Update on Merger with Polymetals - Notice of Meeting

ABN 71 124 374 321
U16,162 Colin St, West Perth WA 6005
PO Box 708, West Perth WA 6872
Phone +61 8 9215 7600
Fax +61 8 9485 1283
28 June 2013
Dear Shareholder,
Proposed Merger of SXG and Polymetals Mining
Merger of equals to create a strong and diversified Australian gold company
Your vote is important to ensure that the merger proceeds
I am writing to you ahead of a number of important developments for Southern Cross Goldfields (“SXG” or “the
Company”) as we proceed to implement the proposed merger with Polymetals Mining (“Polymetals”)
announced on 8 April 2013 and create a diversified Australian gold company (“Merged Group”).
The merger is being implemented under a Scheme of Arrangement (“Scheme”) whereby SXG will offer 11
SXG shares for every 1 Polymetals share on issue. Details of the merger, which is scheduled to be completed
by August 2013, are provided in the enclosed Notice of Meeting and Explanatory Memorandum.
The Board of SXG believes that the proposed merger is compelling, providing shareholders with the
opportunity to participate in the combination of two asset-rich companies to create a merged entity with a
diversified gold production profile, a strengthened capital base and increased operational and managerial
experience and expertise. The Merged Group will have:
a combined JORC-compliant Mineral Resource inventory of 1.63Moz of gold and JORC- compliant Ore
Reserves of 254,400oz of gold;
a near-term production profile of 69,000oz per annum from SXG’s Marda Gold Project in WA and
Polymetals’ Mt Boppy Project in NSW (both 100% owned);
a significant exploration portfolio with approximately 5,000 km 2 of landholdings;
a pro-forma combined market capitalization of $26.5 million based on the share prices of both
companies immediately prior to the announcement of the merger; and
combined pro-forma cash reserves of $13.2 million as at 31 March 2013 prior to the announcement of
the merger.
At the same time, the Merged Group will be able to realize synergies arising from the consolidation of
corporate overheads and exploration activities and will have a greater market presence and ability to fund the
development of its key projects.
In the current challenging equity market environment for junior and mid-tier resource companies, SXG’s Board
believes that the Merged Group will be able to achieve critical mass in terms of assets and market recognition
that would not otherwise be achievable. It will also be well placed to achieve further growth by participating in
logical future industry consolidation.
The enclosed investor presentation highlights the key attributes of the Merged Group.