ST GEORGE MINING LIMITED — Capital/Financing Update 2019

Mar 6, 2019

7 March 2019

DRILLING OF NICKEL-COPPER SULPHIDE TARGETS – UPDATE

HIGHLIGHTS:

• New conductive targets ready for drilling at the Fairbridge Prospect:
  • Highly chargeable anomalies identified within the 1,000m east-west strike of the Fairbridge Prospect
  • Several anomalies are co-incident with nickel-copper sulphide gossans at surface
  • Interpretation of new geophysical data indicates that the mineralised ultramafic units drilled at the Stricklands and Cathedrals Prospects continue into the Fairbridge area and extend down-plunge to the north
  • Drilling at Fairbridge to commence in the coming days
• Drilling at West End and Investigators Prospects confirms extensions of the Cathedrals Belt:
  • Six drill holes completed at the new West End Prospect with all intersecting the western extension of the fault structure that hosts the mineralised ultramafic within the Cathedrals Belt
  • Four extensional drill holes completed at the Investigators Prospect with disseminated nickel-copper sulphides intersected
• Downhole Electromagnetic (DHEM) surveys underway:
  • DHEM surveys being used concurrently with drilling to identify any conductive targets around completed drill holes
  • Surveys on completed drill holes at West End commenced yesterday
  • Further drilling to be planned for West End and Investigators following a review of the DHEM survey results

Emerging Western Australian nickel company St George Mining Limited (ASX: SGQ) ("St George" or "the Company") is pleased to provide an update on the drilling of nickel-copper sulphide targets at the Mt Alexander Project, located near Leonora in the north Eastern Goldfields.

New geophysical surveys completed at the undrilled Fairbridge Prospect have confirmed several conductive targets that have been prioritised for drilling in the current reverse circulation (RC) drill programme. The targets have electrical signatures consistent with sulphide mineralisation and the potential to be associated with the surface nickel-copper sulphide gossans observed at Fairbridge and/or the highly mineralised ultramafic units drilled at the adjacent Stricklands and Cathedrals Prospects.

St George Mining Executive Chairman, John Prineas said:

"The drill programme at Mt Alexander is now in full-swing with 10 drill holes completed and downhole EM surveys also underway.

"Initial drill results are encouraging and have identified extensions to the Cathedrals Belt. Downhole EM surveys in the completed holes will assist in exploring for further nickel-copper sulphides within the Belt.

"The new conductive targets at the Fairbridge Prospect are particularly exciting with final modelling of these targets giving us confidence in the potential of further exploration success in our first ever drilling at Fairbridge – scheduled to commence next week."

FAIRBRIDGE PROSPECT – CONDUCTIVE TARGETS IDENTIFIED WITHIN MINERALISED CORRIDOR

The Fairbridge Prospect covers a 1,000m east-west strike of the Cathedrals Belt, and is abutted by the Stricklands Prospect in the west and the Cathedrals Prospect in the east.

Significant discoveries of nickel-copper sulphides have been made by St George at the Stricklands and Cathedrals Prospects but Fairbridge remains undrilled. Numerous nickel-copper sulphide gossans have been identified at Fairbridge making it a compelling area for further exploration.

St George has recently completed an extensive surface geophysical programme at Fairbridge which included high resolution Magneto-Metric Resistivity (MMR) and Induced Polarisation (IP) surveys. A review of previous surface EM data, including data from the 2017 fixed loop SAMSON survey, was also completed.

Modelling and interpretation of the geophysical data by Newexco in conjunction with our technical team has identified a number of highly prospective targets at Fairbridge that warrant priority testing. Figure 1 is a map of the Fairbridge area that illustrates these new targets.

Continuity of Mineralised Corridor:

The MMR data has accurately mapped the Cathedrals Fault, which is the structure that bounds the mineralised corridor of the Cathedrals Belt. The Fault is shown as continuing through the Fairbridge area.

In addition, the MMR data is interpreted to have identified the mineralised ultramafic stratigraphy drilled at the adjacent Stricklands and Cathedrals Prospects with significant extensions of the ultramafic into the Fairbridge area. These extensions of the ultramafic are high priority targets for potential nickel-copper sulphide mineralisation.

