Update on Merger with Polymetals - Notice of Meeting

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The current SXG unlisted options on issue are outlined below: Option Holder Number of options Exercise price Cash raised if Vesting Conditions Issue Date Expiry Date Escrowed Until exercised Samantha Jane Tough 1,000,000 $0.250 $250,000 No 12/03/2008 12/03/2014 20/03/2010 Samantha Jane Tough 1,000,000 $0.300 $300,000 No 12/03/2008 12/03/2014 20/03/2010 AJ Truelove & BL Bailey ATF Tr 2,000,000 $0.250 $500,000 No 12/03/2008 12/03/2014 20/03/2010 AJ Truelove & BL Bailey ATF Tr 2,000,000 $0.300 $600,000 No 12/03/2008 12/03/2014 20/03/2010 Hazurn Pty Ltd ATF Buchhorn S 1,000,000 $0.250 $250,000 No 12/03/2008 12/03/2014 20/03/2010 Hazurn Pty Ltd ATF Buchhorn S 1,000,000 $0.300 $300,000 No 12/03/2008 12/03/2014 20/03/2010 Goldmark Investments Pty Ltd 1,000,000 $0.250 $250,000 No 12/03/2008 12/03/2014 20/03/2010 Goldmark Investments Pty Ltd 1,000,000 $0.300 $300,000 No 12/03/2008 12/03/2014 20/03/2010 RJ Simmons 500,000 $0.250 $125,000 No 12/03/2008 12/03/2014 N/A RJ Simmons 500,000 $0.300 $150,000 No 12/03/2008 12/03/2014 N/A Kalgara Pty Ltd AFT Rosedale S 250,000 $0.250 $62,500 No 12/03/2008 12/03/2014 N/A Kalgara Pty Ltd AFT Rosedale S 250,000 $0.300 $75,000 No 12/03/2008 12/03/2014 N/A DH Calvert 250,000 $0.250 $62,500 No 12/03/2008 12/03/2014 N/A DH Calvert 250,000 $0.300 $75,000 No 12/03/2008 12/03/2014 N/A Graham Brock 250,000 $0.250 $62,500 No 20/09/2009 12/03/2014 N/A John Rowe 250,000 $0.250 $62,500 No 18/11/2010 12/03/2014 N/A Graham Brock 250,000 $0.300 $75,000 No 20/112009 12/03/2014 N/A John Rowe 250,000 $0.300 $75,000 No 18/11/2010 12/03/2014 N/A Ken Quirk 25,000 $0.250 $6,250 No 2/07/2008 2/07/2014 N/A Ken Quirk 25,000 $0.300 $7,500 No 2/07/2008 2/07/2014 N/A M airi Walsh 100,000 $0.250 $25,000 No 21/07/2009 21/07/2014 N/A M airi Walsh 100,000 $0.300 $30,000 No 21/07/2009 21/07/2014 N/A Andrea Jones 1,000,000 $0.100 $100,000 No 1/08/2011 31/07/2014 N/A Andrea Jones 500,000 $0.200 $100,000 No 1/08/2011 31/07/2014 N/A Andrea Jones 500,000 $0.250 $125,000 No 1/08/2011 31/07/2014 N/A RJ Simmons 500,000 $0.100 $50,000 No 1/08/2011 31/07/2014 N/A CC Joyce 500,000 $0.100 $50,000 No 1/08/2011 31/07/2014 N/A M Walsh 200,000 $0.100 $20,000 No 1/08/2011 31/07/2014 N/A Glenn Jardine 2,000,000 $0.200 $400,000 No 18/11/2010 1/10/2014 N/A Glenn Jardine 1,000,000 $0.250 $250,000 No 18/11/2010 1/10/2014 N/A Glenn Jardine 1,000,000 $0.300 $300,000 No 18/11/2010 1/10/2014 N/A Glenn Jardine 1,000,000 $0.400 $400,000 No 18/11/2010 1/10/2014 N/A Glenn Jardine 1,500,000 $0.100 $150,000 No 20/12/2012 23/11/2017 N/A Samantha Jane Tough 1,500,000 $0.100 $150,000 No 20/12/2012 23/11/2017 N/A Lynda Joan Brock 1,000,000 $0.100 $100,000 No 20/12/2012 23/11/2017 N/A John Rowe 1,000,000 $0.100 $100,000 No 20/12/2012 23/11/2017 N/A Renaissance 10,000,000 $0.100 $1,000,000 No 25/02/2012 24/02/2015 N/A Troy 43,665,000 $0.100 $4,366,500 Yes 10/10/2012 10/10/2017 N/A PCF 2,500,000 $0.100 $250,000 Yes 10/10/2012 10/10/2015 N/A RM B 34,255,319 $0.047 $1,610,000 No 22/03/2013 21/03/2015 N/A Total 116,870,319 $13,165,250 Source: SXG Management We have been advised that there will be no changes to the terms or conditions of the current options on issue following the implementation of the Scheme. 16
6. Profile of Polymetals Mining Limited 6.1 History Polymetals Mining Limited is a base and precious metals producer and explorer who listed on the ASX in May 2011 after the completion of a $7 million IPO (7 million shares at $1 per share). PLY has a number of projects focusing on various commodities including gold, zinc, copper, uranium, silver, lead, platinum and iron ore however its flagship project is the Mt Boppy Gold Mine. The current Board of Directors comprise of PLY is: • David Sproule – Non-Executive Chairman • Frank Terranova – Managing Director • Jon Parker – Non-Executive Director • David Carland – Non-Executive Director 6.2 Projects Canbelego - Mt Boppy Gold Mine Mt Boppy is a long standing gold mine located 46km east of Cobar in NSW. PLY holds approximately 204km 2 of tenements in the Lachlan Ford Belt, a region which has produced in excess of 5 million ounces of gold. The Mt Boppy mine operated from 1901 to 1923 and produced approximately 417,000 ounces of gold with a grade of 15 g/t. After sporadic production of 7,000 ounces of gold in the years to 2002, PLY made the decision to reopen the mine. In the four years to 2005 the mine produced some 68,000 ounces at a grade of 5.29 g/t. PLY undertook a definitive feasibility study in 2012 and in January 2013 announced the results of the study which indicated a $27 million net present value (before tax) and 100% internal rate of return on the project (the study assumed a gold price for the study of A$1,600). Unit costs of production were anticipated to be $1,091 per ounce. The expected capital costs for the project were approximately $26.6 million with approximately 64,630 ounces of gold to be recovered. The mined ore will be processed at the existing Mt Boppy plant which will be upgraded to treat 300,000 tonnes of ore per annum. In January 2013, PLY also secured a mining license and environmental protection license over the Mt Boppy mine. PLY is currently undertaking the process of securing financing for the project with a number of proposals having already been received. Resource and reserve estimates at Mt Boppy and Boppy South are shown in the table below: Measured & indicated Inferred Total Grade (Au Ounces (Au Grade (Au Ounces (Au Grade (Au Ounces (Au Deposit Tonnes (Kt) g/t) koz) Tonnes (Kt) g/t) koz) Tonnes (Kt) g/t) koz) PLY - Mt Boppy & Boppy South 684 4.2 92 82 3.9 10 766 4.1 102 Exploration around the Mt Boppy region continues with PLY commencing a diamond drilling campaign in the March 2013 quarter at a cost of approximately $0.3 million. 17
