ST GEORGE MINING LIMITED — Capital/Financing Update 2020

Dec 20, 2020

ASX / MEDIA RELEASE

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21 December 2020

MT ALEXANDER NICKEL-COPPER SULPHIDE PROJECT – EXPLORATION AND DEVELOPMENT UPDATE

DRILLING OF NEW ELECTROMAGNETIC (EM) CONDUCTORS:

• Diamond drilling of strong EM conductors identified from recent downhole EM (DHEM) surveys in MAD185, MAD192 and MAD193 is scheduled to begin within weeks

• Multiple new EM conductors will be tested with the highest priority targets being:  the two conductors identified from the DHEM survey in MAD192 that are modelled with conductivity of 55,550 Siemens and 26,000 Siemens, respectively

• the two conductors identified from the DHEM survey in MAD185 that are modelled with conductivity of 33,100 Siemens and 14,225 Siemens, respectively

• These conductors have an electrical signature consistent with massive sulphides and are ideally situated within the large mafic-ultramafic unit that is known to host massive nickelcopper sulphides in other parts of the Mt Alexander Project

RESOURCE DEFINITION DRILLING TO COMMENCE AT INVESTIGATORS AND CATHEDRALS:

• Reverse circulation (RC) drilling to support a resource estimate of the shallow high-grade mineralisation at both the Investigators and Cathedrals Prospects is scheduled to begin in February 2021

• Drilling at Investigators will include the drilling of a large number of untested EM conductors that represent outstanding targets for locating more massive nickel-copper sulphides

• More than 10,000m of RC drilling is planned in this resource drill programme

POSITIVE RESULTS FROM INTERIM METALLURGICAL TEST WORK FOR STRICKLANDS:

• High metallurgical recoveries achieved in test work completed in Canada on nickel-copper sulphides from the Stricklands Prospect

• Test work shows the oxide and fresh composite is amenable to the production of separate nickel and copper concentrates from conventional flotation circuits

• Further metallurgical test work planned to better optimise the potential mining and processing of ore from Stricklands

• Scoping study for the Stricklands starter mine proposal awaiting final metallurgical test work for completion

ST GEORGE MINING LIMITED ACN 139 308 973 Suite 2, 28 Ord Street West Perth WA 6005 |PO Box 100 West Perth WA 6872 www.stgeorgemining.com.au | Phone +61 8 6118 2118

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ASX / MEDIA RELEASE

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Growth-focused Western Australian nickel company St George Mining Limited (ASX: SGQ ) (“ St George ” or “ the Company ”) is pleased to provide an update on exploration and development activities at its flagship Mt Alexander Project, located in the north-eastern Goldfields.

DRILLING OF NEW EM CONDUCTORS:

DHEM surveys in drill holes MAD185, MAD192 and MAD193 have identified a total of 11 off-hole EM anomalies for follow-up testing.

A diamond drill rig is scheduled to arrive at site in late January 2021 to commence drilling of these exciting targets.

Each of MAD185, MAD192 and MAD193 intersected disseminated nickel-copper sulphides on the basal contact of the same mafic-ultramafic intrusive unit, a positive indication for the potential presence of massive nickel-copper sulphides along strike from these holes.

The first two targets to be drilled in 2021 will be the strongest of the off-hole conductors identified from the DHEM survey in each of MAD192 and MAD185.

These two conductors, modelled with very high conductivity of 55,550 Siemens (MAD192) and 33,100 Siemens (MAD185) respectively, are outstanding targets for the discovery of new massive nickel-copper sulphide mineralisation. The conductors are located down-dip from the two drill holes and known massive sulphides, which is a favourable location for potential larger accumulations of mineralisation at depth.

For further details of the new EM conductors, see our ASX Release dated 3 December 2020 ‘Multiple New EM Conductors at Mt Alexander’.

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Figure 1 – planned drilling and target areas with the new EM conductors (overlying MMR imagery).

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ASX / MEDIA RELEASE

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RESOURCE DEFINITION DRILLING AT INVESTIGATORS AND CATHEDRALS:

An RC resource definition drilling programme has been designed for the Investigators and Cathedrals Prospects. An RC rig is expected to arrive at site in mid-February 2021 to commence the drill-out with more than 10,000m of drilling planned.

At Investigators, drilling will include the testing of at least 20 EM conductors (and potentially more) which have been largely identified from DHEM surveys completed in drill holes at Investigators. These conductors are located between or closely along strike from known nickel-copper sulphides intersected in previous drilling and are interpreted to indicate continuity of the known massive and semi-massive sulphides.

The large number of conductors suggests that a significant volume of nickel-copper sulphide mineralisation is likely to be identified by the drilling of the conductors.

