Southern Gold Limited (ASX: SAU) (Southern Gold or the Company) is pleased to provide an update on its exploration activities in South Korea, including its licence application over two areas prospective for rare earth element (REE) mineralisation.

Southern Gold Managing Director Robert Smillie said: 'Lodging these exploration licence applications over highly prospective ground immediately surrounding South Korea's only known REE deposits is a significant milestone for the Company in expanding its exploration portfolio to include critical minerals. 'We are especially pleased that we have demonstrated REE prospectivity with significant TREO results from historical drilling within the Chungju Project, which will really help the team focus the exploration program going forward. 'Having the interest and potential for exploration support from government agency KOMIR as our program advances this year reflects the importance of our exploration efforts to assist South Korea in securing future new supplies of critical minerals.'

Chungju REE Project

The Chungju REE Project includes 25 exploration licence applications covering an area of 68.7 km2 , in the northern region of Chungcheongbuk-do. The application area comprises metasedimentary (metapelites, quartzites and phyllites) and metavolcanic rocks of the Kyemyungsan Formation of the Okcheon Group. This project area was identified by RSC to be prospective for REE mineralisation due to anomalous thorium from the Korea Institute of Energy and Resources ('KIER') 1986 survey2 .

Jangnam REE Project

The Jangnam REE Project includes 53 exploration licence applications covering an area of 143.8 km2 , adjacent to the unmined Hongcheon REE carbonatite deposit held by a third party. The application area is situated within the Gyeonggi Gneiss Complex, which includes Precambrian biotite and biotite-hornblende gneisses. The Hongcheon REE carbonatite dykes are up to 50 m wide and 2,500 m long and intrude the Precambrian basement gneisses along the deep-seated Hongcheon Fault6, 7

Fieldwork over the REE project areas will commence in early March and will comprise regional stream sediment sampling, rock chip sampling, and reconnaissance geological mapping to focus towards areas for subsequent detailed exploration and target development. Particular attention will be directed around the area with elevated TREO from historical drilling at Chungmu. Further review and translation of key KIGAM and KETEP reports on Eoare San and Hongcheon deposits will also continue by RSC staff and SAU geologists to assist in guiding the wider SAU REE exploration program. SAU has the intention to define and drill targets before the end of 2023

Contact:

Tel: 08 8368 8888 0416

Southern Gold Limited: Company Profile

Southern Gold Ltd is a successful gold explorer listed on the Australian Securities Exchange (under ASX ticker 'SAU'). Southern Gold owns 100% of a substantial portfolio of high-grade gold-silver projects in South Korea that are largely greenfield epithermal gold-silver targets in the south of the country. Backed by a first-class technical team, Southern Gold's aim is to find world-class precious metals deposits in a jurisdiction that has seen very little modern exploration

Competent Person's Statements

The information in this report that relates to Exploration Results is based on information compiled under the supervision of Dr Michael Gazley, a Competent Person who is a Member of The AusIMM and a Member of the AIG. Dr Gazley is employed by RSC as General Manager Geoscience. The full nature of the relationship between Dr Gazley and Southern Gold has been declared, including any issue that could be perceived by investors as a conflict of interest. Dr Gazley has sufficient experience that 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. Dr Gazley consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Forward-looking statements

Some statements in this release regarding estimates or future events are forward looking statements. These mayinclude, 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 statementsregarding future exploration results. 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 tohave a reasonable basis. However, the estimates are subject to known and unknown risks and uncertaintiesthatcould cause actualresultsto 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 circumstancesafterthe date ofthis presentation or ASX release, except asmaybe required under applicable laws. Recipientsshould make their own enquiries in relation to any investment decisions from a licensed investment advisor

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