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ASX ANNOUNCEMENT / MEDIA RELEASE Fr
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ABN 71 124 374 321 U16,162 Colin St
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3. Access to the cash reserves of P
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Disclaimer and Important Notice •
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SXG - Well Placed • • •
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SXG and PLY - Key Merger Metrics
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Indicative Merger Timetable •
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A Diversified Portfolio of Australi
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Marda Project • Rare greenfields
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Northern Gold Corridor Targets - Dr
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WA Gold Assets - Turner River • P
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Mt Boppy - A Near-Term Production O
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ASX Code: Investor Presentation J
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Pro Forma Gold Reserve Statement Pr
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ABN 71 124 374 321 U16,162 Colin St
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- 3 - Notice of General Meeting Not
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- 5 - Proxy appointment, voting and
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- 7 - 1.2 Rationale for the Merger
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- 9 - 1.5 Implementation of the Mer
Page 40 and 41: - 11 - in terms of assets and marke
Page 42 and 43: - 13 - (a) You may not agree with t
Page 44 and 45: - 15 - (b) the Technical Specialist
Page 46 and 47: - 17 - (a) Identity of the person r
Page 48 and 49: - 19 - (i) Other matters The Direct
Page 50 and 51: - 21 - The purpose of Resolution 2
Page 52 and 53: - 23 - Schedule 1 - Information abo
Page 54 and 55: - 25 - Woodside Energy Ltd and Dire
Page 56 and 57: - 27 - Stephen Jones (Chief Financi
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Page 68 and 69: - 39 - Peak Litigation The litigati
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Page 72 and 73: Financial Services Guide 21 June 20
Page 74 and 75: TABLE OF CONTENTS 1. Introduction 1
Page 76 and 77: 2. Summary and Opinion 2.1 Purpose
Page 78 and 79: The respective advantages and disad
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Page 82 and 83: Existing SXG PLY Capital structure
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Page 86 and 87: 5.3 Historical Balance Sheet Southe
Page 88 and 89: in tenement acquisition costs also
Page 92 and 93: Drew Hill - White Dam Gold Project
Page 94 and 95: 6.4 Historical Statement of Compreh
Page 96 and 97: At 31 March 2013, PLY have recorded
Page 98 and 99: Gold Demand/Supply Mined Metric ton
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Page 102 and 103: eport to be used in our report. At
Page 104 and 105: eport to be used in our report. At
Page 106 and 107: Funding assumptions SXG has receive
Page 108 and 109: AMC modelled two cases for the Mard
Page 110 and 111: Marda Project Case 2 Units 31-Dec-1
Page 112 and 113: uildings and water supply. The $38.
Page 114 and 115: Considering the valuation outcomes
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Page 118 and 119: We calculated the corporate costs o
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Page 122 and 123: On 28 February 2013 SXG announced t
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Page 126 and 127: We note that SXG’s EV/resource mu
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Page 136 and 137: Mt Boppy Case 2 Sensitivity analysi
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projects. PLY has discounted the to
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The Merged Entity - SXG Low Preferr
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Note f: Minority discount Following
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12. Is the Transaction fair In asse
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As set out in section 12, the Trans
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15. Sources of information This rep
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esponsible for conducting appropria
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Meadowhead Meadowhead Indemnity The
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APPENDIX 2 - VALUATION METHODOLOGIE
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APPENDIX 3 - DISCOUNT RATES SXG We
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Having regard to the above we consi
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Merged Entity Determining the corre
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associated (relative to the compara
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APPENDIX 4 - TECHNICAL SPECIALIST V
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AMC Consultants Pty Ltd ABN 58 008
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BDO CORPORATE FINANCE (WA) PTY LTD
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Update on Merger with Polymetals - Notice of Meeting

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