AVIRA RESOURCES LTD — Interim / Quarterly Report 2013

Jan 27, 2014

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	Quarter ended (“current quarter”)
38 131 715 645	31 December 2013

Consolidated statement of cash flows

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 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter 31/12/2013 $A	Year to date (6 months) $A
	(367,066) - 18,307 (120,000) - 3,676	(1,079,953) - 29,413 (120,000) - 7,490
	(465,083)	(1,163,050)
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)	(746,781) (101,297) - - - -	(1,354,596) (113,093) - - - -
	(848,078)	(1,467,689)
	(1,313,161)	(2,630,739)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,313,161)	(2,630,739)
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	- - - - - -	- - 6,000,000 - - -
	-	6,000,000
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	(1,313,161) 5,787,389	3,369,261 1,104,967
	4,474,228	4,474,228

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 31/12/2013 $A
		66,375
		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.

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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	Amount used $A
	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
	255,000
	105,000
	-
	460,000
Total	820,000

Reconciliation of cash

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)	31/12/2013	30/09/2013
to the related items in the accounts is as follows.	$A	$A
5.1 Cash on hand and at bank	1,474,228	5,787,389
5.2 Deposits at call	3,000,000	-
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: cash at end of quarter(item 1.22)	4,474,228	5,787,389

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.

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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.

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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	Various	Various
	Nil	139,931,455- Note 7	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
	(a) 1,500,000 (b) 1,500,000 See Note 6 below for more information.	Nil Nil	$0.0875 $0.15	$1 $1

• 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	250,000 300,000 2,250,000 1,200,000 6,800,000 2,000,000	Nil	Exercise price $0.25 $0.30 $0.30 $0.20 $0.15 $0.15	Expiry date 14 June 2014 17 October 2014 25 November 2014 25 November 2014 7 November 2016 17December 2016
	6,800,000 2,000,000	N/A	$0.15 $0.15	7 November 2016 17December 2016
	N/A	N/A	N/A	N/A
	2,000,000	N/A	$0.0625	17 December 2013
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 give a true and fair view of the matters disclosed.

Sign here: Date: 28 January 2014 (Company secretary)

Print name: Alexander Moody

• See chapter 19 for defined terms.

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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 31/12/2013.

• 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.

== == == == ==

• See chapter 19 for defined terms.

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