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 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. 18
BDO CORPORATE FINANCE (WA) PTY LTD Polymetals Mining Limited and Southern Cross Goldfields Limited Technical Specialist's Report Figure 3.5 Location of Turner River Projects Wingina Well Tenements covering the Turner River gold and base metals projects are the subject of a farm-out and joint venture agreement with De Grey Mining Limited. The tenements comprise: • Seven exploration licences. • One prospecting licence. The tenements (Figure 3.6) cover a combined area of 811.7 km 2 and are located in a mineralised district which includes the Indee Gold Mine, Wodgina Tantalum Project, Lynas Find Gold Project and the Panorama-Sulphur Springs Base Metal Projects. 19
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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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- 17 - (a) Identity of the person r
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- 19 - (i) Other matters The Direct
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- 21 - The purpose of Resolution 2
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- 23 - Schedule 1 - Information abo
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- 25 - Woodside Energy Ltd and Dire
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- 27 - Stephen Jones (Chief Financi
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- 29 - In accordance with ASIC Clas
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- 31 - million SXG Options which ha
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- 33 - Schedule 2 - Terms & Conditi
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- 35 - the Company out of profits o
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- 37 - Glossary In this Explanatory
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- 39 - Peak Litigation The litigati
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- 41 - Annexure A Refer enclosed In
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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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2013 2014 2015 2016 2017 2018 Gold
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AMC and management of PLY advise th
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Mt Boppy Case 2 Mt Boppy Project Ca
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Mt Boppy Case 2 Sensitivity analysi
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Polymetals Mining Limited Value of
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projects. PLY has discounted the to
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Page 156 and 157: APPENDIX 2 - VALUATION METHODOLOGIE
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Page 166 and 167: APPENDIX 4 - TECHNICAL SPECIALIST V
Page 168 and 169: AMC Consultants Pty Ltd ABN 58 008
Page 170 and 171: BDO CORPORATE FINANCE (WA) PTY LTD
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Update on Merger with Polymetals - Notice of Meeting

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