphides, sulphide content increasing with depth
	(approx. 1% nickel sulphides)
	Ultramafic with disseminated
186.5m to 187m	and blebby sulphides (>1%
	nickel sulphides)
187m to 187.3m	Massive sulphides, average XRF readings of 8.1%Ni and 3.9%Cu
187.3m to 220.1m	Granite

==> picture [179 x 520] intentionally omitted <==

4

ASX / MEDIA RELEASE

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

MAD147 Increases Lateral Extension of Mineralisation on the MAD60 Line:

MAD147 was drilled 75m to the east of the north-south MAD60 Line to test for a lateral extension of the high-grade mineralisation already discovered along that Line. The hole targeted a strong EM conductor modelled with conductivity of approximately 30,000 Siemens.

MAD147 was completed to a depth of 150.8m and intersected blebby sulphides from 118.5m to 118.9m downhole. The mineralisation intersected does not explain the source of the strong EM conductor modelled for this target, and a DHEM survey will be carried out in MAD147 to search for additional mineralisation around the hole.

The confirmation of mineralised ultramafics in MAD147 at a significant strike distance to the east of the MAD60 Line indicates potential for a very wide zone of mineralisation associated with the extensively plunging north-south MAD60 Line.

Geological logging of MAD147 is set out below. A photo of drill core with blebby sulphides at 118.5m downhole is shown below right.

MAD147 Interval	Geological Logging
	Proterozoic dyke,
	xenolithic, occasional
90m to 118.5m	ultramafic horizons of
	40-90cm thickness (no
	visible sulphides)
	Cumulate ultramafic
	with blebby sulphides
	ranging 2-4mm, spot
118.5m to 118.9m	XRF reading over one
	blebby sulphide
	recorded 2.01% Cu and
	1.64% Ni
118.9m to 150.8m	Granite

==> picture [240 x 238] intentionally omitted <==

NEW PROSPECTS IDENTIFIED BY EM SURVEYS AT THE CATHEDRALS BELT

As part of the EM survey underway at Mt Alexander, a MLEM survey has been completed over a 2.2km strike of the Cathedrals Belt as highlighted in Figure 3 below. This area is underexplored with very limited drilling.

BHP completed a SQUID high temperature Fixed Loop EM (FLEM) survey over this area in 2010. The FLEM survey indicated some anomalism but the data was inadequate to model specific targets due to suboptimal loop location. The new survey completed by St George used a Slingram MLEM configuration, which was designed by Newexco specifically for this area.

The new MLEM survey has identified two conductive sources, which are co-incident with the anomalous zones identified in the 2010 BHP FLEM survey. The conductive anomalies are seen in the mid-late time data from the MLEM survey and are interpreted to represent bedrock conductors consistent with a massive sulphide source.

Figure 4 below shows the location of the two conductors.

5

ASX / MEDIA RELEASE

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

==> picture [454 x 295] intentionally omitted <==

Figure 3 – Map showing survey areas of the new EM programme underway at the Cathedrals Belt (set against the latest SAM (MMC) survey data). The MLEM survey over the eastern survey block that includes Bullets has been completed with two prominent EM conductors identified.

==> picture [453 x 322] intentionally omitted <==

Figure 4 - plan view map (against RTP magnetic data) of the section of the Cathedrals Belt where two new conductors have been identified. The EM anomalies are shown in a BZ CH15 gridded image with histogram colour stretch and completed lines (black dots are proposed stations).

6

ASX / MEDIA RELEASE

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

Anomaly 1 is located about 1km to the east of the Cathedrals Prospect, and is proximal to a nickel-copper gossan at surface. It is modelled with conductivity of 30,000 Siemens and situated 30m below surface.

Anomaly 2 is located a further 1km to the east and is within the same structural horizon as the historical BHP drill hole MARC063 which intersected 10m @ 2,630ppm Ni and 770ppm Cu from 20m including 2m @ 3,790ppm Ni and 2,390ppm Cu from 28m at the Bullets Prospect. Additional MLEM lines will be completed this week to finalise modelling of Anomaly 2.

