AVIRA RESOURCES LTD — Interim / Quarterly Report 2013

Jan 27, 2014

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QUARTERLY REPORT

December 2013

DECEMBER QUARTERLY REPORT

MGT Resources Limited (MGT, ASX:MGS) is pleased to report its activities for the December 2013 quarter on the Company’s tin projects in Far North Queensland

HIGHLIGHTS

Phase Three of the 2013 Summer Hills Drilling campaign announced to the ASX on 10 December 2013.

ASX CODE MGS

REGISTRY

Computershare

• Long tin intersections above the cut-off with multiple high-grade metres all within 100 metres from surface.

SHARES ON ISSUE 288,157,040

• All holes but one returned grades above cut-off over one or more metres

• Mineralisation still open at depth and in three directions

• Phase Four drilling program completed with results pending, to be followed by JORC Resource update

Tin Price: US$21,839/t

• Target only 500 metres from MGT’s Tin Processing Plant

Intervals of high-grade tin included:

• 8m @ 0.47% Sn from 39m, including 1m @ 1.33% (DAL119)

• 15m @ 0.38% Sn from 41m, including 1m @ 1.16% (DAL121)

• 14m @ 0.67% Sn from 59m, including 5m @ 1.2% (DAL121)

• 4m @ 0.89% Sn from 29m, including 1m @ 2.54% (DAL124)

• 10m @ 0.51% Sn from 25m, including 2m @ 1.27% (DAL136)

• 3m @ 2.28% Sn from 29m, including 1m @ 5.54% (DAL137)

• 14m @ 0.52% Sn from 5m, including 2m @ 1.1% (DAL138)

• 6m @ 0.99% Sn from 25m, including 2m @ 1.42% (DAL139)

• 11m @ 0.58% Sn from 16m including 1m @ 2.93% (DAL140)

• 8m @ 0.5% Sn from 36m, including 1m @ 1.91% (DAL142)

• 4m @ 1.03% Sn from 8m, including 1m @ 3.08% (DAL146)

• 10m @ 0.56% Sn from 18m, including 1m @ 1.0% and 1m @ 1.18% (DAL154)

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

Cash Position at 31 December 2013 is $4.4 million

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1. MT GARNET TIN PROJECT, QUEENSLAND (MGT 89.48%)

Includes: Summer Hills ML20547; Mt Veteran Mill ML4349; Heads or Tails ML20655; Nymbool EPM16948

1.1 Mt Garnet Tin Project Exploration

MGT Resources Limited (‘MGT’ or ‘Company’, ASX:MGS) has completed four phases of the scheduled drilling at Summer Hills, the primary mining lease at the Company’s Mt Garnet Tin Project, located in far north Queensland. Results from the first three phases encouraged an extension of the drilling phase into a fourth phase.

Phase Four drilling is now complete, with laboratory assay results pending.

The purpose of the 2013 The Summer Hills drilling campaign was to expand and update the tin resource estimate at the Dalcouth prospect, chosen due to its shallow depths and close proximity to the Mt Veteran tin processing plant (Plant). MGT’s strategy is to generate early cash flow from its shallow targets in order to use these funds to further explore its other targets.

Phase Three delivered some of the company’s most successful drilling results to date. It comprised 45 RC percussion drill holes (2465m) and one 29m RC extension to an existing Phase Two hole. Phase Two was comprised of 23 RC percussion holes (1035m). Phase One constituted five diamond drill holes and the results from these phases were previously announced to the ASX.

Drilling Objectives

The objectives for Phase Three drilling at Dalcouth were:

• to test for extensions to mineralisation along strike to the northwest

• to further delineate a parallel mineralised zone approximately 50m to the northeast (Eastern Zone – Fig.1) and to determine whether or not this Eastern Zone mineralisation is contiguous with the main mineralised zone

• to test extensions to mineralisation at depth; particularly to the southwest

• infill drilling to gain confidence in the continuity of mineralised zones

Drilling commenced on the 23[rd] of August and was completed on the 18[th] of September. Results from Phase Three confirmed extension of the mineralised zone to the northwest; further developed the northeast parallel zone and extended the mineralisation at depth.

