Update on Merger with Polymetals - Notice of Meeting

600,000
Marda Project (tonnes processed)
500,000
400,000
300,000
200,000
100,000
0
2013 2014 2015 2016 2017 2018 2019
Gold processed (tonnes)
Source: The Adjusted Marda Model
Key aspects of AMC's case 1 model are:
• The mine schedule and processing schedule are essentially based on the 5 year LOM plan provided
in the feasibility study with a limited amount of ore added to the end of the mine life.
• Project development commences in the last quarter of 2013.
• Operating and capital costs are based on those provided in the feasibility study.
• Average unit mining costs of $3.24/t of material moved are used.
• Average processing costs of $30.21/t ore processed are assumed.
• Total ore processed is 2.7 Mt at a head grade of 2.3 g/t.
• AMC adjusted the head grade to reflect a lower grade of diluting material than that assumed in
the feasibility study based on the AMC review of the Resource model, this had the effect of
lowering the head grade from 2.36 g/t to 2.31 g/t over the life of the Project.
• AMC adjusted the metallurgical recovery for the project in the first three years from 95% to 94%
compared to the feasibility study based on AMC’s review of the test work.
• Total gold production of 190 koz of gold.
• Initial capital expenditure of $38.2M based on the feasibility study. This capital is principally
associated with site establishment and relocation and refurbishment of the processing facilities
and camp from Sandstone to Marda.
• Closure costs increased by $1.2M compared to the feasibility study to offset the assumed residual
value of the mining equipment.
Marda Case 2
Set out below is a summary of the mining and processing activity included in the Adjusted Marda Model.
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