AVIRA RESOURCES LTD — Interim / Quarterly Report 2014

Apr 29, 2014

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QUARTERLY REPORT

March 2014

MARCH QUARTERLY REPORT

ASX CODE

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

MGS

Its strategy to achieve this is to develop short term cash flow from campaign production from existing tin projects in order to support growth.

REGISTRY

Computershare

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

SHARES ON ISSUE

HIGHLIGHTS

288,157,040

Summer Hills Tin Project

Final results received from the successful 2013 Summer Hills Drilling Program including:

Tin Price: US$23,590/t

• ! Highest grade intersection yet at the Dalcouth prospect

• ! Extensions to the previously defined mineralisation

• ! Encouraging mineralisation intersected in a new area 200 metres to the northeast of the main mineralisation.

• ! A hit in a hole 165m northwest of the main mineralised zone of 1 metre at 6.73% Sn , which is the tin equivalent of approximately 20% copper.

An application for a Site-Specific Environmental Authority over the entire Summer Hills Mining Lease is being submitted to the Department of Environment Heritage Protection.

Campaign Production – Heads or Tails

MGT

Resources Limited 2.05/68 York Street Sydney NSW 2000 Australia

MGT is currently undertaking an internal feasibility study on a small processing campaign on its ‘Heads or Tails’ mining lease ML 20655.

T: 61 2 9262 1122 F: 61 2 9299 5175

Corporate

MGT remains well funded with cash reserves of $3.4 million as at 31 March 2014.

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

ABN: 38 131 715 645

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

1.1 Summer Hills Tin Project Exploration

Final Results from the 2013 Summer Hills Drilling Program

During the March Quarter MGT Resources Limited (‘MGT’ or ‘Company’, ASX:MGS) received and announced the results from the final phase of the 2013 Summer Hills Drilling Progam. This program was completed over the primary mining lease at the Company’s Summer Hills Tin Project, which is located in far north Queensland. In 2013 drilling was predominantly conducted on the Dalcouth prospect. The 2014 program extends the focus to incorporate a number of MGT’s other prospects within the mining lease.

Phase four of the program was the most ambitious phase of drilling at the Dalcouth prospect to date, with the majority of drilling designed to test for extensions to previously defined mineralisation.

Drilling Objectives

• ! To test for extensions to existing mineralisation, along strike to the northwest

• ! To test for extensions to the Eastern Zone of mineralisation and determine geometry

• ! To test for extensions to the existing mineralisation at depth; in particular by deepening preexisting RC holes with positive results

• ! To provide information on the geometry of mineralisation in critical areas

• ! To test two areas of alteration and veining that are located approximately 50m and 200m north-east of the main mineralised zone

Results from Phase Three indicated three main zones of mineralisation at Dalcouth, herein referred to as the Western, Central and Eastern Zones (for further details please see Phase Three ASX announcement). In the Phase Four drilling program, MGT sought to further define these zones and determine the relationship between them.

Intervals of high-grade tin include:

5m @ 0.85% Sn from 43m (including 2m @ 1.8% Sn) (DAL155 extension)

8m @ 0.55% Sn from 48m (including 1m @ 1.1% Sn) (DAL157 extension)

6m @ 0.47% Sn from 44m (including 1m @ 1.48% Sn) (DAL164) 7m @ 0.53% Sn from 12m (including 1m @ 1.0% Sn) (DAL167) 3m @ 2.4% Sn from 7m (including 1m @ 6.18% Sn) (DAL177) 5m @ 0.72% Sn from 26m (including 1m @ 2.15% Sn) (DAL185) 6m @ 0.55% Sn from 10m (including 1m @ 1.27% Sn) (DAL187) 12m @ 0.64% Sn from 69m (including 1m @ 3.13% Sn) (DAL198) 5m @ 2.59% Sn from 34m (including 1m @ 6.73% and 3m @ 1.91% Sn) (DAL205)

11m @ 0.32% Sn from 2m (DAL213)

ASX RELEASE

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Figure 1: Plan showing collar locations for all holes drilled at Dalcouth. The plan shows an approximate outline of the mineralised zones projected to surface. Areas surrounded by red dashed lines show zones that warrant further testing.

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Figure 2: Plan showing drill traces for all holes drilled at Dalcouth and location of the better intersections from Phase Four drilling.

For a complete report on Phase Four of the drilling program please refer to www.mgt.net.au.

ASX RELEASE

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3

1.2 Aeromagnetic Survey

An aeromagnetic and radiometric survey was completed across the Summer Hills Mining Lease and part of the Nymbool EPM. The results are pending.

1.3 Environmental Authority

Recently, MGT’s environmental requirements have changed due to changes at the Queensland Government Department of Environment Heritage Protection (DEHP). The previously applied for ‘Level 1 Environmental Authority (EA)’ has been superseded by a ‘site specific Environmental Authority’. Therefore MGT is applying for a site specific EA over the entire Summer Hills tenement. Once granted, this will give MGT a baseline of environmental data over the entire Summer Hills Mining Lease.

