In the article that appeared in the ASIA Miner magazine Vol 4, Third Quarter July - September 2007 - "Cambodia"s mining law" Southern Gold Limited incorrectly portrayed the payments required for the acquisition of MOU and EL tenements in Cambodia.

Southern Gold Limited sincerely apologises for the misrepresentation of the payments and provides the following clarification:

Payments required for the Memorandum Of Understanding (MOU) concession and the subsequent grant of an Exploration Licence require a Registration Payment of US$1500 payable to the Ministry of Finance and a Community Development donation which is payable to nominated projects such as schools, roads, irrigation, agriculture and humanitarian assistance. Donations vary according to the size and scope of the proposed project(s).

Southern Gold Limited is an Australian-listed company exploring for Intrusive Related Gold (IRG) and base metal deposits in the Mondulkiri, Kratie and Ratanakiri Provinces in the north-eastern part of Cambodia.

Southern Gold has acquired eight mineral exploration tenements at Snoul, Okvau East, Okvau West, Romdul, Phnom Katong, Srae Pok, Phnum Khnach and Puchar Leu, either held 100% by Southern Gold or in an 80:20% joint venture with Cambodian company, Greystoke Ltd.

The tenements are held in the form of a Memorandum of Understanding (MOU) signed with the Cambodian Ministry of Industry, Mining and Energy (MME).

Ric Horn
Chairman
Southern Gold Limited