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1 QUARTERLY ACTIVITIES REPORT FOR QUARTER ENDING 30 SEPTEMBER OCTOBER 2013 ASX: SWA Quarterly Activities Report September 2013 ASX Announcement Swan Gold Mining Limited s ( Swan or the Company) (ASX: SWA) principal asset is the Davyhurst Mt Ida Project which covers an area of some 1,890 km 2 of greenstone terrane northwest of Kalgoorlie. The area is prospective for gold as well as nickel sulphide and base metal mineralisation. The project is supported by a Carbon In Leach (CIL) plant and associated infrastructure, including a 160 man camp at Davyhurst and a 60 man camp at Mt Ida. The project has been on care and maintenance since (See Figure 1 for project area location plan). Swan Gold Mining Limited ACN Board of Directors Mr Michael Fotios Executive Chairman Mr Craig Readhead Nonexecutive Director Mr John Poynton Nonexecutive Director Mr Wayne Zekulich Nonexecutive Director Company Secretary Ms Linda Paini Projects Mt Ida Davyhurst Riverina Issued Capital Shares on issue: 893,487,661 Registered Office L1/24 Mumford Street, BALCATTA WA 6021 T: F: admin@swangoldmining.com.au Figure 1: Davyhurst Mt Ida Project Area Plan

2 EXPLORATION Drilling During the quarter the Company completed thirty eight ( 38 ) reverse circulation ( RC ) drill holes for a total of 2,503 metres. The holes were designed to infill and extend mineralisation within existing mine areas at Iguana and Lizard within the Lady Ida Project, and to test new geological concepts on existing targets around the Davyhurst area. A table of holes drilled during this program is included at the end of this report (Table 1). Assay results for the samples taken during the drilling have not as yet been received. Lady Ida Area Iguana Deposit (M16/262) Figure 2: Lady Ida Project Area Plan The Iguana deposit is located approximately 50km south of the Davyhurst milling facility and was mined by former owners Delta Gold in 2000 and The resource at Iguana is dominantly hosted in a highly sheared, silicamuscovitecarbonate altered, tholeiitic metabasalt of lower to mid amphibolite facies. Mineralisation is intimately associated with pyrite and arsenopyrite. It is interpreted as being controlled by imbricate thrusts contained between two northsouth trending faults.

3 An infill RC drilling program at Iguana comprised of 6 RC holes for 505m was completed. The programme was to determine the continuity of high grade gold in the bedrock mineralisation to the north and central sections of the deposit. Geological logging of the drill holes indicates the holes intersected the zones of interest. Assay results are pending. Lizard Deposit (M16/264) The Lizard deposit is located approximately 60km south of the Davyhurst milling facility and was mined by former owners Delta Gold in 2000 and The deposit has a mineralised lateritic capping overlying mineralised tholeiitic basalt within a sequence of ultramafic units. Mineralisation is associated with a zone of shearing followed the basalt contacts and is associated with arsenopyrite and pyrite. All lithologies are steeply dipping and trend to the northwest. Infill RC drilling was carried out north and south of the Lizard open pit to determine the continuity of the mineralisation. The programme comprised of 9 RC holes for a total of 465m. Geological logging of the drill holes indicates the holes intersected the zones of interest. Assay results are pending. Davyhurst Area Swan has completed preliminary drill testing at the Ramp and Mecca prospects to test for the potential footwall repetitions of Lights of Israel/ Great Ophir Complex (Figure 3). The Company also completed drilling on the Golden Eagle South East Prospect All the targets have previously been drill tested in the past by broad spaced east west drill traverses that intersected sporadic anomalous gold results, but failed to test potential down plunge shoot position. The Ramp Prospect (Figure 4) is located approximately 400m in the footwall, south of the Lights of Israel deposit and strikes across the ramp leading to the ROM pad. One traverse of three holes was drilled on the prospect. The holes intersected zones up to 9m down hole of alteration including the characteristic Quartz Feldspar Loade ( QFL ) alteration assemblage hosting mineralisation at Lights of Israel, quartz veining and sulphide mineralisation within basalt unit.