During the past quarter, the Company undertook the following activities related to the site specific EA:

• ! A macro invertebrate study was completed and results were favourable to the Company;

• ! An expansion of the existing tailings storage facility was put to tender;

• ! Water monitoring point sediments were collected and sent for analysis; and

• ! A noise and dust study was planned in accordance with DEHP regulations.

1.4 Next steps

The 2014 Summer Hills Drilling Campaign is in the process of being planned and is due to begin during the June quarter. Prospects targeted include both those that were established historically as well as new targets recently defined.

The campaign will focus on the following prospects:

• ! Summer Hill;

• ! Viking

• ! Mayday; (each historic targets); and

• ! Padstow (a new target recently defined).

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

2.1 Heads or Tails Processing

Heads or Tails is a small mining lease that sits over the tailings from the historic Smiths Creek tin mine. MGT intends to process these tailings at the Mt Veteran Tin Processing Plant as part of its campaign production strategy, assuming that the campaign passes an internal feasibility study.

In the March quarter, the Company’s subsidiary, MGT Mining Limited (‘MGTM’) was granted permission to process the material under its current EA.

During the past quarter, the Company undertook the following activities related to the proposed campaign:

• ! Metallurgical testing of the tails for recovery, including use of the company’s Falcon Concentrator (Falcon);

• ! Assessment of the road to the tenement for grading to allow truck access;

ASX RELEASE

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4

• ! Reconfiguring of the tailings storage facility to allow extra tailings storage prior to processing;

• ! Samples sent to the lab for impurity testing, including copper, iron and tungsten; and

• ! Confirmation that the smelter in Asia will accept the concentrate fraction size.

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Figure 3: ML 20655 Heads or Tails contains tailings from the historic Smiths Creek tin mine and is around 26km trucking distance from the Mt Veteran Tin Processing Plan through the Mt Garnet township.

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Figure 4: The Falcon Concentrator allows MGT higher recovery rates from its tin processing.

2.2 Next Steps

The wet weather from the recent cyclone Ita has temporarily delayed access into the Heads or Tails site. Once the access route is sufficiently dry, a 50 tonne bulk sample will be taken to run through the Falcon for further testing. Once these tests have been completed, a decision will be made on whether to process the material.

3. MGT CORPORATE

3.1 Cash

Cash at hand as at 31 March 2014 was $3.4 million.

3.2 Tin Market Summary

Volatile trading volumes on Indonesian exchange not satisfying global demand

Trading on the ICDX has been volatile and according to CRU Group is insufficient to balance global supply with demand. Meanwhile, stocks from China and excess stock from producers are filling any gaps in supply.[1] As a result the tin price remained steady above US$23,000 per tonne.

ENDS

1 Kettle, Peter (ed), ‘Tin Monitor’, CRU Group, April 2014

ASX RELEASE

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5

Investor and media enquiries:

Alexander Moody Company Secretary T: +61 2 9262 1122 alex.moody@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

Information in this report related to exploration results or mineral resources 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 ‘ Australasian 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.

ASX RELEASE

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

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 Quarterended(“currentquarter”) 38131715645 31March2014 Consolidatedstatementofcashflows	ABN Quarterended(“currentquarter”) 38131715645 31March2014 Consolidatedstatementofcashflows	ABN Quarterended(“currentquarter”) 38131715645 31March2014 Consolidatedstatementofcashflows	ABN Quarterended(“currentquarter”) 38131715645 31March2014 Consolidatedstatementofcashflows
			31March2014
Cashflowsrelatedtooperatingactivities 1.1 Receiptsfromproductsalesandrelated debtors 1.2 Paymentsfor (a)exploration&evaluation (b)development (c)production (d)administration 1.3 Dividendsreceived 1.4 Interestandotheritemsofasimilarnature received 1.5 Interestandothercostsoffinancepaid 1.6 Incometaxespaid 1.7 Other(providedetailsifmaterial) NetOperatingCashFlows		Currentquarter 31/03/2014 $A		Yeartodate (9months) $A
		(441,316) ] 62,204 (240,000) ] 3,337		(1,521,270) ] 91,617 (360,000) ] 10,827
		(615,775)		(1,778,826)
Cashflowsrelatedtoinvestingactivities 1.8 Paymentforpurchasesof:(a)prospects (b)exploration&evaluation (c)otherfixedassets 1.9 Proceedsfromsaleof: (a)prospects (b)equityinvestments (c)otherfixedassets 1.10 Loanstootherentities 1.11 Loansrepaidbyotherentities 1.12 Other(providedetailsifmaterial) Netinvestingcashflows 1.13 Totaloperatingandinvestingcashflows (carriedforward)		(400,709) (4,679) ] ] ] ]		(1,755,305) (117,772) ] ] ] ]
		(405,388)		(1,873,077)
		(1,021,163)		(3,651,903)

+!See!chapter!19!for!defined!terms.!

13/1/2014! Appendix!5B!!Page!1!

