Investor Update – August 2012

On the road to gold production at Marda Transformational acquisition positions SXG for near-term gold production

ASX Code: SXG

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Disclaimer and Important Notice

• This presentation has been prepared by Southern Cross Goldfields Limited (“SXG” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation.

• You should consider all the Company’s announcements and reports lodged with the ASX before making any investment decisions.

• This presentation contains forecasts and forward looking information. These are not a guarantee of future performance and involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. SXG has not audited nor investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, SXG makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation.

• You should not act or refrain from acting based on this presentation . This presentation does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

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Corporate Snapshot

Board of Directors

• Samantha Tough (Non-Executive Chairman)

• Glenn Jardine (Managing Director)

• Graham Brock (Non-Executive Director)

• John Rowe (Non-Executive Director)

Senior Management

• Richard Simmons (Exploration Manager)

• Stephen Jones (Chief Financial Officer)

Capital Structure (ASX Code: SXG)

Shares on Issue – 291.1M

Options on Issue – 48.95M

Cash – A$2.2M

Market Cap (undiluted) – A$20M

Corporate Shareholders

Mineral Resources Limited –14%

Western Areas –5.6%

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Our Objectives

• To develop a significant new greenfields gold

project at Marda in WA’s Southern Cross belt

• Proposed acquisition of the Sandstone Gold

Project from Troy Resources:

• more than doubles SXG’s JORC gold resource

base from 0.5Moz to 1.3Moz;

• secures a 600ktpa gold plant and 100-person

camp, to be relocated to Marda;

• delivers a substantial improvement in the

economics of the Marda Gold Project;

• provides both short- and long-term production

optionality

• To unlock the regional gold potential of the

Marda Project through focused exploration

• To progress the Copper Bore VMS Project

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SXG: A Track Record of Delivery

• Fourfold increase in gold resource base:

• 0.3Moz in 2010 to 1.3Moz in 2012

• Completion and enhancement of Feasibility Study into Marda Gold Project

• 5 regional gold transactions completed in 18 months:

• Completion of acquisition of the Marda gold project from IGL;

• Acquisition of Radar Iron’s gold and base metals rights around SXG’s Copper Bore

discovery;

• Acquisition of Renaissance Minerals’ Mt Parker gold tenements and earn-in over its

Radio Gold Mine;

• Option to acquire Barranco Resources’ Red Legs and Die Hardy deposits;

• Proposed acquisition of Troy Resources’ Sandstone Gold Project

• Discovery of Copper Bore VMS project and new regional gold targets

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Impact of Sandstone Acquisition – Compelling Investment Case

Marda Project – Financial Parameters: Initial

Production Case*

• Reduction in plant and infrastructure capital cost to

$25M (+/- $5M)

• Increase in Project NPV to $68M

• Project payback now 1 year

• Increase in IRR to ~ 80%

Proposed Troy Sandstone Gold Project Acquisition

• Cash of $5M with ~$2.5M to replace existing

environmental bonds

• 2% NSR on all non-nickel production from Sandstone

tenements

• 43.665M options exercisable at $0.10 per share with a

5 year term

*Refer ASX Announcement – 10 May 2012 for Feasibility Study details. The Feasibility Study does not include assessment or analysis of the Sandstone Gold Project as its proposed

acquisition occurred after the finalisation of the Study

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Marda Project and Sandstone Acquisition Funding

• Indicative terms received to fund $5M cash

component of Sandstone acquisition

• Significant portion of Marda Project capital

cost expected to be debt-funded

• Potential debt providers indicating that Marda

should be capable of debt-funding up to $25M

• SXG aiming to minimise the equity component

of the development funding required for the

Marda Project

• Targeting project funding outcome in calendar

year 2012

• Aiming to complete statutory approvals H1

2013 for production H2 2013

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Next Steps

• Complete funding outcome for Marda Project and

Sandstone acquisition through a competitive process

• Complete detailed engineering for refurbishment and

relocation of the Sandstone plant and camp

• Undertake competitive tender for project construction

• Instigate statutory approvals processes and continue

environmental studies including additional spring

surveys

• Continue regional gold exploration targeting and

assessment of Copper Bore VMS project

• Continue assessing regional consolidation

opportunities and working capital

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Marda Gold Project: Regional Gold Exploration