4 Figure 3: Davyhurst Area Location Plan The Mecca Prospect is situated approximately 300m in the footwall of the Great Ophir pit. A single traverse of three holes was completed, thin zones of weak alteration and shearing were intersected within the oxide zone, and the holes did not test the primary zone. Figure 4: Long section of Lights of Israel showing location of Ramp Prospect

5 The Golden Eagle South East Prospect is located approximately 4km south from the main Davyhurst mine area. The project comprises a series of shallow old workings that strike parallel to the Lights of Israel mineralisation, along a strike of approximately 150 metres. Previous RC drilling completed on east west traverses had intersected alteration and gold mineralisation that appear to plunge to the north east. The current drilling targeted the down plunge component of the structure. Eleven holes were completed on three traverses. The holes intersected the structure in the oxide zone, quartz veining and limonite clays suggestive of a weathered alteration zone were intersected in several holes. Thickness of the alteration was variable and will require confirmation once assay results are received. Auger Geochemistry Swan has been progressively completing a major auger geochemical program over the project area. The program has been targeting areas that had not been previously tested by surface geochemistry, or where existing surface data was considered ineffective. To date, a total of 8,456 samples have been collected on a 400m by 80m grid pattern. The analytical results for the majority of the program have been received and preliminary interpretation of the data has been completed. The program has highlighted the potential for additional discoveries under cover within the Davyhurst Mt Ida Project area. The survey has identified a 20 km long series of anomalies leading north of the Davyhurst Gold Camp that follows a prospective stratigraphic and structural corridor on the eastern side of the project area paralleling the Zuleika Shear Zone. The area is largely under cover, but hosts the Wildcat workings in the central part of the zone as well as several smaller historical diggings. In addition the survey has identified a series of anomalies along the northern contact between the greenstone sequence and the Ularring Granite as well as within the granite itself as being prospective for gold mineralisation. Swan considers this area prospective for gold mineralisation similar to the Giles deposit which occurs on the contact (past production 683,000t at 3.24g/t Au), and limited testing for this style of deposit has been completed in the past Swan intends to complete field checking and ranking the anomalies using existing drill and geophysical data sets in order to prioritise follow up programs.

6 Figure 5: Davyhurst Mulline Auger Geochemical Anomaly Plan

7 Forward Work Programs Swan continues to review the existing deposits within the project and generates targets for additional exploration. During the quarter the company received Program of Works ( POW ) approvals to complete additional resource definition drilling on the Riverina, Forehand, Silver Tongue, and Makai Deposits with the aim of confirming existing drilling and extending the resources. In addition, the Company has lodged a POW to complete drill testing for down plunge shoot positions on the Great Ophir Deposit which has a similar structural setting to the Lights of Israel and a number of prospective structural positions identified by the recent geological mapping completed by the Company around the Lights of IsraelGreat Ophir Complex Deposit. A POW has been approved to complete RC drilling on the Peachtree Prospect at Mulline where multiple lodes were mined in the 1890 s but no systematic drill testing across all of the lodes have been completed. Swan also intends to expand the regional auger geochemical program to cover poorly explored regions in the central part of the Davyhurst area and along the Callion Trend to the west of Davyhurst and Siberia area. Infill programs are being planned to further refine targets for drill testing. RC drilling is scheduled to recommence on the project in early November. CORPORATE Successful application for Mining Rehabilitation Fund Swan has applied to the Western Australian Department of Mines and Petroleum ( DMP ) for the Mining Rehabilitation Fund ( MRF ) which has allowed the retirement of the Company s Environmental Bonds ( Bonds ). The DMP has approved the retirement of performance bonds to the value of $5.2 million after a total levy fee of $251,000. The levy is calculated by the DMP and is based on 1% disturbance of the environment. Plaint Action Swan is awaiting the recommendation of the Warden regarding applications for exemption from expenditure that were heard in August 2012 in respect of M16/ at Lady Ida, held by Siberia Mining (which tenements are also the subject of applications for forfeiture). The plaint regarding Carnegie Gold s rights to explore and mine M24/862 at Lady Bountiful continues in the Warden s Court. For more information: Michael Fotios Executive Chairman Linda Paini Company Secretary Tel:

8 COMPETENT PERSONS STATEMENT The information in this report that relates to Exploration Potential and Results is based on information compiled by Mr James Guy, a consulting geologist engaged by Swan, who is Member of the Australian Institute of Mining and Metallurgy. Mr Guy has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Guy consents to the inclusion in the report of the matters based on his information in the form and context in which it appear.

