Update on Merger with Polymetals - Notice of Meeting

We have analysed a number of broker reports reporting on ASX listed gold companies with their main
operations in Australia. The broker reports indicated that NAV multiples range between 0.85 and 1.53.
In determining an appropriate NAV multiple to apply to SXG, we have had regard to:
• SXG’s medium-high volatility;
• SXG’s development stage – forecasting to start production in August 2014; and
• The current management team.
Based on the results of our analysis, we consider a NAV multiple of 1.0 to be appropriate for valuing SXG.
10.1.4. Other Assets and Liabilities
Other assets and liabilities represent the assets and liabilities which have not been specifically adjusted.
From review of these other assets and liabilities, outlined in the table below, we do not believe that there
is a material difference between their book value and their fair value unless an adjustment has been
noted below. The table below represents a summary of the assets and liabilities identified:
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