Southern Cross Gold Ltd. provided a geological update with an outline of vein morphology and continuity at its 100% owned Sunday Creek Project in Victoria, Australia. Geostatistics: A total of 42 mineralized vein set shapes have been created for Sunday Creek. Wireframes were created in Leapfrog Geo using a threshold of 1 g/t Au over 2 m. Modelling consistently shows the vein sets have a higher-grade core with broader lower grade halos.

The Company, along with leading global consultants, are preparing grade variography with volumes determined by a strong understanding of geological and grade continuity, trends and other supporting information. The mineralization model provides the first geostatistical summary of the project. Coefficient of variation: The coefficient of variation ("CV") is the ratio of the standard deviation to the average of the assay results.

The lower the CV, the less variable and erratic the distribution of the mineralization is, and therefore it is easier to model. In Apollo, where sufficient drill density and drill spacing is present, geostatistical assessment provides validity of the geological shapes. Within Apollo, the average of all the vein sets has a CV below 1.5 when applied to 1 m composite data and an average CV of less than 2 for raw assays.

Rising Sun requires further drilling before similar calculations can be made. The CV at Apollo implies both a strong understanding of the geological controls on mineralization, correct sub-domaining of high tenor material and the predictability of high-grade mineralization within these shapes. Stereonets: All diamond drill core drilled by Southern Cross Gold is orientated.

Orientation data can place structures measured in drill core in 3-dimensional space. A measure of confidence is assigned to ensure only quality data are utilized and drill bias, or inaccurate measurements, do not materially influence the interpretation. Combined with triangulation of intercepts (minimum three points on a plane to determine an orientation) high confidence in structural continuity of vein sets is maintained.

This allows for major trends and critical controls on high grade trends or linking features to be identified. Geological controls on mineralization (structural, chemical, stratigraphic) exist in every ore deposit and Sunday Creek is no different. Mineralization is structurally controlled, with increased mineralization associated within the "bleaching" around and within the intrusive sequence.

Early alteration and sulphide (pyrite) mineralization exploited the vesicular/amygdaloidal nature of the pervasively altered/mineralized dyke and the brecciated areas, and forms east-west trending pyrite veinlets. Stereonet data supports this observation and shows pyritic veins parallel the east-west structural host and predates the higher tenor NNW Au-Sb mineralized vein sets. Stereonet data also demonstrates that gold-antimony ("Au-Sb") mineralization is dominantly hosted within zones of sub-vertical, brittle-ductile NNW-NW striking shear veins and associated veins, containing visible gold, quartz, stibnite, occasional fibrous sulphosalts and minor ferroan carbonates infill.

The veins have an associated selvedge of disseminated sulphides in the form of arsenian pyrite, pyrite and arsenopyrite. The mineralized vein sets are typically between 5-30 m wide, 20-100 m in strike which show 3 individual veins strike distance 30-40 m, 25-40 m, 40-55 m and up to 110 m) and currently defined vertically down to 1 km depth and up to 570 m in depth extent on an individual vein set basis. These zones repeat every 10-20 m within the Apollo and Rising Sun areas with 42 vein sets currently defined to date.

When observed from above, the altered sediment and dyke host resembles the side rails of a ladder, where the sub-vertical mineralized vein sets are the rungs that extend from surface to depth.