Update on Merger with Polymetals - Notice of Meeting

The projects will be funded with $32 million of new debt funding and up to $3 million in equity funding.
We have adjusted for corporate cost synergies in the Merged Entity forecast to result from the
consolidation of corporate overheads. We note that these synergies would be available to any similar
merger partner.
As required by RG 111.31, our valuation includes a minority discount as existing SXG shareholders will have
a minority interest in the Merged Entity following the Transaction.
We have assessed the value of a share in the Merged Entity on a minority interest basis to be between
$0.032 and $0.045, with a preferred valued of $0.038 as shown in the table below.
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