INTERVIEW WITH STEPHEN BIGGINS, MANAGING DIRECTOR OF SOUTHERN GOLD LIMITED (SAU)

“Prospectivity Confirmed for Economic Nickel Sulphides in Bulong South”

http://www.brr.com.au/event/48888

MONDAY, AUGUST 4, 2008, 11:45 AM.

            BRR    Today, Boardroom Radio speaks with the Managing Director of Southern Gold, Mr. Stephen Biggins. Welcome to Boardroom Radio, Stephen.

10        SAU     Good morning, Terence.

            BRR    Stephen, let us firstly touch on the Bulong South project. You have released some final gold assays there from the RC drilling campaign undertaken there a few months ago. What are some of these results revealing at the project?

15        SAU     I think there are some key advances as a result of the gold assays that we have got from our recent drilling at Bulong South. I think one needs to focus on substantial strike length of gold mineralisation that we have identified at what we are calling the Monument prospect. We are getting broad intersections of gold including 4 metres at 2 grams over at least a 500-metre

20                    strike length with a definite structural control that is predictable on that gold mineralisation, which is open at depth and open at both ends along strike. In addition to that discovery work at Monument, we have confirmed a very broad substantial gold intersection on the north of the license at the Cannon prospect, which includes intersection of 33 metres at 1.85 grams per tonne.

25                    That is adjacent to some drilling on the other side of the tenement boundary of 25 metres at 4 grams per tonne. So we are starting to build up a consistent large gold system on the Bulong South project, which has strike potential southward.

30        BRR    Stephen, you are planning on doing some follow-up drilling in September as well?

            SAU     That is right. We intend to look at defining the extents of the Monument prospect with the intent of trying to get a view on the volume of mineralisation there. Also some fairly basic step-up work extending those broad gold

35                    intersections southward into our tenure.

            BRR    Stephen, earlier in July, intersections of nickel sulphide confirmed that the Bulong South project is a potential sulphide producer. Can you give us an update on what is happening in regard to nickel sulphide?

40        SAU     Southern Gold has made some real progress on building on its nickel discovery from last year’s nickel sulphide discovery. In this recent program, we announced 4 metres at close to 1.8% nickel sulphide, which has extended nickel sulphide mineralisation within a much larger zone of nickel-rich nickel sulphide-bearing rock on our tenement. Unfortunately, I think with some of the

45                    market turmoil, those good result news was sort of lost three weeks ago. But I think it really needs to be considered when considering that the value of new nickel sulphide mineralisation close to the surface within a much larger nickel-rich belt close to the nickel sulphide processing infrastructure at (inaudible) (0:03:01).

            BRR    Stephen, what is your drilling focus going forward for the Bulong South project?

            SAU     On the nickel sulphides, we will start some fairly significant assay and

5                      diamond drilling programs to extend our nickel sulphides in the nickel-rich belt with the aim of defining a nickel sulphide drill compliant resource towards the end of 2009 as a longer-term goal. On the gold side, we believe there is real potential to start, because of the consistency of the gold results, to develop a view on the volume of gold-bearing rock as a result of the next RC program at

10                    Monument and on the southern extensions of the Cannon prospect.

            BRR    Stephen, you certainly have made a significant progress over the latest quarter with five separate ASX releases. Can you give us some of the key highlights over the quarter for Southern Gold at your other projects?

15        SAU     Sure. In Australia, I think it is the work that we have talked about just then at Bulong. A substantial drilling project, eco-drilling project on the Challenger area of gold project which we are expecting to be able to announce the results in August with the aim of developing a JORC compliant gold resource at Golf Bore later in the year. In Cambodia, we have really made some

20                    significant progress. We are really starting to get towards the value-add part of the building on the work that we have completed in Cambodia over the last two years by getting into that stage where we are starting to announce substantial and consistent gold and exploration results from trenching and we announced our first trenching result with more to come over the next few

25                    weeks and months, leading into a substantial assay drilling program in Cambodia at the start of the dry season in November-December this year. Importantly, we are increasing our granted 10-year holding in Cambodia, so we now have seven 100% owned tenements covering over 1500 square kilometres in north-eastern Cambodia. Also, we have finalized a joint venture

30                    with the Japanese government JOGMEC where they have committed to spending $4.5 million over the next three years to win a 51% interest in three of our licenses in Cambodia. That, alongside the active exploration work that we are doing in Cambodia, positions the company very well to take advantage of its early investment in the country’s development of the mining

35                    industry.

            BRR    Stephen, the Company does sound like it is positioned very well as you have just mentioned. Thanks very much for the update today on Southern Gold.

            SAU     Thanks, Terence.

40

            BRR    Remember, if you have any questions about this broadcast or any others, please feel free to send me an e-mail at brr@brr.com.au or via the Contact Us button on the home page. I am Terence Bell. Thanks for listening to Boardroom Radio.

INTERVIEW CONCLUDED

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