Appendix(5B( Mining(exploration(entity(quarterly(report(

Appendix5B Miningexplorationentityquarterlyreport
1.13 Totaloperatingandinvestingcashflows (broughtforward)	(1,021,163)	(3,651,903)
Cashflowsrelatedtofinancingactivities 1.14 Proceedsfromissuesofshares,options,etc. 1.15 Proceedsfromsaleofforfeitedshares 1.16 Proceedsfromissueofconvertiblenotes 1.17 Repaymentofborrowings 1.18 Dividendspaid 1.19 Other(providedetailsifmaterial) Netfinancingcashflows	] ] ] ] ] ]	] ] 6,000,000 ] ] ]
	]	6,000,000
Netincrease(decrease)incashheld 1.20 Cashatbeginningofquarter/yeartodate 1.21 Exchangerateadjustmentstoitem1.20 1.22 Cashatendofquarter	(1,021,163) 4,474,228	2,348,097 1,104,967
	3,453,065	3,453,064

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 Aggregateamountofpaymentstothepartiesincludedinitem1.2 1.24 Aggregateamountofloanstothepartiesincludedinitem1.10	1.23 Aggregateamountofpaymentstothepartiesincludedinitem1.2 1.24 Aggregateamountofloanstothepartiesincludedinitem1.10	Currentquarter 31/03/2014 $A
		66,375
		N/A
1.25	Explanationnecessaryforanunderstandingofthetransactions

NonCcash(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!reporting!entity!has!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 Loanfacilities 3.2 Creditstandbyarrangements	Amountavailable $A	Amountused $A
	N/A	N/A
	N/A	N/A

Estimated(cash(outflows(for(next(quarter(

4.1 Explorationandevaluation 4.2 Development 4.3 Production 4.4 Administration	$A
	610,000
	150,000
	350,000
	500,000
Total	1,610,000

Reconciliation of cash

Reconciliation of cash
Reconciliationofcashattheendofthequarter(as	Currentquarter	Previousquarter
shownintheconsolidatedstatementofcashflows)	31/03/2014	31/12/2013
totherelateditemsintheaccountsisasfollows.	$A	$A
5.1 Cashonhandandatbank	1,453,065	1,474,228
5.2 Depositsatcall	2,000,000	3,000,000
5.3 Bankoverdraft	8	8
5.4 Other(providedetails)	8	8
Total:cashatendofquarter(item1.22)	3,453,065	4,474,228

Changes(in(interests(in(mining(tenements(

6.1 Interestsinmining tenementsrelinquished, reducedorlapsed	Tenement reference	Natureofinterest (note(2))	Interestat beginning ofquarter	Interest atendof quarter
	N/A	N/A	N/A	N/A

+!See!chapter!19!for!defined!terms.!

13/1/2014! Appendix!5B!!Page!3!

Appendix(5B( Mining(exploration(entity(quarterly(report(

6.2 Interestsinmining tenementsacquiredor 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.%

	Totalnumber	Numberquoted	Issuepriceper security(see note3)(cents)	Amountpaidup persecurity(see note3)(cents)
7.1 Preference +securities (description) 7.2 Changesduring quarter (a)Increases throughissues (b)Decreases throughreturns ofcapital,buy] backs, redemptions
7.3 +Ordinary securities 7.4 Changesduring quarter (a)Increases throughissues (b)Decreases throughreturns ofcapital,buy] backs	288,157,040	139,931,455	Various	Various
	Nil	139,931,455] Note7	N/AperNote3 below–allfully paid	N/AperNote3 below–allfully paid
7.5 +Convertible debt securities (description) 7.6 Changesduring quarter (a)Increases throughissues (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.!

13/1/2014! Appendix!5B!!Page!5!

Appendix(5B( Mining(exploration(entity(quarterly(report(

7.7 Options (descriptionand conversion factor) 7.8 Issuedduring quarter 7.9 Exercised duringquarter 7.10 Expiredduring quarter	250,000 300,000 2,250,000 1,200,000 6,800,000 1,750,000	Nil	Exerciseprice $0.25 $0.30 $0.30 $0.20 $0.15 $0.15	Expirydate 14June2014 17October2014 25November2014 25November2014 7November2016 17December2016
	N/A	N/A	N/A	N/A
	N/A	N/A	N/A	N/A
	250,000	N/A	$0.15	17December2016 Note8
7.11 Debentures (totalsonly)	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 give!a!true!and!fair!view!of!the!matters!disclosed.!

Sign!here:!!

Date:!30!April!2014! Alexander!Moody! Company!Secretary!

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.!

+!See!chapter!19!for!defined!terms.!

Appendix!5B!!Page!6!

Appendix(5B( Mining(exploration(entity(quarterly(report(

• 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.!!!

There!have!been!no!additional!convertible!notes!issued!during!the!Quarter!to! 31/3/2014.!

• 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.!

• 8.! 250,000!unlisted!options,!exercisable!@15!cents,!expiry!17!December!2016,!were! cancelled!upon!resignation!of!the!employee.!

==!==!==!==!==

+!See!chapter!19!for!defined!terms.!

13/1/2014! Appendix!5B!!Page!7!