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IN SPECIE DISTRIBUTION OF POLARIS METALS NL SHAREHOLDING IN SOUTHERN CROSS GOLDFIELDS LIMITED

The Directors of Polaris Metals NL (“Polaris”) and Southern Cross Goldfields Limited (“SXG”) wish to advise that Polaris will distribute 22 million fully paid ordinary shares in SXG to Polaris shareholders with effect on 23 June 2008.

SXG was listed on the ASX on 20 March 2008, completing a successful spin-off from Polaris of its gold and nickel assets. Polaris obtained 22 million vendor shares and 15 million vendor options in SXG in consideration for the assets.

Polaris also purchased 11,650,000 shares in SXG from the initial public offering. These shares were placed in voluntary escrow for 12 months (unless the Board of SXG agrees to disposal).

Polaris shareholders approved a pro-rata in specie distribution of the 22 million vendor shares in SXG to Polaris’ shareholders within six months of SXG listing.
Each Polaris shareholder will receive 1 SXG share for every 5.846 Polaris shares held on the record date of 4 March 2008. Polaris will retain the 15 million vendor options and the 11,650,000 shares purchased in the initial public offering.

Polaris has been granted a waiver from vendor restriction requirements imposed on the shares the subject of the in specie distribution (other than to related parties) which will allow the shares to trade freely.

Following completion of the in specie share distribution, it is intended that SXG will be offering shareholders with uneconomic parcels of shares the opportunity to sell their SXG shareholding without any brokerage deducted. Such shareholders will be notified in writing shortly by SXG.