Both anomalies are co-incident with the strong magnetic linear trend that is known to host mineralised ultramafics in other parts of the Cathedrals Belt.

BHP completed four drill holes in the 1km strike of the Cathedrals Belt between Anomaly 1 and Anomaly 2. MARC063 intersected nickel-copper sulphides as noted above, while the other holes intersected granites. None of the holes tested the newly identified EM conductors.

The confirmation of high-grade nickel-copper sulphide mineralisation in these areas of the Cathedrals Belt would represent new discoveries, which could substantially increase the resource potential at the Mt Alexander Project.

The test drilling of the new EM conductors has been fast-tracked and will be carried out next week.

Fish Hook Prospect:

A MLEM survey will commence this week at the Fish Hook Prospect. The survey will comprise only four lines with an east-west strike of approximately 1,000m.

The survey is designed to cover the highly prospective area identified by the initial soil survey at Fish Hook. This area recorded a very strong nickel-copper soil anomaly that is co-incident with a magnetic feature interpreted to represent mineralised ultramafics.

An EM survey across the entire 8,000m strike of the Fish Hook Prospect will be rolled out after completion of a comprehensive soil survey over Fish Hook – due to start in two weeks.

DRILL PROGRAMME

Table 1 contains details of the initial drill holes for the current diamond drill programme at Mt Alexander. MAD148 is currently being drilled.

Hole ID	Prospect	East	North	RL	Depth	Azimuth	Dip	Target
MAD144	Investigators	231010	6806499	419	240.7	165	-71	EM plate 82,000 siemens
MAD145	Investigators	231650	6806569	424.6	230.3	196	-77	EM plate 20,000 siemens
MAD146	Investigators	231377	6806531	422.8	220.1	170	-75	EM plate 34,000 siemens
MAD147	Investigators	231299	6806305	421.4	150.8	353	-75	EM plate 30,000 siemens
MAD148	Investigators	231233	6806399.9	421.3		358	-80	EM plate 28,000 siemens

Table 1 – drill holes for the current drill programme at Mt Alexander, completed and in progress. Additional drill holes will be added to this programme as results are reviewed.

7

ASX / MEDIA RELEASE

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

Based on the intersection angle of the drilling with the modelled ultramafic unit, downhole widths are interpreted to be close to true widths.

Nickel and copper values shown above for recently completed drill holes are based on portable XRF analysis. They are preliminary in nature and a conclusive determination of the nickel, copper, cobalt and PGE values of the sulphide mineralisation will be confirmed when laboratory assays are available.

Average XRF readings in the massive sulphide interval are based on at least four readings per metre (unless otherwise stated) and are not length and density weighted. Metal content for intervals of disseminated sulphides are not accurately determined by portable XRF analysis and estimates for this style of mineralisation are based on geological logging.

==> picture [355 x 476] intentionally omitted <==

Figure 5 – map of the Mt Alexander tenements (against RTB magnetics) with key prospects highlighted. The inset shows the 4.5km strike of the Cathedrals Belt where drilling has intersected large areas of high-grade nickel-copper sulphides.

New targets generated at Bullets and Fish Hook have potential to significantly extend the strike of mineralisation along the 16km Cathedrals Belt.

8

ASX / MEDIA RELEASE

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

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.

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 Dave O’Neill, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr O’Neill is employed by St George Mining Limited to provide technical advice on mineral projects, and he holds performance rights issued by the Company.

