Update on Merger with Polymetals - Notice of Meeting

10.3. Resource multiple valuation cross-check
As a further cross check to our primary and secondary valuations, we have analysed the resource multiple
observed for companies listed on the ASX with gold projects in Australia as their primary focus.
We have calculated SXG’s market capitalisation based on the preferred value per share as derived using
the sum-of-parts method being $0.038 and applied a minority discount. To this value we have added the
current net debt of SXG to arrive at its enterprise value of $15.5 million.
The table below shows that the median enterprise value per unit of inferred, indicated and measured
resource is $53.06 per ounce.
We have also analysed the median enterprise value per unit of inferred, indicated and measured resource
when excluding companies with a market capitalisation above $200 million. We have done this to exclude
companies that are substantially larger than SXG. The median enterprise value per unit of inferred,
indicated and measured resource when excluding the larger companies is $36.00 per ounce.
Resource multiple
Company name
Enterprise
value Resources
EV/resource
multiple
5 April 2013
$m million oz $/oz
Southern Cross Goldfields Limited 15.5 0.5 28.39
Regis Resources Limited* 1,947.9 10.1 192.29
Tanami Gold NL 115.9 3.1 37.07
Evolution M ining Limited* 937.9 7.7 121.81
Silver Lake Resources Limited* 642.6 4.6 140.31
Rand Mining Limited 20.1 0.1 167.17
BCD Resources NL 1.1 0.1 11.56
Kalnorth Gold Mines Limited 40.9 1.2 34.92
Octagonal Resources Limited 11.9 0.2 48.59
Ramelius Resources Limited 56.9 2.8 20.08
Excelsior Gold Limited 66.2 1.2 57.53
Average 83.13
Median 53.06
Average*
Median*
50.66
36.00
* We have excluded companies with a market capitalisation above $200 million
The multiples range between $11.56/ounce and $57.53/ounce when excluding the larger comparable
companies.
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