• Marda Greenstone Belt:

• Mafic/Ultramafic sequence

• Diemal’s formation sediments

• Marda complex

• Internal granites

• Banded Iron Formations (BIF)

• SXG Tenure dominates the Belt

• New targets generated in 2011

following regional review

• Presents significant upside to Marda

gold production base case

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Regional Gold Exploration: New Geochem Results

New Auger Soil Geochemistry • Identifying new drill targets • Confirming district prospectivity

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Red Boomerang – New Targets

• Porphyry-hosted gold system

• Potential to host large-scale deposit

• Drilling includes 11m @ 4.7 g/t Au

• New targets adjacent to strong

mineralisation

• Untested by previous drilling

• Best soil results to date 0.8 g/t Au

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Gwendolyn – Recent Intersections – Vector Resources

●New auger drilling results of up

to 3,000ppb (3.0 g/t) Au

returned 0.4km north of

Gwendolyn

●Previous RC drill results

including 4m @ 17.36 g/t Au

and 5m @ 6.13 g/t Au on SXG’s

ground 6km north of Gwendolyn

●SXG holds nearly all of this

prospective strike within its

Marda tenement and gold rights

package which is only 50km

north of SXG’s proposed gold

plant at Marda

Yet to be tested by SXG

New SXG auger soil geochemistry

New Vector Resources drilling results at Gwendolyn

5m @ 22.7g/t Au incl 1m @ 107.7 g/t Au

7m @ 7.4 g/t Au

2m @ 12.4 g/t Au

6m @ 4.5 g/t Au

4m @ 8.4 g/t Au

13m @ 6.8 g/t Au incl. 3m @ 26.3 g/t Au

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Marda Gold Project: Regional Exploration

2012 Exploration:

• Auger/RAB drilling along the Evanston

Shear and Copper Bore trends

• Identification of new targets

• Follow up RAB and RC drilling

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Why Marda Makes Sense: New Gold Price Regime

• Current gold price > US$1,600 per oz

• 10 years ago, the gold price was less than US$400 per oz

• This 400 per cent increase has fundamentally changed the economics and

parameters and dynamics of gold projects

• Perceptions of the gold project metrics have barely changed

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Project scale and ore trucking metrics

• Project Scale

• Trucking Comparison

Gold Price ($/oz) Annual Gold Production Gross Revenue

Old Price Regime: $500/oz 100,000oz pa $50M

New Price Regime: $1,500/oz 35,000oz pa $52.5M

Gold Price

($/oz)

Gold Price

($/gram)

Haulage Cost

($/tonne.km)

Haulage Distance

(kilometres)

Haulage Cost

($/t of ore)

Haulage Cost

(grams gold)

$500/oz 16 0.10 100 10 0.625

$1,500/oz 46 0.14 200 28.75 0.625 For

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Marda Production Growth: Key Metrics

Plant Area Plant

Sandstone Plant – relocated to Marda Marda Feasibility Study Design

Crushing and Grinding 600,000 tpa 480,000tpa

CIL, elution and gold room 90,000 ounces per annum 35,000 ounces per annum

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Annual Gold Production Rate Projected Unit Operating Cost Annual Pre-tax Cashflow

(at A$1,600/oz)

35,000oz A$880/oz A$25M

50,000oz A$775/oz A$45M

100,000oz A$600/oz A$100M

*Assumes current project average grade of ~2.5g/t Au and estimated 40% fixed operating costs

• Limited capex needed for Sandstone plant for potential future Marda production increases:

• Project is highly leveraged to production rate increases

• Projected unit operating costs and pre-tax cashflow* with increased production rate:

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Copper Bore: VMS Project

● 10km strike length of prospective host

sequence

● Multiple occurrences of copper-gold

mineralisation

● Explored historically by WMC and

others:

High grade gossans and oxide

intersections

● Minimal drilling below 50m

● SXG the first company to apply modern

EM techniques

● Encouraging results from drilling

targeting primary sulphide

mineralisation

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Southern Gossan

● Surface Outcrop – Gossan:

• Up to 23.3% Cu and 14.9 g/t Au

● Near-surface oxide mineralisation:

• Includes 8m @ 8.25% Cu and 4.29 g/t Au

● Primary mineralisation:

• Up to 13.2% Zn in WMC diamond drilling

• New VMS results in SXG drilling:

• 2.0% Cu, 2.0g/t Au, 4.6% Zn, 32.6g/t Ag

● Base metal sulphides:

• Open in all directions

• New DHEM confirmed host horizon present

to the north and south

• New DHEM identified base metals target

below existing drilling

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Southern Gossan

● Surface Outcrop – Gossan:

• Up to 23.3% Cu and 14.9 g/t Au

● Near-surface oxide mineralisation:

• Includes 8m @ 8.25% Cu and 4.29 g/t Au

● Primary mineralisation:

• Up to 13.2% Zn in WMC diamond drilling

• New VMS results in SXG drilling:

• 2.0% Cu, 2.0g/t Au, 4.6% Zn, 32.6g/t Au

● Base metal sulphides:

• Open in all directions

• New DHEM confirmed host horizon present

to the north and south

• New DHEM identified base metals target

below existing drilling

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SXG – Compelling Investment Opportunity

● Near-term gold production from greenfields project

● Corresponding near term re-rating expected with production

● Outstanding potential to expand production through exploration

success

● Strong news flow from project enhancements, exploration

success and business development activities

● Regional consolidation opportunities – SXG well placed to

unlock a new gold province

● Copper Bore VMS base metals provides additional upside

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Investor Update – August 2012

Additional Slides - Marda Gold Project Initial Production Case

ASX Code: SXG

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Marda Gold Project: Overview

• Regional Gold production and consolidation

strategy

• Aim to establish 500ktpa central processing

facility

• Initial base case 35koz pa production, excluding:

• Resource extensions at existing deposits, e.g.

Golden Orb, King Brown, etc

• Resource definition at SXG prospects

• Resource definition at high-grade Radio Mine

• Feasibility Study announced May 2012

• Medium-term potential to increase to 50koz pa For

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Marda Gold Project: Overview

• Marda Gold Project Feasibility Study Initial Production Case – utilising Sandstone Plant*

Key Parameter Feasibility Study Results

Proven and Probable Reserve – Oxide open pits 2.2Mt @ 2.4g/t Au for 185,000oz

Plant throughput and Metallurgical Recovery 480,000 tonnes per annum at 95% recovery

Average annual gold production 35,000oz pa over 5 years

Average operating cost A$880/oz

Pre-tax Operating Cashflow A$130 million (at A$1,600/oz gold price)

Pre-Production Capital $25 million (+/- $5 million) – relocating sandstone plant and

camp

NPV (8% discount rate) and IRR A$68M and 80%

• Significant Upside to Initial Gold Production Base Case • Resource definition at existing prospects, resource extensions and regional consolidation.

• Open Pits Designs (Proven and Probable Reserves) conducted at A$1,485/oz gold price.

• Outstanding Exploration Upside • Underexplored Evanston Shear zone at Marda for new gold discoveries.

*The Marda Gold Project Feasibility Study (results announced 10 May, 2012) does not include assessment or analysis of the Sandstone Gold Project as its

proposed acquisition occurred after the finalisation of the Feasibility Study

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Marda Gold Project - Layout F

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Marda Gold Project: Contributors

• Feasibility Study conducted by respected industry consultants

Activity Organisation

Resource Estimate Ravensgate Minerals Industry Consultants

Mine Designs and Schedules

Capital and Operating Cost Estimates

Equipment Selection

Reserve Estimate

Rock Team

Rock Team

Rock Team

Rock Team

Metallurgical Testwork

Metallurgical Reporting

Process Plant Design, Capital and Operating Cost Estimates

AMMTEC, Gekko

METS, Gekko

Como Engineers

Infrastructure Design and Capital and Operating Cost Estimates Rapallo

Environmental Management Rapallo

Financial Modeling Optimum Capital

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Marda Gold Project: Mining

• Oxide open pits:

• Provides production and mill feed flexibility

• Lowers project risk

• Small mining fleet:

• 1 x 120 tonne excavator (e.g. Hitachi EX1200-6B)

• 3 x 40 tonne mine trucks (e.g. Hitachi B40D)

• Only light drilling and blasting to be conducted

predominantly for:

• excavator productivity

• grade control

• Deep water table ~60 metres

• Whittle optimisations and detailed designs conducted at

A$1,475/oz

• Potential for depth extensions:

• Improved gold price

• Extensional drilling

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Marda Gold Project: Metallurgy

• Simple, conventional CIP/CIL process flow sheet.