The Stricklands ultramafic can be traced to the east of the known nickel-copper sulphide mineralisation at Stricklands for 200m into the Fairbridge area. The ultramafic extending into Fairbridge appears to be faulted, creating two distinct units. A large conductive feature has also been identified from the MMR data approximately 500m down dip to the north of the known nickel-copper sulphide mineralisation at Stricklands.

At the Cathedrals Prospect, the MMR data has mapped the lower ultramafic unit as extending west into Fairbridge for approximately 100-150m, and at depth to the north for approximately 120m beyond the limit of current drilling.

Highly Chargeable Anomalies for Drilling:

The IP survey at Fairbridge was planned to complement the MMR data, and designed to identify any chargeable material that the previous surface EM surveys failed to detect – due potentially to the size of the conductive bodies, complex geometry, equipment constraints and/or poor coupling.

Interpretation of the data from the new IP survey has successfully defined a series of highly chargeable anomalies that may represent sulphide mineralisation. The anomalies may potentially be associated with the sulphide gossans observed at Fairbridge, with several anomalies situated below these gossans.

Chargeable anomalies have also been identified as coincident with the extensions of the mineralised ultramafics from Stricklands and Cathedrals identified by the MMR data, giving additional support to the strong prospectivity of these targets.

An interesting chargeable body was also identified by the IP survey to the north of the Stricklands Prospect, and at a depth of approximately 200m. The target is down plunge of the known sulphide mineralisation at Stricklands and favourably located on the edge of a large magnetic feature that lies within the Cathedrals Fault Corridor. This chargeable anomaly is also coincident with a weak EM anomaly that was defined in the 2017 SAMSON FLEM survey.

Figure 1 – map of the Fairbridge Prospect highlighting new geophysical targets for drill testing (set against X component Channel 28 MMR data overlaying RTP magnetics).

Figure 2 – map of the Fairbridge Prospect showing IP (chargeability) depth slice at 125RL (~300m from surface) and the location of section A-A shown in Figure 3 below (set against RTP magnetics).

Figure 3 – Section A-A looking west along 233700E at the western margin of the Cathedrals Prospect showing interpreted ultramafic and nickel-copper sulphide mineralisation (from drilling data), existing drill holes (depth in metres) and IP (Chargeability) 3D iso-shells (>10mV/V).

Drilling at Fairbridge:

Drill holes have been designed to test the discrete chargeable bodies outlined above. In addition, a series of drill holes will be completed across the Fairbridge area to further investigate for extensions of the mineralised ultramafic and potential nickel-copper sulphide mineralisation.

Planned drill holes are shown in Table 2 below. Drilling at Fairbridge is scheduled to commence soon.

DRILLNG UNDERWAY

Ten drill holes have been completed in the current RC drill programme. Table 1 lists the completed holes, which are at the West End and Investigators Prospects.

Table 2 lists the remaining planned drill holes for the RC drill programme, in the proposed order of drilling. These planned holes may change in response to ongoing exploration results.

West End Prospect:

The aim of the initial drilling at the West End Prospect is to test for sulphide mineralisation to the west of the discoveries at the Investigators Prospect by first identifying the fault structure that bounds the mineralised ultramafic of the Cathedrals Belt, and then using DHEM surveys to explore for conductive material that may represent further nickel-copper sulphide mineralisation.

Six drill holes in three lines have been completed at West End (see Figure 4). All drill holes intersected the fault structure, providing support for the interpretation that the mineralised corridor of the Cathedrals Belt could continue for a significant distance westwards from Investigators.

The drill holes encountered mafic intrusive rocks, felsic intrusives and highly altered granitic host rocks. The intrusive rocks are interpreted to be associated with the deep-seated Cathedrals Fault, the major eastwest structure that is believed to have been a control on the formation and distribution of the nickelcopper sulphide bearing ultramafics in the Cathedrals Belt.

The extensive nature of the intrusive rocks and host structure supports the interpretation of a large intrusive mineral system at the Cathedrals Belt, with such systems typically being associated with mineral deposits at depth.

DHEM surveys will now be completed in the six drill holes to screen the fault corridor for sulphide mineralisation. Additional drill holes will be planned following a review of the DHEM data to extend drilling towards the west and up to the Ida Fault.

Investigators Prospect:

Four RC drill holes have been completed on the margins of the Investigators Prospect to test for extensions of the known mineralisation.

