ST GEORGE MINING LIMITED — Investor Presentation 2012

Jun 7, 2012

ASX / MEDIA RELEASE

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ST GEORGE MINING LIMITED

8 June 2012

ASX: SGQ ACN 139 308 973

ST GEORGE CONFIRMS POTENTIAL FOR A MAJOR GOLD DISCOVERY AT EAST LAVERTON

Level 1, 115 Cambridge Street PO Box 1305, West Leederville WA 6007

HIGHLIGHTS

www.stgeorgemining.com.au

Phone +618 9322 6600 Facsimile +618 9322 6610 Email info@stgm.com.au

John Prineas Executive Chairman

Tim Hronsky Technical Director

• Large gold systems confirmed at Balmoral and at Desert Dragon, which remain open along strike

• Anomalous gold in drill intercepts is coincident with gold soil geochemistry, confirming the link between surface anomalies and bedrock mineralisation

Marcus Michael

• Athena identified as a new strong gold target

Non-Executive Director

Sarah Shipway Company Secretary

• Range of new gold targets identified

• • RC drilling of high grade gold targets to continue in H2 2012

OVERVIEW

Australian gold and nickel focused explorer, St George Mining Limited (ASX: SGQ ) (‘St George Mining’ or ‘the Company’) is pleased to provide an update of its gold explorati o n activities at its 100% owned East Laverton Propert y , in the NE Goldfields region of Western Australia.

A large multi-phase exploration pro g ramme was completed during the 2011 fiel d season, the first full field season since St George Mining listed on the ASX in November 2010. This exploration programme is ongoing with further f ield work to be undertaken in the second hal f of 2012.

The 2011 field campaign has been successful in confirming the potential of t h e East Laverton Property to host significant gold mineralisation, and has delivered the following k e y milestones:

1. Drilling at the Desert Drag o n and Balmoral gold prospects intersected visibly altered basement rocks with signific a nt intervals of disseminated sulphides.

2. Assay results returned num e rous intervals of anomalous gold mineralis a tion throughout the drill holes.

3. An airborne magnetics surv e y over the Balmoral area has identified a strong magnetic response associated with t h e unusual gold and molybdenum (Au + M o) geochemical anomalies.

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1. Drilling has confirmed this m agnetic response, coincident with the gold a nd molybdenum (Au + Mo) geochemical si g nature, is associated with late-stage ma f ic granites. The unusually strong Mo sign a ture, within a greenstone dominant area, suggests the hydrothermal gold fluids at Balmoral contain a strong mantle compone n t, which is often associated with higher grade gold mineralisation.

2. At the Athena prospect, a review of an existing MMI survey and the airborne magnetic data confirmed a gold-silver-copper anomaly occurring over 1,000 m in a structurally controlled mafic corridor b e tween two granites – a typical structural setting for gold mineralisation.

3. A regional multi-element M M I soil geochemical survey conducted in the n orth of the East Laverton Property has defi n ed a new gold anomaly (“Green Dragon”) over a northerly 5,000 m trend.

4. The MMI survey over Red D r agon identified a large and prominent geoc h emical signature indicative of a carbonatite t hat is prospective for rare earths. For more details on this discovery at Red Dragon, se e the Company’s ASX Release dated 7 June 2 0 12 and available on our website at www.stgm.com.au/asx-announcements.html.

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Figure 1 – gold prospects and targets at the tenements of the East Laverton Property shown against a magnetics backgr o und

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The Company engaged external co n sultants to assist in the interpretation and r eview of certain aspects of the exploration work u ndertaken at East Laverton. Dr Alan Man n , a well known geochemist and expert on MMI ex p loration geochemistry, was engaged to revi e w and comment on the MMI surveys completed at E a st Laverton. Southern Geoscience Consultants was retained to model and interpret the airborne m agnetic survey flown in 2011 over an area t hat included the Balmoral and Red Dragon prospect s . SRK Consulting was engaged to review th e prospectivity of the Red Dragon prospect.

