Southern Gold has completed the second phase of systematic underground channe sampling at its 100% owned Weolyu South gold-silver project in central South Korea. The sampling was designed to infill and extend previous results and as a quality assurance ("QAQC") program checking on assaying protocols. Previous underground sampling results were reported in ASX release "High grade gold and silver results from new work on historic South Korean mine" on 20 December 2017. In this new phase of work a total of 18 new channel sample lines were taken as infill or extensional samples and a further 29 lines were re-assayed for 34 samples, from coarse rejects retained from the first round of sampling in 2017. New samples were collected from three horizons along the historical drives. The results from the new channel lines, with re-assaying of the original samples with old and new values. These newly reported results have continued to produce excellent gold and silver grades associated with the three currently defined high grade zones or shoots. A review into sample preparation and assaying results was conducted as part of a general QAQC review through a third-party laboratory following indications of statistical variance in the original analysis. This review returned a significant varianceon all sample fire assay gold results including an average 30% increase in gold grades from the Weolyu samples, a significant uplift which has an impact on economic potential with a clear high-grade gold-silver zone showing greater consistency. The Weolyu Project is located 170km SE of Seoul in the Yeongdong Province and approximately 65km ESE of the major city of Daejeon, where Southern Gold operations are based. The Weolyu Project consists of a historic underground mine that exploited epithermal style silver/gold/germanium mineralisation on several structures. The bulk of historicalmining occurred on the north side of the river, referred to as Weolyu North. The south side of the river is referred to as Weolyu South, and is some 200m or more, higher in elevation than Weolyu North. This round of sampling builds on an initial channel sampling program conducted in November 2017 and also includes a review of assay re-sampling from this first program through a third party umpire lab, as part of a QAQC review. The infill and extensional sampling consisted of 18 new lines focused around the defined high grade mineralisation of the Southern Shoot by seeking to extend the strike extension and assess grade continuity. The sampling resulted in some excellent ivery high grade intercepts, notably from the upper 330m Level with 0.4m @ 32.8g/t Au & 764 g/t Ag, 0.45m @ 30.0g/t Au & 1,280 g/t Ag and 0.55m @ 28.9 g/t Au & 1,350 g/t Ag. The best intercept on the 310 level was 0.7m @ 21.8 g/t Au & 469 g/t Ag. While the strike was not extended significantly, the infill sample results confirmed the high-grade continuity of the shoots. While no 3D model grade calculation has been completed on shoot grades, the average tenor of the length weighted grade along strike on the 310mRL, over a 30m strike length with an average vein width of 0.42m is 8.3 g/t Au and 193 g/t Ag. While over a 25m strike length, the 330mRL Level has an average width of 0.44m for 13.1 g/t Au and 522 g/t Ag. Using a simplistic length weighted calculation, the average grade of the Southern Shoot is estimated to be 10.6 g/t Au and 348 g/t Ag, between the two levels. This will need to be more thoroughly tested with infill diamond drilling and does not utilise any statistical evaluation or top cutvalues. Diamond drilling will be undertaken to test for depth extensions below the Southern Shoot on the 310 Level and repeat parallel structures that are interpreted to exist from surface mapping.