SOUTHERNGOLD

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

22 October 2015

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DisclaimerForward-looking statementsThe information in this presentation is published to inform you about Southern Gold Limited (“Southern Gold”) and its activities. Some statements in this presentationregarding 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, currentconditions and expectations of future developments which the Company believes are appropriate in the current circumstances. Such statements are expressed in goodfaith 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 differmaterially 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 shouldmake their own enquiries in relation to any investment decisions from a licensed investment advisor.

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Competent Person’s statementsThe 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 ResultsThe 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.

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SOUTHERNGOLD From Exploration Discovery to Mining

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

At Southern Gold our focus is on monetising gold assets: we find

them, we define them and aim to turn them into mines.

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

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The Strategy

FROM DISCOVERY TO MINING 4

Projects Exploration

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

“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.”

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The Strategy (2): Gold Projects

FROM DISCOVERY TO MINING 5

~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

~35km

Cannon Project Prior to Open Pit Excavation

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6FROM DISCOVERY TO DEVELOPMENT

The Strategy (3): Gold Exploration• 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

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Cash Generation – 2013 PFS Estimate

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Phase 1 & 2

Mine Life Months 36

Tonnes Mines Tonnes 484,000

LOM ave. Head grade g/t Au 4.4

Mined Ounces oz Au 68,200

Recovery (ave) % 92

Infrastructure Cost A$m $13.3

C1 Operating Cost A$/oz 964

Free surplus cash flow @ $1500/oz Au

A$m $18.5m

Sothern Gold Share (50%) Assuming MLX Deal

A$m ~A$9m

*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.

Phase 1 Open Pit & Phase 2 Underground*

FROM DISCOVERY TO MINING

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• Current AUD Gold price ~A$1600/oz

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

• Cash flow expected in 2016Q2

Cash Generation (2) – current Operations stage 1

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

Stage 1 Only

Mine Life Months 9

Tonnes Mines Tonnes 152,352

Head grade g/t Au 3.1#

Mined Ounces oz Au 15,209

Recovery (ave) % 89

Recovered Ounces oz Au 13,495

Infrastructure Cost A$m $0.89

C1 Operating Cost A$/oz $1053

AISC A$/oz $1084

Total Cost/oz, including capital

A$/oz $1150

MLX Modelling Open Pit Only#

FROM DISCOVERY TO MINING

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Cash Generation (3): potential larger open pitPotential to extend & deepen the open pit, subject to terms being agreed with MLX

FROM DISCOVERY TO MINING

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Where is the upside? Follow the high grade.

Section 110mN Section 175mN

7.6m @21.5g/t Au

7.5m @11.5g/t Au

Open

Open

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

Excellent grade and width at depth indicating the deposit is open

FROM DISCOVERY TO MINING

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Shallow Regional RAB drilling

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Where is the upside? (2) Drill Deeper

RC Drilling: Cannon Discovery Drill deeper than 50m

Initial stage

exploration finds ppb

level anomalism

RC drilling targets

below the oxide finds

high grade gold

Implications for

regional targets with

ppb level results

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

FROM DISCOVERY TO MINING

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What has been achieved this last year?

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• 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

FROM DISCOVERY TO MINING

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.For

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Bringing it all together…..

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

Major shareholders

Silver Lake Resources 8.20%

PS Super Nominee 6.02%

Gary B Branch 4.45%

JP Morgan Nominees 3.44%

Board and Management 7.42%

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12 month price performance

FROM DISCOVERY TO MINING

90

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

NST OGC RRL EVN ALK TRY MOY DRM SAR SBM MML RMS BDR KCN SAU SLR RSG PRU

A$

/oz

EV/Reserve, Producers

Source: SNL Mining & Metals, Terra Studio, Enterprise Value (EV) as at 6th October 2015

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A Summary of Our Assets

14FROM DISCOVERY TO MINING

Greg Boulton AMNon-Executive Chairman

David Turvey

Non-Executive Director

Mick BillingNon-Executive Director

Simon Mitchell Managing Director

People Are Very Important

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

Part time/ contractors

The BoardCategory Total Resource- Cannon Only

Tonnes

t

Au

g/t

Au

Ounces

% Au

Ounces

Measured 109,238 3.07 10,795 11%

Indicated 643,969 3.87 80,132 83%

Total M&I 753,207 3.75 90,927 94%

Inferred 93,053 2.05 6,118 6%

Total All Categories 846,260 3.57 97,045

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

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

Our tenure in the Kalgoorlie region is significant

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Where to from here?

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

• Complete the ‘First Gold Pour’ milestone

• 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

• Expand our JORC Resource base

• Diversify our potential production sources

FROM DISCOVERY TO MINING

High grade ROM at Cannon Mine

Approx. 40kt @ ~3g/t Au

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.

$$$

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SOUTHERNGOLD

Appendix – Bulong Gold Resource & Background Information

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Measured Indicated Inferred Total

Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au

t g/t Ounces t g/t Ounces t g/t Ounces t g/t Ounces

Cannon Gold Resource

Oxide 16,220 3.42 800 423 1.92 100 - - -

Transitional 90,687 2.98 13,900 73,473 2.41 2,900 13,124 1.65 696

Fresh 2,331 4.31 78,500 570,073 4.06 4,200 79,929 2.11 5,422

Total 109,238 3.07 10,795 643,969 3.87 80,132 93,053 2.05 6,118 846,260 3.57 97,045

Pinner Resource

Oxide - - - - - - 600 3.0 200

Transitional - - - - - - 76,400 2.2 5,400

Fresh - - - - - - 94,900 2.0 6,100

Total - - - - - - 172,000 2.1 11,500 172,000 2.1 11,500

TOTAL RESOURCE

1,018,260 3.32 108,545

Appendix 1 – Bulong Gold Project Resource Table

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Bulong Gold Resource

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

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Simon MitchellManaging Director

+61 8 8368 8888info@southerngold.com.auwww.southerngold.com.au

Level 1, 8 Beulah RoadNorwood, SA 5065

PO Box 255 Kent Town SA 5071

SOUTHERNGOLD

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 theworld 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 theMeasured and Indicated categories.

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

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

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