Southern Gold (ASX:SAU), Simon Mitchell, Managing Director. Investor presentation at 2015 Broken Hill Resources Investment symposium.

1. SOUTHERNGOLD
SOUTHERN
GOLD:
A
UNIQUE
JUNIOR
Investor
Presenta4on
–
May
2015

2. Disclaimer
Forward-­‐looking
statements
The
informa4on
in
this
presenta4on
is
published
to
inform
you
about
Southern
Gold
Limited
(“Southern
Gold”)
and
its
ac4vi4es.
Some
statements
in
this
presenta4on
regarding
es4mates
or
future
events
are
forward
looking
statements.
These
may
include,
without
limita4on:
• Es4mates
of
future
cash
flows,
the
sensi4vity
of
cash
flows
to
metal
prices
and
foreign
exchange
rate
movements;
• Es4mates
of
future
metal
produc4on;
and
• Es4mates
of
the
resource
base
and
statements
regarding
future
explora4on
results
and
increasing
the
company’s
resource
base
Such
forward
looking
statements
are
based
on
a
number
of
es4mates
and
assump4ons
made
by
the
Company
and
its
consultants
in
light
of
experience,
current
condi4ons
and
expecta4ons
of
future
developments
which
the
Company
believes
are
appropriate
in
the
current
circumstances.
Such
statements
are
expressed
in
good
faith
and
believed
to
have
a
reasonable
basis.
However
the
es4mates
are
subject
to
known
and
unknown
risks
and
uncertain4es
that
could
cause
actual
results
to
differ
materially
from
es4mated
results.
All
reasonable
efforts
have
been
made
to
provide
accurate
informa4on,
but
the
Company
does
not
undertake
any
obliga4on
to
release
publicly
any
revisions
to
any
“forward-­‐looking
statement”
to
reflect
events
or
circumstances
aer
the
date
of
this
presenta4on,
except
as
me
be
required
under
applicable
laws.
Recipients
should
make
their
own
enquiries
in
rela4on
to
any
investment
decisions
from
a
licensed
investment
advisor.
2

3. What
makes
Southern
Gold
unique?
FROM
DISCOVERY
TO
DEVELOPMENT
3
1.
Gold
Address:
Kalgoorlie
“Blue
Chip”
Ground
Posi4on
2.
High
grade
gold
resource
(93%
Indicated=
93koz
Au
@
4g/t
Au)
3. Solid
cash
balance
(~$1.2m
as
at
31
March
2015
+
$0.35m
from
R&D)
with
poten4al
cash
genera4on
from
near
term
produc4on
4.
Metals
X
as
financers
and
operators
of
Cannon
Mine
5.
Resource
Upside
with
poten4al
gold
resource
extensions
@
Cannon
6. MulLple
exploraLon
targets
with
significant
regional
footprint
with
poten4al
below
historical
shallow
RAB
drilling
Given
the
features
above,
what
would
you
expect
Southern
Gold
market
capitalisa4on
to
be?

4. 1.
Kalgoorlie
“Blue
Chip”
Gold
Address
Southern
Gold’s
Cannon
Gold
Resource:
30km
east
of
the
world
class
gold
district
of
Kalgoorlie
FROM
DISCOVERY
TO
DEVELOPMENT
4
Metals X – Jubilee Mill
is where Cannon Gold
Resource ore will be
processed
(approx. 35km haul).

5. 2.
High
Grade
Gold
Resource
5
Cannon
Project
Gold
Resource
-­‐
93%
in
the
Indicated
category
with
grade
of
4g/t
Au
Indicated Inferred Total
Tonnes Au Au Tonnes Au Au Tonnes Au Au
t g/t Ounces t g/t Ounces t g/t Ounces
Oxide
8,000 3.0 800 1,500 2.4 100 9,500 2.9 900
Transi4onal
137,600 3.1 13,900 34,100 2.6 2,900 171,700 3.0 16,800
Fresh
573,500 4.3 78,500 57,500 2.3 4,200 631,000 4.1 82,800
Total
719,100 4.0 93,200 93,000 2.4 7,200 812,200 3.9 100,400
• Higher grade should translate to lower operating cost per ounce of gold produced
• Ensure a robust project relatively insulated to downside gold price movement
@ 1.0g/t Au cut-off grade
FROM
DISCOVERY
TO
DEVELOPMENT

