ST GEORGE MINING LIMITED — Interim / Quarterly Report 2015

Aug 9, 2015

10 August 2015

HIGH IMPACT DRILLING CAMPAIGN ‐ UPDATE

HIGHLIGHTS:

• Hole DDRDD0001 to test Dragon 9 completed to depth of 436 metres with:
  • Thick base metal zone intersected with chalcopyrite visually identified in drill core and anomalous copper and zinc XRF values
  • Quartz vein hosted sulphides with XRF spot values of 4.2% Cu and 0.13% Zn
• Compelling new target for massive nickel sulphides at Desert Dragon North confirmed by further modelling of the DDNDD0001 downhole electromagnetic (DHEM) conductor
• Initial laboratory assays for the drilling campaign due for release this week
• Drilling of hole DDRDD0008 is underway at Dragon 5 to test a strong EM conductor on the lower greenstone contact, co‐incident with a large gravity anomaly

DRILLING UPDATE – INTERIM RESULTS AT DRAGON 9

St George Mining Ltd ("St George" or "the Company") is is pleased to announce the latest update on its high impact drilling campaign at its 100% owned East Laverton Property in Western Australia.

Drill hole DDRDD0001 was designed to test the strong EM conductor at Dragon 9 and has been completed with an end of hole depth of 436m. Mafic, ultramafic and sulphidic sedimentary rock sequences were identified by visual logging of the drill core and this assessment is supported by the XRF analysis.

The Dragon 9 EM conductor was modelled by Newexco at a depth of 235m down hole, with a high conductance (4900 Siemens) and a very long time decay (443ms).

The hole intersected alternating sequences of mafic rocks and sulphide‐rich sediments between 219m and 255m with thin intervals of pyrrhotite, magnetite and some shales. There were no expected massive sulphide occurrences observed within this interval, where the conductor was modelled to be present.

A DHEM survey will be carried out at DDRDD0001 to test for the presence of any conductive material located near to the hole and to refine the modelling of the Dragon 9 EM conductor. The rocks encountered in DDRDD0001 are likely to be part of the target EM plate, although the relatively minor conductivity of the material intersected is not entirely consistent with the very powerful EM response of Dragon 9.

A review of all data will be completed in conjunction with Newexco to determine if any further testing of Dragon 9 is warranted. Any further drilling will be scheduled as part of the reverse circulation (RC) drilling programme that is planned to commence in September 2015.

Mr John Prineas, Executive Chairman of St George Mining said:

"We will review the geophysical aspects of Dragon 9 once the data from the downhole EM survey is received and complete follow‐up drilling if recommended. The area is very prospective and we have additional untested EM conductors there that we are continuing to evaluate.

"The drill rig is now at Dragon 5 where we have another opportunity to test a highly quality target for massive nickel sulphides.

"We have a tremendous pipeline of high quality prospects. There is over 40km of strike of prospective greenstone just in the Stella Range Belt and the targets we have drilled represent only a small footprint.

"We are confident that persistence, together with good technical and systematic exploration, will deliver a significant discovery."

A strongly anomalous base metal zone was identified in DDRDD00001 between two ultramafic units from 269m to 282m, with peak spot XRF values of 0.25% Cu and 0.77% Zn. Chalcopyrite was also identified further down the hole with a metre wide quartz vein at 406m downhole returning a spot XRF value of 4.2% Cu and 0.13% Zn (see Figure 1).

The rocks tested by this hole appear to have been strongly hydrothermally altered (chlorite + carbonate), consistent with the geochemically anomalous bismuth and molybdenum values present in intervals of elevated Cu and Zn. There is geochemically elevated copper (+100 ppmCu) throughout this hole.

A significant increase in sulphur was noted for the last 40m of the hole, which is comprised of mafic rocks that are chlorite‐carbonate altered, and has elevated copper values. It is the most consistent and highest sulphide intersection in DDRDD0001 noted from initial analysis. There appears to be a substantial introduction of hydrothermal pyrite at the base of the hole.

