AVIRA RESOURCES LTD — Interim / Quarterly Report 2012

Jan 30, 2013

ASX Release

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Quarterly Report December 2012 Highlights

DATE: 31 - JAN - 2012 ASX Code: MGS

• Mt Garnet mining lease approved in January 2013

• Production commencing after completion of initial mining plan, schedule to ramp up production after further resource expansion

• New high grade tin discovery and high potential bulk low grade gold deposit

• Tin commodity fundamentals remain very buoyant

Registry: Computershare Issued Shares: 288,157,040

Tin Price: US$24,600/t Gold Price: US$1,660/oz

• ASX listing represents crucial corporate milestone

Corporate

Successfully transitioned to ASX which will greatly strengthen company’s growth prospects

Delisted from National Stock Exchange of Australia in anticipation of ASX listing

Oversubscribed $2.1 million placement to institutional and private investors

$2.6m cash at bank at 31 Dec 2012

Operations

Successful drilling campaign confirms potential for discovery of high grade polymetallic mineralisation at Smiths Creek Mine and identifies new high grade tin target.

Intersections include 9.8m @ 0.4% tin, 12m @ 0.8% tin and 0.75m @ 3.55g/t gold

Subsequent News

Mining Lease 20547 “Summer Hills” at Mt Garnet approved 29 January 2013, final regulatory approval satisfied, production imminent

Pyramid Drilling – discovery of potential bulk low grade gold deposit

Highlights of the latest drilling campaign include:

• 67m grading 0.59 g/t gold from 86m including 22m at 1.03 g/t gold from 130m

MGT

Resources Limited 2.05/68 York 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

• 100m grading 0.47 g/t gold from 48m

• 18m grading 1.73 g/t gold from surface including 2m grading 8.08 g/t gold from 16m

• 20m grading 1.42 g/t gold from 30m including 2m at 4.58 g/t gold from 48m

Successful ASX IPO raising a further $1.26 million and admission to the Official List of the ASX on 7 January 2013

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Managing Director’s Comments

As this is the Company’s first Quarterly Report since admission to the Official List of the ASX earlier this month, following is a brief background to MGT Resources Limited.

The Company was originally listed on the National Stock Exchange of Australia in 2008 and took its first steps toward becoming a tin producer April 2009. That year the Company acquired the majority interest in Xtreme Resources Ltd (now MGT Mining Limited), a company with significant tin production and gold exploration assets, including the company’s main project, the Mt Garnet tin project in Queensland’s Atherton Tablelands. Tin has often been overlooked within the universe of base metals, however the Board identified strong market fundamentals for tin as its use in electronics continues to grow, while many existing producers experience diminishing production.

The market dynamics today are such that tin is in critically short supply due to demand from the electronics industry and the emerging Asian economies. Tin faces a supply shortage as old mines close, grades decline, and there is limited new supply coming on-stream. As a result the tin price has surged from US$15,000/ton in January 2012 to recent levels above $24,000/t.

MGT has completed a major upgrade of tin production facilities at the Mt Veteran Mill and continued a comprehensive exploration and drilling program to build on the existing JORC compliant tin resource in the area. In September 2012, MGT completed successful pilot runs of the mill and is now entering the first stage of production targeting annual input capacity of 70,000 tpa. This will make MGT Australia’s second largest tin producer, operating in a historically prolific tin and base metals zone.

The fundamentals of the Mt Garnet project are excellent and include:

• -­‐ Production Expansion Potential - Processing capacity increasing to 250,000tpa in 2013/14 for modest expenditure (approximately $1.5-$2m)

• -­‐ Quality Existing Resource - Current JORC resource base of 600,000 tonnes at 0.47% tin which enables a mine life of more than 10 years at current mill capacity of 70ktpa

• -­‐ High Resource Growth Potential – encouraging historical pre-JORC resource estimates

• -­‐ Existing Infrastructure - Complete access to existing water, power and roadways

We are also very excited by the exposure to significant gold exploration assets, given the significant and sustained increase in the price of gold.

MGT is also pursuing a drilling program to extend the established area of mineralisation at the Pyramid Gold Project south of Townsville. Assay results to date indicate that the Pyramid Gold Project has the potential to host a significant gold resource. MGT also plans to expand its current JORC compliant gold resources across a range of other exploration sites including Nymbool, Yarrol and Mt Steadman.

