AVIRA RESOURCES LTD — Interim / Quarterly Report 2015

Oct 28, 2014

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QUARTERLY REPORT

September 2014

September Quarterly Report Exploration Activities Report Quarter ended 30 September 2014

ASX CODE MGS

MGT Resources Limited’s (MGT, ASX:MGS) corporate objective is to become a fully-fledged tin producer.

REGISTRY

Computershare

The company’s strategy to achieve this goal is to develop short term cash flow from campaign production from existing tin projects in order to support growth.

The September 2014 quarter saw MGT continue to progress towards executing this strategy.

SHARES ON ISSUE 288,157,040

HIGHLIGHTS

Summer Hills Tin Project

Tin Price: US$19,866/t

Phase One of the 2014 Summer Hills Drilling Programme has been completed and final results reported to the market.

Better intervals from the assay results are:

• 8m @ 0.41% tin from 10m (including 1m @ 1.7% tin) (SH14)

• 7m @ 0.41% tin from 5m (including 1m @ 1.01% tin) (SH22)

• 11m @ 0.61% tin from 1m (including 2m @ 1.13% tin) (SH23)

• 7m @ 1.65% tin from 10m (including 1m @ 1.66% and 3m @ 2.96% tin) (SH25)

• 4m @ 1.76% tin from 37m (including 1m @ 3.99% tin) (SH26)

• 15m @ 0.79% from 32m (including 5m @ 1.53%) (SH03 infill samples from previously-drilled hole)

• 2m @ 1.72% tin from 27m (including 1m @ 3.05% tin), (VK15)

The geometry of mineralisation at parts of the Summer Hill and Viking prospects is uncertain. It is probable that true widths are less than the reported downhole intercepts for a number of holes.

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

Corporate

MGT has cash reserves of $1.2 million as at 30 September 2014.

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1. SUMMER HILLS TIN PROJECT, QUEENSLAND (MGT 89.48%) Includes: Summer Hills ML20547; Mt Veteran Mill ML4349; Nanyetta EPM25433

1.1 Completion of Phase One of 2014 Summer Hills Drilling Programme

MGT Resources Limited (MGT or The Company; ASX:MGS), through its 89.48% owned subsidiary MGT Mining Limited (MGTM) completed Phase One of its 2014 Summer Hills Drilling Campaign, consisting of reverse circulation percussion drilling on its Summer Hills mining lease (ML20547). Drilling was conducted at a number of prospects, including the historical prospects: Mayday, Summer Hill, Viking, Dalcouth and Veteran, as well as a new prospect, Padstow. The 2014 Phase One drilling programme comprised a total of 63 holes (2,835m) and one extension of a pre-existing hole (21m).

Interim drilling results from the first batch of assays were released to the ASX on 21[st] July 2014 and the final results were released on August 26[th ] 2014.

Figure 1 shows a plan of the areas targeted by drilling and the better results from each prospect. The results from the Summer Hill prospect are particularly promising with holes testing a number of tin zones identified from historical geological mapping and recent rock chip sampling. Overall, the results from Phase Onedrilling at the Summer Hill prospect identified both broad intersections of moderategrade mineralisation (SH09: 20m @ 0.6% tin) (see Figure 2), as well as narrower, high-grade intersections (SH25: 7m @ 1.65% tin from 10m (including 1m @ 1.66% tin and 3m @ 2.96% tin, which includes 1m @ 6.37% tin).

At the Viking prospect, hole VK15 intersected 2m @ 1.72% tin approximately 15 metres vertically beneath VK 17; 7m @ 1.88% tin).

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Figure One : Locations of drill collars from 2014 Summer Hills Phase One drilling programme and best results from each prospect.

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Figure Two : Plan showing drill traces at the Summer Hill prospect with Sn values (previous drilling and 2014 Phase One drilling). The better results from the full Phase One drilling programme are shown.

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At the Summer Hill prospect, mineralisation is open along strike to the northwest of SH26/SH19; to the southeast of SH09/SH03 and to the northwest of SH22 (see Figure 2). Mineralisation is also open down-dip from most holes drilled at Summer Hill prospect in the Phase One programme.

1.2 Completion of soil sampling programme over the Summer Hills mining lease

MGT completed an extensive soil sampling programme over the entire Summer Hills and Mt Veteran mining leases. Results were released to the market on August 6[th] .

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Figure Three: Location of tin geochemical anomalies identified from soil sampling over the Summer Hills mining lease.

In addition to elevated tin values associated with established prospects, four new tin anomalies have been identified, including anomalies that occur adjacent to (along strike of) the existing Viking prospect (see Figure 3).

An additional three new target areas have been identified that correspond with historical tin occurrences listed by the Queensland Department of Natural Resources and Mines. These are areas that have not yet been investigated by MGT. Follow-up of these geochemical anomalies has yet to be undertaken. Of particular interest is a large area of anomalous tin geochemistry in the south of ML20547 (see Figure 3) where anomalous tin values occur over and adjacent to a mapped granite body.