The geological logging and XRF analysis of the drill core from DDRDD0001 is ongoing, and the results described here are provisional in nature only. A conclusive determination of the metal contents, rock types and the stratigraphic and structural correlations will be confirmed once laboratory assays are available.

Figure 1 – Blebs of Chalcopyrite (copper sulphides) present within quartz vein sulphides at 406m in DDRDD0001. Spot XRF value of copper for this interval was 4.2% Cu.

NEW AND COMPELLING TARGET ‐ DHEM CONDUCTOR AT DESERT DRAGON NORTH

Hole DDNDD0001 was drilled to test the ultramafic rocks underlying the massive nickel sulphide stringers (2m @ 1.08% Ni from 55m) intersected in hole DDNRC002.

The recent DHEM survey for DDNDD0001 identified a strong off‐hole EM conductor situated 100m below and 50m north of DDNDD0001. Initial details of this EM conductor, named 'North Dragon 1', were provided in our ASX Release dated 29 July 2015 'Strong DHEM Conductor at Desert Dragon North''.

Newexco, our geophysical advisers, have completed further modelling of the DHEM survey data and have advised that "the off‐hole late time anomaly and resulting model create a compelling target for further exploration and drill testing is recommended."

John Prineas commented further on this new, high priority target:

"The exploration potential at Desert Dragon North is unfolding nicely with the new conductor being an excellent fit to our exploration model for this prospect.

"The massive nickel sulphide stringers discovered in hole DDNRC002 are interpreted to be part of a locally situated and larger accumulation of massive sulphides. The new EM target is a great illustration of the success that comes with patience, persistence and systematic exploration.

"We will complete geological modelling of the conductor once assays for DDNDD0001 are reviewed, and then schedule this exciting target for test drilling."

DDRDD0002 AT DRAGON 13

The XRF analysis of the drill core from hole DDRDD0002 has been completed with no significant mineralisation identified. The geological logging and interpretation of the drill core is continuing.

The hole was drilled to a depth of 550m and was predicted to intersect the Dragon 13 EM conductor, which is modelled as EM plate DD‐DDN‐03, at a depth of 500m.

A gyroscopic survey and DHEM survey will be completed at the hole later this week. Data from these surveys will allow for a better assessment of the final drill hole location in relation to the EM target.

If required, further drilling at Dragon 13 will be scheduled during the RC drilling programme that is planned to commence in September 2015.

LABORATORY ASSAYS

Samples of drill core from the completed holes have been progressively delivered to Intertek Genalysis throughout the drilling campaign for completion of laboratory assays. All samples are being assayed for a comprehensive suite of elements.

We anticipate an announcement regarding assay results for some of the initial drill holes later this week.

DRILLING UNDERWAY AT DRAGON 5

Drill hole DDRDD0008 has commenced at Dragon 5, which features a strong EM conductor that is co‐ incident with a large positive gravity feature (see Figure 2).

The conductor has been modelled by Newexco as EM plate DDS_03 with a short strike length of 250m and a modelled depth extent of 350m. The conductance is 3,500 Siemens with a time constant of 250ms, calculated over a number of late‐time channels. The EM signature of this conductor is consistent with that of a discrete massive sulphide body.

The geological context of the EM conductor is also favourable for the potential of massive nickel sulphides. The EM conductor is situated on the inferred lower contact of the ultramafic sequence and within a tight fold of the ultramafic belt, which is potentially a favourable structural position for the concentration of massive nickel sulphide.

Dragon 5 is located within a low magnetic domain (see Figure 2) which suggests a decreased likelihood for magnetic minerals, such as magnetite and pyrrhotite, to be the source of this EM conductor. This implies an increased prospectivity for this target, as the gravity and EM responses have a greater chance of being related to massive nickel sulphides.

Drill hole DDRDD0008 is planned to reach a depth of 350m.

Figure 2 – high priority targets at Desert Dragon Central shown over magnetics data. Drilling at Dragon 5 is underway.