MGT has assembled a board of Directors with extensive experience in exploration, mining, commodity marketing and asset valuation and investment, and has a senior technical team with a strong minerals processing background.

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ASX
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www.mgt.net.au
info@mgt.net.au
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Managing Director’s comments continued

Transferring successfully from the NSX and listing on the ASX represented a critical point in the Company’s growth. The initial softness in the company’s share price on ASX listing may be representative of the illiquid nature of our share registry over the past few years. What is encouraging is that the majority of long term shareholders have remained with the company, and Board and management thank all shareholders for their ongoing support.

The Company also took a significant step toward commencing tin production when the Queensland Department of Natural Resources and Mines approved the principal mining lease at Mt Garnet (MLA 20547). This is the final regulatory approval required for MGT to commence tin production at Mt Garnet, and the company will now begin preparation of an initial mining plan and production schedule

As a soon-to-be miner MGT offers strong exposure to a dynamic tin market, as well as significant upside exploration potential for base and precious metals including tin, gold and copper.

Yours sincerely,

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Jonathan Back Chairman and Managing Director

Corporate

An October 2012 placement to sophisticated and institutional investors raised $2.1 million.

On 15 October 2012 the Company lodged a prospectus with ASIC to raise funds for the ASX Initial Public Offering (IPO). A replacement prospectus was subsequently lodged on 29 October, with the offer raising $1.26 million.

In anticipation of a January ASX listing, the shareholders of MGT voted to delist from NSX. The delisting occurred on 14 December 2012.

Operations

Smiths Creek/Nymbool Drilling Results (EPM 16948)

Drilling results confirm potential for discovery of high grade polymetallic mineralisation at Smiths Creek Mine within Nymbool EPM16948 and identify a new high grade tin target. Intersections include 9.8m @ 0.4% Sn, 12m @ 0.8% Sn and 0.75m @ 3.55g/t Au.

On 13 December 2012 MGT announced to the NSX the results of a diamond and percussion drilling program at the historic Smiths Creek deposit and nearby targets, located 11km northwest of the town of Mt Garnet.

Drilling commenced on the 5 June 2012 and concluded on 6 July. The program involved two combination RC percussion/diamond drill holes (total depth 520.8m) and eight RC percussion

ASX
RELEASE

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Operations continued

holes (total depth 441m) (see Figure 1). The first planned diamond hole (SC04) deviated away from the target and had to be terminated at 108m. This hole was redrilled as SC05.

Smiths Creek Drilling Highlights:

• Excellent tin intersections obtained including:

• 9.5m @ 0.39% (DDH SC05) between 174 and 183.5m, including 0.75m @ 0.76%

12m @ 0.8% (PDH SC12) between 30 and 42m(includes two 1m voids – assumed to be old workings, including 2m @ 1.25%

• Encouraging gold intersections obtained including:

4m @ 0.35g/t (DDH SC05) between 175m and 179m, including 1m @ 0.6g/t

0.75m @ 3.55g/t (PDH SC05) between 210.8m and 211.55m 2m @ 0.47g/t (DDH SC06) between 163m and 165m

• Encouraging copper intersections obtained including:

3m @ 0.56% (DDH SC05) between 179 and 182m, including 1m @ 0.72%

• 8m @ 0.18% (DDH SC06) between 162and 170m, including 1m @ 0.4%

• An anomalous silver intersection obtained:

10m @ 6.6g/t between 162 and 172m in DDH SC06, including 1m @ 20.5g/t

• Drilling intersected multi-element mineralisation at Smiths Creek

• Partial testing of a significant magnetic anomaly has discovered a new zone of tin mineralisation which will be followed up with further drilling to test its extent

• Excellent scope for the discovery of high grade mineralisation which will be followed up in the next drilling program

Intersection Details:

MGT has received assay results for all samples submitted from the completed drilling program. The assay results are encouraging and warrant follow up exploration.

Subsequent News

Summer Hills Mining Lease 20547 Granted

On 29 January 2013 MGT announced that Mining Lease 20547 “Summer Hills” has been granted for a period of 21 years.

The Queensland Department of Natural Resources and Mines granted the lease over the whole 1,163.40 hectares located 190km South-West of Cairns applied for by the Company.