One drill hole (MARC080) encountered a thick interval of ultramafic rocks with approximately 5m of disseminated sulphides (pyrrhotite/pentlandite/chalcopyrite) from 101m downhole. This drill hole, located down dip from known nickel-copper sulphides at Investigators West, has extended the mineralised envelope at Investigators.

Figure 4 - Map of the completed drilling to date at the West End and Investigators Prospects. The drilling is set against SAMSON FLEM CH20 and RTP magnetic data.

All completed drill holes are cased with PVC to allow completion of DHEM surveys to assist with the identification of any massive or network-textured sulphide mineralisation around the drill hole.

The DHEM crew have begun surveying the West End drill holes.

Other than MARC080, sulphide mineralisation was not observed in the drill chips for the completed drill holes. Samples from selected sections of each drill hole have been sent to the laboratory for assaying.

Figure 5 - map of the tenement package at Mt Alexander set against RTP magnetic data, showing the key prospects and targets under exploration.

Hole ID	Prospect	East	North	RL	Depth	Azimuth	Dip
MARC074	West End	230700	6806368	420	144	-60	180
MARC075	West End	230701	6806454	418	197	-60	180
MARC076	West End	230600	6806360	420	148	-60	180
MARC077	West End	230600	6806460	414	197	-60	180
MARC078	West End	230500	6806360	419	155	-60	180
MARC079	West End	230500	6806461	419	212	-60	180
MARC080	Investigators	230826	6806356	418	148	-60	180
MARC081	Investigators	230929	6806401	420	148	-60	180
MARC082	Investigators	231238	6806364	420	148	-60	180
MARC083	Investigators	231314	6806353	422	148	-60	180

Table 1 – Table of completed drill holes

PlannedHoleID	Prospect	East	North	RL	Depth	Azimuth	Dip
CWRC1	Cathedrals West	233645	6806987	421	175	190	-70
CWRC2	Cathedrals West	233661	6807063	420	250	190	-65
CWRC3	Cathedrals West	233515	6807048	420	250	190	-70
CWRC4	Cathedrals West	233590	6807003	420	175	190	-70
CWRC5	Cathedrals West	233599	6807060	420	200	190	-70
FBRC10	Fairbridge	232808	6806711	420	150	155	-60
FBRC11	Fairbridge	232953	6806751	420	120	180	-60
FBRC3	Fairbridge	233090	6806700	439	200	335	-50
FBRC4	Fairbridge	233163	6806730	436	200	335	-50
FBRC5	Fairbridge	233255	6806770	432	200	335	-50
FBRC6	Fairbridge	233352	6806800	430	200	335	-50
FBRC7	Fairbridge	233446	6806830	428	200	335	-50
IVRC10	Investigators	232174	6806520	433	150	180	-60
IVRC11	Investigators	232256	6806490	439	100	180	-60
IVRC12	Investigators	232355	6806550	443	100	180	-60
IVRC13	Investigators	230775	6806452	423	200	180	-60
IVRC7	Investigators	231871	6806500	427	150	180	-60
IVRC8	Investigators	231964	6806490	429	150	180	-60
SLRC1	Sultans	238491	6799020	460	250	250	-60
SLRC4	Sultans	238419	6799040	461	200	250	-60
SLRC7	Sultans	238529	6798920	460	300	250	-60
SLRC8	Sultans	238497	6798810	460	200	250	-60
SNRC1	Stricklands	232880	6807176	423	250	180	-65
WMRC6	Wills More	239032	6797610	459	350	250	-60
WMRC7	Wills More	238991	6797680	459	300	250	-60

Table 2 – Summary of drill hole details for planned drilling in remainder of the RC program.

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 Executive Chairman St George Mining Limited +61 (0) 411 421 253 John.prineas@stgm.com.au

Peter Klinger Media and Investor Relations Cannings Purple +61 (0) 411 251 540 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.