For further information, please contact:

John Prineas Executive Chairman St George Mining Limited (+61) 411 421 253 John.prineas@stgm.com.au Colin Hay Professional Public Relations (+61) 08 9388 0944 mob 0404 683 355 colin.hay@ppr.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 Timothy Hronsky, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hronsky is employed by Essential Risk Solutions Ltd which has been retained by St George Mining Limited to provide technical advice on mineral projects.

Mr Hronsky 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 Hronsky 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	Natureandqualityofsampling(egcutchannels, random chips, or specific specialisedindustrystandardmeasurementtoolsappropriatetothemineralsunderinvestigation,suchasdownholegammasondes, or handheld XRF instruments, etc).These examples should not be taken as limiting	ThisASXReleasedated10August2015reportsoninterimexploration results from the Company's 2015 nickel sulphide drillingcampaign.
		Drilling is being undertaken by DDH1 Drilling Pty Ltd using a Sandvik1200 Multipurpose truck mounted drill rig. This rig has capability fordiamond core, reverse circulation (RC) and mud rotary drilling.
	the broad meaning of sampling.	The initial drilling program is planned to include diamond core holeswith RC pre‐collars. The actual holes to be completed will be subjectto ongoing management of the drilling program based on groundconditions and exploration results.
		Diamond Core Sampling: The core is removed from the drill rig andlaid out for initial analysis in the field. The core is measured andmarked up at 1m intervals against the drillers blocks, which arethemselves checked against the drillers log books where required.The visible structural features on the core are measured against thecore‐orientation lines.
		Onsite XRF analysis is conducted using a hand‐held Olympus Innov‐XSpectrum Analyser. The XRF analysis is used to systematically reviewdiamond drill core, with a single reading taken every metre, exceptin the case of core loss. These results are only used for onsiteinterpretation and preliminary base metal assessment subject tofinal geochemical analysis by laboratory assays.
		The sections of the core that are selected for assaying are markedup and recorded on a "cut‐sheet" which provides a control on theintervals that will be cut and sampled at a duly certified assaylaboratory, Intertek Genalysis. Core is prepared for analysis at 1mintervals or at lesser intervals of geological significance. Core is cutin half lengthways and then numbered samples are taken as per the"cut‐sheet".
		Diamond core provides high quality samples that are logged forlithological, structural, geotechnical, density and other attributes.Sampling is carried out under QAQC procedures as per industry bestpractice.
		RC Sampling: All samples from the RC drilling are taken as 1msamples. Samples are sent to Intertek Genalysis for assaying.
		Appropriate QAQC samples (standards, blanks and duplicates) wereinserted into the sequences as per industry best practice.
		In this program the multi‐purpose diamond and RC drill rig did nothave an industry standard splitter attached to facilitate collection ofsamples.RCsamplesweretakenmanuallyinthemostrepresentative way. Should any sample return any values that areanomalous, then a portable riffle splitter will be utilised to selectanother representative sample for assaying from the bulk sample ofRC chips retained by the Company.
		Onsite XRF analysis is conducted on the fines from RC chips using ahand‐held Olympus Innov‐X Spectrum Analyser. These results areonly used for onsite interpretation and preliminary base metalassessment subject to final geochemical analysis by laboratoryassays.
		Down‐hole electromagnetic (DHEM) survey: A DHEM survey isplanned for each diamond hole. The DHEM survey is designed and

