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New Drilling Result Confirms Emerging VMS Discovery in WA

SIGNIFICANT NEW DRILLING RESULT CONFIRMS EMERGING VMS DISCOVERY IN WA N Polymetallic sulphides now intersected in three zones at Copper Bore Project pointing to extensive VMS mineralisation Highlights New massive sulphide intercept in drill hole SGRC003 at Southern Gossan prospect (Copper Bore Project) o 2m 2.0% Cu, 2.0g/t Au, 4.3% Zn, 32.6g/t Ag and 0.2% Pb SGRC003 is 20m north and 60m upplunge of CBRC020 which intersected 5m 2.0% Cu, 1.9g/t Au, 7.1% Zn, 25.4g/t Ag, 0.4% Pb High tenor gold and silver enriched massive sulphide mineralisation now intersected to 150m below surface at Southern Gossan Significant mineralisation now identified at multiple locations along 10km of strike between Southern Gossan and Copper Bore New drilling to target a stepout position to the south and below CBRC020 and SGRC003 Southern Cross Goldfields Limited ( SXG SXG or the Company) is pleased to report excellent new results from drilling at its Copper Bore VMS Project in Western Australia, where the latest intersections have confirmed significant VMS mineralisation with high tenor metal content at the Southern Gossan Prospect. Drill hole SGRC003 designed to test a downhole electromagnetic (DHEM) conductor has returned a strong intersection of gold and silverenriched base metal sulphides 2m 2.0% Cu, 2.0g/t Au, 4.3% Zn, 32.6g/t Ag and 0.2% Pb from 103m downhole The new intersection is located 60m above mineralisation intersected recently in drill hole CBRC020 which returned 5m 2.0% Cu, 1.9g/t Au, 7.1% Zn, 25.4g/t Ag, 0.4% Pb on the same geological contact. DHEM has confirmed that the mineralised host rock extends beyond existing drilling at Southern Gossan and correlates with historic mapping and drilling showing that the mineralised horizon is more extensive along strike to the north and south. The Copper Bore project area is located 400km northeast of Perth with the Southern Gossan prospect located at the southern end of a 10km long prospective VMS horizon (see Figure 1). Base metals mineralisation has now been confirmed at multiple locations along this prospective horizon. This is a very exciting and significant result, said SXG8223s Managing Director, Mr Glenn Jardine. Gold and silverenriched base metal massive sulphides have now been intersected at Southern Gossan in drilling to 150 metres below surface, indicating that we have a significant occurrence of VMS mineralisation. This contact has not been tested at depth or along strike to the north or south below 150 metres highlighting the potential to expand the known extent of gold and silver enriched base metal massive sulphides. The next phase of drilling will target a stepout position on the mineralised contact to the south of hole CBRC020 which returned 5m grading 2.0% copper, 1.9g/t gold, 7.1% zinc, 25.4g/t silver and 0.4% lead (see Figure 2).

The planned drilling will provide a good indication of the size and potential of the Southern Gossan discovery before we move on to test the broader potential of the surrounding areas, Mr Jardine added. This is an exciting time as we begin to understand the potential extent of the VMS mineralisation at the Copper Bore project in what could be a companymaking discovery for SXG. Given that proven VMS deposits occur as clusters that often form part of a broader mine province or camp, we are justifiably excited by what we have found to date and where this discovery could lead us. Ongoing exploration including mapping, EM surveys and drilling across the Copper Bore project area will be a key priority for SXG alongside providing market guidance in the near future on both our Marda gold project feasibility study and gold exploration review.

The Company believes that the Marda district is underexplored and that potential exists for additional discoveries. Intersections achieved at the Southern Gossan Prospect now include 8m 8.25% Cu and 4.29 g/t Au from 8 metres, 7m 5.05% Cu and 2.05 g/t Au from 10 metres, 0.2m 0.17% Cu and 13.2% Zn from 119 metres 0.4m 1.54% Cu and 7.8% Zn from 120 metres, 2m 0.20% Cu, 2.0% Zn and 3.8 g/t Au from 152 metres. 2m 2.0% Cu, 2.0g/t Au, 4.3% Zn, 32.6g/t Ag, 0.2% Pb, from 103m 5m 2.0% Cu, 1.9g/t Au, 7.1% Zn, 25.4g/t Ag, 0.4% Pb from 165m The mineralisation intersected in new drill hole SGRC003 at Southern Gossan comprises massive and disseminated sulphides. Sulphide minerals include chalcopyrite, sphalerite, pyrite and pyrrhotite similar to the mineralisation intersected in CBRC020. The sulphide interval in SGRC003 is at the expected geological contact and coincides with the modelled EM conductor identified from a recently completed DHEM survey.

The intersection is 15 metres vertically below the top of the conductor as modelled and 60m above the intersection in hole CBRC020. In addition, anomalous gold and silver of 10m 0.7 g/t Au and 0.7 g/t Ag respectively was intersected deeper in drill hole SGRC003 (see Table 1). SXG also holds noniron rights immediately surrounding and to the north and south of the project area putting the Company in a good position to capitalise from any further occurrences in this district. The presence of copper and zinc mineralisation at several locations over 10km of strike on E77/1375 indicates potential for multiple VMS mineralised centres along the trend. SXG intends to complete the surface EM coverage which has only partially tested the target horizon to date.

Additionally, two bullseye aeromagnetic anomalies located between the Kims Bore and Copper Bore Prospects coincide with the target horizon and may present excellent drill targets once geophysical modelling has been completed (see Figure 3). The known strike to be explored in the Copper Bore Project is in excess of 10km however and here is evidence that the mineralised horizon is folded and repeated to the west. This western horizon is also 10km long and has not received any exploration for base metals.

The horizon will be mapped and sampled by SXG to define new targets. SXG has an extensive 4,000km2 tenement and mineral rights holding including a dominant position across the Marda region. The Company believes that the Marda region is underexplored for base metals along the Copper Bore trend and for gold along the Evanston Shear and Andromeda trend where significant gold mineralisation has been identified previously and where excellent potential exists for further discoveries. Notes to Accompany Assay Table Collar survey accuracy is within 4m. All drilling is by 5.25 inch face sampling RC hammer and samples are riffle split on site to a nominal 2kg. Samples were digested with Aqua Regia. Au (AR), Ag and Pb were determined by Inductively Coupled Plasma Mass Spectrometry. (ICP/MS). Cu and Zn were determined by Inductively Coupled Plasma Optical Emission Spectrometry.

(ICP/OES). Samples were collected as 1 metre intervals unless otherwise specified. ENDS For further details, please contact Glenn Jardine, Managing Director Southern Cross Goldfields Ltd Telephone 61 8 9215 7600, email glennjscross.com.au Refer to www.scross.com.au For media inquiries, please contact Nicholas Read Read Corporate Telephone 61 9388 1474, email nicholasreadcorporate.com.au.