Southern Gold Limited provided an exploration update on activities at its Goseong and Deokon Projects. Southern Gold's on-the-ground field activity at Goseong and Deokon projects steadily progressed over the past month in preparation for planned drill testing in Third Quarter and Fourth Quarter of FY2023, with geophysical surveys underway at both projects. Reconnaissance geological mapping and sampling was also conducted at Dokcheon project and is on-going.

Korea Institute of Geology and Mining (KIGAM) is completing a drone aeromagnetic survey covering some 17km2 in the NW region of the project. Results are expected to be available post-processing in early December to assist in refining drill targets at Goseong and to provide key structural and lithological information. A soil sampling program is currently underway over an area of extensive quartz-magnetite- pyrite stockwork veining outcropping over an area of 450m by 150m before going under cover.

Detailed prospect-scale geological mapping was completed over the past month by consultant Nick Tate, including within the area covered by the drone magnetic survey which contains the historic Goseong, Won- Geum and 150M East and West mine and workings. Locations of previously reported workings and quartz veins have subsequently been updated into a revised geological map. This prospect-scale mapping has improved SAU's understanding of the extent and geometry of mined veins and potential location of mineralised shoots and will greatly assist in targeting drill holes.

Exposures at surface and in historical workings confirm reports of veins reaching maximum widths of up to 3m and typically between 0.5m and 1m. Clusters of large workings indicate multiple coherent shoots of mined veins extending 200-400m along strike within host structures that have extents >1km strike length. Most of the historical workings are crosscuts and drive adits, with a lack of shafts indicating that vein shoots have not been mined below the level of the lowest adit, typically at the base of the valley floor.

This highlights the potential for depth extensions on most of the mined vein shoots below the base of the valley floor. Most veins appear to have been mined over a vertical range of 100m, but the 150M vein has been mined over a vertical extent of approximately 150m within an elongate diorite intrusive, with mined material including fine-comb quartz veins and hydrothermal breccia. This style of fine comb quartz- sulphide veins is considered to have the potential for well-developed vertical extents in mineralised shoots.

Work to progress exploration licence applications to granted status progressed well during the month, with SAU granted one licence covering the historic Daedok Mine area (Chung Mu 136) on November 21, 2022 by South Korea's Mining Registration Office (MRO). Exploration work to progress drill targeting at Deokon is well underway. A 3D geological model of historical mine workings and drilling has been constructed using Leapfrog software that is highlighting structural trends and dips and areas for possible extensions to mined or mapped shoots.

A gravity survey is also currently underway covering an area of ~30km2 with the aim of delineating potential "blind" controlling and potentially mineralised structures for drill targeting. This survey is also being undertaken by Southern Gold geologists with assistance from KIGAM who will also process the data. Results will be available post-processing in mid-late December to assist structural interpretation and in refining planned drill targets.

Exploration activity over the next month will include working up drill targets at Dokcheon Au-Ag project through ongoing geological mapping and soil sampling. Work will continue to progress drill targets at Goseong and Deokon through additional detailed geological mapping and sampling, and interpretation of geophysical gravity data when available for review post-processing by KIGAM in December. Meetings and discussions with local government officials and landowners for drill permitting and land access will be conducted as drill sites at Goseong and Deokon are finalised.

Processing and assessment by the Mining Register Office (MRO) of Goseong exploration licence applications is underway with SAU's best estimate of timing for grant of the licences to be from late December to early January. Should any delays occur, SAU may consider moving initial drilling to Deokon in February 2023 to ensure start of the drill campaign.