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
Samplingtechniques	Nature and quality ofsampling (eg cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments,etc). These examples should not be taken aslimiting the broad meaning of sampling.	Drilling programmes are completed by reverse circulation (RC)drilling and diamond core drilling.
		Diamond Core Sampling: The sections of the core that are selectedfor assaying are marked up and then recorded on a sample sheet forcutting and sampling at the certified assay laboratory. Samples of HQor NQ2 core are cut just to the right of the orientation line whereavailable using a diamond core saw, with half core sampledlengthways for assay.
		RC Sampling: Allsamplesfrom the RC drilling are taken as 1m samplesfor laboratory assaying.
		Appropriate QAQC samples (standards, blanks and duplicates) areinserted into the sequences as per industry best practice. Samples arecollected using cone or riffle splitter. Geological logging of RC chips iscompleted at site with representative chips being stored in drill chiptrays.
		Onsite XRF analysis is conducted on the fines from RC chips using ahand‐held Olympus Innov‐X Spectrum Analyser. These results areused for onsite interpretation and preliminary assessment subject tofinal geochemical analysis by laboratory assays.
	Include reference to measures taken to ensuresamplerepresentivityandtheappropriatecalibrationofanymeasurementtoolsorsystems used.	RC Sampling: Samples are taken on a one metre basis and collectedusing uniquely numbered calico bags. The remaining material for thatmetre is collected and stored in a green plastic bag marked with thatspecific metre interval. The cyclone is cleaned with compressed airafter each plastic and calico sample bag is removed. If wet sample orclays are encountered then the cyclone is opened and cleanedmanually and with the aid of a compressed air gun. A blank sample isinserted at the beginning of each hole, and a duplicate sample istaken every 50th sample. A certified sample standard is also addedaccording to geology, but at no more than 1:50 samples.
		A large auxiliary compressor ("air‐pack") is mounted on a separatetruck and the airstream is connected to the rig. This provides anaddition to the compressed air supplied by the in‐built compressorsmounted on the drill rig itself. This auxiliary compressor maximisesthe sample return through restricting air pressure loss, especially indeeper holes.
		Geological logging of RC chipsis completed atsite with representativechips being stored in drill chip trays. Downhole surveys of dip andazimuth are conducted using a single shot camera every 30m, andusing a downhole Gyro when required, to detect deviations of thehole from the planned dip and azimuth. The drill‐hole collar locationsare recorded using a hand‐held GPS, which has an accuracy of +/‐ 5m.All drill‐hole collars will be surveyed to a greater degree of accuracyusing a certified surveyor at a later date.
		Diamond Core Sampling: For diamond core samples, certified sample25thstandardswereaddedaseverysample.Corerecoverycalculations are made through a reconciliation of the actual core andthe driller's records. Downhole surveys of dip and azimuth wereconducted using a single shot camera every 30m to detect deviationsof the hole from the planned dip and azimuth. The drill‐hole collarlocations are recorded using a hand‐held GPS, which has an accuracyof +/‐ 5m. All drill‐hole collars will be surveyed to a greater degree ofaccuracy using a certified surveyor at a later date.