Tim Hronsky, Technical Director of St George Mining, said that the Company had made remarkable progress during the pas t year in exploring for gold at its large East Lav e rton Property:

“We have gone into previously unexplored and undercover areas and have con f irmed two large gold systems, as well as identifyin g other significant gold targets. The discovery of major gold deposits in these environments requires an initial commitment to explore the l a rger property so that the next stage of exploration i s focused on the right targets. Tropicana to the east and Gold Road’s Yamarna project to the n o rth are good examples of the benefits o f employing this disciplined exploration strategy.”

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Figure 2 – a regional map showing the l a rge St George tenement area and its proximity t o major gold projects

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DESERT DRAGON GOLD PROSPECT

The Desert Dragon gold prospect is situated on the Stella Range Fault, which f o rms the western margin of the East Laverton Prop e rty and is an important structure hosting gold and nickelsulphide mineralisation.

During the 2011 drilling programm e , the Desert Dragon prospect was tested by 22 aircore and reverse circulation (RC) holes (2,062 m). The drilling intersected numerous zo n es of alteration, disseminated sulphides, and low- g rade gold mineralisation (see Figure 3 and Table 1). The consistency of the mineralisation o v er a broad area confirms the presence of a l a rge gold system at Desert Dragon. The gold interce p ts are particularly encouraging as they confir m a link between the gold responses seen in the MMI surface geochemistry and bedrock mineralisation encountered during drilling.

The exploration importance of bei n g able to demonstrate this relationship ext e nds beyond the Desert Dragon prospect itself, as it supports the validity of numerous othe r gold prospects determined by the regional MMI soi l geochemical sampling.

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COMPOSITE DRILL GRADE INTERVALS
(ppbAu)
200 metres
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Figure 3 – Plan of composite intersectio n s at Desert Dragon Gold Prospect. Grade range i s shown colour and interval is shown by number below circl e

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HOLE ID	LOCATION	NORTH	EAS T	AZM (deg)	DIP (deg)	DEPTH (m)	FROM (m)		TO (m)	GRADE (ppbAu)
DDAC-01	Desert Dragon	6736998	52632 0.5	252	-60	77	8	9		190
							45	47		170
DDAC-14	Desert Dragon	6737001	5261 58	232	-60	71	26	29		73
DDAC-15	Desert Dragon	6736951	5264 85	232	-60	64	12	21		225
DDAC-15							30	31		500
DDAC-16	Desert Dragon	6736920	5264 46	232	-60	69	13	16		183

Table 1 – a summary of drill intersectio n s at Desert Dragon

The style of alteration and sulphide mineralisation intersected at Desert Dragon is one commonly associated with economic gold min e ralisation in the Laverton region. This suggests the location of the 2011 drill holes is peripheral to t he main gold system at Desert Dragon, whic h may be situated at greater depth and/or laterally to t he north.

The majority of the Desert Drago n shear zone remains to be drill tested, including the highly prospective Desert Dragon North pr o spect, where the highest gold values in the r egional MMI soil geochemical survey were recorded.

New high priority gold drill target s at Desert Dragon will be incorporated in t o the next drill programme at East Laverton, and will include a focus on the Desert Dragon North prospect.

BALMORAL GOLD PROSPECTS

About Balmoral

The Balmoral prospect has a large and zoned geochemical foot print that is c onsistent with a composite hydrothermal system. T h e core 3,000 m x 2,000 m area at Balmor a l contains three discrete gold areas at Balmoral Nort h , Balmoral West and Balmoral South (see Fig u re 4).

The broad and consistent nickel (Ni) values shown in the MMI soil survey at Bal m oral indicate this is dominantly a mafic (greenstone) d omain. Regionally, Balmoral presents as a la r ge ovoid area of demagnetisation that is indicativ e of a significant magnetite destruction associated with hydrothermal fluid circulation and a lteration. It is situated on the major NW t r ending Minigwal Fault, which forms the western mar g in of the East Laverton Property.

Balmoral North is a broad east-w e st orientated gold (Au) geochemical anomaly, with strongly anomalous levels of silver (Ag) and copper (Cu). The gold-silver association is similar to Eastern Goldfields shear zone hosted depos i ts and is typical of gold mineralisation in the Yilgarn. The high levels of silver suggest a strong con t ribution of ambient (meteoric and metamor p hic) fluids during gold mineralisation.

