AVIRA RESOURCES LTD — Capital/Financing Update 2020

Aug 19, 2020

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20 August 2020

The Manager Market Announcements Office Level 40, Central Park 152-158 St Georges Terrace PERTH WA 6000

AVIRA TO SELL ITS PYRAMID PROJECT LOCATED IN NORTHERN QUEENSLAND

Avira Resources Limited (ASX: AVW) ( Avira or the Company ) and its controlled entity[1] , has signed a binding Term Sheet with Minotaur Exploration Limited (ASX: MEP) ( Minotaur or MEP ) for the sale of 100% of its Pyramid Project which comprises of three tenements (EPM 12887, 19554 and 25154). The Pyramid Project is located approximately 180kms south from Townsville in Northern Queensland.

Key terms of the sale included in the Binding Term Sheet are as follows.

• An option fee of $25,000 to secure a 60-day exclusivity period to conduct and complete due diligence activities in relation to the assets. The option fee is due and payable on signing of the Term Sheet.

• $150,000 (including the Option fee paid) paid in cash and $150,000 issued in MEP ordinary fully paid shares (price based on 5-day VWAP for 5 days prior to the Completion date).

• $150,000 in cash on publication of a JORC resource of at least 25,000 oz Au at a grade not less than 1.8 g/t or, if within 24 months of Completion MEP has not published a JORC Resource of at least 25,000 oz Au, MEP is required to issue the Company with ordinary fully paid share to the value of $150,000 based upon a 5-day VWAP.

• A 1.5% NSR (Au only) in relation to the first 50,000oz of AU produced from the assets.

The Pyramid Project sale is also subject to the satisfaction of conditions precedent that are customary for a transaction of this nature, including ministerial consent for the tenement transfers and releases from AVW’s security and royalty holders and approval of counterparties to various other agreements relating to the Pyramid Project Tenements.

Commenting on the announcement Avira’s Executive Director, David Deloub said;

“ The Company considered a number of expressions of interest and determined that the proposal presented by Minotaur delivered the best outcome for its shareholders. We look forward to working with Minotaur to complete the sale and purchase of the Pyramid project. This transaction reinforces AVW’s focus on its wholly owned Mount Macpherson and Throssel Range projects located in the Paterson Range in Western Australia. ”

1 MGT Mining Limited (14 120 236 142)

ENDS

For, and on behalf of, the Board of the Company, and authorised for release. David Deloub Executive Director Avira Resources Limited

Avira Resources Limited Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia T: 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au

ABN: 38 131 715 645

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Shareholders and other interested parties can speak to Mr Sonu Cheema if they have any queries in relation to this announcement: +618 6489 1600.

Forward looking statements

This announcement contains forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, or ‘intends’ and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the directors and our management. We cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this prospectus will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. We have no intention to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by law. These forward looking statements are subject to various risk factors that could cause our actual results to differ materially from the results expressed or anticipated in these statements.

About Avira Resources Limited

Avira an Australian Listed (ASX: AVW) minerals exploration company holds two tenements within the Paterson Range province located in the North West of Western Australia. This area is host to a number of substantial gold, copper and tungsten mines and deposits, including the Telfer gold-copper mine. Subsequent significant recent discoveries made by Rio Tinto (Winu project) and the Newcrest-Greatland Gold JV (Havieron project) has reinvigorated interest in the province. In addition, the company also currently holds a number of exploration tenements which are prospective for gold in Northern and South Eastern Queensland.

Avira Resources Limited Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia T: 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au ABN: 38 131 715 645