Criteria	JORC Code explanation	Commentary
	Aspects of the determination of mineralisationthat are Material to the Public Report.In cases where 'industry standard' work hasbeen done this would be relatively simple (eg	RC Sampling: A 1m composite sample is taken from the bulk sampleof RC chips that may weigh in excess of 40 kg. Each sample collectedfor assay typically weighs 2‐3kg, and once dried, is prepared for thelaboratory as per the Diamond samples below.
	'reverse circulation drilling was used to obtain 1m samples from which 3 kg was pulverised toproduce a 30 g charge for fire assay'). In othercases more explanation may be required, suchas where there is coarse gold that has inherentsampling problems. Unusual commodities ormineralisation types (eg submarine nodules)may warrant disclosure of detailed information.	Diamond Core Sampling: Diamond core (both HQ and NQ2) is half‐core sampled to geological boundaries no more than 1.5m and no lessthan 10cm. Samples less than 3kg are crushed to 10mm, dried andthen pulverised to 75µm. Samples greater than 3kg are first crushedto 10mm then finely crushed to 3mm and input into the rotarysplitters to produce a consistent output weight for pulverisation.
		Pulverisationproducesa40gchargeforfireassay.Elementsdetermined from fire assay are gold (Au), platinum (Pt) and palladium(Pd)witha1ppbdetectionlimit.TodetermineotherPGEconcentrations (Rh, Ru, Os, Ir) a 25g charge for nickel sulphide collectfire 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 digestedwith nitric, hydrochloric, hydrofluoric and perchloric acids to effect asnear to total solubility of the sample as possible. The sample is thenanalysed using ICP‐AES or ICP‐MS.
		LOI (Loss on Ignition) will be completed on selected samples todetermine the percentage of volatiles released during heating ofsamples to 1000°C.
Drillingtechniques	Drill type (eg core,reverse circulation, open‐holehammer, rotary air blast, auger, Bangka, sonic,etc) and details (eg core diametre, triple orstandard tube, depth of diamond tails, face‐sampling bit or other type, whether core is	Diamond Core Sampling: The collars of the diamond holes weredrilled using RC drilling down through the regolith to the point ofrefusal or to a level considered geologically significant to change tocore. The hole was then continued using HQ diamond core until thedrillers determined that a change to NQ2 coring was required.
	oriented and if so, by what method, etc).	The core is oriented and marked by the drillers. The core is orientedusing ACT Mk II electric core orientation.
		RC Sampling: The RC drilling uses a 140 mm diametre face hammertool. High capacity air compressors on the drill rig are used to ensurea continuously sealed and high pressure system during drilling tomaximise the recovery of the drill cuttings, and to ensure chipsremain dry to the maximum extent possible.
Drill samplerecovery	Method of recording and assessing core andchip sample recoveries and results assessed.	Diamond Core Sampling: Diamond core recoveries are recordedduring drilling and reconciled during the core processing andgeological logging. The core length recovered is measured for eachrun and recorded which is used to calculate core recovery as apercentage.
		RC Sampling: RC samples are visually checked for recovery, moistureand contamination. Geological logging is completed at site withrepresentative RC chips stored in chip trays.
	Measures taken to maximise sample recoveryand ensure representative nature of thesamples.	RC Sampling: Samples are collected using cone or riffle splitter.Geological logging of RC chipsis completed atsite with representativechips being stored in drill chip trays.
		Diamond Core Sampling: Measures taken to maximise core recoveryinclude using appropriate core diametre and shorter barrel lengththrough the weathered zone, which at Cathedrals and Investigatorsismostly <20m and Stricklands <40m depth. Primary locations for coreloss in fresh rock are on geological contacts and structural zones, and

Criteria	JORC Code explanation	Commentary
		drill techniques are adjusted accordingly, and if possible these zonesare predicted from the geological modelling.
	Whether a relationship exists between samplerecovery and grade and whether sample biasmay have occurred due to preferential loss/gain	To date, no sample recovery issues have yet been identified thatwould impact on potential sample bias in the competent fresh rocksthat host the mineralised sulphide intervals.
	of fine/coarse material.	Thenatureofmagmaticsulphidedistributionhostedbythecompetent and consistent rocks hosting any mineralised intervals areconsidered to significantly reduce any possible issue of sample biasdue to material loss or gain.
Logging	Whether core and chip samples have beengeologically and geotechnically logged to a levelofdetailtosupportappropriateMineralResourceestimation,miningstudiesandmetallurgical studies.	Geological logging is carried out on all drill holes with lithology,alteration, mineralisation, structure and veining recorded.
	Whether logging is qualitative or quantitative innature.Core(orcostean,channel,etc)photography.	LoggingofdiamondcoreandRCsamplesrecordslithology,mineralogy, mineralisation,structures(core only), weathering, colourand other noticeable features. Core was photographed in both dryand wet form.
	The total length and percentage of the relevantintersections logged.	All drill holes are geologically logged in full and detailed litho‐geochemical information is collected by the field XRF unit. The datarelating to the elements analysed is used to determine furtherinformation regarding the detailed rock composition.
Sub‐samplingtechniques andsamplepreparation	If core, whether cut or sawn and whetherquarter, half or all core taken.	Diamond Core Sampling: Diamond core was drilled with HQ and NQ2size and sampled as complete half core to produce a bulk sample foranalysis. Intervals selected varied from 0.3 – 1m (maximum) The HQand NQ2 core is cut in half length ways just to the right of theorientation line where available using a diamond core saw. Allsamples are collected from the same side of the core wherepracticable.
		Assay preparation procedures ensure the entire sample is pulverisedto 75 microns before the sub‐sample is taken. This removes thepotential for the significant sub‐sampling bias that can be introducedat this stage.
	If non‐core, whether riffled, tube sampled,rotary split, etc and whether sampled wet ordry.	RC samples are collected in dry form. Samples are collected usingcone or riffle splitter when available. Geological logging of RC chips iscompleted at site with representative chips being stored in drill chiptrays.
	For all sample types, the nature, quality andappropriateness of the sample preparation	RC Sampling: Sample preparation for RC chips follows a standardprotocol.
	technique.	The entire sample is pulverised to 75µm using LM5 pulverising mills.Samples are dried, crushed and pulverized to produce a homogenousrepresentative 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 ofsamples.	Quality control procedures include submission of Certified ReferenceMaterials (standards), duplicates and blanks with each sample batch.QAQC results are routinely reviewed to identify and resolve anyissues.
		RC Sampling: Field QC procedures maximise representivity of RCsamples and involve the use of certified reference material as assaystandards, along with blanks, duplicates and barren washes.
		Diamond Core Sampling: Drill core is cut in half lengthways and thetotalhalf‐coresubmittedasthesample. Thismeetsindustry

