ST GEORGE MINING LIMITED — Capital/Financing Update 2021

Jun 7, 2021

8 June 2021

MAIDEN DRILLING CAMPAIGN BEGINS AT PATERSON PROJECT

• 10,000m reverse circulation (RC) drill programme has commenced at St George's 100% owned Paterson Project, in WA's highly prospective Paterson region
• Drilling is focused on high-priority copper and gold targets generated by magnetic and gravity geophysical surveys
• Project area has never been explored with modern geophysics and drilling techniques, providing St George with an excellent opportunity to deliver a discovery
• St George's project area is bounded by ground held by Rio Tinto (ASX: RIO), Fortescue Metals Group (ASX: FMG), Antipa Minerals (ASX: AZY) and Sipa Resources (ASX: SRI) – the latter two having entered into high-value joint ventures with Rio Tinto
• Paterson Project complements St George's advanced high-grade Mt Alexander nickelcopper sulphide asset

Growth-focused Western Australian nickel company St George Mining Limited (ASX: SGQ) ("St George" or "the Company") is pleased to announce that drilling has commenced at its Paterson Project, located within the Paterson region of Western Australia.

St George's Paterson Project is an early stage opportunity with significant exploration upside for copper and gold deposits. It complements the Company's flagship Mt Alexander nickel-copper sulphide project, where St George is continuing to expand the footprint of high-grade nickel-copper sulphide mineralisation and advance towards a potential mine development.

MAJOR DRILL PROGRAMME IS UNDERWAY

A major RC drill programme has commenced at E45/5226, one of two Exploration Licences that make up St George's 100%-owned Paterson Project.

The maiden drill programme at our Paterson Project will comprise approximately 10,000m of RC drilling and will focus on characterising the stratigraphy and testing high-priority targets that have been assessed by our technical team as potentially prospective for copper and gold.

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

"We are delighted to be on the ground at the Paterson Project and commencing our inaugural drill programme at this exciting exploration opportunity.

"The Paterson region is one of Australia's most active exploration frontiers on the back of multiple major discoveries made over the past few years including Winu and Havieron. The Paterson is regarded as 'elephant country' and continues to attract significant investment from the major mining companies.

"Our technical team has worked methodically to establish a number of high-priority exploration targets. These have never been drilled and offer St George an excellent opportunity to deliver a new discovery.

"Importantly, the early stage nature of the Paterson Project perfectly complements our more advanced Mt Alexander in the Goldfields region, where we continue to make more high-grade nickel-copper sulphide discoveries and are advancing mine development plans."

Figure 1 (below) shows the planned drilling for E45/5226. The prospective stratigraphy at the tenement extends for a strike of 35km.

St George completed a high-resolution gravity and airborne magnetic survey during 2020 at E45/5226 to evaluate the structure and stratigraphic setting at the tenement. The new gravity and magnetic data has identified prominent geophysical features that are interpreted to be similar to those known to host major precious and base metals discoveries in the Paterson region.

Figure 1 – plan view of E45/5226 showing planned drill holes set against gravity (total count Bouguer anomaly 0.5VD) and magnetics (RTP 2VD) overlaying topography (NATMAP 250k).

The cover at E45/5226 is interpreted to be between 100m to 200m, which in relative terms is much less than in other areas of the Paterson and potentially enables St George to expedite exploration drilling and at a lower cost.

There is no outcrop at the Paterson Project, with targeting relying on geophysics and geological interpretation to discover blind deposits.

The current drill programme is expected to take eight weeks to complete, with approximately 50 holes to be drilled.

Figure 2 – RC drilling underway at the Paterson Project.

PATERSON PROVINCE – WORLD-CLASS MINERAL DISTRICT

The Paterson Province is one of the most highly endowed mineral provinces in Australia and hosts the giant Nifty (2Mt Cu) and Telfer (27Moz Au) deposits.

The region remains underexplored with a number of significant copper and gold discoveries recently announced including at Rio Tinto's Winu Project (503Mt at 0.45% Cu Eq1 ) and at the Havieron Project (52Mt @ 2.0g/t Au and 0.31% Cu2 ), which is being explored in joint venture by Greatland Gold (LON: GGP) and Newcrest Mining (ASX: NCM).

These latest discoveries have fueled strong interest in the Paterson Province from major mining companies such as Fortescue Metals (ASX: FMG), Rio Tinto (ASX: RIO), IGO (ASX: IGO), OZ Minerals (ASX: OZL) and Newcrest Mining (ASX: NCM) which have secured ground in the region including by way of attractive joint ventures with junior exploration companies.