The proposal for a starter mine operation at Mt Alexander envisages that mining will potentially commence at the Stricklands Prospect to be followed by mining at Investigators and Cathedrals. Each of these areas hosts high-grade nickel-copper-cobalt-PGE mineralisation that commences 30m from surface.

In 2020, resource definition drilling was completed at Stricklands to delineate a resource estimate for the shallow high-grade mineralisation discovered there. The drill-out focused only on the shallow mineralisation, between 30m to 100m below surface, and did not include a drill-out of deeper extensions – consistent with the concept of a starter mine that can be executed quickly and for a very low capital cost.

The resource estimate for Stricklands will be finalised once the metallurgical test work for Stricklands is completed. This will allow an accurate estimate of the amount of mineralisation that can be classified as economic ore and enable completion of pit optimisation work.

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Figure 2 – planned drilling and target areas along the Cathedrals Belt (overlying magnetic imagery RTP 1VD).

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ASX / MEDIA RELEASE

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POSITIVE RESULTS FROM INTERIM METALLURGICAL TEST WORK FOR STRICKLANDS:

XPS (Expert Process Solutions), based in Sudbury in Canada, has been mandated to complete detailed test work on the metallurgical performance of the Stricklands mineralisation and to develop a flowsheet for the potential mining and processing of the Stricklands ore.

Multiple metals – nickel, copper, cobalt and PGEs – are comprised in the ore, requiring a very comprehensive range of test work to best optimise the value that can be attained from the processing.

Interim results from the test work are very positive and indicate:

• The combined oxide and fresh composite is amenable to the production of separate nickel and copper concentrates from conventional flotation circuits

• Overall copper recoveries of 91% to 93%

• Overall nickel recoveries of 73% to 84%

• Talc up to 1% to 1.5%, which can be suppressed in the flotation process

The concept for mining at Stricklands envisages an open pit. Material that would be mined in this scenario includes partly oxidised mineralisation (both disseminated and massive) at the top of the deposit followed by fresh sulphide mineralisation (both disseminated and massive) below. This material would represent the Life of Mine (LOM) ore feed.

A master composite sample for metallurgical testing was prepared incorporating all mineralisation types. Test work results have shown that recoveries from the oxidised disseminated mineralisation are poor and therefore this small volume of material is unlikely to be classified as ore.

In light of this result, and despite the low overall volume of expected oxidised disseminated mineralisation – approximately 5% of the overall volume, the master composite sample does not now reflect the true LOM ore.

A new master composite sample needs to be prepared for completion of final test work that will represent the actual LOM feed and allow for a robust and reliable flowsheet to be developed. Some additional metallurgical drill holes will be completed in early 2021 to provide further samples to be shipped to XPS.

Scoping study:

The scoping study for the Stricklands starter mine is progressing well despite a number of delays caused by COVID-19 restrictions in Western Australia and in Canada. The impact included limitations on completing work and have prevented us meeting the initial target of delivering the scoping study in Q4 2020.

Environmental studies have been completed. Final metallurgical test work, and subsequently the resource estimate, are required to complete the scoping study. This information is critical to the mine design and development, the mining production schedules and the completion of financial modelling.

Although this delay is disappointing, it may provide an opportunity to more quickly incorporate the Investigators and Cathedrals deposits into the scoping study and to thereby increase the potential scale and value of the proposed mining operation.

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

“2020 has been a difficult and odd year. Some businesses have been devastated by COVID-19 while others have flourished. Everyone has been required to make adjustments in order to survive in the new world environment.

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ASX / MEDIA RELEASE

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“At St George, we have carefully managed our operations in compliance with COVID-19 regulations to protect the health and safety of our team and service providers.

“Notwithstanding the significant challenges faced by everyone, we have managed to achieve many important milestones in 2020.

“We commenced our deeper drill programme in June this year and completed multiple deep holes – the deepest to 850m. We confirmed the presence of fertile intrusive rocks at depth, giving confidence that the extensive shallow high-grade mineralisation already discovered could also occur at depth.

“We were further rewarded when downhole EM surveys in several deep holes lit up very powerful EM conductors. We have secured a diamond rig for January and look forward to starting 2021 with a new massive sulphide discovery.

“We believe our high-grade nickel-copper sulphides are amongst the best mineralisation discovered in Western Australia with a combination of high-grades of nickel, copper, cobalt and platinum group metals that is unmatched by other discoveries.

“Thorough metallurgical test work is required to develop a flowsheet that can maximise the value of all these metals in a potential mining and processing operation. Positive test work results have been delivered by work in Perth and Canada. The test work will be finalised next year, allowing for completion of a scoping study for a starter mine at Mt Alexander.