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Balmoral West and Balmoral South are more discrete gold (Au) anomalie s with a strong molybdenum (Mo) association but do not have any appreciable silver levels present. The high levels of molybdenum and the ab s ence of silver suggest the hydrothermal g o ld fluids have a strong mantle component, which ca n be linked to higher grade gold mineralisatio n .

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Balmoral North Balmoral North (Au-Ag)(Au-Ag)
Balmoral West (Au-Mo)Balmoral West (Au-Mo)
Balmoral South Balmoral South (Au-Mo)(Au-Mo)
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F igure 4 – The three gold z o nes at the Balmoral p rospect, each have distinct g eochemical signatures ( A u-Mo or Au-Ag)

2011 Field Work

An airborne magnetic survey was fl o wn over the Balmoral area during the 2011 f i eld season and 8 reconnaissance drill holes (for a tot a l of 637 m of drilling) were completed at Balmoral North and Balmoral West. Results of the airborne magnetic survey and drilling were revie w ed together with the 2011 MMI soil geochemical sampling. This technical review has affirmed the h igh prospectivity of Balmoral for a major gold discove r y.

Geochemical indexes were used to assess and define prospective areas within the larger target zone. The sample values of multipl e elements, which commonly occur together in an ore system, are multiplied to form a single composite value.

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The use of this geochemical index t echnique resulted in the recognition of two distinct styles of gold mineralisation being present at Balmoral.

Balmoral North has a strong Au-A g -Cu (gold-silver-copper) association and a n AuAg index is applicable. In contrast, Balmoral West and Balmoral South have a strong Au-Mo (goldmolybdenum) association with low silver and copper and an AuMo index is a pplicable. These differences reflect local variations in the fluid chemistry within the larger gold system. The presence of molybdenum (Mo) in a g reenstone-mafic setting suggests a strong m a ntle component in the hydrothermal fluids. A mantle association in gold fluids can be linked to hig h gold grades.

At Balmoral West, the magnetic survey showed a strong coincidence between higher magnetic areas and the gold + molybdenum g eochemistry. The drill holes intersected zon e s of silicification and carbonate alteration associated with geochemically elevated gold levels.

The coincidence of the high magnet i c areas with the gold anomalies is thought t o be related to an ultramafic host rock and what ap p ears to be late-stage, sulphidic mafic-granitoids that were encountered by the drilling at Balm o ral West.

This suggests the presence of a co m plex magmatic-hydrothermal system associa t ed with the gold anomalies identified by the MMI so i l survey. The mantle source of these primiti v e mafic granites, emplaced during a discrete extensi o nal phase explains the strong gold + molybdenum (Au + Mo) association at Balmoral West.

In contrast, the higher Au*Ag values at Balmoral North appear to correlate better with lower magnetic zones.

The composite geological setting at Balmoral indicates significant diversity and v a riation between the geochemical and geophysical c h aracteristics of the gold associations, and is c onsistent with a large and complex hydrothermal gold system at Balmoral. Exploration will now f ocus on defining the higher grade zones within this b r oad target.

The Balmoral prospect requires further and focused drill testing based o n the growing understanding of this gold prospe c t. The gold-silver (AuAg) and gold-molybdenum (AuMo) geochemical indexes will be employed to assist in the placement of further drill h oles at Balmoral (see Figure 5). This technique is de s igned to better define potentially higher gr a de areas of gold mineralisation based on these key g e ochemical associations.

Tim Hronsky, Technical Director of St George Mining said: “While Balmoral is a large and enigmatic gold system, we are st e adily building our understanding of the prospect from the structural, geological, geochemical and now geophysical data sets.

“Everything tells us that we are in the right place for a major gold discovery.

“More sophisticated modelling of t h e geochemical and magnetic data will help us further refine the planned drill targets for 2012.”