9 Table 1: Drill holes completed September Quarter 2013 All holes drilled by Reverse Circulation technique. The hole collar positions determined by hand held GPS. No down hole surveys completed. Hole Id North East RL Total Azimuth Dip Interval Grade Depth Iguana Deposit IGRC Assays Pending IGRC Assays Pending IGRC Assays Pending IGRC Assays Pending IGRC Assays Pending IGRC Assays Pending IGRC Assays Pending Lizard Deposit LZRC Assays Pending LZRC Assays Pending LZRC Assays Pending LZRC Assays Pending LZRC Assays Pending LZRC Assays Pending LZRC Assays Pending LZRC Assays Pending LZRC Assays Pending Davyhurst Area LVRC Assays Pending LVRC Assays Pending LVRC Assays Pending LVRC Assays Pending LVRC Assays Pending MECCA Assays Pending MECCA Assays Pending MECCA Assays Pending RAMP Assays Pending RAMP Assays Pending RAMP Assays Pending GESE Assays Pending GESE Assays Pending GESE Assays Pending GESE Assays Pending GESE Assays Pending GESE Assays Pending GESE Assays Pending GESE Assays Pending GESE Assays Pending GESE Assays Pending GESE Assays Pending

10 Appendix 5B Mining exploration entity quarterly report Appendix 5B Rule 5.3 Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10 Name of entity SWAN GOLD MINING LIMITED ABN Quarter ended ( current quarter ) September 2013 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors Current quarter $A 000 Year to date (3 months) $A Payments for (a) exploration & evaluation (b) development (c) production (d) administration (751) (701) (751) (701) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) (1,397) (1,397) Net Operating Cash Flows Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans from other entities Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) (1,312) (1,312) + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1

11 Appendix 5B Mining exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) (1,312) (1,312) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 200 3, Repayment of borrowings 1.18 Dividends paid 1.19 Other Funds from Mining Rehabilitation Fund 1,407 1,407 Net financing cash flows 1,407 1,407 Net increase (decrease) in cash held Cash at beginning of quarter/year to date Exchange rate adjustments to item Cash at end of quarter Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest N/A + See chapter 19 for defined terms. Appendix 5B Page 2 17/12/2010

12 Appendix 5B Mining exploration entity quarterly report Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used $A 000 $A Loan facilities 3.2 Credit standby arrangements Estimated cash outflows for next quarter $A Exploration and evaluation Development 4.3 Production 4.4 Administration 300 Total 800 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A 000 Previous quarter $A Cash on hand and at bank Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22) See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 3

13 Appendix 5B Mining exploration entity quarterly report Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Tenement reference E16/343 P24/4177 P24/4178 P24/4180 P16/2515 Nature of interest (note (2)) Lapsed Relinquished Relinquished Relinquished Relinquished Interest at beginning of quarter 100% 100% 100% 100% 100% Interest at end of quarter 0% 0% 0% 0% 0% E29/895 Application 0% 100% + See chapter 19 for defined terms. Appendix 5B Page 4 17/12/2010

14 Appendix 5B Mining exploration entity quarterly report Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 Preference + securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities Total number Number quoted Issue price per security (see note 3) (cents) 893,487, ,487,661 (Suspended) Amount paid up per security (see note 3) (cents) 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter Exercise price Expiry date + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 5

15 Appendix 5B Mining exploration entity quarterly report 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed. Sign here: Date: 31 October 2013 (Company secretary) Print name: Linda Paini Notes 1 The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.== == == == == + See chapter 19 for defined terms. Appendix 5B Page 6 17/12/2010