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1.3 Next Steps

Planning for a second phase of drilling is well underway with extensive rock sampling programmes being conducted on a number of historical and recently-identified prospects. Follow up of positive results from Phase One drilling is planned, as well as testing new target areas identified by soil sampling.

2. NYMBOOL PROJECT, QUEENSLAND (MGT 89.48%) Includes Heads or Tails ML20655; Nymbool EPM16948

No exploration work was undertaken on the Nymbool Project during the September Quarter. Work is currently underway to review results from the airborne magnetic and radiometric survey conducted earlier this year.

3. PYRAMID GOLD PROJECT, QUEENSLAND (MGT 89.48%) Includes Pyramid EPM 12887

The soil sampling programme commenced in the June quarter has now been completed. The programme aimed to cover the structure linking the Gettysberg and Marrakesh prospects, approximately 5 kilometres of strike distance. Preliminary results from in-house XRF analysis have been received and recommendation has been made for follow-up of anomalous As. Samples that returned anomalous values will be sent to Australian Laboratory Services Pty Ltd for gold assay.

The Pyramid Gold Project is a non-core project, however following encouraging drilling results from late 2012, the company plans to continue with low budget exploration expenditure in order to maintain the tenement in good standing.

4. SOUTHERN QUEENSLAND PROJECTS (MGT 89.48%) Includes Yarrol EPM 8402; Mt Steadman EPM 12834; Gooroolba EPM 15426

No exploration work was undertaken on the Southern Queensland Projects during the September quarter. The Southern Queensland Projects are prospective for gold and as such are non-core assets for MGT.

3. MGT CORPORATE

3.1 Cash

Cash at hand as at 30 September 2014 was $1.2 million.

3.2 Tin Market Summary

The predicted pattern of tin exports from Indonesia is a peak in shipments in September-October followed by a sharp contraction from November, when the new export regulation comes into force.[ 1] Tin prices have reflected the easier availability of physical tin in the Quarter to 30 September 2014 with prices ranging from low US$ 20,000/tonne to high US$ 22,000/tonne. Current availability of physical tin is good but expected stronger global demand in the second half, coupled with fresh Indonesian supply constraints, could support a year-end price rally.

ENDS

1 ‘Tin Monitor’, CRU Group, August 2014

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Investor and media enquiries:

Gary Kuo Chief of Operations/Executive Director T: +61 2 9262 1122 gary.kuo@mgt.net.au

ABOUT MGT RESOURCES

MGT is an Australian mining and exploration company listed on the Australian Securities Exchange (ASX:MGS). The board’s corporate objective is to build MGT into a fully-fledged tin mining company. The company’s strategy to achieve this is to develop short-term cash flow from its existing projects.

ABOUT THE SUMMER HILLS TIN PROJECT

MGT’s flagship Summer Hills Tin Project is located a three hour drive south west of Cairns, in far North Queensland. MGT’s primary mining lease Summer Hills ML20547 (Summer Hills ML) was granted in late January 2013 and a shipment of tin was sent the following month to a London Metals Exchange approved smelter in Asia.

ML Contains Mill And Mining And Exploration Targets

Within the Summer Hills ML sits the Mt Veteran Tin Processing Plant on its own ML4349, along with a number of tin mining and exploration targets such as Dalcouth, Extended, Summer Hill, Viking, May Day and Padstow.

Competent Persons statement

The Exploration Results presented here are extracted from the following reports; “Interim Results – Phase 1 of 2014 Summer Hills Drilling” created on the 21[st] July, 2014; “Final Results – Phase 1 of 2014 Summer Hills Drilling” created on the 26[th] August, 2014; and “Soil sampling Programme Results” created on the 6[th] August, 2014. These reports are available for view on the website of the Australian Securities Exchange (ASX: MGS). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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Appendix 1

Mining tenements held at the end of the quarter and their location:

State	Tenement Name	Tenement ID	Location	Interest	Holder	Comments
QLD	Mt Veteran	ML 4349	Mt Garnet	89.48%	MGTM	Granted
QLD	Summer Hills	ML 20547	Mt Garnet	89.48%	MGTM	Granted
QLD	Heads or Tails	ML 20655	Mt Garnet	89.48%	MGTM	Granted
QLD	Valetta	ML 20066	Mt Garnet	100%	MGS	Granted
QLD	Nymbool	EPM 16948	Mt Garnet	89.48%	MGTM	Granted
QLD	Nanyetta	EPM 25433	Mt Garnet	89.48%	MGTM	Granted
QLD	Nymbool Extended	EPMA 25347	Mt Garnet	89.48%	MGTM	Application
QLD	Nymbool West	EPMA 25690	Mt Garnet	89.48%	MGTM	Application
QLD	FuzzyHill	EPMA 25716	Mt Garnet	89.48%	MGTM	Application
QLD	Pyramid	EPM 12887	Drummond	89.48%	MGTM	Granted
			Basin
QLD	Pyramid 3	EPMA 19554	Drummond	89.48%	MGTM	Application
			Basin
QLD	MGT North	EPMA 25154	Drummond	100%	MGS	Application
			Basin
QLD	Yarrol	EPM 8402	Monto	89.48%	MGTM	Granted
QLD	Mt Steadman	EPM 12834	Gayndah	89.48%	MGTM	Granted
QLD	Gooroolba	EPM 15426	Gayndah	89.48%	MGTM	Granted

