Update on Merger with Polymetals - Notice of Meeting

Mt Boppy Case 2
Sensitivity analysis
Flex NPV ($m) NPV ($m) NPV ($m) NPV ($m) NPV ($m)
Commodity Exchange Recovery
Capital
Project costs
Price rates (%)
expenditure
-5% 11.70 16.85 11.07 15.75 14.66
-4% 12.20 16.30 11.70 15.44 14.57
-3% 12.70 15.76 12.32 15.13 14.48
-2% 13.20 15.23 12.95 14.82 14.39
-1% 13.70 14.71 13.58 14.52 14.30
0% 14.21 14.21 14.21 14.21 14.21
1% 14.71 13.71 14.83 13.90 14.12
2% 15.21 13.22 15.46 13.59 14.02
3% 15.71 12.74 16.09 13.28 13.93
4% 16.21 12.28 16.71 12.97 13.84
5% 16.71 11.82 17.34 12.66 13.75
Source: BDO Analysis
Discount
rate NPV ($m)
5.0% 15.40
5.5% 14.99
6.0% 14.59
6.5% 14.21
7.0% 13.83
7.5% 13.46
8.0% 13.11
Source: BDO Analysis
Considering the valuation outcomes above, we estimate the fair market value of the Mt Boppy Project to
be in the range of $13.36 million to $14.21 million, with a midpoint value of $13.79 million.
11.1.2. Value of the resources, not included in the Mt Boppy Model
We have instructed AMC to value all of the resources at the Mt Boppy Project under the Valmin Code that
are not included in the Adjusted Mt Boppy Model. AMC has deemed that the most reliable method to value
these resources in using the Comparable Transaction method.
AMC have concluded that the value of the resources at Mt Boppy and not included in the model is
$0.2 million
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