==> picture [72 x 91] intentionally omitted <==

SOUTHERN GOLD

GOLD MINER & EXPLORER – WHERE TO FROM HERE? Annual General Meeting – Managing Director’s Presentation 22 October 2015

Disclaimer

==> picture [780 x 8] intentionally omitted <==

Forward-looking statements

The information in this presentation is published to inform you about Southern Gold Limited (“Southern Gold”) and its activities. Some statements in this presentation regarding estimates or future events are forward looking statements. These may include, without limitation:

• Estimates of future cash flows, the sensitivity of cash flows to metal prices and foreign exchange rate movements;

• Estimates of future metal production; and

• Estimates of the resource base and statements regarding future exploration results and increasing the company’s resource base

Such forward looking statements are based on a number of estimates and assumptions made by the Company and its consultants in light of experience, current conditions and expectations 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 estimates are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from estimated results.

All reasonable efforts have been made to provide accurate information, but the Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of this presentation, except as me be required under applicable laws. Recipients should make their own enquiries in relation to any investment decisions from a licensed investment advisor.

Competent Person’s statements

The information in this report that relates to Exploration Results has been compiled under the supervision of Mr. Ian Blucher (MAusIMM). Mr Blucher, who is a full time employee of Southern Gold Limited and a Member of the Australian Institute of Mining and Metallurgy, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Mr Blucher consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Mr Ian Blucher (MAusIMM). Mr. Blucher is a full time employee of Southern Gold Limited and has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC, 2012). Mr Blucher consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Pre-Feasibility Study Results

The Optimisation announcement dated 13 February 2014 had no material changes to the methodology and assumptions used to determine the production target as detailed in the PFS announcement of 28 August 2013, and all of the key parameters continue to apply. The Optimisation announcement provided an update to the market of the reduction in the forecast operating costs. There have been no material changes to the methodology used to determine the operating costs as outlined in the PFS announcement.

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

2
----- End of picture text -----

==> picture [72 x 91] intentionally omitted <==

SOUTHERN GOLD

From Exploration Discovery to Mining

At Southern Gold our focus is on monetising gold assets: we find them, we define them and aim to turn them into mines.

==> picture [263 x 157] intentionally omitted <==

==> picture [54 x 43] intentionally omitted <==

==> picture [279 x 157] intentionally omitted <==

Our Exploration Effort

1. The right address at Kalgoorlie

2. Near mine resource upside with multiple targets

3. Plenty of Blue Sky with an exciting regional play

4. Drill deeper

Our Mining Activity

1. At the right address - Kalgoorlie

2. The right execution partner in MLX

3. Good resource base at the right grade

4. Cash flow and leverage to project expansion

The Strategy

==> picture [780 x 8] intentionally omitted <==

==> picture [206 x 126] intentionally omitted <==

----- Start of picture text -----

Projects
----- End of picture text -----

==> picture [206 x 125] intentionally omitted <==

----- Start of picture text -----

Exploration
----- End of picture text -----

==> picture [38 x 52] intentionally omitted <==

==> picture [38 x 52] intentionally omitted <==

Sustainable Cash Flow

1. Cannon Open Pit

2. Cannon Underground?

3. Near Mine Targets (e.g. Monument)

4. New Projects

Economic Gold Discovery

1. Cannon Region

2. Bulong Regional (Heron JV)

3. Cowarna Regional

4. New Projects

5. “We find, define and develop Australian high grade gold deposits and ensure a return to shareholders by monetising them. Total Shareholder Return is our benchmark.”

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 4
----- End of picture text -----

The Strategy (2): Gold Projects

==> picture [780 x 8] intentionally omitted <==

==> picture [353 x 243] intentionally omitted <==

----- Start of picture text -----

~35km
----- End of picture text -----

==> picture [71 x 88] intentionally omitted <==

==> picture [422 x 138] intentionally omitted <==

• ~35km East of Kalgoorlie

• Infrastructure: multiple mills

• Mining Culture and History

• Well embedded regulatory system  Local Workforce

• Friendly topography

• World class deposits – “Elephants”

• Cannon AISC <A$1100/oz Au

Cannon Project Prior to Open Pit Excavation

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 5
----- End of picture text -----

The Strategy (3): Gold Exploration

==> picture [780 x 8] intentionally omitted <==

• Cannon is a small piece of the puzzle…..

