ST GEORGE MINING LIMITED — Capital/Financing Update 2021

Jan 26, 2021

27 January 2021

DRILLING AT HIGH-GRADE MT ALEXANDER PROJECT STARTS THIS WEEK TO LAUNCH MAJOR 2021 NICKEL-COPPER SULPHIDE EXPLORATION CAMPAIGN

DIAMOND DRILLING TO COMMENCE THIS WEEK:

• +4,000m diamond drill programme to start this week at Mt Alexander
• Multiple new electromagnetic (EM) conductors that were identified from recent downhole EM (DHEM) surveys to be drilled
• High-priority targets for massive nickel-copper sulphides include:
  • two conductors modelled with conductivity of 55,550 Siemens and 26,000 Siemens, respectively, identified from the DHEM survey in MAD192
  • two conductors modelled with conductivity of 33,100 Siemens and 14,225 Siemens, respectively, identified from the DHEM survey in MAD185

GROUND EM SURVEY TO TEST FOR POTENTIAL NORTHERN REPETITION OF THE CATHEDRALS BELT:

• Moving loop EM (MLEM) survey to be rolled out across the deep conductive structures identified on exploration licence E29/548 by the 2020 magnetotelluric (MT) survey
• These conductive structures trend east-west and are parallel to the highly mineralised Cathedrals Belt
• MLEM survey will search for discrete conductive bodies that may represent massive nickelcopper sulphides

PETROGRAPHIC ANALYSIS OF DRILL CORE IDENTIFIES INTRUSIVE ROCKS VERY FAVOURABLE FOR HOSTING NICKEL-COPPER SULPHIDES:

• Petrographic analysis has been completed on sections of drill core from MAD181 which was drilled at Investigators and intersected a 49.45m thick mafic-ultramafic intrusive unit
• Rock types identified as leuconorite and gabbronorite – intrusive-style rocks that are rare in the Yilgarn Craton but where present in other parts of Western Australia, are associated with significant intrusive nickel-copper sulphide deposits including Nova-Bollinger, Savannah and Nebo-Babel
• Petrographic results confirm the intrusive nature of the rocks and provide further support for the discovery of more significant nickel-copper sulphide mineralisation across the Cathedrals Belt – already identified along a strike of more than 5.5km and open laterally and at depth

AIRBORNE MAGNETIC SURVEY PLANNED FOR EXPLORATION LICENCES E29/972 and E29/1041:

• New airborne magnetic survey to be completed over these two recently acquired licences and will complement the 2016 magnetic survey carried out by St George over the then existing project area
• New survey will search for linear magnetic features that may represent ultramafic belts similar to the nickel-copper sulphide bearing Cathedrals Belt

SOIL SURVEY PLANNED FOR E29/1041:

• Rock chip samples from E29/1041 returned elevated readings for nickel and copper supporting the potential for nickel-copper sulphide mineralisation within the area
• Geochemical soil survey to be completed over a broad area of the tenement to test for the presence of mineralised ultramafics

Growth-focused Western Australian nickel company St George Mining Limited (ASX: SGQ) ("St George" or "the Company") is pleased to announce that drilling will start this week with the launch of a multi-faceted exploration campaign at its flagship high-grade Mt Alexander Project, located in the north-eastern Goldfields.

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

"We are very excited to be resuming diamond drilling at Mt Alexander this week. The very strong EM conductors that will be drilled are outstanding targets for massive sulphide mineralisation.

"We have never had a false positive EM reading at the Cathedrals Belt with all conductors of this kind drilled being confirmed as nickel-copper sulphides.

"The new conductors are located approximately 500m to 800m north-west of known massive sulphides in the Cathedrals Belt and are the deepest conductors identified in the Belt.

"The discovery of new nickel-copper sulphide deposits in these locations would be a major success in our ongoing exploration at Mt Alexander and significantly expand the potential footprint of high-grade mineralisation at the Project.

