Update on Merger with Polymetals - Notice of Meeting

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BDO CORPORATE FINANCE (WA) PTY LTD Polymetals Mining Limited and Southern Cross Goldfields Limited Technical Specialist's Report identified additional gold mineralisation at depth. Treatment of tailings and open pit mining of oxide mineralisation was carried out until 2005. Polymetals acquired the tenements covering the mine in 1992 for $110,000. The adjacent exploration licence (EL 5842) was acquired in 2008 for $0.5M. The Mt Boppy tenements comprise: • Four gold leases. • Two mining leases. • One mining purpose lease. • One exploration licence. The leases (Figure 3.1) cover an area of 0.7 km 2 and the exploration licence (Figure 3.2) covers 204.6 km 2 . Figure 3.2 Canbelego Exploration Licence Location 3.1.2 Geology The Mt Boppy deposit is located in the northern part of Devonian Canbelego-Mineral Hill Rift Zone surrounded by the flanking Kopyje Shelf in the Palaeozoic Lachlan Fold Belt. Gold mineralisation occurs within both the Ordovician (Girilambone Group) and the Devonian (Baledmund Formation) rocks. Mineralisation hosted in the Baledmund Formation is characterised by gold with minor zinc, copper and lead hosted in brecciated and silicified sediments and quartz veining in shear zones. The shear zones are associated with a west-dipping normal fault which down throws Baledmund Formation rocks on its western side against Girilambone Group rocks on it eastern side. The Main Lode, which was mined underground, strikes approximately north-south. The best mineralisation adjacent to the Main Lode occurs in the Baledmund Formation. The Main Lode stopes are filled with mineralised material that forms part of the Mineral Resource. 6
BDO CORPORATE FINANCE (WA) PTY LTD Polymetals Mining Limited and Southern Cross Goldfields Limited Technical Specialist's Report Within the Mt Boppy pit, the Main Lode is a quartz vein developed along a normal west-dipping fault. The Main Lode strikes approximately north-south and dips at approximately 80º west; however it shows considerable variation in strike and dip. These variations appear to be associated with gold mineralisation development in the wall rock to the lode. The best mineralisation in the wall rocks occurs within the Baledmund Formation rocks on the western side of the Main Lode where the lode has a shallower dip. At the northern end of the pit, the Main Lode is truncated at an acute angle by the West Lode fault. The fault dips to the east and displaces the Girilambone Group phyllite on its western side against the Baledmund Formation sericitic siltstone on its eastern side. The West Lode is about 1 m to 2 m wide and is largely a fault breccia clasts of phyllite, sericitic siltstone and quartz. The mineralisation at Mt Boppy is hosted by brecciated and silicified fine-grained sediments and quartz veins. The gold mineralisation contains minor zinc, copper and lead. Minor carbonate, siderite and dolomite alteration is associated with the mineralisation. 3.1.2.1 Mineral Resources Mount Boppy Mineral Resources are listed in Table 3.1. Table 3.1 Mt Boppy Mineral Resources at 30 March 2013 (Includes Mt Boppy South) Measured Resource Indicated Resource Inferred Resource Tonnes (kt) Grade (g/t) Tonnes (kt) Grade (g/t) Tonnes (kt) Grade (g/t) 39 6.4 646 4.0 82 3.9 Drilling at Mt Boppy has been carried out in a number of campaigns and consists of percussion, RC and diamond drilling in addition to blast hole drilling in the previously mined open pit. Polymetals completed the most recent drilling programme in 2011 with seven RC drillholes and 18 diamond drillholes completed. Drillhole collars were surveyed and downhole surveys completed. Drillhole collars from older drilling programmes were resurveyed. Drill cuttings and core were geologically logged and drill logs are available for older drillholes. Samples were analysed for gold by fire assay with AAS finish. The recent programme was supported by assay quality control protocols. The resource estimate is based on interpretation of four geological domains (Figure 3.3): • Historical stopes. • Low-grade mineralisation on the footwall of the Main Lode structure. • High-grade mineralisation immediately adjacent to the Main Lode structure on the hangingwall. • Low-grade mineralisation on the hangingwall to the main lode structure and the high-grade domain. 7
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ASX ANNOUNCEMENT / MEDIA RELEASE Fr
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ABN 71 124 374 321 U16,162 Colin St
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3. Access to the cash reserves of P
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Disclaimer and Important Notice •
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SXG - Well Placed • • •
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SXG and PLY - Key Merger Metrics
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Indicative Merger Timetable •
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A Diversified Portfolio of Australi
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Marda Project • Rare greenfields
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Northern Gold Corridor Targets - Dr
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WA Gold Assets - Turner River • P
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Mt Boppy - A Near-Term Production O
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ASX Code: Investor Presentation J
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Pro Forma Gold Reserve Statement Pr
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ABN 71 124 374 321 U16,162 Colin St
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- 3 - Notice of General Meeting Not
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- 5 - Proxy appointment, voting and
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- 7 - 1.2 Rationale for the Merger
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- 9 - 1.5 Implementation of the Mer
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- 11 - in terms of assets and marke
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- 13 - (a) You may not agree with t
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- 15 - (b) the Technical Specialist
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- 31 - million SXG Options which ha
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Financial Services Guide 21 June 20
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TABLE OF CONTENTS 1. Introduction 1
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2. Summary and Opinion 2.1 Purpose
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The respective advantages and disad
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elieves that there are sufficient r
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Existing SXG PLY Capital structure
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Sandstone Exploration Potential In
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5.3 Historical Balance Sheet Southe
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in tenement acquisition costs also
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The current SXG unlisted options on
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Drew Hill - White Dam Gold Project
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6.4 Historical Statement of Compreh
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At 31 March 2013, PLY have recorded
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Gold Demand/Supply Mined Metric ton
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• On 9 August 2012, Regis Resourc
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eport to be used in our report. At
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eport to be used in our report. At
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Funding assumptions SXG has receive
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AMC modelled two cases for the Mard
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Marda Project Case 2 Units 31-Dec-1
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uildings and water supply. The $38.
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Considering the valuation outcomes
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Southern Cross Goldfields Limited V
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We calculated the corporate costs o
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SXG share price and trading volume
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On 28 February 2013 SXG announced t
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Control Premium The concept of a pr
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We note that SXG’s EV/resource mu
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The Adjusted Mt Boppy Model was pre
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Update on Merger with Polymetals - Notice of Meeting

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