Southern Gold Limited - $2 Million Private Placement

Southern Gold Limited (ASX: SAU) (Southern Gold or the Company) is pleased to announce that it has received commitments totalling $2 million, for new fully paid ordinary shares (Shares) in the Company at 2.3 cents per share (the Placement).

The Placement was heavily supported, with applications being scaled back to the targeted $2 million. The funds raised will be applied to: on the ground exploration activities in the Republic of Korea (South Korea), including drilling which is expected to commence in the first quarter of calendar year 2023; and early exploratory work in relation to Rare Earth Elements and Lithium in South Korea.

The Placement was managed by Prenzler Group, with participation by Southern Gold's two largest shareholders: Metal Tiger Plc and Illwella Pty Ltd. Southern Gold is also pleased to welcome a number of new sophisticated and institutional shareholders to the Company's register.

Details of the Placement

The key terms of the Placement were as follows:

The Placement comprises 86,956,523 Shares at $0.023 per Share, to raise approximately $2 million.

Tranche 1 of the Placement, comprising 53,332,120 Shares, to be completed utilising existing share issuance capacity available under ASX Listing Rules 7.1 and 7.1A. The Tranche 1 Shares are expected to be issued on Thursday 17 November 2022, with quotation to occur on Friday 18 November 2022.

Tranche 2 of the Placement, comprising 33,624,403 Shares, is subject to shareholder approval at a General Meeting expected to be convened early January 2023. The Company expects to announce the date of the General Meeting, and lodge the notice of meeting, in the final week of November 2022.

The Placement price of $0.023 represents a discount of: 17.9% to the last traded price of $0.0280 on 11 November 2022; and 19.9% to the 15-day volume weighted average price of $0.0287.

The Placement was available to investors in Australia who qualified as professional or sophisticated investors under the requirements of the Chapter 6D of the Corporations Act 2001 (Cth) and sophisticated and professional investors in other select jurisdictions. The Placement Shares will rank pari passu in all respects with existing ordinary shares of the Company.

Contact:

Southern Gold Limited

10 George Street

Stepney SA 5069

PO Box 255 Kent Town SA 5071

T: [phone]

E: [e-mail]

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