Criteria	JORC Code explanation	Commentary
		managed by Newexco Services Pty Ltd, with field work contracted toBushgum Holdings Pty Ltd.
		Key specifications of the DHEM survey are:
		System: DigiAtlantis probe and a SMARTem24 receiver
		Components:A, U, V
		Component direction:
		Ba – Parallel to hole axis, positive up hole.Bu – Perpendicular to hole axis: toward 12 o' clock whenlooking down hole.Bv – Perpendicular to hole axis: toward 9 o' clock whenlooking down hole.
	Include reference to measures taken to ensuresamplerepresentivityandtheappropriatecalibrationofanymeasurementtoolsorsystems used.	DiamondCoreSampling:Fordiamondcoresamples,certifiedsample standards were added as every 25th sample. Core recoverycalculations are made through a reconciliation of the actual coreand the driller's records. Downhole surveys of dip and azimuthwere conducted using a single shot camera every 30m to detectdeviations of the hole from the planned dip and azimuth. The drill‐hole collar locations were recorded using a hand held GPS, whichhas an accuracy of +/‐ 5m. At a later date the drill‐hole collar will besurveyed to a greater degree of accuracy.
		RC Sampling: For RC drill samples, geological logging of RC chips iscompleted at site with representative chips being stored in drill chiptrays. Downhole surveys of dip and azimuth follow the sameprotocol as for diamond core holes.
		DHEM Survey: For the DHEM survey, the polarity of each componentis checked to ensure the system was set up using the correctcomponentorientations.Theholepositioniscorrectedfortrajectory using orientation survey data.
	Aspects of the determination of mineralisationthat are Material to the Public Report.In cases where 'industry standard' work hasbeen done this would be relatively simple (eg'reverse circulation drilling was used to obtain1 m 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)maywarrantdisclosureofdetailedinformation.	Diamond Core Sampling: Core is drilled with HQ and NQ2 size andsampled as half core to produce a bulk sample for analysis. Intervalsvary from 0.3 – 1m maximum and are selected with an emphasis ongeological control.
		Assays are completed at Intertek Genalysis Laboratories in Perth.Samples are sent to Intertek where they are crushed to 6 mm andthen pulverised to 75 microns. A 30 g charge of the sample is fireassayed for gold, platinum and palladium. The detection range forgold is 1 – 2000 ppbAu, and 0.5 – 2000 ppb for platinum andpalladium. This is believed to be an appropriate detection level forthese elements within this specific mineral environment. However,should Au, Pt or Pd levels reported exceed these levels an additionalassay method will be used to re‐test samples.
		All other metals will be analysed using an acid digest and an ICPfinish. The sample is digested with nitric, hydrochloric, hydrofluoricand perchloric acids to effect as near to total solubility of the sampleas possible. The solution containing samples of interest, includingthose that need further review, will then be presented to an ICP‐OESfor the further quantification of the selected elements.
		RC Sampling: A 1m composite sample is taken from the bulk sampleof RC chips that may weigh in excess of 40 kg. Assay preparation byIntetrtekfollows the same protocol as for diamond core sampling.
Drillingtechniques	Drill type (eg core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka,	Diamond Core Sampling: The collars of the diamond holes weredrilled using RC drilling down through the regolith to the point of