Criteria	JORC Code explanation	Commentary
		standards where 50% of the total sample taken from the diamondcore is submitted.
	Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second‐half sampling.	Duplicate samples are selected during sampling. Samples comprisetwo quarter core samples for Diamond Core. Duplicate RC samplesare captured using two separate sampling apertures on the splitter.
	Whether sample sizes are appropriate to thegrain size of the material being sampled.	The sample sizes are considered to be appropriate to correctlyrepresent base metal sulphide mineralisation and associated geologybased on: the style of mineralisation (massive and disseminatedsulphides), the thickness and consistency of the intersections and thesampling methodology.
Quality ofassay data andlaboratorytests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.	For RC sampling, a 30 gram sample will be fire assayed for gold,platinum and palladium. The detection range for gold is 1 – 2000ppbAu, and 0.5 – 2000 ppb for platinum and palladium. This isbelieved to be an appropriate detection level for the levels of theseelements within this specific mineral environment. However, shouldAu, Pt or Pd levels reported exceed these levels; an alternative assaymethod 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 andperchloric acids to effect as near to total solubility of the sample aspossible. The solution containing samples of interest, including thosethat need further review, will then be presented to an ICP‐OES for thefurther quantification of the selected elements.
		Diamond core samples are analysed for Au, Pt and Pd using a 40g leadcollection fire assay; for Rh, Ru, Os, Ir using a 25g nickel sulphidecollection 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 digestand ICP‐AES or MS finish. The assay method and detection limits areappropriate for analysis of the elements required.
	For geophysical tools, spectrometres, handheldXRF instruments, etc, the parametres used indetermining the analysis including instrumentmake and model, reading times, calibrationsfactors applied and their derivation, etc.	A handheld XRF instrument (Olympus Innov‐X Spectrum Analyser) isused to systematically analyse the drill core and RC sample pilesonsite. One reading is taken per metre, however for any core sampleswith matrix or massive sulphide mineralisation then multiple samplesare taken atset intervals per metre. The instruments are serviced andcalibrated at least once a year. Field calibration of the XRF instrumentusing standards is periodically performed (usually daily).
		The handheld XRF results are only used for preliminary assessmentand reporting of element compositions, prior to the receipt of assayresults from the certified laboratory.
	Nature of quality control procedures adopted(egstandards,blanks,duplicates,externallaboratorychecks)andwhetheracceptablelevels of accuracy (ie lack of bias) and precision	Laboratory QAQC involves the use of internal lab standards usingcertified reference material (CRMs), blanks and pulp duplicates aspart of in‐house procedures. The Company also submits a suite ofCRMs, blanks and selects appropriate samples for duplicates.
	have been established.	Sample preparation checks for fineness are performed by thelaboratory to ensure the grind size of 90% passing 75µm is beingattained.
Verification ofsampling andassaying	The verification of significant intersections byeitherindependentoralternativecompanypersonnel.	Significant intersections are verified by the Company's TechnicalDirector and Consulting Field Geologist.
	The use of twinned holes.	No twinned holes have been planned for the current drillprogramme.

