Annual Technical Report Pine Creek Property EL 28016 reporting period 25 November 2011 to 24 November 2012

Abstract

EL 28016 forms part of St George Mining's Blue Thunder Gold Project at Pine Creek. It lies directly south of and is contiguous with the southern boundary of EL 27732 which is held by James Ian Stewart (50%) and Geotech International Pty Ltd (50%). EL 28016 is held by Blue Thunder Resources Pty Ltd, a wholly owned subsidiary of St George Mining. St George Mining is the Project Manager for EL 27732. The Company?s Pine Creek Property is located 130 km SE of Darwin, Northern Territory, Australia and hosts the Blue Thunder Gold Project, centred on EL 27732. The Pine Creek Property is located in the western section of the Central Domain of the Pine Creek Orogen (PCO), which is a major gold and uranium province in the Northern Territory, and with a known gold endowment of approximately 11MozAu. An expensive diamond core hole was drilled during the previous field season on EL 27732. The hole achieved a depth of 550 m but failed to intersect any gold mineralisation despite being in proximity to a successful historical drill hole. This led to a major exploration review to better understand the local controls on gold mineralisation at Pine Creek; and to assess the potential of the individual tenement areas based on the new model developed from a number of key target criteria derived as a result of a broad study of other mineralised areas in the Pine Creek region. The outcome of the exploration review is to confirm that this tenement remains prospective and, after EL 27732, is the highest priority exploration area in the Pine Creek Property. EL 28016 covers the southern continuation of the Fenton Shear and abuts the southern boundary of EL 27732. The trace of the Fenton Shear continues to be aligned with a gravity gradient on the western margin on a major gravity high. The shear zone has been identified as hosting gold mineralisation to north on EL 27732 by historical diamond core drilling (FEND 14 and FEND 18). The areas of priority interest to the north (EL 27732) and those to the south (northern part of EL 28016) are separated by an intrusive body of felsic to intermediate composition. This interpretation is supported by the low magnetic response of the area and the strong Cerium (Ce) response from the St George multielement MMI soil geochemical campaign over that area. There is a significant change in the presentation of the Fenton Shear zone in the southern area of interest (EL 28016). The consistent Fenton Shear starts to split into a number of southerly diverging structures ('horse tail'). South of the southern area of interest, the magnetic response of the general area and the shear zone appears to become more subtle and diffuse. This suggests the magnetic stratigraphy is deeper (more post mineral cover) and/ or has lower magnetite-pyrrhotite content. Two prominent and sub-parallel magnetic features are present in the southern area of interest and this broad presentation of the magnetic stratigraphy within the shear zone is thought to be a valid target, in the context of the new exploration model. The area is outside of the major diamond drilling programme conducted by Homestake Gold Australia Limited, during the 1990's. A broad multi-element MMI soil geochemical survey is recommended in this area to map localised structures, map basic lithologies and to test for target gold zones. At the conclusion of Year 2 of EL 28016 an area of one hundred and seventy-six (176) blocks were relinquished and seventy-eight (78) blocks were retained for Year 3 of the licence. The area retained adjoins EL 27732 to the south and east.