“The next year promises to be another exciting one as we continue to unlock the full value of our large, highgrade mineral system. On behalf of the Board of Directors, we thank our shareholders for their support in 2020 and look forward to sharing more success with you in 2021.”

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 six granted exploration licences – E29/638, E29/548, E29/962, E29/954, E29/972 and E29/1041.

The Cathedrals, Stricklands, Investigators and Radar 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.

Authorised for release by the Board of St George Mining Limited.

For further information, please contact: John Prineas Peter Klinger Executive Chairman Media and Investor Relations St George Mining Limited Cannings Purple +61 411 421 253 +61 411 251 540 john.prineas@stgm.com.au pklinger@canningspurple.com.au

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ASX / MEDIA RELEASE

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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.

Disclaimer:

Forward looking statements are statements that are not historical facts. Words such as “expects”, “anticipates”, “believes”, “potential”, “may” and similar expressions are intended to identify forward looking statements. These statements include, but are not limited to, statements regarding future production, resources and reserves and exploration results. All such statements are subject to risks and uncertainties many of which are difficult to predict and generally beyond the control of the company, that could cause actual results to differ materially from those expressed in or implied by the forward looking statements. Investors should not construe forward looking statements as guarantees of future performance due to the inherent uncertainties therein.

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The following section is provided for compliance with requirements for the reporting of exploration results under the JORC Code, 2012 Edition.

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling	Nature and quality of sampling (eg cut channels,	Drilling programmes are completed by Reverse Circulation (RC) and
techniques	random chips, or specific specialised industry	Diamond Core drilling. Downhole Electro‐Magnetics (DHEM) surveys
	standard measurement tools appropriate to the	were completed by Vortex Geophysics.
	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.	_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.
		_DHEM Surveying:_The surveys were conducted using the DigiAtlantis
		system and VTX‐100 transmitter. The readings were recorded at 5m
		intervals with 1m infill down hole.
		The surveys used 400 x 400m loops orientated to magnetic north.
		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.
	Include reference to measures taken to ensure	_RC Sampling:_Samples are taken on a one metre basis and collected
	sample representivity and the appropriate	using uniquely numbered calico bags. The remaining material for that
	calibration of any measurement tools or	metre is collected and stored in a green plastic bag marked with that
	systems used.	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.

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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 diameter face hammer tool. High capacity air compressors on the drill rig are used to ensure a continuously sealed and high‐pressure system during drilling to maximise the recovery of the drill cuttings, and to ensure chips remain dry to the maximum extent possible.
Drill sample 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.

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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.	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.

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Criteria	JORC Code explanation	Commentary
	Measures taken to ensure that the sampling is	Duplicate samples are selected during sampling. Samples comprise
	representative of the in situ material collected,	two quarter core samples for Diamond Core. Duplicate RC samples
	including for instance results for field	are captured using two separate sampling apertures on the splitter.
	duplicate/second‐half sampling.
	Whether sample sizes are appropriate to the	The sample sizes are considered to be appropriate to correctly
	grain size of the material being sampled.	represent 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	The nature, quality and appropriateness of the	For RC sampling, a 30 gram sample will be fire assayed for gold,
assay data and	assaying and laboratory procedures used and	platinum and palladium. The detection range for gold is 1 – 2000
laboratory	whether the technique is considered partial or	ppbAu, and 0.5 – 2000 ppb for platinum and palladium. This is
tests	total.	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	DHEM: The surveys were conducted using the DigiAtlantis system and
	XRF instruments, etc, the parametres used in	VTX‐100 transmitter. The readings were recorded at 5m intervals
	determining the analysis including instrument	with 1m infill down hole. The transmitter produced 96amps and
	make and model, reading times, calibrations	recorded at a frequency of 0.5Hz.
	factors applied and their derivation, etc.	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	Laboratory QAQC involves the use of internal lab standards using
	(eg standards, blanks, duplicates, external	certified reference material (CRMs), blanks and pulp duplicates as
	laboratory checks) and whether acceptable	part of in‐house procedures. The Company also submits a suite of
	levels of accuracy (ie lack of bias) and precision	CRMs, blanks and selects appropriate samples for duplicates.
	have been established.	Sample preparation checks for fineness are performed by the
		laboratory to ensure the grind size of 90% passing 75µm is being
		attained.
Verification of	The verification of significant intersections by	Significant intersections are verified by the Company’s technical
sampling and	either independent or alternative company	staff.
assaying	personnel.
	The use of twinned holes.	No twinned holes have been planned for the current drill
		programme.

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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 MT/AMT stations have been located and pegged using
data points	drill holes (collar and down‐hole surveys),	a 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.

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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%.

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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 atwww.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.

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