• This is a TMI Image with areas of infill SAM surveys indicated as A…E.

• Numerous targets identified based on:

• Soil geochemistry

• Regional scale RAB and auger drilling

• Geophysics

• On ground prospecting activity

• High level structural interpretation

• Example regional exploration targets:

• Tooting Bec

• Gunnersbury

• Lighthouse

• Cyprus

• Barbican

• Chigwell

==> picture [286 x 419] intentionally omitted <==

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO DEVELOPMENT 6
----- End of picture text -----

Cash Generation – 2013 PFS Estimate

==> picture [780 x 8] intentionally omitted <==

Phase 1 Open Pit & Phase 2 Underground*

==> picture [362 x 247] intentionally omitted <==

*See ASX announcements 29 August 2013 & 18 February 2014 for key parameters of PFS. Mined ounces and grade calculated, based on cut-off grade from A$1400/oz base case.

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 7
----- End of picture text -----

Cash Generation (2) – current Operations stage 1

==> picture [780 x 8] intentionally omitted <==

MLX Modelling Open Pit Only[#]

==> picture [347 x 245] intentionally omitted <==

• Current AUD Gold price ~A$1600/oz

• Implied margin on open pit, net of all costs ~A$450/oz

• Cash flow expected in 2016Q2

See ASX announcement 16 June 2015, head grade is fully diluted. See also appendix for MLX open pit cost structure.

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 8
----- End of picture text -----

Cash Generation (3): potential larger open pit

==> picture [780 x 8] intentionally omitted <==

Potential to extend & deepen the open pit, subject to terms being agreed with MLX

==> picture [538 x 381] intentionally omitted <==

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 9
----- End of picture text -----

Where is the upside? Follow the high grade.

==> picture [780 x 8] intentionally omitted <==

Excellent grade and width at depth indicating the deposit is open

==> picture [713 x 331] intentionally omitted <==

----- Start of picture text -----

Section 175mN
Section 110mN
7.6m
@21.5g/t Au
Open
7.5m
@11.5g/t Au
Open
----- End of picture text -----

• Deposit size is constrained by the poor capital markets of 2013-2014, not drilling

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 10
----- End of picture text -----

Where is the upside? (2) Drill Deeper

==> picture [780 x 8] intentionally omitted <==

Historical workers mainly drilled to ‘refusal’ so only tested the oxide, or generally <50m

==> picture [226 x 251] intentionally omitted <==

==> picture [226 x 251] intentionally omitted <==

==> picture [225 x 251] intentionally omitted <==

Shallow Regional RAB drilling RC Drilling: Cannon Discovery Drill deeper than 50m Initial stage RC drilling targets Implications for exploration finds ppb below the oxide finds regional targets with level anomalism high grade gold ppb level results

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 11
----- End of picture text -----

What has been achieved this last year?

==> picture [780 x 8] intentionally omitted <==

• Mine finance and operating agreement signed with MLX

• All permitting for Cannon Mine was put in place

• All pre-development activities were completed

• Mining commenced in late July/ early August 2015

• A very modest re-start to exploration activity

• Small drilling programs at Railway South and Arsenal projects

• Oversubscribed $1.05m equity raising

• Marketing into Singapore and Hong Kong to spread the word

The Cannon project has gone through all regulatory and development steps and is now an operating mine. Very few Australian junior exploration companies have achieved this.

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 12
----- End of picture text -----

Bringing it all together…..