Criteria	JORC Code explanation	Commentary
	sonic, etc) and details (eg core diameter, tripleor standard tube, depth of diamond tails, face‐sampling bit or other type, whether core is	refusal or to a level considered geologically significant to change tocore. The hole was then continued using HQ diamond core until thedrillers determined that a change to NQ2 coring was required.
	oriented and if so, by what method, etc).	The core is oriented and marked by the drillers. The core is orientedusing ACT Mk II electric core orientation.
		RC Sampling: The RC drilling uses a 140 mm diameter face hammertool. High capacity air compressors on the drill rig are used toensure a continuously sealed and high pressure system duringdrilling to maximise the recovery of the drill cuttings, and to ensurechips remain 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/core loss arerecorded during drilling and reconciled during the core processingand geological logging. No significant sample recovery problems arethought to have occurred in any holes drilled to date. There hasbeen a notable and consistent competency encountered in the rocksduring drilling.
		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.	Diamond Core Sampling: Depths are checked against the depth onthe core blocks and rod counts are routinely carried out by thedrillers. Core loss was recorded by St George geologists andsampling intervals were not carried through core loss.
		RC Sampling: Samples are normally collected using a cone and rifflesplitter. However, in this program, the multi‐purpose diamond andRC drill rig did not have an industry standard splitter attached. RCsamples were taken manually in the most representative way. If anysample returns any values that are anomalous, then a portable rifflesplitter will be utilised to select another representative sample forassaying from the bulk sample of RC chips retained by the Company.
	Whether a relationship exists between samplerecovery and grade and whether sample biasmayhaveoccurredduetopreferentialloss/gain of fine/coarse material.	To date, no detailed analysis to determine the relationship betweensample recovery and grade has been undertaken for this drillprogram. This analysis will be conducted following any economicdiscovery.
		The use of diamond drilling capturing whole rock cores reduceserrors associated with varying size fraction loss of the sample. Verycompetent rocks have been recovered to date.
		Thenatureofmagmaticsulphidedistributionhostedbythecompetent and consistent rocks hosting any mineralised intervalsare considered to significantly reduce any possible issue of samplebias due to material loss or gain.
Logging	Whether core and chip samples have beengeologically and geotechnically logged to alevel of detail to support appropriate MineralResourceestimation,miningstudiesandmetallurgical studies.	Geological logging is carried out on all diamond core and RC drillholes with lithology, alteration, mineralisation, structure and veiningrecorded.
	Whether logging is qualitative or quantitativeinnature.Core(orcostean,channel,etc)photography.	Logging of diamond core and RC samples recorded lithology,mineralogy,mineralisation,structures(coreonly),weathering,colour and other noticeable features. Core was photographed inboth dry and wet form.
	The total length and percentage of the relevantintersections logged.	All drill holes were geologically logged in full and detailed litho‐geochemical information was collected by the field XRF unit. Thedata relating to the elements analysed is used to determine furtherinformation regarding the detailed rock composition.

Criteria	JORC Code explanation	Commentary
Sub‐samplingtechniques andsamplepreparation	If core, whether cut or sawn and whetherquarter, half or all core taken.	The HQ and NQ2 core will be cut in half length ways at site using anautomatic core saw. All samples will be collected from the same sideof the core. The half‐core samples will be submitted to Intertek foranalysis.
	If non‐core, whether riffled, tube sampled,rotary split, etc and whether sampled wet ordry.	RC samples were taken manually in the most representative way asthe multipurpose drill rig did not have a riffle splitter to facilitatecollection of samples. If any sample returns any values that aredeemed anomalous, then a portable riffle splitter will be utilised toselect another representative sample for assaying from the bulksample of RC chips retained by the Company. RC samples arecollected in dry form.
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	Diamond Core Sampling: Diamond core was drilled with HQ andNQ2 size and sampled as complete half core to produce a bulksamplefor analysis. Intervals selected varied from 0.3 – 1m(maximum) with a strong geological control (as is possible indiamond core) to ensure grades are representative, i.e. remove anybias through projecting assay grades beyond appropriate geologicalboundaries.
		Assay preparation procedures ensure the entire sample is pulverisedto 75 microns before the sub‐sample is taken. This removes thepotentialforthesignificantsub‐samplingbiasthatcanbeintroduced at this stage.
		RC Sampling: Sample preparation for RC chips is the same as fordiamond core.
	Quality control procedures adopted for all sub‐sampling stages to maximise representivity ofsamples.	Diamond Core Sampling: Drill core is cut in half lengthways and thetotalhalf‐coresubmittedasthesample. Thismeetsindustrystandards where 50% of the total sample taken from the diamondcore is submitted.
		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.
	Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second‐half sampling.	Diamond Core Sampling: The retention of the remaining half‐core isan important control as it allows assay values to be determinedagainst the actual geology; and where required a quarter coresample may be submitted for assurance. No resampling of quartercore or duplicates has been done at this stage of the project.
		RC Sampling: Field duplicates were taken on 1m composites for RCsamples.
	Whether sample sizes are appropriate to thegrain size of the material being sampled.	The sample sizes are considered to be appropriate to correctlyrepresent the sulphide mineralisation at the East Laverton Propertybased on: the style of mineralisation (massive and disseminatedsulphides), the thickness and consistency of the intersections andthe 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 both diamond core and RC sampling, a 30 gram sample will befire assayed for gold, platinum and palladium. The detection rangefor gold is 1 – 2000 ppbAu, and 0.5 – 2000 ppb for platinum andpalladium. This is believed to be an appropriate detection level forthelevelsoftheseelementswithinthisspecificmineralenvironment. However, should Au, Pt or Pd levels reported exceedthese levels; an alternative assay method will be selected.
		All other metals will be analysed using an acid digest and an ICPfinish. The sample is digested with nitric, hydrochloric, hydrofluoricand perchloric acids to effect as near to total solubility of the sampleas possible. The solution containing samples of interest, includingthose that need further review, will then be presented to an ICP‐OESfor the further quantification of the selected elements.