"We are also excited about activities planned across the wider tenement package at Mt Alexander. These areas are either underexplored or unexplored and offer an excellent opportunity to add to the exploration success we have already achieved at the Cathedrals Belt.

"As the nickel price reaches a 10-year high, St George is well positioned to deliver significant shareholder value through its ongoing exploration and development programmes at Mt Alexander.

"With high-grade nickel-copper-cobalt-PGEs at Mt Alexander commencing 30m from surface, a large underexplored mineral system and a location in an established mining region of Western Australia – in the backyard of major mining companies – our Project commands unique attention amongst its peers."

DIAMOND DRILLING OF STRONG EM CONDUCTORS

DHEM surveys on the deeper drill holes completed last year identified 11 off-hole EM anomalies.

The highest priority targets were identified from DHEM surveys in MAD185 and MAD192. Each of these holes intersected thick mafic-ultramafic units with disseminated nickel-copper sulphides – indicative of a fertile intrusive structure with prospectivity for higher grade mineralisation proximal to the hole.

Five off-hole EM anomalies were identified from the DHEM survey in MAD185. Two of these are modelled with EM plates that have very strong conductivity of 33,100 Siemens and 14,225 Siemens, respectively.

The DHEM survey in MAD192 identified two off-hole anomalies that have been modelled as EM plates with very strong conductivity of 55,550 Siemens and 26,000 Siemens, respectively.

These powerful off-hole conductors are interpreted to have a massive sulphide source and will be the first conductors to be drilled in this year's exploration campaign. For further details of the new EM conductors, see our ASX Release dated 3 December 2020 'Multiple New EM Conductors at Mt Alexander'.

MLEM SURVEY FOR E29/548

The MT survey completed at Mt Alexander in 2020 identified deep conductive features along the Cathedrals Belt. Deep drilling of these features confirmed the presence of thick intrusive-style rocks with potential to host significant nickel-copper sulphide mineralisation.

The MT survey also identified a series of similar deep conductive features about 2km north of the Cathedrals Belt. These features are located on E29/548 (100% St George) and are parallel to the Cathedrals Belt.

Figure 1 shows MT and Audio-magnetotelluric (AMT) data along a section centred on the Investigators Prospect. The shallow nickel-copper sulphides already discovered at Investigators have recorded strong yellow (conductive) responses in the data. Similar conductive responses were recorded on E29/548, which are shown as extending from surface to depths beyond 1km from surface.

Figure 1 – north-south cross section of the Cathedrals Belt (looking east) showing MT 2D conductivity data. The section is centred on the Investigators Prospect and extends to E29/548 to the north. Areas of yellow and green are indicative of prospective structures and stratigraphy.

An aeromagnetic survey completed over E29/548 in 2016 by St George also recognised numerous east-west trending structures to the north of the Cathedrals Belt.

A number of these features are coincident with the MT anomalies and may indicate deep seated structures. These are shown in Figure 2.

Drill holes MAD180 and MAD181 were designed to test the deep Investigators MT anomaly, which dips to the north-northwest, and the holes were therefore located to the north of the previous drilling; see Figure 3.

Both drill holes intersected mineralised ultramafic rocks approximately 500m to the north of Investigators.

This supports the potential for other similar MT survey structures to host intrusive mafic-ultramafic units that are prospective for massive nickel-copper sulphide mineralisation.

A MLEM survey – a ground-based EM survey – is planned for Q1 2021 over a priority area of E29/548 where deep structures were identified by the MT survey.

The MLEM survey will search for conductive bodies at depth that may represent nickel-copper sulphides. This is the first EM survey that has been specially designed to investigate the east-west structures on E29/548.

A drill programme for E29/548 will then be prioritised subject to a review of the survey results.

Figure 2 – map of the Cathedrals Belt and E29/548 (against magnetic RTP 1VD data) showing the area where the MT survey recognised deep conductive structures and which will now be tested by a new groundbased MLEM survey.

