Update on Merger with Polymetals - Notice of Meeting

Note f: Minority discount
Following the Transaction, SXG shareholders will hold a minority interest in the Merged Entity. We have
therefore applied a minority discount to the value derived under the sum-of-parts method to arrive at a
minority interest value per share as required by RG 111.31.
We have applied the inverse of the control premium of between 25% and 35% as set out in section 10.2 of
this report. The inverse discount is between 20% and 26%.
11.2. Resource multiple cross-check
As a cross check to the sum-of parts valuation, we have analysed the resource multiple observed for
companies listed on the ASX with gold projects in Australia as their primary focus.
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
the companies that are substantially larger than the Merged Entity.
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
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*
50.85
Median*
36.00
* We have excluded companies with a market capitalisation above $200 million
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