Criteria	JORC Code explanation	Commentary
	For geophysical tools, spectrometers, handheldXRF instruments, etc, the parameters used indetermining the analysis including instrumentmake and model, reading times, calibrationsfactors applied and their derivation, etc.	A handheld XRF instrument (Olympus Innov‐X Spectrum Analyser) isused to systematically analyse the drill core and RC chips onsite.Reading time was 60 seconds. The instruments are serviced andcalibratedatleastoncea year.FieldcalibrationoftheXRFinstrument using standards is undertaken each day.
		For the DHEM survey, specifications and quality control measuresare noted above.
	Nature of quality control procedures adopted(egstandards,blanks,duplicates,externallaboratorychecks)andwhetheracceptablelevels of accuracy (ie lack of bias) and precisionhave been established.	Laboratory QAQC involves the use of internal lab standards usingcertified reference material, blanks, splits and replicates as part of inhouse procedures. The Company will also submit an independentsuite of CRMs, blanks and field duplicates (see above).
Verification ofsampling andassaying	The verification of significant intersections byeitherindependentoralternativecompanypersonnel.	Significant intersections in diamond core are verified by theCompany's Technical Director and Consulting Field Geologist.
	The use of twinned holes.	No twinned holes have been completed in this drilling programme.
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Geological data was collected using handwritten log sheets andimported in the field onto a laptop detailing geology (weathering,structure, alteration, mineralisation), sampling quality and intervals,sample numbers, QA/QC and survey data. This data, together withthe assay data received from the laboratory and subsequent surveydata was entered into the Company's database.
	Discuss any adjustment to assay data.	No adjustments or calibrations will be made to any primary assaydata collected for the purpose of reporting assay grades andmineralised intervals. For the geological analysis, standards andrecognised factors may be used to calculate the oxide form assayedelements, or to calculate volatile free mineral levels in rocks.
Location ofAccuracy and quality of surveys used to locatedata pointsdrillholes(collaranddown‐holesurveys),trenches, mine workings and other locations		Drill hole collar locations are determined using a handheld GPS withan accuracy of +/‐ 5m. Drill hole collars will be preserved andsurveyed to a greater of accuracy after the drilling programme.
	used in Mineral Resource estimation.	Down hole surveys of dip and azimuth were conducted using asingle shot camera every 30m to detect deviations of the hole fromthe planned dip and azimuths.
	Specification of the grid system used.	The grid system used is GDA94, MGA Zone 51.
	Quality and adequacy of topographic control.	Best estimated RLs were assigned during drilling and are to becorrected at a later stage.
Data spacinganddistribution	Data spacing for reporting of ExplorationResults.	The drill programme is targeting EM conductors and other highquality targets for massive nickel sulphide mineralisation. Thespacing and distribution of holes is not relevant to this programme.
	Whether the data spacing and distribution issufficient to establish the degree of geologicalandgradecontinuityappropriatefortheMineral Resource and Ore Reserve estimationprocedure(s) and classifications applied.	Drilling is at the exploration stage. Mineralisation at the EastLaverton Property has not yet demonstrated to be sufficient in bothgeologicalandgradecontinuityappropriatefortheMineralResourceandOreReserveestimationprocedure(s)andclassifications to be applied.
	Whether sample compositing has been applied.	Samples are taken at one metre lengths (diamond core), andadjusted where necessary to reflect local variations in geology orwhere visible mineralised zones are encountered, in order topreserve the samples are representative.
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 diamond core holes are drilled towards 060 at an angle of ‐60degrees to intersect the modelled mineralised zones at a nearperpendicular orientation unless otherwise stated. However, theorientation of key structures may be locally variable and anyrelationship to mineralisation at has yet to be identified.

