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
Drilling completed by Southern Cross Goldfields Limited (Southern Cross) in 2011 was carried out using
common industry practice with assay quality control in place. Drillhole collars are surveyed and downhole
surveys are carried out.
RC sample recovery was observed to be good although diamond core recovery was poor for most of
Northern Deposits except King Brown.
Historic quality control data is incomplete. Extensive validation of historic data was completed by an
independent consultant and Ravensgate accepted the historic data as acceptable to use for the resource
estimates.
The interpretations for the resource estimates were developed relying on drillhole logging and based on
lithological control. A nominal lower COG of 0.5 g/t Au was used to interpret the 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 and by restricting
the distance of influence of the outliers. Grades were estimated into the block models using OK. Estimation
parameters for the resource estimates were determined from variography studies.
Bulk density data comprise 532 measurements collected from diamond core. Bulk density values vary
between the deposits, and were applied according to rock type and elevation.
Resource estimates were classified as Measured, Indicated or Inferred Resources based on a confidence
item value calculated from a number of parameters and then used to describe levels of interpolation
confidence. Mineral Resources are reported with Ore Reserves excluded.
The majority of Mineral Resources within a $1,475/oz optimised pit design is classified as Measured. This is
reasonable where drilling data is dense and has been validated, and where there is good continuity of
mineralisation. Where it has not been possible to validate a significant amount of historical drilling data
confidence in the resource estimate is less certain.
The Mt King Mineral Resource was estimated in 2008 by Hellman and Schofield using 23 RC holes drilled at
a nominal 100 mE by 50 mN spacing. Recoverable resources were estimated using multiple indicator kriging
from 2 m composites.
AMC considers that Marda Mineral Resource estimates have been prepared using accepted industry
practice and have been classified in accordance with the JORC Code.
4.1.4 Joint Ventures
In August 2011 Southern Cross entered into an agreement with Barranco Resources NL to acquire the Red
Legs and Die Hardy deposits. The agreement comprises a two year option at a cost to Southern Cross of
$20,000 every six months. If Southern Cross elects to exercise the option it will pay $500,000 in cash and
issue 20 million shares in Southern Cross to Barranco. The agreement covers two retention licences
covering the deposits. Upon exercise, Southern Cross will hold all mineral rights to the retention licences,
including Barranco’s existing royalty over the Mt King deposits (owned by Southern Cross).
4.1.4.1 Radio Gold Mine
In August 2011, Southern Cross reached agreement with Renaissance Minerals Limited to enter into a farmin
agreement for the historic high-grade Radio Gold Mine. The deposit was mined to only 100 m below
surface and produced 71,000 oz (57,000 t at 38.5 g/t Au).
Previous drilling art Radio Gold Mine has been restricted to an area surrounding existing workings.
Extensions to mineralisation may be identified.
Under the agreement Southern Cross will also acquire Renaissance Minerals Limited's Mt Rankin Gold
Project. The tenement package is located immediately along strike of Southern Cross’s existing tenements in
the region and within close proximity to existing gold mining and processing facilities at Marvel Loch and
Westonia..
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