ASX Announcement

29 January 2015

Southern Gold Appoints New Managing Director to Lead

Company into Production

ASX Code: SAU

Issued Shares: 422.6M ABN: 30 107 424 519

Directors

Greg Boulton AM Nanette Anderson Michael Billing David Turvey

Top Shareholders

Silver Lake Resources Ltd 10.24% G B Branch 5.56%

JP Morgan Nominees 4.32% G Boulton Pty Ltd 2.58%

Head Office

229 Greenhill Road

Dulwich SA 5065

Telephone: (08) 8368 8888

Facsimile: (08) 8431 5619 [email protected] www.southerngold.com.au
Southern Gold Limited ("Southern Gold") is pleased to announce the appointment of experienced Adelaide-based mining executive, Mr Simon Mitchell, as the Company's new Managing Director, commencing on 1 February 2015.
Mr Mitchell has over 25 years' experience in the resource sector, working as a senior executive during the past decade for Toro Energy Ltd and Asiatic Gold Ltd. His technically focused roles include work for Normandy NFM, RGC Exploration and Aurora Gold. In addition to his extensive experience in both exploration and mine development he also spent a considerable period of time working in corporate roles including as a project finance executive in investment banking.
Mr Mitchell will succeed Nanette Anderson, who steps down from the role following a transition period at the end of February.
Ms Anderson will continue to provide advice and support to the Company on a consultancy basis, ensuring a seamless management transition and ensuring that the Company's timetable for the commencement of mining at its flagship Cannon Gold Project near Kalgoorlie remains on track for 2015.
Southern Gold is developing the Cannon Project under an agreement with Metals X Limited (ASX: MLM).
Southern Gold's Chairman, Mr Greg Boulton, said the Company was delighted to have secured someone of Simon's experience and calibre to lead the Company forward as it embarked on the all-important transition from junior explorer to gold producer.
"We are delighted that Simon is joining Southern Gold, as he brings a depth of skills and expertise which will be invaluable to the Company in this next key phase of its development," he said.
"His experience covers the full mining value chain and he has a proven track record in leading and managing people, including in challenging offshore environments."
Mr Mitchell said: "I am very excited about the opportunities in front of Southern Gold as it makes the transition from explorer to miner. I look forward to working with the Southern team to deliver on the Company's potential in 2015 and beyond."
For Further Information Greg Boulton AM Chairman
Ph: 08 8368 8888
Email [email protected] au

APPENDIX 1 - KEY TERMS

The key terms and conditions of Mr Mitchell's employment are formalised in a contract of employment with an executive salary package of $220,000 per annum plus superannuation contributions (to be reviewed annually). A Short Term incentive provides an opportunity of up to an additional $50,000, subject to achieving targets set by the Board in accordance with Southern Gold's strategic objectives.
The 3-year contract may be terminated by either party with three months notice. Termination by Southern Gold on six months notice where the Managing Director position is made redundant. Southern Gold may make payment in lieu of notice, with benefits payable subject to the Corporations Act (Cth) 2001. The Company may terminate the contract without notice in instances of serious misconduct.

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