Criteria	JORC Code explanation	Commentary
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Primary data is captured onto a laptop using acQuire software andincludes geological logging,sample data and QA/QC information. Thisdata, together with the assay data, is entered into the St GeorgeMiningcentralSQLdatabasewhichismanagedbyexternalconsultants.
	Discuss any adjustment to assay data.	No adjustments or calibrations will be made to any primary assay datacollected for the purpose of reporting assay grades and mineralisedintervals. For the geological analysis, standards and recognisedfactors may be used to calculate the oxide form assayed elements, orto calculate volatile free mineral levels in rocks.
Location ofdata points	Accuracy and quality of surveys used to locatedrillholes(collaranddown‐holesurveys),	Drill holes have been located and pegged using a DGPS system withan expected accuracy of +/‐5m for easting, northing and elevation.
	trenches, mine workings and other locationsused in Mineral Resource estimation.	Downholesurveysare conductedusingasingleshotcameraapproximately every 30m or dowhole Gyro during drilling to recordand monitor deviations of the hole from the planned dip and azimuth.Post‐drilling downhole gyroscopic surveys will be conducted, whichprovide 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 individualcollar locations and entered into the central database. Atopographic surface has been created using this elevation data.
Data spacinganddistribution	Data spacing for reporting of ExplorationResults.	The spacing and distribution of holes is not relevant to the drillingprograms which are at the exploration stage rather than definitiondrilling.
	Whether the data spacing and distribution issufficient to establish the degree of geologicalandgradecontinuityappropriatefortheMineral Resource and Ore Reserve estimationprocedure(s) and classifications applied.	The completed drilling at the Project is not sufficient to establish thedegree of geological and grade continuity to support the definition ofMineral Resource and Reserves and the classifications applied underthe 2012 JORC code.
	Whether sample compositing has been applied.	No compositing has been applied to the exploration results.
Orientation ofdata in relationto geologicalstructure	Whether the orientation of sampling achievesunbiased sampling of possible structures andthe extent to which this is known, consideringthe deposit type.	The drill holes are drilled to intersect the modelled mineralised zonesat a near perpendicular orientation (unless otherwise stated).However, the orientation of key structures may be locally variableand any relationship to mineralisation has yet to be identified.
	If the relationship between the drillingorientation and the orientation of keymineralised structures is considered to haveintroduced a sampling bias, this should beassessed and reported if material.	No orientation based sampling bias has been identified in the datato date.
Samplesecurity	The measures taken to ensure sample security.	Chain of Custody is managed by the Company until samples pass to aduly certified assay laboratory for subsampling and assaying. The RCsample bags are stored on secure sites and delivered to the assaylaboratory by the Company or a competent agent. When in transit,they are kept in locked premises. Transport logs have been set up totrack the progress of samples. The chain of custody passes upondelivery of the samples to the assay laboratory.
Audits orreviews	The results of any audits or reviews of samplingtechniques and data.	Sampling techniques and procedures are regularly reviewedinternally, as is data. To date, no external audits have beencompleted on the drilling programme.

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

Criteria	JORC Code explanation	Commentary
MineralTenement andLand Status	Type, name/reference number, location andownership including agreements or materialissues with third partiesincluding joint ventures,partnerships, overriding royalties, native titleinterests, historical sites, wilderness or nationalpark and environmental settings.	The Mt Alexander Project is comprised of five granted ExplorationLicences(E29/638,E29/548,E29/954,E29/962andE29/972).Tenement E29/638 is held in Joint Venture between St George (75%interest) and Western Areas(25% interest). E29/638 and E29/548 arealso subject to a royalty in favour of a third party that is outlined inthe ASX Release dated 17 December 2015 (as regards E29/638) andthe ASX release dated 18 September 2015 (as regards E29/548).
	The security of the tenure held at the time ofreporting along with any known impedimentstoobtaining a licence to operate in the area.	No environmentally sensitive sites have been identified on thetenements. A registered Heritage site known as Willsmore 1 (DAAidentification 3087) straddles tenements E29/548 and E29/638. Allfive tenements are in good standing with no known impediments.
ExplorationDone by OtherParties	Acknowledgment and appraisal of explorationby other parties.	Exploration on tenements E29/638 and E29/962 has been largely forkomatiite‐hosted nickel sulphides in the Mt Alexander GreenstoneBelt. 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 hasbeen identified on E29/954 or E29/972.
		High grade nickel‐copper‐PGE sulphides were discovered at the MtAlexander Project in 2008. Drilling was completed to test co‐incidentelectromagnetic (EM) and magnetic anomalies associated withnickel‐PGE enriched gossans in the northern section of currenttenement E29/638. The drilling identified high grade nickel‐coppermineralisation in granite‐hosted ultramafic units and the discoverywas named the Cathedrals Prospect.
Geology	Deposit type, geological setting and style ofmineralisation	The Mt Alexander Project is at the northern end of a westernbifurcation of the Mt Ida Greenstones. The greenstones are bound tothe west by the Ida Fault, a significant Craton‐scale structure thatmarks the boundary between the Kalgoorlie Terrane (and EasternGoldfields Superterrane) to the east and the Youanmi Terrane to thewest.
		The Mt Alexander Project is prospective for further high‐gradekomatiite‐hosted nickel‐copper‐PGE mineralisation (both greenstoneand granite hosted) and also precious metal mineralisation (i.e.orogenic gold) that is typified elsewhere in the Yilgarn Craton.
Drill holeinformation	A summary of all information material to theunderstandingoftheexplorationresultsincludingtabulationofthefollowinginformation for all Material drill holes:• Easting and northing of the drill hole collar•Elevation or RL (Reduced Level – elevationabove 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 includedin the body of the relevant ASX releases.
Dataaggregationmethods	InreportingExplorationResults,weightingaveragingtechniques,maximumand/orminimum grade truncations (e.g. cutting of high	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.
	grades) and cut‐off grades are usually Materialand should be stated.	For massive sulphide intersections, the nominal lower cut‐off is 2%for either nickel or copper. For disseminated, blebby and matrixsulphide intersections the nominal lower cut‐off for nickel is 0.3%.