St George's ground in the Paterson comprises Exploration Licence E45/5226 and Exploration Licence E45/5422; see Figure 3.

1 Rio Tinto Market Release dated 28 July 2020

2 Newcrest Market Release dated 10 December 2020

Figure 3 – map showing St George's tenements in the Paterson Province as well as major mines and other exploration projects in the region.

COVID-19: St George continues to manage its operations in compliance with COVID-19 regulations issued by State and Commonwealth authorities. We will continue to proactively manage drilling and other field programmes to protect the health and safety of our team and service providers.

Border restrictions and snap lockdowns in Western Australia and elsewhere have impacted on the movement of personnel for drill rig crews which has been constraining the availability of drill rigs. St George is in close contact with its drilling contractors to best manage access and continuity to drilling services.

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

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.	Drill programmes are completed by Reverse Circulation (RC) and/orAir‐Core (AC) drilling.
		All samples from the RC/AC drilling are taken as 1m samples forlaboratory assay.
		Samples are collected using a rig mounted cone splitter. Geologicallogging of RC chips is completed at site with representative chipsbeing stored in drill chip trays.
		Appropriate QAQC samples (standards, blanks and duplicates) areinserted into the sequences as per industry best practice.
	Include reference to measures taken to ensuresamplerepresentivityandtheappropriatecalibrationofanymeasurementtoolsorsystems used.	RC and Air‐Core Sampling: Samples are taken on a one metre basisand collected using uniquely numbered calico bags. The remainingmaterial for that metre is collected and stored in a green plastic bagmarked with that specific metre interval. The cyclone is cleaned withcompressed air after each plastic and calico sample bag is removed.If wet sample or clays are encountered then the cyclone is openedand cleaned manually and with the aid of a compressed air gun. Ablank sample isinserted at the beginning of each hole, and a duplicatesample is taken every 50th sample. A certified sample standard is alsoadded according to geology, but at no more than 1:50 samples.
	Aspects of the determination of mineralisationthat are Material to the Public Report.	Geologicalloggingofdrillchipsiscompletedatsitewithrepresentative chips being stored in drill chip trays.
		Downhole surveys of dip and azimuth are conducted using a singleshot 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 surveyedto a greater degree of accuracy using a certified surveyor at a laterdate.
		RC and Air‐Core Sampling: A 1m composite sample is taken from thebulk sample of drill chips that may weigh in excess of 40 kg. Each
	In cases where 'industry standard' work hasbeen done this would be relatively simple (eg	sample collected for assay typically weighs 2‐3kg, and once dried, isprepared for the laboratory.
'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.		The sample is crushed and pulverised to produce a 40g charge forassay. Fire Assay is used for gold (Au), platinum (Pt) and palladium(Pd)witha1ppbdetectionlimit.TodetermineotherPGEconcentrations (Rh, Ru, Os, Ir) a 25g charge is used with a 1ppbdetection 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.

Criteria	JORC Code explanation	Commentary
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 isoriented and if so, by what method, etc).	RC and Air‐Core Sampling: The RC/AC drilling uses a T450 wheelmounted drilling rig with a 3.5inch diameter face sampling hammer.A large onboard high pressure air compressor is used to maximise therecovery of the drill cuttings, and to ensure chips remain dry to themaximum extent possible.
Drill samplerecovery	Method of recording and assessing core andchip sample recoveries and results assessed.	RC and Air‐Core Sampling: Drill samples are visually checked forrecovery,moistureandcontamination.Geologicalloggingiscompleted at site with representative RC chips stored in chip trays.
	Measures taken to maximise sample recoveryand ensure representative nature of thesamples.	Samples are collected using a rig mounted cone splitter. Geologicallogging of RC chips is completed at site with representative chipsbeing stored in drill chip trays.
	Whether a relationship exists between samplerecovery and grade and whether sample biasmay have occurred due to preferential loss/gainof fine/coarse material.	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.
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.	Logging of drill chips records lithology, mineralogy, mineralisation,structures, weathering, colour and other noticeable features. All chiptrays are photographed.
	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.	NA.
	If non‐core, whether riffled, tube sampled,rotary split, etc and whether sampled wet ordry.	RC and Air‐Core samples are collected in dry form and samples arecollected using cone splitter. 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 preparationtechnique.	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.

