ST GEORGE MINING LIMITED — Capital/Financing Update 2020

May 6, 2020

ASX / MEDIA RELEASE

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7 May 2020

ST GEORGE SECURES FUNDING TO ADVANCE HIGH-GRADE MT ALEXANDER NICKEL-COPPER SULPHIDE PROJECT

 Capital raising underway with:

• $3.6 million secured via a strongly supported placement of new shares to institutional and high net worth resources investors

• Arrangements to offer shares to existing shareholders at the same placement price being considered

• Fully funded for next phase of aggressive, strategic exploration programme:

  • Multi-rig drill campaign at Mt Alexander to commence this month

  • Targeting new high-grade nickel sulphide discoveries

  • Mine development studies continuing

Growth focused Western Australian nickel company St George Mining Limited (ASX: SGQ ) (“ St George ” or “ the Company ”) is pleased to announce that it has launched a capital raising to secure new funding to support ongoing exploration activities at its high-grade Mt Alexander nickel-copper sulphide project, near Leonora in the Goldfields.

Commitments have been received to raise approximately $3.6 million under a private placement through the issue of new shares at $0.08 per share ( Placement ).

The Placement was heavily oversubscribed, reflecting the strong investor interest created by the Company’s ongoing exploration success at Mt Alexander.

St George is also considering inviting shareholders to participate in capital raising to potentially raise an additional $1.6 million at the same price as the Placement. Further details will be announced shortly.

The new funds raised under the Placement will allow St George to aggressively continue exploration and development study activities at the Mt Alexander Project, with the next major drill programme scheduled to start later this month.

John Prineas, St George Mining Executive Chairman said:

“The Placement will provide St George with a strong balance sheet that allows us to vigorously advance the exciting exploration and development opportunity at the Mt Alexander Project.

“We believe that Mt Alexander is shaping as Australia’s next nickel sulphide mine development with the discovery to date of four high-grade deposits and successful exploration work continuing in underexplored areas of the large high-grade mineral system.

“In particular, the deeper conductive features recently identified at the Cathedrals Belt are exciting targets for the discovery of new nickel-copper sulphides. Drilling at Mt Alexander is scheduled to resume at the end of this month with these targets prioritised for immediate drilling.

“We are committed to continuing to create substantial shareholder value through exploration success and thank existing and new shareholders for recognising the strong upside of Mt Alexander.”

ST GEORGE MINING LIMITED ACN 139 308 973 Suite 2, 28 Ord Street West Perth WA 6005 | www.stgeorgemining.com.au Phone +61 8 9322 6600 | Facsimile +61 8 9322 6610

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ASX / MEDIA RELEASE

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Placement:

Commitments have been obtained for the Placement of a total of 45,277,814 shares at $0.08 per share to raise $3,622,225.

The shares to be issued under the Placement fall within the Company’s 15% placement capacity under ASX Listing Rule 7.1 and 10% placement capacity under ASX Listing Rule 7.1A and will be placed pursuant to Section 708 of the Corporations Act 2001. All of the shares to be issued under the Placement will rank pari passu with existing ordinary shares.

Argonaut Securities, Bell Potter Securities and Canaccord Genuity acted as Joint Lead Managers to the Placement.

Shareholder Offer:

The Company is considering undertaking an offer to shareholders to enable them to also acquire shares at the same issue price as the Placement ( Shareholder Offer ), and to potentially raise an additional amount of $1.6 million.

Further details of any Shareholder Offer will be announced in due course. Any Shareholder Offer will be subject to any necessary regulatory and shareholder approvals.

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On left: Photo of the St George team at Mt Alexander inspecting drill core from MAD152 – the discovery hole at the Radar Prospect. From left to right: Dave O’Neill (St George Exploration Manager), Charles Wilkinson (St George Technical Consultant), John Prineas and Matthew Keane (Argonaut Research Analyst). Drilling at Mt Alexander is set to resume later this month.

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ASX / MEDIA RELEASE

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About the Mt Alexander Project:

St George has made multiple discoveries of high-grade nickel-copper-cobalt-PGE mineralisation across a 5.5km strike of the Cathedrals Belt, a large fertile belt that is interpreted to extend over 16km within the area of the Mt Alexander Project.

The Project is located 120km south-southwest of the Agnew-Wiluna Belt, which hosts numerous world-class nickel deposits. The area of the Project comprises five granted exploration licences – E29/638, E29/548, E29/962, E29/954 and E29/972.

The Cathedrals, Stricklands, Investigators and Radar high-grade 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 Executive Chairman St George Mining Limited +61 411 421 253 john.prineas@stgm.com.au

Peter Klinger Media and Investor Relations Cannings Purple +61 411 251 540 pklinger@canningspurple.com.au

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