• Metallurgical testwork conducted by AMMTEC and Gecko

yielded gravity recovery of approximately 60% and overall

recovery of 95%.

• Rapid kinetics (16 hour retention time), low reagent usage,

moderate grind size – Sandstone plant has 36 hours retention

time and elution and gold room circuit proven capacity of 90,000

ounces per year.

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Marda Gold Project: Process Flow Sheet F

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Table 1 – Combined SXG and Sandstone Project JORC Mineral Resource Estimate Measured Indicated Inferred Total

Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces

SXG 2,795,670 2.26 203,446 2,613,657 1.80 151,051 2,785,432 2.02 180,224 8,194,734 2.03 534,606

Sandstone(i) 1,932,000 2.32 145,200 12,586,000 1.42 574,400 14,518,000 1.54 719,600

Total 2,795,670 2.26 203,446 4,545,657 2.03 296,251 15,371,432 1.53 754,624 22,712,734 1.72 1,254,206

(i) Sandstone resources are taken from the Troy Resources Limited, 2011 Annual Report

Table 2 – SXG JORC Mineral Resource Estimate

Deposit

Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces

NORTHERN DEPOSITS

Marda Central 1,918,197 1.91 117,885 161,609 1.61 8,371 326,748 1.71 17,953 2,406,554 1.86 144,209

King Brown 100,300 4.36 14,060 63,300 2.59 5,274 73,925 2.95 7,012 237,500 3.45 26,300

Golden Orb 415,829 3.01 40,246 102,890 1.97 6,517 175,600 1.79 10,107 694,319 2.54 56,700

Mt King 523,000 3.00 50,450 523,000 3.00 50,450

Sub Total 2,434,326 2.20 172,191 327,799 1.91 20,162 1,099,273 2.42 85,522 3,861,373 2.24 277,659

Barranco Option 1,302,243 1.70 71,900 949,576 1.64 50,300 2,251,819 1.68 122,300

Sub Total 2,434,326 2.20 172,191 1,630,042 1.74 92,062 2,048,849 2.06 135,822 6,113,192 2.03 399,959

SOUTHERN DEPOSITS

Battler 361,344 2.69 31,255 39,300 3.46 4,372 52,087 3.53 5,912 452,731 2.85 41,539

British Hill 944,315 1.80 54,617 684,496 1.74 38,490 1,628,811 1.80 93,108

Sub Total 361,344 2.69 31,255 983,615 1.90 58,989 736,583 1.90 44,402 2,081,542 2.03 134,647

Total 2,795,670 2.26 203,446 2,613,657 1.80 151,051 2,785,432 2.02 180,224 8,194,734 2.03 534,606

Measured Indicated Inferred Total

Marda Gold Project: Resource Estimates F

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Notes to Accompany Mineral Resource Estimate table:

Numbers may not add due to rounding.

The resource model for King Brown, Golden Orb, Battler, Marda Central (Python, Dolly Pot, Dugite, Goldstream, Cobra, Taipan and Greentree), were constructed using Minesight software. The resource estimates for these deposits utilized a block model with block dimensions typically of 5m by 2m by 2.5m blocks (X, Y, Z).

The Barranco Deposits containing sub-areas designated as Die Hardy and Red Legs were also constructed using Minesight software. The resource estimates for these deposits utilized a block model with block dimensions typically of 1m by 5m by 2.5m blocks (X, Y, Z).

Block interpolation of the Northern and Southern deposits was estimated using Ordinary Kriging within mineralization wire-frames based upon a ~0.50g Au/t lower delineation cut-off.

The Marda Central project area is comprised of the Python, Dolly Pot, Dugite, Goldstream Cobra, Taipan, and Greentree deposits.

Resource classification has been considered with respect to various reporting ‘modifying factors’ as outlined in the JORC Code (Dec 2004). Consideration has been given to data quality, drilling and sample density, distances of interpolated blocks from assays points and the associated statistical local spatial distribution of gold and estimation variances.

Resource assaying data sets derived from all available reverse circulation and diamond drill sampling.

Geology ‘rock mass’ models and interpreted fault or shear zones have been used to constrain mineralisation as appropriate.