Figure 3 – map of the Cathedrals Belt (against magnetic RTP 1VD data) showing the location of the ultramafic unit intersected by MAD180 and MAD181 to the north of the Cathedrals Belt.

PETROGRAPHIC ANALYSIS CONFIRMS FAVOURABLE INTRUSIVE ROCKS

MAD181 was drilled at Investigators to a downhole depth of 794.5m to test a broad conductive feature identified by the MT survey.

The hole intersected a 49.45m thick mafic-ultramafic unit from 502.3m downhole. Petrographic analysis was completed on 7 samples of drill core across the intrusive interval.

Polished thin sections of the core were examined using optical microscopy in transmitted and reflected light using an Olympus BH2 microscope. The petrography was completed by Dr Ben Grguric, principal of Mineralium Pty Ltd and a mineralogist with industry leading credentials particularly in the field of nickel sulphide systems.

The petrology has identified two main intrusive rocks, an upper leuconorite from 502.3m to 541m and a basal mela-olivine gabbronorite unit from 541m to 551.75m downhole. This is a suite of intrusive mafic and ultramafic rocks that is highly unusual in the Archean central Yilgarn where Mt Alexander is located.

The contact between the two units in MAD181 is sharp, which may represent separate injections from a deeper magmatic chamber, and abundant country rock xenoliths are present in the leuconorite, also suggesting a dynamic emplacement environment. The presence of small amounts of zinc-lead sulphides in addition to magmatic nickel-copper sulphides suggests contamination with sedimentary sulphides or volcanic massive sulphides (VMS) in the magmatic plumbing at depth.

The presence of norite and gabbronorite is typically associated with a large igneous event – the kind of geological event that is associated with the formation of very significant mineral deposits. In Western Australia, gabbronorite is known to be associated with significant nickel sulphide deposits at IGO's Nova Bollinger (ASX: IGO), Panoramic's Savannah (ASX: PAN) and Oz Mineral's Nebo-Babel (ASX: OZL).

NEW REGIONAL AEROMAGNETIC SURVEY OVER UNEXPLORED AREAS

A new aeromagnetic survey will be completed in Q1 2021 over the recently acquired tenements of E29/972 and E29/1041 (both 100% St George). The high-resolution survey will be completed with 100m line spacing.

Figure 5 – map of the northern tenements of the Mt Alexander Project (against TMI magnetic data) showing the areas to be covered by the new aeromagnetic survey.

Of particular interest at E29/1041 are two interpreted structures over an 8km strike that cross-cut and present as distinct east-west orientated magnetic features in the regional Government magnetic survey. A similar combination of magnetic features defines the east-west Cathedrals Belt.

The new aeromagnetic survey is designed to better map the structures and ultramafic stratigraphy on the new tenements.

Further exploration on these tenements, to investigate if these structures may host further occurrences of nickel-copper sulphides, will be planned upon review of the survey results.

SOIL SURVEY ON E29/1041

Rock chip sampling and field mapping has recently been completed by St George over the interpreted structures on E29/1041 discussed above. Significantly, XRF analysis of rock chips from this area recorded metal values of up to 2,475ppm Ni and 105ppm Cu in the mafic rocks. These values are interpreted as being too elevated for barren Proterozoic dolerite dykes and are more indicative of potential intrusive ultramafic rocks.

In addition, field mapping in the area of the magnetic features has identified a number of mafic intrusive units at surface hosted within granite. Some of these are thought to be associated with a large Proterozoic dolerite dyke, which is commonly found trending in an east-west orientation across the Yilgarn Craton.

However, and importantly, some of the mafic units have been mapped cutting across the trend of the dyke suggesting they are not related – giving further support to the potential of these structures to represent mafic-ultramafic trends that are prospective for nickel-copper sulphides.

A soil geochemical survey will be completed over the area of interest at E29/1041 in Q1 2021. Due to the sub-crop and thin cover, the area is amenable to soil geochemistry. The aim of the soil survey is to confirm the presence of mafic-ultramafic units and or nickel-copper anomalism in the area.

