Update on Merger with Polymetals - Notice of Meeting

TABLE OF CONTENTS
1. Introduction 1
2. Summary and Opinion 2
3. Scope of the Report 5
4. Outline of the Transaction 6
5. Profile of Southern Cross Goldfields Limited 9
6. Profile of Polymetals Mining Limited 17
7. Economic analysis 23
8. Industry analysis 23
9. Valuation approach adopted 26
10. Valuation of SXG 31
11. Valuation of the Merged Entity 53
12. Is the Transaction fair 72
13. Is the Transaction reasonable 72
14. Conclusion 75
15. Sources of information 76
16. Independence 76
17. Qualifications 77
18. Disclaimers and consents 77
Appendix 1 – Glossary of Terms 79
Appendix 2 – Valuation Methodologies 82
Appendix 3 – Discount Rates 84
Appendix 4 – Technical Specialist Valuation – AMC Consultants 92