Update on Merger with Polymetals - Notice of Meeting

BDO CORPORATE FINANCE (WA) PTY LTD
Polymetals Mining Limited and Southern Cross Goldfields Limited
Technical Specialist's Report
Exploration Valuation
The exploration licence (EL 5842) adjacent to the Mt Boppy mining leases was acquired in 2008 for $0.5M.
Exploration on the Tenement
Recent drilling at most prospects generally failed to identify significant mineralisation to encourage resource
delineation drilling. Results from other drilling are not yet available.
AMC considers that a unit area value of $1,000/km 2 can be assigned to this tenement indicating a value of
$0.2M.
3.1.9 Opportunities and Risks
AMC considers that additional opportunities that might be available for Mt Boppy include:
• AMC has not considered underground mining of additional resources in its evaluation as no work has
been undertaken in this regard. However, Mineral Resources at Mt Boppy may have a grade that
would support underground mining.
• Overall plant recovery greater than the estimated 80% is achieved.
AMC considers that the following risks apply to Mt Boppy:
• There is a risk that due to geotechnical issues the pit walls may need to be designed at a flatter angle
in the south-east corner of the pit, thus increasing the waste mining requirement.
• The current estimate for mine dewatering volumes is a broad range with upper estimates likely to add
to the operating cost of the project.
• Throughput is not achieved in the upgraded treatment plant.
• The grade and tonnage of the stope backfill material is lower than estimated in the Mineral Resource.
• The existing underground voids cause instability in the open pit final walls.
• Inferred Mineral Resource used to support the feasibility study may be lower in tonnes and grade than
is currently modelled.
3.2 Turner River
The Turner River projects are located approximately 60 km south of Port Hedland in the Pilbara Region of
Western Australia (Figure 3.5).
The gold project is located in the western tenements and includes the Wingina Well deposit. The base
metals project is located in the eastern tenements and covers a 20 km long greenstone belt hosting
polymetallic mineralisation.
AMC personnel visited Turner River during 2012.
The development and evaluation work conducted by Polymetals on the Turner River gold project are
preliminary in nature.
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