Figure 6 – map of E29/1041 (against TMI greyscale government magnetic data) showing the priority soil geochemistry survey area and mapped mafic units.

Nickel and copper values referred to above are based on spot values recorded by portable XRF analysis. The portable XRF equipment is useful for mapping geology and is also considered suitable for rock chip sampling for the purpose of providing a reliable estimate of the metal content of rocks.

Samples from the planned geochemical soil survey will be submitted for laboratory assay, which will provide a more conclusive determination of the metal values in the soil samples being tested.

Further exploration will be planned for E29/1041 following a review of the soil survey results in conjunction with the new aeromagnetic data.

2021 DRILL PROGRAMME

Diamond drilling:

A diamond drill rig is scheduled to arrive at site on Friday. The rig will operate with two crews, on a 24/7 basis.

In recognition of the lead time for completion of metallurgical test work in Canada, drilling will initially focus on completing 5 metallurgical holes at the Stricklands Prospect. These are shallow holes with a total of 450m planned over 5 to 7 days. Samples from the Stricklands holes will be air-freighted to XPS in Canada for completion of the metallurgical test work in progress there.

After Stricklands, the rig will drill the high priority powerful EM conductors at Investigators and West End.

Further drilling, including a number of stratigraphic holes, is also planned to investigate the geology in the western part of the Cathedrals Belt where paleochannel cover is believed to have limited the effectiveness of surface EM surveys.

The drill targets will be adjusted and prioritised based on new drill results and new DHEM survey data.

Figure 7 – planned drilling and target areas at Investigators and West End with the new EM conductors (against magnetic RTP 1VD data).

Reverse circulation (RC) drilling:

RC drilling is planned at both the Investigators and Cathedrals Prospects to drill-out the shallow high-grade mineralisation that has already been discovered there.

An example of the shallow high-grade mineralisation at Cathedrals is shown in Figure 8 – this is a photograph of drill core from MAD56 that intersected 7.5m @ 3.90% Ni, 1.74% Cu, 0.12% Co and 3.32g/t total PGEs from 57.8m including 3.15m @ 6.36% Ni, 2.92% Cu, 0.20% Co and 5.03g/t total PGEs from 61.81m.

Figure 8 – drill core tray from MAD56 at the Cathedrals Prospect showing core between 59.6m to 65.8m including massive, remobilised massive and matrix nickel-copper sulphides.

Programmes of Works have been approved by the Department of Mines, Industry Regulation and Safety (DMIRS) for the drill-out with 5,000m of drilling planned at Investigators and 6,000m of drilling planned at Cathedrals.

Further RC drilling will also be planned to follow-up targets generated from the regional exploration mentioned above.

The precise availability of the RC rig has yet to be confirmed by our drilling contractor, but we expect the rig to be available by March.

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 in Western Australia and elsewhere have impacted on the movement of personnel for drill rig crews which is 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.

Figure 9 – regional map (over TMI magnetics) showing the location of the Mt Alexander Project to the south-west of major nickel projects in the Agnew-Wiluna Belt – a globally significant region for nickel sulphide production.

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 – which are a contiguous package. A seventh granted exploration licence – E29/1093 – is located to the south-east of the core tenement package.

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 (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. All other Project tenements are owned 100% by St George.

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.	Drilling programmes are completed by Reverse Circulation (RC) andDiamond Core drilling. Geochemical sampling and mapping iscompleted on foot by field staff.
		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 assay.
		Rock Chip Sampling: A handheld XRF instrument (Olympus Innov‐XSpectrum Analyser) is used to provide an initial assay of thegeochemical sample or mapping location onsite. One or multiplecheck readings are taken per sample.
		The handheld XRF results are only used for preliminary assessmentand reporting of element compositions and rock identification, priorto the receipt of assay results from the certified laboratory iflaboratory samples are taken.
		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.
	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.
		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.