The Summer Hills ML surrounds the Mt Veteran Tin Processing Plant, which the company has recently fully refurbished in anticipation of the ML being granted.

ASX
RELEASE

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Subsequent News continued

Commissioning of the stage 1 Mt Veteran tin mill is complete and tin production is set to commence by the end of June 2013.

The processing plant has an initial capacity of 70,000tpa per annum, and as outlined in the company’s prospectus MGT plans on installing a new ball mill for an expected up-front cost of $1.5 million, that will increase capacity to approximately 250,000tpa in 2013/14 pending further tin resource expansion within the ML.

High Potential Bulk Low-Grade Gold Deposit: Pyramid Gold Project Drilling Results

On 8 January 2013 MGT announced encouraging gold results from an 11 hole reverse circulation percussion program totalling 1265m at the Gettysberg Prospect, part of the Pyramid Gold Project, located in the northern Drummond Basin, 200km south of Townsville.

Significant gold mineralisation over sizeable downhole widths is present in holes drilled over a 350m strike length. The program was designed to target mineralization underneath and along strike from previous drilling.

Preliminary modelling of drill sections shows that mineralisation is open at depth on some sections, and probably plunging to the north east. A plan view of the prospect, along with drill sections 2, 3 and 6 are shown in figures 1, 2, 3 and 4. Gold mineralisation appears to be associated with fine sulphide-graphite-chlorite network veining and quartz-sericite-pyrite alteration within a sandstone unit of the Devonian Ukalunda beds.

Pyramid Gold Drilling Highlights:

• 67m grading 0.59 g/t gold from 86m including 22m at 1.03 g/t gold from 130m

• 100m grading 0.47 g/t gold from 48m

• 18m grading 1.73 g/t gold from surface including 2m grading 8.08 g/t gold from 16m

• 20m grading 1.42 g/t gold from 30m including 2m at 4.58 g/t gold from 48m

In summary, encouraging higher grade gold zones are present at Gettysberg , in the order of 2m to 4m of 4g/t Au to 8 g/t Au and in the order of 20m of over 1 g/t Au.

The higher grades are contained with a broadly continuous, low grade gold envelope which is in the order of 100m of 0.5 g/t Au (all thicknesses expressed as down hole intersections).

The mineralization envelope is open to the north and, in some sections, at depth . More drilling is required to determine its extent.

There are particular untested targets locally at the Gettysberg prospect, but also regionally.

Prospects having similar geology and style of gold mineralization occur in the same structural position as Gettysberg over a strike length of at least 5km.

These prospects will now be re-valuated as they were drilled in the 1980s and 1990s by previous explorers, and have gold intercepts within them which have not been followed up.

ASX
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Competent Person’ Statement – Nymbool/Smiths Creek Project EPM 16948

Information in this report related to exploration results or mineral resources from the Nymbool/Smiths Creek EPM 16948 are based on information compiled by MGT technical staff and checked by Max Rangott of Rangott Mineral Exploration Pty Ltd, who is a member of both the AIG and the AusIMM. Mr Rangott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘ Australiasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’. Mr Rangott consents to the inclusion in the report of the statements based on the information in the form and context in which it appears.

Competent Person’s Statement – Pyramid Gold Project EPM 12887

The information about the Pyramid Gold Project exploration results is based on information compiled by Dr Simon D. Beams, a full time employee of Terra Search Pty Ltd, geological consultants employed by MGT Resources.

Dr. Beams has BSc Honours and PhD degrees in geology; he is a Member of the Australasian Institute of Mining and Metallurgy (Member #107121) and a Member of the Australian Institute of Geoscientists (Member # 2689). Dr Beams has sufficient relevant experience in respect of the style of mineralization, the type of deposit under consideration and the activity being undertaken to qualify as a Competent Person within the definition of the 2004 Edition of the AusIMM’s “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Beams consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

For more information: Media enquiries: Investor enquiries: Peter Brookes/ pbrookes@citadelpr.com.au Alexander Moody/ alex.moody@mgt.net.au Mitchell Hume/ mhume@citadelpr.com.au Company Secretary Citadel Communications T: +61 2 9262 1122 T: +61 2 9209 3033

ASX
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