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 Figure 3.6 Location of Turner River Exploration Licence 3.2.1 Geology The Turner River Gold projects are in the Archaean-Proterozoic Pilbara Craton. North-east-trending greenstones (mafic to ultramafic intrusives, intermediate to felsic volcanic, layered mafic to ultramafic intrusions and sediments (shales, banded ironstones and cherts)) wrap around granitic inliers. The greenstone succession comprises the Warrawoona Group, the Cleaverville Formation and the De Grey Group. Warrawoona Group mafic and ultramafic rocks along with minor chert bands are overlain by the Cleaverville Formation (banded iron formation (BIF), fine grained clastic rocks and felsic volcanics). The Cleaverville Formation is overlain by the De Grey Group, a widespread succession of turbiditic sediments. In the project area the De Grey Group comprises the lower Constantine Sandstone and the upper Mallina Formation. Northeasterly trending shear zones cut the greenstones. The Mallina, Mount Dove-Tabba Tabba and Mount Wohler Shear Zones cut through the project area. The deposits and prospects in the project area occur on or in positions related to these shears. 3.2.2 Turner River Gold Project Gold mineralisation at Wingina Well is located along the Tabba Tabba Shear Zone and hosted by steeply south-dipping chert units of the Cleaverville Formation. The chert is up to 50 m wide, deeply weathered to more than 150 m below surface, and variably brecciated and gossanous. The chert is bounded by a shale unit to the north and a zone of talc chlorite schist to the south. The Mt Berghaus deposit is located 10 km north-west of Wingina Well, on the Mallina Shear Zone. Gold mineralisation is hosted within turbiditic arenites and argillites which are folded into a tight isoclinal plunging fold. Gold mineralisation appears to occur on the southern limb of an isoclinal fold and is associated with quartz veining, stockwork and breccia. The Amanda deposit is located 2 km north-east and along strike of Wingina Well. Gold mineralisation is hosted within pyritic chert units. 20
BDO CORPORATE FINANCE (WA) PTY LTD Polymetals Mining Limited and Southern Cross Goldfields Limited Technical Specialist's Report 3.2.2.1 Resources Mineral Resources for the Turner River Gold Project at 13 March 2013 are listed in Table 3.6. AMC has independently reported the total tonnes and grade of each Mineral Resource estimate and found no material differences when compared to the total tonnes and grade reported at 13 March 2013. Table 3.6 Turner River Gold Project – Mineral Resources at 13 March 2013 Location Cut-off Measured Indicated Inferred Grade (g/t Au) Tonnes (kt) Grade (g/t Au) Contained Gold (oz Au) Tonnes (kt) Grade (g/t Au) Contained Gold (oz Au) Tonnes (kt) Grade (g/t Au) Contained Gold (oz Au) Wingina Well above ~55 mRL 1 0.5 2,300 1.8 130,000 700 1.1 26,000 100 1.2 5,000 1 2 3 Wingina Well below ~55 mRL 1 1.0 400 2.1 26,000 400 1.6 22,000 1,200 1.5 58,000 Mt Berghaus 2 0.5 - - - - - - 900 1.4 43,000 Amanda 3 0.5 - - - - - - 700 1.6 35,000 Total 2,700 1.8 157,000 1,100 1.3 47,000 2,900 1.5 141,000 As reported by Polymetals Mining Ltd, March 2013. 458 drillholes. Ordinary Kriging. Resource estimation by Ravensgate, February 2012.125 drillholes. Ordinary Kriging. Verified by Polymetals. Resource estimation by Ravensgate, March 2012. 248 drillholes. Ordinary Kriging. Verified by Polymetals. The resource estimates are based mostly on diamond and reverse circulation (RC) drilling. Minor air core (AC) drilling has been included in the Wingina Well resource. Drilling completed by Polymetals at Wingina Well in 2012 was carried out using common industry practice with assay quality control in place. Drillhole collars are surveyed and downhole surveys are carried out. Details of drilling data quality (sample preparation, assay quality control, drillhole collar and downhole surveying) for the Amanda and Mt Berghaus resource estimates are very limited. The interpretations for the resource estimates were developed relying on drillhole logging and based on lithological control. A nominal lower cut off grade of 0.5 g/t Au was used to interpret the Amanda and Mt Berghaus mineralisation, and a nominal lower COG of 0.3 g/t Au was used to interpret the Wingina Well mineralisation. All of the deposits have a number of mineralised domains. Assays within the domains were composited to 1 m. The influence of statistical outliers on grade estimation was limited through top cutting or by restricting the distance of influence of the outliers. Grades were estimated into the block models using OK. Estimation parameters for Wingina Well were determined from a study of variography. Details of variography and estimation parameters for Amanda and Mt Berghaus are poorly documented. Densities for Wingina Well were derived from downhole gamma and diamond core measurements and were assigned by weathering state. Densities for the Wingina Well estimate were 2.1 t/m 3 in oxide, 2.4 t/m 3 in transitional and 2.6 t/m 3 in fresh rock. Densities for Amanda and Mt Berghaus were selected on the basis of typical weathering domains within sediment hosted deposits. The method of assignment (by weathering surface or elevation) was not specified. Densities for the Amanda and Mt Berghaus estimates were 2.4 t/m 3 in oxide, 2.6 t/m 3 in transitional and 2.8 t/m 3 in fresh rock. Resource estimates were classified as Measured, Indicated or Inferred Resource based on data density and quality, drill spacing, and geological confidence in resource domain continuity. Mineral Resources are reported with Ore Reserves excluded. AMC considers that the Turner River Gold Project Mineral Resource estimates were prepared using accepted industry practice and have been classified in accordance with the JORC Code. 3.2.2.2 Mining Polymetals engaged Australian Mine Design and Development Pty Ltd (AMDAD) to undertake a pit optimisation study for the Turner River Gold project utilising the Mineral Resources at Wingina, Amanda and 21
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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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- 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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The Merged Entity - SXG Low Preferr
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Update on Merger with Polymetals - Notice of Meeting

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