Criteria	JORC Code explanation	Commentary
		A handheld XRF instrument (Olympus Innov‐X Spectrum Analyser) isused to systematically analyse the drill core, RC sample piles and rockchips. One reading is taken per metre, however for any core sampleswith matrix or massive sulphide mineralisation then multiple samplesare taken at set intervals per metre. For rock chip sampling andmapping, one or multiple readings are taken to aid in rockidentification or to give indications of anomalous metals.
	Aspects of the determination of mineralisationthat are Material to the Public Report.In cases where 'industry standard' work has	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.
	been done this would be relatively simple (eg'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 or	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.
	mineralisation types (eg submarine nodules)may warrant disclosure of detailed information.	Pulverisation produces a 40g charge for fire assay. 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 isoriented and if so, by what method, etc).	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.
		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 diameter 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 diameter and shorter barrel length

Criteria	JORC Code explanation	Commentary
		through the weathered zone, which at Cathedrals and Investigators ismostly <20m and Stricklands <40m depth. Primary locations for coreloss in fresh rock are on geological contacts and structural zones, anddrill 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/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.	Loggingofdiamondcoreand RCsamplesrecordslithology,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 thetotal half‐core submitted as the sample. This meets industry

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.	XRF: A handheld XRF instrument (Olympus Innov‐X SpectrumAnalyser) is used to systematically analyse the drill core, RC samplepiles and rock chips. One reading is taken per metre, however for anycore samples with matrix or massive sulphide mineralisation thenmultiple samples are taken at set intervals per metre. For rock chipsampling and mapping, one or multiple readings are taken to aid inrock identification or to give indications of anomalous metals.
		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.
		The XRF instruments are serviced and bench calibrated at least oncea year. Field calibration of the XRF instrument using standards isperiodically performed (usually daily).
Verification ofsampling andassaying	The verification of significant intersections byeither independent or alternative companypersonnel.	Significant intersections are verified by the Company's technicalstaff.

Criteria	JORC Code explanation	Commentary
	The use of twinned holes.	No twinned holes have been planned for the current drillprogramme.
	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, sample and mapping locations have been located andpegged using a DGPS system with an expected accuracy of +/‐5m foreasting, 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 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.
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 security of the tenure held at the time ofreporting along with any known impedimentstoobtaining a licence to operate in the area.	The Mt Alexander Project is comprised of six granted ExplorationLicences(E29/638,E29/548,E29/954,E29/962,E29/972andE29/1041). Tenement E29/638 is held in Joint Venture between StGeorge (75% interest) and Western Areas (25% interest). E29/638and E29/548 are also subject to a royalty in favour of a third partythat is outlined in the ASX Release dated 17 December 2015 (asregards E29/638) and the ASX release dated 18 September 2015 (asregards E29/548).No environmentally sensitive sites have been identified on thetenements. A registered Heritage site known as Willsmore 1 (DAAidentification 3087)straddlestenements E29/548 and E29/638. Allsix
ExplorationDone by OtherParties	Acknowledgment and appraisal of explorationby other parties.	tenements are in good standing with no known impediments.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)andalsolimitedexplorationonE29/548hasbeenformafic/ultramafic intrusion related Ni‐Cu‐PGE sulphides. No historicexploration has been 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 contains and is prospective for further high‐grade komatiite‐hosted, and mafic‐ultramafic intrusive hosted nickel‐copper‐PGE mineralisation. The project is also prospective forprecious metal mineralisation (i.e. orogenic gold) that is typifiedelsewhere 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 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.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.	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.
	The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	No metal equivalent values are used for reporting explorationresults.
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.
Balanced	Wherecomprehensivereportingofall	Reports on recent exploration can be found in ASX Releases that are
Reporting	ExplorationResultsisnotpractical,representative reporting of both low and highgrades and/or widths should be practiced toavoidmisleadingreportingofExplorationResults.	available on our website at www.stgm.com.au: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.