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Figure 5 – AuAg anomaly at Balmoral North shown against a magneti_ _c s background illustrates numerou_ _s high value responses associat_ _e d with zones of lower magneti_ _c* response

NEW GOLD TARGETS

The review of the regional MMI s o il survey and regional geophysical data set has identified a number of new gold targets at Gol d en Dragon, Green Dragon and Athena. The MMI survey has proven to be effective in the mapping of structures undercover and has allowed us to determine the broad greenstone, ultramafic an d granite domains at the East Laverton Prope r ty.

The high level of structurally contr o lled gold anomalism (compared to background) that occurs throughout the property, the geo p hysical data and the multi-element associ a tions are strong indicators for the endowment at Ea s t Laverton, and the potential of a major gold d iscovery.

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Green Dragon

The Green Dragon gold target was identified through a regional multi element MMI soil survey. The target is a large gold geochemi c al response covering a 5,000 m northerly tr e nd. Further infill MMI sampling will refine this larg e gold anomaly, and identify drill targets. I t appears to be situated on the northern extension o f the Minigwal Fault.

Athena

Athena is a discrete gold target, w h ere a strongly anomalous gold-silver-copper response occurs for over 1,000 m. The area is un d erlain by greenstone (mafic rocks) that fo r m a structurally controlled corridor flanked by gran i tes (see Figure 6). The granite-greenstone contact zones are common settings for localising gold m ineralisation in the Laverton area.

The southern end of Athena abuts a large chrome anomaly, which may be indicative of a mafic intrusive (gabbro). The chrome soil anomaly extends of 5,000 m and is roughly c oincident with a similarly sized arsenic anomaly.

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GRANITE DOMAIN
6744800
10
Drill target on
granite margin
6744600 flexure 8
6
6744400
GRANITE DOMAIN
4
6744200
2
GREENSTONE CORRIDOR
6744000 0
MMI AuAg
6743800
EAST LAVERTON
544600 544800 545000 545200 545400 545600
ATHENA GOLD TARGET
St GAthe200eorgna S m e Miningampling LocationsAuAg Anomalous Zones
GRANITE CONTACT
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Figure 6 - (AuAg) anomalies_ _a t Athena Gold target are used to locate the key d_ _r ill target area, which is located in flexu_ _r e zone of structure on the granite-greenstone ma_ _r* gin

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Golden Dragon

The Golden Dragon gold target w as generated using available geochemical, geophysical and exploration data. The target appear s to correlate with a strongly demagnetised z o ne that matches a right-lateral extensional structur e within a local NW trending shear zone. I t appears to be located on the eastern margin of a l a rge underlying granitoid. For more details o n Golden Dragon, see the Company’s ASX Release d ated 14 February 2012 and available on our website at www.stgm.com.au/asx-announcem e nts.html.

2012 DRILLING CAMPAIGN

St George Mining is currently planning its 2012 drilling campaign which is likely to consist of further RC drilling at Desert Dragon and Balmoral as well as test drilling at Gree n Dragon, Athena and Golden Dragon.

Further geophysical analysis of t h e 2011 airborne magnetic survey is continuing and the interpretation of this analysis and t he MMI survey data will assist in defining p riority gold drill targets for 2012. A number of prominent high grade gold targets have already been identified and the Company expects to significantl y advance its gold exploration during 2012.

For further information, please contact:

John Prineas Colin Hay Executive Chairman Professional Public Relations St George Mining Limited (+61) 08 9388 0944 mob 0415 0 96 804 (+61) 411 421 253 colin.hay@ppr.com.au John.prineas@stgm.com.au www.stgeorgemining.com.au

COMPETENT PERSON STATEMENT:

The information in this announcement t h at relates to Exploration Results and Mineral Resources is based on information compiled by Andrew Hawker of Hawker Geological Services Pty Ltd. Mr Hawker is a member of the Australasian Institute of Mining and M e tallurgy has sufficient experience, which is relev a nt to the style of mineralisation and type of deposit under c o nsideration and to the activity, which he is undertaking. This qualifies Mr Hawker as a “Competent Person” as define d in the 2004 edition of the ‘Australasian Code for Rep o rting of Exploration Results, Mineral Resources and Ore Re s erves’. Mr Hawker consents to the inclusion of information in this announcement in the form and context in w hich it appears.

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