6. 3.
Cash
Genera4on
from
near
term
produc4on
6
Base
Case
A$1,400/oz
Au
Scenario
1
A$1,500/oz
Au
Scenario
2
A$1,600/oz
Au
Mine
Life
Months
36
36
36
Tonnes
Mines
Tonnes
484,000
484,000
484,000
Head
grade
g/t
Au
4.4
4.4
4.4
Mined
Ounces1
oz
Au
68,200
68,200
68,200
Recovery
(ave)
%
92
92
92
Infrastructure
Cost
A$m
13.3
13.3
13.3
Opera4ng
Cost
A$/oz
964
964
964
WA
State
Royalty2
%
2.5
2.5
2.5
Free
surplus
cash
flow
A$m
12.4
18.5
24.6
(See
ASX
announcement
dated
29
August
2013
and
18
February
2014
for
key
parameters
of
PFS)
Note
1:
Mined
ounces
and
grade
calculated,
based
on
cut-­‐off
grade
from
$1400/oz
base
case
scenario.
Note
2:
WA
State
Royalty
of
2.5%
is
applied
to
all
ounces
produced
aer
the
first
2,500
oz
produced
in
each
financial
year.
• Current cash balance $1.2m, R&D Tax refund +$0.35m, near term cash flow
• Two phase development – Phase 1 Open Cut & Phase 2 Underground
• Phase 1 Open Pit economics to be updated using Metals X cost structure shortly
FROM
DISCOVERY
TO
DEVELOPMENT

7. 4.
Metals
X
as
project
financiers
&
operators
Nov
2014:
Mining
and
profit
share
agreement
executed
FROM
DISCOVERY
TO
DEVELOPMENT
7
Key
terms
Metals
X
to
manage
all
mining
operaLons
At-­‐cost,
open
book
basis
Secured
loan
facility
A$500,000
Profit
share
50:50
• Metals
X
-­‐
experienced
and
well-­‐funded
mining
company
who
are
an
Australian
top
ten
gold
producer
and
Australia’s
largest
4n
producer.
• Metals
X
-­‐
finance,
mine,
haul
and
process
ore
from
the
Cannon
Gold
Resource
with
these
ac4vi4es
charged
on
an
at-­‐cost,
open
book
basis.
• Reduces
project
execu4on
risk.
• Phase
1
development
of
the
open
pit
within
12
months
of
commencement.
(expected
June/July
2015)
• Op4on
for
the
par4es
to
agree
to
proceed
with
Phase
2
underground
development.

8. 8
FROM
DISCOVERY
TO
DEVELOPMENT
5.
Poten4al
Gold
Resource
Extensions
SecLon
110mN
SecLon
175mN
7.6m
@21.5g/t
Au
7.5m
@11.5g/t
Au
Open
Open
• Excellent grade and width at depth indicating the deposit is open at depth
• Deposit size is constrained by the poor capital markets of 2013-2014, not drilling

9. You
have
to
drill
more
than
shallow
holes…..
9
FROM
DISCOVERY
TO
DEVELOPMENT
6.
“Blue
Sky”….historical
first
pass
RAB
drilling

10. ……..Cannon
resource
sits
under
the
RAB
drilling
10
FROM
DISCOVERY
TO
DEVELOPMENT
6.
Deeper
RC
Drilling
found
Cannon

11. ……..lets
take
a
look
at
that
again
11
FROM
DISCOVERY
TO
DEVELOPMENT
6.
Drill
Deeper
than
50m

12. 12
FROM
DISCOVERY
TO
DEVELOPMENT
6.
Historic
shallow
drilling
provides
“Blue
Sky”

13. Corporate
Overview
Financial
informaLon
Number
of
shares
527.5
m
Share
price
(18
May
2015)
A$0.010
Market
capitalisaLon
A$5.3
m
Debt
(Metals
X
finance)
A$0.5
m
Cash
(@
31
March
2015)
A$1.2
m
Enterprise
value
A$4.6
m
Major
shareholders
Silver
Lake
Resources
8.20%
Gary
B
Branch
4.45%
PS
Super
Nominee
3.79%
JP
Morgan
Nominees
3.44%
Board
and
Management
7.42%
13
RelaLve
share
price
performance
Recap
of
Key
Points
1.
“Blue
Chip”
Gold
Address
2.
High
grade
gold
(4g/t
Au)
3.
$1.2
m
cash
now
&
genera4on
4.
Metals
X
as
operators
5.
Resource
extensions
@
Cannon
6.
More
gold
to
find….
FROM
DISCOVERY
TO
DEVELOPMENT