Beneficial percentage interests held in farm-in or farm-out agreements at end of the quarter:

• Not applicable this quarter

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter:

• Not applicable this quarter

Abbreviations
EPMA	Exploration Permit for Minerals Application
EPM	Exploration Permit for Minerals
MLA	MiningLease Application
ML	MiningLease
MGS	MGT Resources Limited
MGTM	MGT MiningLimited,an unlisted Australianpublic company
QLD	Queensland,Australia

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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

MGT Resources Limited and Its Controlled Entities

	ABN 38 131 715 645 Consolidated statement of cash flows	ABN 38 131 715 645 Consolidated statement of cash flows	Quarter ended (“current quarter”) 30 September 2014	Quarter ended (“current quarter”) 30 September 2014
			30 September 2014
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.71 R&D Tax Rebate 1.72 Other Net Operating Cash Flows		Current quarter 30/09/2014 $A’000		Year to date (3 months) $A’000
		(339) - - (551) - 10 (240) - 35 1		(339) - - (551) - 10 (240) - 35 1
		(1,084)		(1,084)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) exploration & evaluation (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - - - - - - - -		- - - - - - - - -
		(1,084)		(1,084)

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,084)	(1,084)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from issue of convertible notes 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(1,084) 2,318	(1,084) 2,318
	1,234	1,234

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter 30/09/2014 $A’000
		76
		N/A
1.25	Explanation necessaryfor an understandingof the transactions

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2	Details of outlays made by other entities to establish or increase their share in projects in
	which the reportingentityhas an interest

• See chapter 19 for defined terms.

Appendix 5B Page 2

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	N/A	N/A
	N/A	N/A

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	150
	450
Total	600

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows)	30/09/2014	30/06/2014
to the related items in the accounts is as follows.	$A’000	$A’000
5.1 Cash on hand and at bank	335	1,318
5.2 Deposits at call	900	1,000
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter(item 1.22)	1,234	2,318

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	N/A	N/A	N/A	N/A

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased	N/A	N/A	N/A	N/A

• See chapter 19 for defined terms.

Appendix 5B Page 4

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	288,157,040	139,931,455 Note 7	Various	Various
	Nil	Nil	N/A per Note 3 below – all fully paid	N/A per Note 3 below – all fully paid
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	1,500,000 1,500,000 3,000,000 3,000,000 See Note 6 below for more information.	Nil Nil Nil Nil	$0.0875 $0.20 $0.11 $0.11	$1 $1 $1 $1
	N/A	N/A	N/A	N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	300,000 2,250,000 1,200,000 6,800,000 1,125,000	Nil	Exercise price $0.30 $0.30 $0.20 $0.15 $0.15	Expiry date 17 October 2014 25 November 2014 25 November 2014 7 November 2016 17December 2016
	N/A	N/A	N/A	N/A
	N/A	N/A	N/A	N/A
	500,000 350,000	N/A	$0.15 $0.15	18 July 2014 18 August 2014
7.11 Debentures (totals only)	N/A	N/A
7.12 Unsecured notes(totals only)	N/A	N/A

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 29[th] October 2014 (Company secretary)

Print name: Jacqueline Butler

• See chapter 19 for defined terms.

Appendix 5B Page 6

Appendix 5B Mining exploration entity quarterly report

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

• 6 On 11 November 2011 the Company received an investment of $1,500,000 in the form of convertible note from Armstrong Industries HK Ltd. The note is unsecured, has a term of 2 years, a coupon of 8% per annum, and is convertible at 15 cents per share. This note expired on 11 November 2013 and was rolled into a new $1,500,000 convertible note with a term of 3 years, a coupon rate of 8% per annum and a conversion price of $0.0875.

On 4 May 2012 the Company received a further $1,500,000 investment from Armstrong Industries HK Ltd in the form of another convertible note. This note is also unsecured, has a term of 3 years and a coupon of 8% per annum, and is convertible at 20 cents per share.

On 16 August 2013 the Company received $3,000,000 from Marvel Network Limited in the form of a 3 year convertible note. Interest on the convertible notes is payable at the rate of 8% per annum. The convertible notes may be redeemed or converted into 27,272,728 ordinary if the share price is 11 cents per share or less at maturity.

On 16 August 2013 the Company received $3,000,000 from Cloud Adventurer Limited in the form of a 3 year convertible note. Interest on the convertible notes is payable at the rate of 8% per annum. The convertible notes may be redeemed or converted into 27,272,728 ordinary if the share price is 11 cents per share or less at maturity.

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

There have been no additional convertible notes issued during the Quarter to 30/9/2014.

• 7 There are 288,157,040 fully paid ordinary shares on issue, with 139,931,455 quoted on the ASX. The remaining 148,225,585 shares are fully paid ordinary shares that are restricted and have been escrowed for 24 months from the date of quotation.

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• See chapter 19 for defined terms.

Appendix 5B Page 8