AVIRA RESOURCES LTD — Capital/Financing Update 2016

Jun 2, 2016

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MGT RESOURCES LIMITED ANNOUNCES $1M IN NEW FUNDING

MGT Resources Limited (‘MGT’) is pleased to announce that Joseph Capital (Hong Kong) Limited (‘Joseph’) has agreed to subscribe for 30,303,030 shares at an issue price of $0.033 per share via a placement, raising $1,000,000, to be completed prior to 30 June 2016.

In consideration for Joseph agreeing to subscribe for the placement shares, MGT has agreed to grant Joseph, 60,606,060 unquoted share options exercisable at $0.033 each into one ordinary share per option on or before 31 December 2016.

For the purpose of ASX Listing Rule 3.10.3, MGT provides the following information in relation to the $1,000,000 share placement :

Class of securities	Ordinary shares in MGT Resources Limited
Number of securities to be issued	30,303,030 ordinary shares
Principal terms of the securities to be issued:	The shares will rank equally with the existing ordinary shares in MGT Resources Limited.
Issue Price:	Issueprice of $0.033per share
Purpose of the issue:	The funds raised from the issue will be used for general working capital purposes and to manage MGT’s debt repayment obligations whilst MGT continues to pursue its newly announced Uranium Strategy.
Whether the Company will seek security holder approval for the proposed issue:	MGT Resources Limited has headroom capacity under Listing Rule 7.1 to issue the securities, without shareholder approval. Shareholder approval will be sought to refresh MGT’s headroom capacity, at a later date, under Listing Rule 7.4.
Whether the issue will be to a class of security holders:	Joseph Capital (Hong Kong) Limited

For the purpose of ASX Listing Rule 3.10.3, MGT provides the following information in relation to the issue of unlisted share options :

Class of securities	Unlisted Options in MGT Resources Limited
Number of securities to be issued	60,606,060 unlisted share options
Principal terms of the securities to be issued:	The unlisted share options are unquoted
Issue Price:	The exercise price of the share options is $0.033per option.
Purpose of the issue:	The share options were issued in consideration of Joseph agreeing to subscribe to theplacement shares.
Whether the Company will seek security holder approval for the proposed issue:	The unquoted share options will be issued within MGT Resources Limited’s headroom capacityunder ListingRule

ASX Release

3 June 2016

ASX CODE

MGS

REGISTRY

Computershare

SHARES ON ISSUE

342,157,040

Tin Price: US$16,282 Gold Price: US$1,212/oz

MGT Resources Limited Suite 1305, Level 13, 109 Pitt Street Sydney NSW 2000 Australia T: 61 2 9262 1122 F: 61 2 9299 5175

www.mgt.net.au info@mgt.net.au

ABN: 38 131 715 645

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7.1 and 7.1A at the time of issue. Shareholder approval will be sought to refresh MGT’s headroom capacity, at a later date, under Listing Rule 7.4. Whether the issue will be to a class of Joseph Capital (Hong Kong) Limited security holders:

An Appendix 3B will be lodged with the ASX once the funds from Joseph Capital (Hong Kong) Limited have cleared and the fully paid securities and unquoted share options have been issued.

Executive Chairman Jonathan Back commented:

"We are very pleased to welcome Joseph Capital (Hong Kong) Limited as MGT’s newest investor. The additional funding will help us pursue the strategy to invest in uranium mining assets. We are looking at a range of possible investments, and we look forward to working with our funding partners to finance acquisitions in the future, while maximising value from our existing gold and tin assets."

ASX RELEASE

www.mgt.net.au info@mgt.net.au

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