Update on Merger with Polymetals - Notice of Meeting

AMC modelled two cases for the Marda Project based on different forecasts for mining and processing
tonnages, gold grades and costs.
• Case 1, ore production, is primarily based on the feasibility study scenario using Ore Reserves, and
that part of Minerals Resources included in the mine plan provided to AMC. AMC added additional
ore to the production case in years 5 and 6 of the schedule based on the likelihood of conversion
of near mine Mineral Resources to Ore Reserves and exploration success also contributing to
additional Ore Reserves.
• Case 2, ore production, includes that scheduled in Case 1, with the addition of two years’
production simulated to reflect the likely conversion of additional minerals resources to ore
reserves and the likely success with exploration in the Marda region. AMC has included additional
production to extend the life of mine for two years to reflect further exploration success.
The two cases have been provided as a lower and upper range of likely outcomes for the Marda Project.
For the purposes of our valuation, we have adopted both cases to form the basis for our lower and upper
value ranges of the Marda Project derived from the Adjusted Marda Model.
A copy of AMC’s report is included in Appendix 4.
Mining Physicals
Marda Case 1
Set out below is a summary of the mining and processing activity included in the Adjusted Marda Model.
Marda Project Case 1 Units 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19
Mining
Ore Tonnes Mined t - 163,307 501,732 580,539 540,904 454,567 118,190
Waste Tonnes Mined t - 941,569 3,398,268 3,319,461 3,359,096 3,445,433 548,531
Total Movement t - 1,104,876 3,900,000 3,900,000 3,900,000 3,900,000 666,721
Grade Mined g/t - 2.13 2.66 2.33 2.27 2.07 4.75
Processing
Tonnes Processed t - 96,990 545,000 509,980 546,425 505,000 500,000
Grade Processed g/t - 2.11 2.47 2.39 2.14 2.31 2.31
Contained oz oz - 6,567 43,210 39,246 37,571 37,505 37,134
Recovery % - 94% 94% 94% 95% 95% 95%
Recovered oz oz - 6,173 40,618 36,892 35,692 35,630 35,277
Source: The Adjusted Marda Model
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