Update on Merger with Polymetals - Notice of Meeting

Value of an SXG share prior to the
Transaction (control basis)
Value of a share in the Merged Entity
(minority interest basis)
$0.02 $0.03 $0.04 $0.05
The above pricing indicates that, as the value of an SXG share on a control basis prior to the Transaction
is equivalent to the value of a share in the merged entity on a minority basis, the Transaction is fair for
Shareholders.
For the information of Shareholders we have also provided a comparison on a ‘like for like’ basis on a
minority basis. We have therefore also calculated the value of an SXG share prior to the Transaction
excluding a premium for control. To do this we have deducted a minority interest discount of 20% - 26%
and the resulting value range is shown in the table and graph below:
Value of an SXG share prior to the Transaction (minority interest
basis)
Value of a share in the Merged Entity (minority interest basis)
Low Preferred High
$ $ $
0.023 0.029 0.035
0.032 0.038 0.045
Value of an SXG share prior to the Transaction
(minority interest basis)
Value of a share in the Merged Entity
(minority interest basis)
$0.02 $0.03 $0.04 $0.05
2.5 Reasonableness
We have considered the analysis in Section 13 of this report, in terms of both:
• advantages and disadvantages of the Transaction; and
• other considerations, including the position of Shareholders if the Transaction does not proceed
and the consequences of not approving the Transaction.
In our opinion, the position of Shareholders if the Transaction is approved is more advantageous than the
position if the Transaction is not approved. Accordingly, in the absence of any other relevant information,
we believe that the Transaction is reasonable for Shareholders.
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