Mr O’Neill 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 O’Neill consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

9

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	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.	Drilling programmes are completed by Reverse Circulation (RC) and Diamond Core drilling. Surface Electro‐Magnetic (EM) surveys are completed by GAP geophysics. Diamond Core 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. _RC Sampling: All samples from the RC drilling are taken as 1m samples for laboratory assay. _EM Surveying:_All data is collected in a Moving Loop (MLEM) survey configuration using MLEM TX transmitter with a SMARTem 24 receiver. 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 used for onsite interpretation and preliminary assessment subject to final geochemical analysis by laboratory assays.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	_RC Sampling:_Samples are taken on a one metre basis and collected using uniquely numbered calico bags. The remaining material for that metre is collected and stored in a green plastic bag marked with that specific metre interval. The cyclone is cleaned 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 blank sample is inserted at the beginning of each hole, and a duplicate sample is taken every 50thsample. A certified sample standard is also added according to geology, but at no more than 1:50 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, and using a downhole Gyro when required, to detect deviations of the hole from the planned dip and azimuth. The drill‐hole collar locations are recorded using a hand‐held GPS, which has an accuracy of +/‐ 5m. All drill‐hole collars will be surveyed to a greater degree of accuracy using a certified surveyor at a later date. _Diamond Core Sampling:_For diamond core samples, certified sample standards were added as every 25thsample. 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 are recorded using a hand‐held GPS, which has an accuracy of +/‐ 5m. All drill‐hole collars will be surveyed to a greater degree of accuracy using a certified surveyor at a later date.

1

Criteria JORC Code explanation	Commentary
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.	_RC Sampling:_A 1m composite sample is taken from the bulk sample of RC chips that may weigh in excess of 40 kg. Each sample collected for assay typically weighs 2‐3kg, and once dried, is prepared for the laboratory as per the Diamond samples below. _Diamond Core Sampling:_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 diametre, 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 Core Sampling:_The collars of the diamond holes were drilled using RC drilling down through the regolith to the point of refusal or to a level considered geologically significant to change to core. The hole was then continued using HQ diamond core until the drillers determined that a change to NQ2 coring was required. 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 diametre 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 recovery Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples.	_Diamond Core Sampling:_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. _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.
	_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. _Diamond Core Sampling:_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.

2

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.	To date, 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. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.	Geological logging is carried out on all drill holes with lithology, alteration, mineralisation, structure and veining recorded.
	Logging of diamond core and RC samples records lithology, mineralogy, mineralisation, structures (core only), weathering, colour and other noticeable features. Core was photographed in both dry and wet form.
	All drill holes are geologically logged in full and detailed litho‐ 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 techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non‐core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub‐ sampling stages to maximise representivity of samples.	_Diamond Core Sampling:_Diamond core was drilled with HQ and NQ2 size and sampled as complete half core to produce a bulk sample for analysis. Intervals selected varied from 0.3 – 1m (maximum) 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. 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 samples are collected in dry form. Samples are collected using cone or riffle splitter when available. Geological logging of RC chips is completed at site with representative chips being stored in drill chip trays.
	RC Sampling: Sample preparation for RC chips follows a standard protocol. 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 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_. _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. _Diamond Core Sampling:_Drill core is cut in half lengthways and the total half‐core submitted as the sample. This meets industry standards where 50% of the total sample taken from the diamond core is submitted.

3

Criteria	JORC Code explanation	Commentary
	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 for Diamond Core. Duplicate RC samples are captured using two separate sampling apertures on the splitter.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	The sample sizes are considered to be appropriate to correctly represent base metal sulphide mineralisation and associated geology based on: the style of mineralisation (massive and disseminated sulphides), the thickness and consistency of the intersections and the sampling methodology.
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.	For RC sampling, a 30 gram sample will be 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 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. 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, spectrometres, handheld XRF instruments, etc, the parametres used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	MLEM: 200m x 200m loops with 50m stations were used for the MLEM surveys. The MLEM TX transmitter uses a base frequency of 0.25 or 0.5Hz and 100amps. The SMARTem 24 is a fluxgate receiver. XRF: 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 metre, however for any core samples with matrix or massive sulphide mineralisation then multiple samples are taken at set intervals per metre. 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.
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie 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 Company’s technical staff.
	The use of twinned holes.	No twinned holes have been planned for the current drill programme.