==> picture [780 x 8] intentionally omitted <==

12 month price performance

==> picture [285 x 197] intentionally omitted <==

==> picture [424 x 412] intentionally omitted <==

----- Start of picture text -----

EV/Reserve, Producers
$1,000
$900
$800
$700
$600 Source: SNL Mining & Metals, Terra Studio,
Enterprise Value (EV) as at 6 [th] October 2015
$500
$400
$300
$200
90
$100
$0
NST OGC RRL EVN ALK TRY MOYDRM SAR SBMMML RMS BDR KCN SAU SLR RSG PRU
Financial information * Pending 15:1 consolidation
Number of shares 527.5 m 35.1m
Share price (21 Oct 2015) A$0.021 A$0.31
Market capitalisation A$11.1 m
Debt (Metals X finance) A$0.5 m
Cash (@ 30 June 2015) A$0.8 m
Enterprise value A$10.8 m
A$/oz
----- End of picture text -----

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 13
----- End of picture text -----

A Summary of Our Assets

==> picture [780 x 8] intentionally omitted <==

People Are Very Important

The Board

==> picture [47 x 54] intentionally omitted <==

Greg Boulton AM Non-Executive Chairman

==> picture [49 x 54] intentionally omitted <==

Simon Mitchell Managing Director

==> picture [46 x 53] intentionally omitted <==

David Turvey Non-Executive Director Mick Billing Non-Executive Director

==> picture [46 x 54] intentionally omitted <==

Part time/ contractors

Dan Hill – Company Secretary Ray Ridge – Finance Manager Ian Blucher – Project Development Manager Justin Gum – Principal Geologist Aaron Brown – Senior Geologist Daniel Brock – Project Geologist Claire Howe – Accounts/administration

Gold is Very Important (especially at the right grade!)

*See ASX announcements 16 June 2015 for details@ 0.7g/t Au cut-off grade

Our tenure in the Kalgoorlie region is significant

==> picture [251 x 173] intentionally omitted <==

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 14
----- End of picture text -----

Where to from here?

==> picture [780 x 8] intentionally omitted <==

• Mine the high grade gold (>3.1g/t Au head grade)

• Complete the ‘First Gold Pour’ milestone

High grade ROM at Cannon Mine Approx. 40kt @ ~3g/t Au

• Establish cash flow from operations

• Conclude commercial terms on the large pit with MLX

• Drill the high grade at the base of Cannon

• Explore our significant Kalgoorlie ground position

• Acquire project opportunities in our neighborhood

==> picture [34 x 48] intentionally omitted <==

• Expand our JORC Resource base

$$$

• Diversify our potential production sources

Overall, we are looking to make our cash flow sustainable and build the asset base of the company with a view to achieving a superior Total Shareholder Return.

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

FROM DISCOVERY TO MINING 15
----- End of picture text -----

==> picture [72 x 91] intentionally omitted <==

SOUTHERN GOLD

Appendix – Bulong Gold Resource & Background Information

==> picture [242 x 347] intentionally omitted <==

Bulong Gold Resource

==> picture [780 x 8] intentionally omitted <==

94% of the Cannon Gold Resource is within the Measured & Indicated category

==> picture [780 x 53] intentionally omitted <==

----- Start of picture text -----

Appendix 1 – Bulong Gold Project Resource Table
17
----- End of picture text -----

==> picture [88 x 113] intentionally omitted <==

SOUTHERN GOLD

Simon Mitchell Managing Director

+61 8 8368 8888 [email protected] www.southerngold.com.au

Southern Gold Limited: Company Profile

Southern Gold Ltd is a successful gold explorer listed on the Australian Securities Exchange (ASX, ticker “SAU”). The Company’s main focus is its Bulong Gold Project located 30 km east of the world renowned gold district of Kalgoorlie (WA) with the flagship Cannon Gold Mine having 846kt @ 3.6g/t Au or 97koz gold defined in accordance with the JORC code, 94% of which is in the Measured and Indicated categories.

Level 1, 8 Beulah Road Norwood, SA 5065

PO Box 255 Kent Town SA 5071

After a Pre-Feasibility Study demonstrated the Cannon Gold Resource could generate robust cash flows and a positive economic return (ASX Announcement 13/02/2014) the company entered into an agreement with Metals X Ltd to finance and develop the deposit under a 50/50 profit share arrangement. Metals X is responsible for all mining, haulage and processing activities. (ASX Announcement 11/11/2014)

Southern Gold is currently focused on ensuring cash flow from the Cannon Gold Mine as it moves into production in 2015 and this will act as the foundation to build a longer-term gold exploration and production business. By monetising the Cannon Gold resource, the company will be ideally placed to accelerate exploration within its broader tenement holdings. Southern Gold has identified over 30 exploration targets which will underpin the future growth of the Company.