Annual Technical Report Pine Creek Property EL 28017 Reporting Period 25 November 2010 to 24 November 2011

Abstract

EL 28017 forms part of St George Mining's Blue Thunder Gold Project which is a contiguous area comprised of EL 27732, EL 28016, EL 28017, EL 28232, EL 28332, EL 28463 and EL 28465. All tenements are held in the name of Blue Thunder Resources Pty Ltd, a wholly owned subsidiary of St George Mining, other than for EL 27732. On the first of March 2009, St George Mining entered into an option to acquire 80% of EL 27732 in the Pine Creek, Northern Territory. EL 27732 is currently held by James Stewart (50%) and Geotech International (50%). St George Mining is the manager of the Project. St George Mining has acquired EL 28017, which is located to the west of the main discovery area on the Pine Creek Property, with the aim of assessing the exploration potential of a discrete magnetic anomaly. The 2011 exploration objectives for EL 28017 were: To determine if the discrete magnetic anomaly located on the tenement was of economic interest; Determine the accessibility of the prospect site and the cost effectiveness of exploring this target. St George has developed a strong predictive and diagnostic geological and exploration model as the foundation for future exploration, and this was used in the initial assessment of EL 28017. Review of current and historical drilling information indicates that the magnetic anomaly on EL 28017 did not appear to be related to part of a mineralised system. The previous drilling by Homestake Gold Australia Limited (FEND-9A) intersected extensive granite with a limited intersection of proximal intervals of cherty iron-rich sediments; no gold intersections were made. The linear magnetic features which appear to map the major faults and or shear-zones are linear in nature and show no evidence of deflection by late cross structures as on the major trend that exists to the east (EL 27732 and EL 28016). This reduces the likelihood of extensive dilation permissive of favourable structural sites gold precipitation. The post mineral limestone cover in this area was approx 390 m in depth and contains karst units that acted as acted as aquifer. This contrasts with the shallower and more massive limestone cover (<200 m) to the east of the basin. Further work on EL 28017 must be decided on exploration results from the 2011 work in other areas of the Pine Creek property, and the available exploration funds.