Update on Merger with Polymetals - Notice of Meeting

- 30 -
SXG as at
31/12/12
PLY as at
31/12/12
(i)
Purchase and
funding of
Sandstone by
SXG
(ii)
Sale of
White Dam
by PLY
(iii)
Transaction
costs and
other
adjustments
Notes
Merged
Group as at
31/03/13
ASSETS
$'000 $'000 $'000 $'000 $'000 $'000
Current Assets
Cash and cash equivalents 4,073 11,016 1,731 1,437 (5,300) (a) 12,957
Trade and other receivables 185 752 - (166) - 771
Inventories 668 - (650) - 18
Other financial assets - 708 - (9) - 699
Total Current Assets 4,258 13,144 - - - 14,445
Non-Current Assets
Receivables - bonds 101 - 2,719 - - 2,820
Property, plant and equipment 227 3,455 2,013 (183) - 5,512
Tenement acquisition costs 3,332 17,421 1,640 (2,840) (10,987) (b) 8,566
Capitalised mining development costs - 1,338 - (801) - 537
Other financial assets - 1,031 - (800) - 231
Total Non-Current Assets 3,660 23,245 - - - 17,666
TOTAL ASSETS 7,918 36,389 - - - 32,111
LIABILITIES
Current Liabilities
Trade and other payables 1,843 2,604 - (870) - 3,577
Current tax liabilities - 112 - - - 112
Provisions 81 1,256 1,000 (662) - 1,675
Other current liabilities - 1,063 7,000 - - 8,063
Total Current Liabilities 1,924 5,035 - - - 13,427
Non Current Liabilities
Deferred tax liabilities - 4,682 - (885) (3,797) (c ) -
Deferred tax assets (1,968) - 370 1,598 (c ) -
Provisions 16 480 - - - 496
Other non-current liabilities - 877 - - - 877
Total Non-Current Liabilities 16 4,071 - - - 1,373
TOTAL LIABILITIES 1,940 9,106 - - - 14,800
- - - -
NET ASSETS 5,978 27,283 - - - 17,311
Equity
Issued capital 30,381 8,302 - - (8,302) (d)
11,922 (e ) 42,303
Reserves 3,168 456 493 - (456) (d) 3,661
Accumulated losses (27,571) 18,525 (390) (1,965) (17,252) (d) (28,653)
TOTAL EQUITY 5,978 27,283 - - - 17,311
(e)
Notes to Pro Forma Financial Information
(i)
Purchase and funding of Sandstone Gold Project by SXG
On 14 August 2012 SXG announced that it had reached agreement to
acquire the Sandstone Gold Project from Troy Resources. On 26 March
2013 the purchase of the Sandstone Gold Project was completed after
securing a $7 million bank loan from RMB (the RMB Facility). The
acquisition included the following elements:
• a cash payment of $2.281 million to Troy Resources, assumption of
environmental liabilities valued at $1 million and the issue of 43.665