Weathering domains have been used to constrain mineralisation and help assign representative bulk density estimates.

Bulk densities are based on testwork carried out by SXG and previous companies and has been adjusted where necessary according to underlying weathering and / or oxidation state.

Data density varies and is reflected in the resource category which have been applied. All measured resources have a drill-hole density of approximately 12.5m x 12.5m. All indicated resources except Battler have a drill-hole density of approximately 25m x 25m. Battler has a drill density of 20m x 12.5m. Inferred resources have variable density but always less than 50m x 50m except for Mt King which has variable drill-hole spacing between 25m and 100m and the Barranco Option resources which have an approximate drill hole spacing of 100m x 20m and were assigned an Inferred Resource status.

Assays are generally fire assay, with limited aqua regia assays in the weathered zone.

All drill-hole collars are surveyed by GPS. Down hole survey data is limited for historic drilling, except at British Hill, where most drill-holes are surveyed. All SXG’s drilling has adequate down hole survey information.

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15 August 2012 www.scross.com.au ASX Code: SXG JORC Code Compliance Statement

The geological information in the report to which this statement is attached that relates to Exploration Results, Mineral Resources or Ore

Reserves is based on information compiled by Richard Simmons who is a Member of The Australasian Institute of Mining and Metallurgy.

Richard Simmons is a full time employee of Southern Cross Goldfields Limited. Richard Simmons has sufficient experience that is relevant

to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent

Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

Richard Simmons consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The resource estimation of the King Brown deposit is based on work completed by independent consultant Mr Don Maclean of Ravensgate

Minerals Industry Consultants based on resource drilling data sets provided by SXG. Mr Maclean is a Member of The Australasian Institute of

Mining and Metallurgy and qualifies as a Competent Person in respect of the 2004 JORC code and has sufficient experience relevant to the

style of mineralisation and deposit type being estimated. Mr Maclean has consented to the inclusion of this information in the form and

context in which it appears in this report.

Resource estimations for the Battler deposit in the Southern deposit area is based on work completed by independent consultant Mr Stephen

Hyland of Ravensgate Minerals Industry Consultants which is based on resource drilling data sets provided by SXG. Mr Hyland is a Fellow of

The Australasian Institute of Mining and Metallurgy and qualifies as a Competent Person in respect of the 2004 JORC code and has

sufficient experience relevant to the style of mineralisation and deposit type being estimated. Mr Hyland has consented to the inclusion of

this information in the form and context in which it appears in this report.

The updated resource estimations for the Northern deposits, including the Python, Dolly Pot, Dugite, Goldstream, Cobra, Taipan,Green

Tree, Golden Orb, Die Hardy and Red Legs deposits were also carried out by Mr Stephen Hyland again utilizing resource drilling data sets

provided by SXG. Mr Hyland is a Principal Consultant with Ravensgate Minerals Industry and is also a Fellow of The Australasian Institute of

Mining and Metallurgy. Mr Hyland has sufficient experience which is relevant to the style of mineralisation and type of deposits under

consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for

Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Hyland also consents to the inclusion in the report of the

resource estimation matters for these deposits based on the reporting information in the form and context in which it appears.

Disclaimer

This document has been prepared by Southern Cross Goldfields Limited (SXG). The information and opinions contained in this document

are derived from public and private sources which we believe to be reliable and accurate but which, without further investigation, cannot be

warranted as to their accuracy, completeness or correctness. This information is supplied on the condition that SXG, and any director,

agent or employee of SXG, are not liable for any error or inaccuracy contained herein, whether negligently caused or otherwise, or for loss

or damage suffered by any person due to such error, omission or inaccuracy as a result of such supply.

Forward-Looking Statements

This document contains forward looking statements concerning the projects owned by SXG. Statements concerning mining reserves and

resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-

looking statements are not statements of historical fact and actual events and results may differ materially from those described in the

forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on SXG’s

beliefs, opinions and estimates as of the dates the forward looking statements are made, and no obligation is assumed to update forward

looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Exploration potential is

conceptual in nature and where there has been insufficient exploration to define a Mineral Resource it is uncertain if further exploration will

result in the determination of a Mineral Resource. Readers are cautioned not to place undue reliance on forward-looking statements and

SXG assumes no obligation to update such information.

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