Criteria	JORC Code explanation	Commentary
	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 toa duly certified assay laboratory for subsampling and assaying. Thecut‐core trays and RC sample bags are stored on secure sites anddelivered to the assay laboratory by the Company or a competentagent. When in transit, they are kept in locked premises. Transportlogs have been set up to track the progress of samples. The chain ofcustody passes upon delivery of the samples to the assay laboratory.For diamond core, a predetermined "cut sheet" serves as a trackingtool and provides a further control for any subsequent checks.
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 materialissueswiththirdpartiesincludingjoint	Phase 1 of the 2015 nickel sulphide drilling programme will testprospects located on several of the 27 Exploration Licences thatcomprise the East Laverton Property.
	ventures,partnerships,overridingroyalties,native title interests, historical sites, wildernessor national park and environmental settings.	Each tenement is 100% owned by Desert Fox Resources Pty Ltd, awholly owned subsidiary of St George Mining. Certain tenementsare subject to a 2% Net Smelter Royalty in favour of a third party.
	The security of the tenure held at the time ofreporting along with any known impediments	None of the tenements are the subject of a native title claim. Noenvironmentally sensitive sites have been identified at any of thetenements.
to obtaining a licence to operate in the area.		The tenements are in good standing and no known impedimentsexist.
ExplorationDone by OtherParties	Acknowledgment and appraisal of explorationby other parties.	In 2012, BHP Billiton Nickel West Pty Ltd (Nickel West) completed areconnaissance RC (reverse circulation) drilling program at the EastLavertonPropertyaspartoftheProjectDragonfarm‐inarrangement between Nickel West and the Company. That farm‐inarrangement has been terminated. The drilling program comprised35 RC holes for 8,560m drilled.
		The results from the Nickel West drilling program were reported bythe Company in its ASX Release dated 25 October 2012 "Drill Resultsat Project Dragon". Drilling intersected primary nickel sulphidemineralisation and established the presence of fertile, high MgOultramafic sequences at the East Laverton Property.
		PriortotheProjectDragondrillingprogram,therewasnosystematic exploration for nickel sulphides at the East LavertonProperty. Historical exploration in the region was dominated byshallowRABandaircoredrilling,muchofwhichhadbeenincompletely sampled, assayed, and logged. This early work wasfocused on gold rather than nickel sulphide exploration.
Geology	Deposit type, geological setting and style ofmineralisation	The Company's East Laverton Property located in the NE corner ofthe Eastern Goldfields Province of the Archean Yilgarn Craton ofWestern Australia.