Criteria	JORC Code explanation	Commentary
	Where aggregated intercepts incorporate shortlengths of high grade results and longer lengthsof low grade results, the procedure used forsuchaggregation should be stated and some typicalexamples ofsuch aggregationsshould be shownin detail.The assumptions used for any reporting of	Any high‐grade sulphide intervals internal to broader zones ofsulphide mineralisation are reported as included intervals.Any disseminated, matrix, brecciated or stringer sulphides with(usually) >1% nickel or copper on contact with massive sulphidemineralisation are grouped with the massive sulphides forcalculating significant intersections and the massive sulphidemineralisation is reported as an including intersection.No metal equivalent values are used for reporting exploration
	metal equivalent values should be clearlystated.	results.
Relationshipbetweenmineralisationwidths andinterceptlengths	These relationships are particularly important inthe reporting of exploration results. If thegeometry of the mineralisation with respect tothe drill hole angle is known, its nature shouldbe reported. If it is not known and only the downhole lengths are reported, there should be aclear statement to this effect.	Assay intersections are reported as down hole lengths. Drill holes areplanned as perpendicular as possible to intersect the target EM platesand geological targets so downhole lengths are usually interpreted tobe near true width.
iagrams	Appropriate maps and sections(with scales) andtabulations of intercepts should be included forany significant discovery being reported. Theseshould include, but not be limited to a planeviewofdrillholecollarlocationsandappropriate sectional views.	A prospect location map, cross section and long section are shownin the body of relevant ASX Releases.
BalancedReporting	WherecomprehensivereportingofallExplorationResultsisnotpractical,representative reporting of both low and highgrades and/or widths should be practiced toavoidmisleadingreportingofExplorationResults.	Reports on recent exploration can be found in ASX Releases that areavailable on our website at www.stgm.com.au:Theexplorationresultsreportedarerepresentativeofthemineralisationstylewithgradesand/orwidthsreported inaconsistent manner.
Othersubstantiveexplorationdata	Otherexplorationdata,ifmeaningfulandmaterial, should be reported including (but notlimited to): geological observation; geophysicalsurvey results; geochemical survey results; bulksamples–sizeandmethodoftreatment;metallurgicaltestresults;bulkdensity,groundwater,geotechnicalandrockcharacteristics;potentialdeleteriousorcontaminating substances.	All material or meaningful data collected has been reported.
Further Work	The nature and scale of planned further work(e.g.testsforlateralextensionsordepthextensionsorlarge–scalestep–outdrilling).Diagrams clearly highlighting the areasofpossibleextensions,includingthemaingeological interpretations and future drillingareas,providedthisinformationisnotcommercially sensitive.	A discussion of further exploration work underway is contained in thebody of recent ASX Releases.Further exploration will be planned based on ongoing drill results,geophysical surveys and geological assessment of prospectivity.