14. Board
of
Directors
• Corporate
and
technical
experience
in
the
resource
sector
for
25
years
• Senior
execu4ve
for
the
past
decade
including
Toro
Energy
Ltd
and
Asia4c
Gold
Ltd
• Gold
experience
with
Normandy
NFM,
Aurora
Gold,
RGC
Explora4on
• Project
finance
execu4ve
in
investment
banking
Greg
Boulton
AM
–
Non-­‐ExecuLve
Chairman
Corporate
finance
• 25
years
of
corporate
finance
experience
• Experience
in
capital
raisings,
acquisi4ons
and
commercial
nego4a4ons
• Chairman
of
Paragon
Equity
• Deputy
Chairman
K&S
Corpora4on
• Non-­‐Execu4ve
Director
of
Statewide
Superannua4on
Trust
• 40
years
of
mining
industry
experience
• Worked
in
company
secretarial,
Non-­‐Execu4ve
and
Managing
Director
roles
• Experience
in
debt
and
equity
raising,
project
evalua4on
and
feasibility
studies
in
Australia
and
overseas
• Execu4ve
Chairman/CEO
of
AIM-­‐listed
Thor
Mining
• Non-­‐Execu4ve
Director
at
ASX-­‐listed
Emperor
Range
Group
Ltd
• Over
27
years
experience
in
the
Australian
and
Asian
resource
sector
• Driven
business
development,
corporate
merger
and
acquisi4on
ac4vi4es
in
precious
metals,
bulk
commodi4es
and
industrial
minerals
• Experience
in
minerals
explora4on,
project
development
and
commercial
evalua4on
of
mineral
assets
• Previous
directorships
with
ASX-­‐listed
Lawson
Gold
and
formerly
ASX-­‐listed
FerrAus
David
Turvey
–
Non-­‐ExecuLve
Director
Geology
Mick
Billing
–
Non-­‐ExecuLve
Director
Corporate
finance
and
accounLng
Simon
Mitchell
–
Managing
Director
Geology
and
Corporate
Development
14
MulL-­‐disciplinary
Board
with
strong
technical
and
corporate
experience
FROM
DISCOVERY
TO
DEVELOPMENT

15. SOUTHERNGOLD
Current
Ac4vi4es

16. Grade
Control
Drilling
Completed
16
CANNON
GOLD
PROJECT
–
Grade
Control
and
SterilisaLon
Drilling
completed
in
February
FROM
DISCOVERY
TO
DEVELOPMENT

17. Grade
Control
Drilling
Results
17
Within
the
limits
of
drilling,
Grade
Control
affirms
the
overall
geometry
of
the
mineralisaLon
FROM
DISCOVERY
TO
DEVELOPMENT

18. Pre-­‐Development/Permixng
Timetable
18
FROM
DISCOVERY
TO
DEVELOPMENT

19. 19
FROM
DISCOVERY
TO
DEVELOPMENT
Cannon
Project
–
Mine
Plan
Finalisa4on

20. Key
milestones
20
Strong
newsflow
expected
in
the
next
6-­‐12
months
Cannon
Gold
Resource
development
and
producLon
Re-­‐op4misa4on,
pit
design
and
revised
schedule
and
economics
Late
May
2015
Final
regulatory
approvals
submiyed
Early
June
2015
Roadworks
and
other
preliminary
development*
2Q
2015
Complete
development
and
begin
produc4on*
2Q/Q3
2015
First
Net
Cash
Flow
from
Opera4ons*
4Q
2015
Near
Cannon
Gold
Resource
exploraLon
Follow
up
drilling
at
adjacent
to
Cannon
mine
(Arsenal
and
Monument)
Q3
2015
First
pass
drill
tes4ng
of
Tier
1
targets
(Railway
South
and
Too4ng
Bec)
Q2/Q3
2015
Regional
exploraLon
Explora4on
program
at
Cowarna
Project
Q4
2015/Q1
2016
* Development
dates
are
subject
to
regulatory
approval
schedules
and
explora4on
programs
will
be
scheduled
around
cash
flow
4melines
FROM
DISCOVERY
TO
DEVELOPMENT

21. Discovery
to
development
to
further
discovery
21
Cannon
Gold
Resource
• Only
30km
east
of
Kalgoorlie
giving
easy
access
to
infrastructure,
skilled
workforce,
informed
stakeholders,
mining
equipment
and
processing
plants
• Cannon
Mine
development
in
2015
to
provide
an
early
cashflow
opportunity
• Exis4ng
poten4al
to
grow
the
gold
resource
through
further
tes4ng
and
underground
explora4on
Metals
X
transacLon
• Mining
and
profit
share
agreement
to
fast-­‐track
development
and
reduce
project
risk
• Poten4al
to
lead
to
further
opLmisaLon
of
project
costs
and
mine
plan
The
bigger
picture
• 200km2
tenement
holding,
with
30
priority
anomalies
iden4fied
from
regional
geochemical
auger
programme
conducted
over
the
eastern
area
of
the
Bulong
Gold
Project
• Follow
up
work
has
priori4sed
6
Tier
1
targets
–
what
else
did
the
RAB
drilling
miss?
• Knowledge
gained
from
work
at
the
Cannon
Gold
Resource
provides
important
structural
and
geochemical
informa4on
to
assess
regional
targets
in
context
FROM
DISCOVERY
TO
DEVELOPMENT
Southern Gold is a unique junior gold company with a market cap of $5-$6m.

