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
Marda comprises:
• A 500,000 tpa conventional CIP/CIL gold processing facility producing nominally 35,000 oz of gold
per year.
• Up to ten open pit mining operations at Marda and satellite pits.
• Infrastructure, maintenance, and administration facilities.
• Accommodation and airstrip to support a fly-in-fly-out (FIFO) operation.
Mineral Resources total 8.4 Mt at 2.0 g/t with contained metal of 546 koz of gold of which 66% is in the
Measured and Indicated category. The reported Ore Reserve for the Project is 2.3 Mt at a grade of 2.4 g/t
with 178,500 contained ounces of gold.
Additional exploration targets exist adjacent to the project and these areas are subject to current exploration
activities.
A formal feasibility study and supporting documentation exists for the Marda project. AMC visited the site in
2013 as part of a separate review of the feasibility study.
The Southern Cross tenements in the Southern Cross area comprise:
• 26 mining leases.
• 91 exploration licences.
• 92 prospecting licences.
• 1 general purpose leases.
• 11 miscellaneous licences.
• 2 retention leases.
The Southern Cross tenements cover an area of 2,920 km 2 .
4.1.2 Geology
Marda comprises two areas: Northern Deposits and Southern Deposits. The Northern Deposits include the
Marda Central deposits (Dolly Pot, Dugite, Python and Goldstream), the Die Hardy Deposits (Die Hardy and
Red Legs), King Brown and Golden Orb. The Southern Deposits comprise Battler and British Hill.
4.1.2.1 Northern Deposits
The Northern Deposits are located 150 km north of Southern Cross within the Archaean Marda-Diemals
greenstone belt. The Marda-Diemals greenstone belt comprises ultramafic and mafic rocks with overlying
felsics, narrow interflow sediments and BIF. The greenstone belt is divided into two supracrustal successions
divided by an unconformity. The upper Marda Complex comprises thick sequences of rhyolitic and andesitic
volcanic, and associated felsic sediments. The lower succession comprises three associations based on
lithological assemblages. The lower association is dominated by tholeiitic basalt with ultramafic, gabbro and
mafic tuffaceous rocks. The middle association is characterised by the Jackson Range BIF and is dominated
by moderately thick, continuous BIF and chert. The upper association comprises a variety of rock types
including tholeiitic basalt, various chemical sediments and minor clastic and volcanic felsics.
The upper association of the lower succession hosts the Marda Central deposits. The lower association of
the lower succession hosts the King Brown and Golden Orb deposits.
The greenstone belt is surrounded and intruded by granitoids. Younger west-north-west and west-south-west
trending dykes are evident throughout the belt.
The Marda Central deposits comprise a series of discrete gold deposits within a highly deformed segment of
the Marda BIF and locally intercalated with mafic and ultramafic units. The deposits are characterised by
quartz veining accompanied by pyrite, silica and sericite alteration. The structural setting is dominated by
isoclinal folds, low angle shears and late, high angle cross faults.
28