4

Criteria	JORC Code explanation	Commentary
	Documentation of primary data, data entry	Primary data is captured onto a laptop using acQuire software and
	procedures, data verification, data storage	includes geological logging, sample data and QA/QC information. This
	(physical and electronic) protocols.	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
		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 holes and EM stations have been located and pegged using a
data points	drill holes (collar and down‐hole surveys),	DGPS system with an expected accuracy of +/‐5m for easting,
	trenches, mine workings and other locations	northing and elevation.
	used in Mineral Resource estimation.	Downhole surveys are conducted using a single shot camera
		approximately every 30m or downhole Gyro 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 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	Data spacing for reporting of Exploration	The spacing and distribution of holes is not relevant to the drilling
and	Results.	programs which are at the exploration stage rather than definition
distribution		drilling.
	Whether the data spacing and distribution is	The completed drilling at the Project is not sufficient to establish the
	sufficient to establish the degree of geological	degree of geological and grade continuity to support the definition of
	and grade continuity appropriate for the	Mineral Resource and Reserves and the classifications applied under
	Mineral Resource and Ore Reserve estimation	the 2012 JORC code.
	procedure(s) and classifications applied.
	Whether sample compositing has been applied.	No compositing has been applied to the exploration results.
Orientation of	Whether the orientation of sampling achieves	The drill holes are drilled to intersect the modelled mineralised zones
data in relation	unbiased sampling of possible structures and	at a near perpendicular orientation (unless otherwise stated).
to geological	the extent to which this is known, considering	However, the orientation of key structures may be locally variable
structure	the deposit type.	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 a
security		duly certified assay laboratory for subsampling and assaying. The RC
		sample bags are stored on secure sites and delivered to the assay
		laboratory by the Company or a competent agent. When in transit,
		they are kept in locked premises. Transport logs have been set up to
		track the progress of samples.
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.

5

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 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 five 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 mafic/ultramafic intrusion related Ni‐Cu‐PGE sulphides. 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 metres) of the drill hole collar • Dip and azimuth of the hole • Down hole length and interception depth • Hole length	Drill hole collar locations are shown in the maps and tables included in the body of the relevant ASX releases.
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%.

6

Criteria	JORC Code explanation	Commentary
	Where aggregated intercepts incorporate short	Any high‐grade sulphide intervals internal to broader zones of
	lengths of high grade results and longer lengths	sulphide mineralisation are reported as included intervals.
	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 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	No metal equivalent values are used for reporting exploration
	metal equivalent values should be clearly	results.
	stated.
Relationship	These relationships are particularly important in	Assay intersections are reported as down hole lengths. Drill holes are
between	the reporting of exploration results. If the	planned as perpendicular as possible to intersect the target EM plates
mineralisation	geometry of the mineralisation with respect to	and geological targets so downhole lengths are usually interpreted to
widths and	the drill hole angle is known, its nature should	be near true width.
intercept	be reported. If it is not known and only the down
lengths	hole lengths are reported, there should be a
	clear statement to this effect.
iagrams	Appropriate maps and sections (with scales) and	A prospect location map, cross section and long section are shown
	tabulations of intercepts should be included for	in the body of relevant ASX Releases.
	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	Reports on recent exploration can be found in ASX Releases that are
Reporting	Exploration Results is not practical,	available on our website at www.stgm.com.au:
	representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	The exploration results reported are representative of the mineralisation style with grades and/or widths reported in a consistent manner.
Other	Other exploration data, if meaningful and	All material or meaningful data collected has been reported.
substantive	material, should be reported including (but not
exploration	limited to): geological observation; geophysical
data	survey results; geochemical survey results; bulk
	samples – size and method of treatment;
	metallurgical test results; bulk density,
	groundwater, geotechnical and rock
	characteristics; potential deleterious or
	contaminating substances.
Further Work	The nature and scale of planned further work	A discussion of further exploration work underway is contained in the
	(e.g. tests for lateral extensions or depth	body of recent ASX Releases.
	extensions or large – scale step – out drilling).Diagrams clearly highlighting the areas of possible extensions, including the main	Further exploration will be planned based on ongoing drill results, geophysical surveys and geological assessment of prospectivity.
	geological interpretations and future drilling
	areas, provided this information is not
	commercially sensitive.

7