Criteria	JORC Code explanation	Commentary
		The project area is proximally located to the Burtville‐Yarmanaterraneboundaryandthepaleo‐cratonicmarginalsettingisconsistentwiththeextensivekomatiitesandcarbonatitemagmatism found on the property.
		The area is largely covered by Permian glaciogene sediments(Patterson Formation), which area is subsequently overlain by athinner veneer of more recent sediments and aeolian sands. As aresult the geological knowledge of the belt has previously beenlargely inferred from gravity and magnetic data and locally verifieddrill‐holemulti‐elementbyinformationandsoilgeochemicalsurveys.
		The drilling at the East Laverton Property has confirmed extensivestrike lengths of high‐MgO olivine‐rich rocks across three majorultramafic belts. Ultramafic rocks of this composition are known tohost high grade nickel sulphides.
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 meters) of the drill hole collar• Dip and azimuth of the hole• Down hole length and interception depth• Hole length	Information regarding exploration results from Project Dragon canbe found in the Company's ASX Release dated 25 October 2012"Drill Results at Project Dragon" which is available to view onwww.stgm.com.au.
Dataaggregationmethods	InreportingExplorationResults,weightingaveragingtechniques,maximumand/orminimum grade truncations (e.g. cutting ofhigh grades) and cut‐off grades are usuallyMaterial and should be stated.	No top‐cuts have been applied. A nominal 0.15% Ni lower cut‐off isapplied unless otherwise indicated.
	Where aggregated intercepts incorporate shortlengthsofhighgraderesultsandlongerlengths of low grade results, the procedureused for such aggregation should be stated andsome typical examples of such aggregationsshould be shown in detail.	High grade massive sulphide intervals internal to broader zones ofsulphide mineralisation are reported as included intervals.
	The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	No metal equivalent values are used for reporting explorationresults.
Relationshipbetweenmineralisation	These relationships are particularly importantin the reporting of exploration results.	The geometry of the mineralisation is not yet known due toinsufficient deep drilling in the targeted area.
widths andinterceptlengths	If the geometry of the mineralisation withrespect to the drill hole angle is known, itsnature should be reported. If it is not knownand only the down hole lengths are reported,there should be a clear statement to this effect(e.g.'downholelength,truewidthnotknown').
Diagrams	Appropriate maps and sections (with scales)andtabulationsofinterceptsshouldbeincluded for any significant discovery beingreported. These should include, but not belimited to a plane view of drill hole collarlocations and appropriate sectional views.	Maps will be included with any announcement of any significantdiscovery, following review of assay results from the drillingprogramme.

Criteria	JORC Code explanation	Commentary
BalancedReporting	WherecomprehensivereportingofallExplorationResultsisnotpractical,	A balanced report on the interim exploration results is contained inthe body of the ASX Release.
	representative reporting of both low and highgrades and/or widths should be practiced toavoidmisleadingreportingofExplorationResults.	A comprehensive report on recent drilling at the East LavertonProperty can be found in the following ASX Releases that areavailable on our website at www.stgm.com.au:
		3 September 2014 'Nickel Sulphide Drilling – Update on Phase 1'
		11 February 2015 'St George Extends Nickel Sulphide Zone'.
Othersubstantiveexplorationdata	Otherexplorationdata,ifmeaningfulandmaterial, should be reported including (but notlimited to): geological observation; geophysicalsurvey results; geochemical survey results; bulksamples–sizeandmethodoftreatment;metallurgicaltestresults;bulkdensity,groundwater,geotechnicalandrockcharacteristics;potentialdeleteriousorcontaminating substances.	All meaningful and material information has been included in thebody of the text. No metallurgical or mineralogical assessmentshave been completed.
Further Work	The nature and scale of planned further work(e.g.testsforlateralextensionsordepthextensions or large – scale step – out drilling).	A discussion of further exploration work is contained in the body ofthe ASX Release.
Diagramsclearlyhighlightingtheareasofpossibleextensions,includingthemaingeological interpretations and future drillingareas,providedthisinformationisnotcommercially sensitive.

HOLE ID	NORTHING(m)	EASTING(m)	DIP(deg)	AZM(deg)	DEPTH(m)	FROM(m)	TO(m)	WIDTH(m)	Ni(%)	Cu(ppm)	Pt+Pd(ppb)
DRAC35	6739401	527150	‐60	250	244	100	118	18	0.40	342	197
						100	104	4	0.57	366	294
						112	114	2	0.51	584	281
DRAC38	6733696	530786	‐60	250	298	108	138	30	0.31	10	31
						132	138	6	0.48	40	48
						132	134	2	0.62	92	53
DDNRC002	6742718	523717	‐60	59	246	53	60	7	0.54
						53	55	2	1.08

Table 1 to 2012 JORC Section – Significant intersections in DRAC35, DRAC38 and DDNRC002.

These historical holes are the first identification of nickel sulphides at the East Laverton Property. For further details on DRAC35 and DRAC38, see the ASX Release dated 25 October 2012 "Drill Results at Project Dragon". For further details on DDNRC002, see the ASX Release dated 11 April 2013 "St George Provides Exploration Update". These ASX Releases are available to view on the Company's website at www.stgm.om.au