22. SOUTHERNGOLD
Appendix
A
–
Bulong
Gold
Resource

23.
Indicated Inferred Total
Tonnes Au Au Tonnes Au Au Tonnes Au Au
t g/t Ounces t g/t Ounces t g/t Ounces
Cannon
Gold
Resource
Oxide
8,000 3.0 800 1,500 2.4 100 9,500 2.9 900
Transi4onal
137,600 3.1 13,900 34,100 2.6 2,900 171,700 3.0 16,800
Fresh
573,500 4.3 78,500 57,500 2.3 4,200 631,000 4.1 82,800
Total
719,100 4.0 93,200 93,000 2.4 7,200 812,200 3.9 100,400
Pinner
Resource
Oxide
-­‐
-­‐
-­‐
600
3.0
200
600
3.0
200
Transi4onal
-­‐
-­‐
-­‐
76,400
2.2
5,400
76,400
2.2
5,400
Fresh
-­‐
-­‐
-­‐
94,900
2.0
6,100
94,900
2.0
6,100
Total
-­‐
-­‐
-­‐
172,000
2.1
11,500
172,000
2.1
11,500
Total
Resource
719,100
4.0
93,200
265,000
2.2
18,700
984,100
3.5
111,900
Appendix 1 – Bulong Gold Project Resource Table
23
Bulong
Gold
Resource
93%
of
the
Cannon
Gold
Resource
is
within
the
Indicated
category

24. Appendix 1 – Bulong Gold Project Resource Table
24
Disclaimer
cont.
Competent
Person’s
statements
The
informa4on
in
this
report
that
relates
to
Explora4on
Results
has
been
compiled
under
the
supervision
of
Mr.
Ian
Blucher
(MAusIMM).
Mr
Blucher,
who
is
a
full
4me
employees
of
Southern
Gold
Limited
and
a
Member
of
the
Australian
Ins4tute
of
Mining
and
Metallurgy,
has
sufficient
experience
which
is
relevant
to
the
style
of
mineralisa4on
and
type
of
deposit
under
considera4on
and
to
the
ac4vity
he
has
undertaken
to
qualify
as
a
Competent
Person
as
defined
in
the
2012
Edi4on
of
the
Australasian
Code
for
the
Repor4ng
of
Mineral
Resources
and
Ore
Reserves.
Mr
Blucher
consents
to
the
inclusion
in
this
report
of
the
mayers
based
on
the
informa4on
in
the
form
and
context
in
which
it
appears.
The
informa4on
in
this
report
that
relates
to
Mineral
Resources
is
based
on
informa4on
compiled
by
Mr
Ian
Blucher
(MAusIMM).
Mr.
Blucher
is
a
full
4me
employee
of
Southern
Gold
Limited
and
has
sufficient
experience
that
is
relevant
to
the
style
of
mineralisa4on,
type
of
deposit
under
considera4on
and
to
the
ac4vity
being
undertaken
to
qualify
as
a
Competent
Person
as
defined
in
the
2012
Australasian
Code
for
Repor4ng
of
Explora4on
Results,
Mineral
Resources
and
Ore
Reserves”
(JORC,
2012).
Mr
Blucher
consents
to
the
inclusion
in
this
report
of
the
mayers
based
on
the
informa4on
in
the
form
and
context
in
which
it
appears.
Pre-­‐Feasibility
Study
Results
The
Op4misa4on
announcement
dated
13
February
2014
had
no
material
changes
to
the
methodology
and
assump4ons
used
to
determine
the
produc4on
target
as
detailed
in
the
PFS
announcement
of
28
August
2013,
and
all
of
the
key
parameters
con4nue
to
apply.
The
Op4misa4on
announcement
provided
an
update
to
the
market
of
the
reduc4on
in
the
forecast
opera4ng
costs.
There
have
been
no
material
changes
to
the
methodology
used
to
determine
the
opera4ng
costs
as
outlined
in
the
PFS
announcement.

25. Simon
Mitchell
Managing
Director
+61
8
8368
8888
info@southerngold.com.au
www.southerngold.com.au
Level
1,
8
Beulah
Road
Norwood,
SA
5065
PO
Box
255
Kent
Town
SA
5071
SOUTHERNGOLD