Update on Merger with Polymetals - Notice of Meeting

disposal of assets. PLY advised us that they are in the process of selling the White Dam camp assets. We
have added $550,000 to the cash balance, being the expected sale value.
PLY is in the process of selling its head office premises in Queensland. The property has recently been
independently valued at $860,000 however the Company expects to receive between $1 million and
$2 million. We have valued the property as range of $860,000 to $1.5 million less an assumed 5% selling
costs. We have added this value to the cash balance on the assumption that the property will be sold.
We have deducted $300,000 in relation to the Indemnity Consideration payable by PLY to Meadowhead
under the SIA.
PLY is in the process of lodging its 2012 tax return which will result in a receivable of $700,000, net of the
current tax liability, as a result of a research and development rebate.
Note b: Receivables
Receivables relate to a prepaid royalty in relation to the Mt Boppy Project. We have excluded the royalty
as it has been included in our DCF valuation of the Mt Boppy Project.
Note c: Property, plant and Equipment
Plant and equipment relating to the Mt Boppy Project and has been excluded from the other assets and
liabilities as it forms an integral part in the value of the project.
The remaining plant and equipment relates to head office property and has been excluded from the
balance sheet on the assumption that it is soon to be sold.
Note d: Security deposits
The security deposits are related to Mt Boppy. We have excluded them for our valuation as the Mt Boppy
security deposits are incorporated in the DCF value of the project.
Note e: Exploration and development costs & Capitalised mining development costs
PLY’s exploration and development expenditure has been reflected through the DCF valuation under
sections 11.1.1 and the other exploration assets valuation and has therefore been excluded in the
valuation of other assets and liabilities.
Note f: Available for sale assets
PLY holds 982,000 listed shares in Macphersons Resources Limited. We have valued the shares using a
30 day VWAP as at 5 April 2013, being $0.275 per share.
Note g: Current tax liability
We have excluded the current tax liability on the basis that it will be netted off with the receivable as a
result of a research and development rebate that PLY will receive on lodgement of its 2012 tax return.
Note h: Provisions
Of the total provision, $448,000 relates to a rehabilitation provision at Mt Boppy. We have excluded this
portion of the provision as it is included in our DCF valuation of the Mt Boppy Project.
Note i: Deferred consideration
The deferred consideration relates to potential additional payments to Lansdowne Resources shareholders
if and when development and production milestones are met on the Turner River gold and base metals
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