Criteria	JORC Code explanation	Commentary
		Field QC procedures maximise representivity of RC samples andinvolve the use of certified reference material as assay standards,along with blanks, duplicates and barren washes.
	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 and are capturedusing 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 and gold mineralisation and associated geologybased on: the style of alteration and mineralisation (massive anddisseminated sulphides), the thickness and consistency of theintersections and the sampling 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 and Air‐Core sampling, a 30 gram sample will be fire assayedfor gold, platinum and palladium. The detection range for gold is 1 –2000 ppbAu, 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.
	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.	XRF: A handheld XRF instrument (Olympus Innov‐X SpectrumAnalyser) is used to systematically analyse the drill core and RCsample piles onsite. One reading is taken per metre, however for anycore samples with matrix or massive sulphide mineralisation thenmultiple samples are taken at set intervalsper metre.Theinstruments are serviced and calibrated at least once a year. Fieldcalibration of the XRF instrument using standards is periodicallyperformed (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,externallaboratory checks) and whether acceptablelevels 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 byeither independent or alternative companypersonnel.	Significant intersections are verified by the Company's technicalstaff.
	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),trenches, mine workings and other locationsused in Mineral Resource estimation.	Drill holes have been located and pegged using a DGPS system withan expected accuracy of +/‐5m for easting, northing and elevation.
		Downhole surveys are conducted using a single shot cameraapproximately every 30m or downhole 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 using a laser altimeter during the AirborneMagnetic survey.
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 drillsample 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.
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 title	The Paterson Project is comprised of a two granted ExplorationLicences E45/5226 and E45/5422. Both tenements are held 100% bySt George Mining LtdNo environmentally sensitive sites have been identified on the
	interests, historical sites, wilderness or nationalpark and environmental settings.	tenements. A registered Heritage site (DAA identification 8933) islocated within E45/5226. All live tenements are in good standing withno known impediments.
	The security of the tenure held at the time ofreporting along with any known impedimentstoobtaining a licence to operate in the area.
ExplorationDone by OtherParties	Acknowledgment and appraisal of explorationby other parties.	Wide spaced and reconnaissance style historical exploration workwas completed by BHP during the mid 1990s focused on orogenicgold and stratabound base metals.
		BHP completed two drill holes on the tenement and both of themwere drilled to 75m, and failed to penetrate the sedimentary coversequence. The drilling is therefore interpreted to be ineffective forthe detection of basement hosted mineralisation.
Geology	Deposit type, geological setting and style ofmineralisation	The Paterson Project is interpreted to be located within the easterndomain of the Yeneena Basin, and potentially within the lowerstratigraphicunits.Thegeologyisinterpretedtocompriseintercalated Fe‐Rich/carbonaceous and dolomitic meta‐sediments,similar to that which host the giant Nifty Copper‐Gold (65Mt @ 2.6%Cu) and Winu Deposits, bounded by oxidised I‐type granitoids. Thesegranitoids and tectonic settings are also prospective for orogenic gold(Telfer) styles of mineralisation.
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 as reported by St George Mining Ltd areshown in the maps and tables included in the body of the relevantASX releases.
Dataaggregationmethods	InreportingExplorationResults,weightingaveragingtechniques,maximumand/orminimum grade truncations (e.g. cutting of highgrades) and cut‐off grades are usually Materialand 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.
	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.	NA
	The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	No metal equivalent values are used for reporting explorationresults.
Relationshipbetweenmineralisationwidths and	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 down	Assay intersections are reported as down hole lengths. Drill holes areplanned as perpendicular as possible to intersect the geologicaltargets so downhole lengths are usually interpreted to be near truewidth.

Criteria	JORC Code explanation	Commentary
interceptlengths	hole lengths are reported, there should be aclear statement to this effect.
Diagrams	Appropriate maps and sections(with scales) andtabulations of intercepts should be included foran significant discovery being reported. Theseshould include, but not be limited to a planeviewofdrillholecollarlocationsandappropriate sectional views.	Refer to figures in document.
BalancedReporting	WherecomprehensivereportingofallExplorationResultsisnotpractical,	Reports on recent exploration can be found in ASX Releases that areavailable on our website at www.stgm.com.au:
	representative reporting of both low and highgrades and/or widths should be practiced toavoidmisleadingreportingofExplorationResults.	Theexplorationresultsreportedarerepresentativeofthemineralisation style with grades and/or widths reported in aconsistent manner.
Othersubstantiveexplorationdata	Other exploration data, if meaningful andmaterial, should be reported including (but notlimited to): geological observation; geophysicalsurvey results; geochemical survey results; bulksamples – size and method of treatment;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. tests for lateral extensions or depthextensionsorlarge–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.