Update on Merger with Polymetals - Notice of Meeting

Southern Cross Goldfields Limited
Value of other
assets and
Value of other
assets and
Unaudited as at liabilities as at liabilities as at
31-M ar-13 31-M ar-13 31-M ar-13
Low
High
Statement of Financial Position Note $ $ $
CURRENT ASSETS
Cash and cash equivalents a 3,361,085 13,261,085 20,161,085
Prepayments 87,668 87,668 87,668
TOTAL CURRENT ASSETS 3,448,753 13,348,753 20,248,753
NON-CURRENT ASSETS
Trade and other receivables b 2,825,000 106,000 106,000
Property, plant and equipment c 197,836 - -
Tenement acquisition costs d 5,612,873 - -
TOTAL NON-CURRENT ASSETS 8,635,709 106,000 106,000
TOTAL ASSETS 12,084,462 13,454,753 20,354,753
CURRENT LIABILITIES
Trade and other payables 1,068,971 1,068,971 1,068,971
Provisions 100,338 100,338 100,338
Sandstone Acquisition Facility e 7,000,000 - -
RMB new finance facility e 5,000,000 5,000,000
TOTAL CURRENT LIABILITIES 8,169,309 6,169,309 6,169,309
TOTAL LIABILITES 8,169,309 6,169,309 6,169,309
NET ASSETS 3,915,153 7,285,444 14,185,444
Note a: Cash and cash equivalents
The Marda Project has been funded on the assumption that SXG raises between $9 million and $11 million
in equity funding.
We have considered the discount at which shares and options have been issued by ASX listed mining
companies, with market capitalisation between $5 million and $25 million, when compared with the
companies’ share prices the day prior to the announcement of the placements.
The average discount at which shares were issued by ASX listed metals and mining companies in 2012 with
market capitalisation between $5 million and $25 million was 13.6%. This indicates that any fund raising
on the ASX is likely to be at this level of discount to the prevailing listed market price.
We have based our calculation on the assumption that SXG issues between 333 million and 407 million
shares at $0.027 to raise between $9 million and $11 million. The capital raising price is at a 15% discount
to our preferred value per share of $0.032 under the quoted market price method as set out in section
42