The Company's interest in the Bigrlyi Uranium Joint Venture is one of its major assets, in joint venture with two multi-billion dollar companies, CGNPC - via the Operator, Energy Metals Ltd (EME) - and Paladin Energy Ltd (PDN). The Bigrlyi project has a substantial JORC-compliant resource of uranium and vanadium. Further to reports released by the Company, the Operator EME releases periodic updates on the project - see EME's website at www.energymetals.net for more information.

After a partial takeover in 2009, China Guangdong Nuclear Power Holding Co Ltd (CGNPC) - one of two of China's largest nuclear power companies, which now operates six nuclear power plants located throughout China, with 15 more currently under construction - became the controlling shareholder (60%) of the Operator, EME.

Significantly for shareholders of Southern Cross, the EME takeover provided a meaningful valuation of the Company’s interest in the Bigrlyi Uranium Joint Venture. On a comparative basis of that and other sales, the 5% interest of Southern Cross is clearly very valuable. A Preliminary Feasibility Study (PFS) was completed during 2011 and a final Feasibility Study is in the course of preparation.

It is expected that the value of this project will continue to increase, as despite the damaging impact of the Japanese tsunami and the Fukushima disaster, demand for uranium should rise, as nuclear energy is still in great demand in Asia, France and many other parts of the world. However, if the Company were to receive a reasonable offer for its interest, it may decide to sell its investment and concentrate on its gold projects and the Tanzanian uranium project, as it is considered that grassroots exploration projects provide greater leverage that mature projects.

The Company will also continue to seek opportunities to acquire exploration and/or mining projects in Australia and overseas, which could be joint ventured with larger entities. Other investments with potential for sound returns will also remain on the agenda.