Results from a fourth phase of RC drilling are currently awaiting assay.

Best Intersections

The better intersections from the Phase Three drilling include:

• 8m @ 0.47% Sn from 39m, including 1m @ 1.33% (DAL119)

• 15m @ 0.38% Sn from 41m, including 1m @ 1.16% (DAL121)

• 14m @ 0.67% Sn from 59m, including 5m @ 1.2% (DAL121)

• 4m @ 0.89% Sn from 29m, including 1m @ 2.54% (DAL124)

• 10m @ 0.51% Sn from 25m, including 2m @ 1.27% (DAL136)

• 3m @ 2.28% Sn from 29m, including 1m @ 5.54% (DAL137)

• 14m @ 0.52% Sn from 5m, including 2m @ 1.1% (DAL138)

• 6m @ 0.99% Sn from 25m, including 2m @ 1.42% (DAL139)

• 11m @ 0.58% Sn from 16m including 1m @ 2.93% (DAL140)

ASX RELEASE

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

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• 8m @ 0.5% Sn from 36m, including 1m @ 1.91% (DAL142)

• 4m @ 1.03% Sn from 8m, including 1m @ 3.08% (DAL146)

• 10m @ 0.56% Sn from 18m, including 1m @ 1.0% and 1m @ 1.18% (DAL154)

Preliminary Interpretation of Mineralisation Geometry

Results from Phase Three have, with some exceptions, allowed for greater confidence in the interpretation of the geometry of mineralised zones at the Dalcouth prospect. This will assist in defining a mineralisation model for resource estimate work and also for planning on-going drilling programmes to test for additional mineralisation

Broadly, there appear to be three main zones of mineralisation (see Fig. 1), herein referred to as the Western, Central and Eastern Zones. Within each zone, there are one or more sub-parallel zones of higher grade mineralisation (> 0.1% Sn), many of which can be correlated between holes on individual sections and also between sections. There is some suggestion that the Western and Central Zones may merge toward the central part of the prospect area, while it is possible that all zones may have merged at the northwest end of the prospect. In general, dips on mineralisation are steep westerly in the south-east and appear to gradually flatten in a westerly direction towards the north-west.

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Figure 1: Plan showing drill traces for all holes drilled at Dalcouth. The plan shows the approximate outline of mineralised zones projected to surface. Grey arrows show directions for potential expansion of the resource.

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

ASX RELEASE

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

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1.2 Environmental Authority Application

MGT has submitted a Level 1 Environmental Authority Application with the Department of Environment Heritage Protection. The application is proceeding satisfactorily and once in place it will cover the current mill capacity and any future capacity upgrades. The Company can expect to be granted the Level 1 Environmental Authority in Q2 2014.

1.3 Small Mining Lease Acquired

In the December quarter MGT Resources Limited acquired a small mining lease ML 20066 called Valetta, which lies approximately 15 kilometres from the Mt Veteran Tin Processing Plant. The mining lease covers historic open cut and underground tin workings.

1.4 Next steps

Phase Four of the program was recently completed with assay results pending.

Complete results from all four Phases of the 2013 Summer Hills Drilling Program will be paired with existing data to form a resource update on the Dalcouth prospect.

2. MGT CORPORATE

2.1 $1.5 million rolled over Convertible Note Approved by Shareholders

Shareholders approved the issue of a $1.5 million convertible note granted to Armstrong Industries (HK) Limited. This convertible note essentially rolled over an existing facility which expired on 11 November 2013.

2.2 Options granted to directors and key management

6,800,000 unquoted options were granted to directors 2,000,000 to key management personnel as approved by the shareholders and board of directors of MGT respectively. Each option has a 3 year term and $0.15 strike price.

2.3 Cash

Cash at hand as at 31 December 2013 was $4.4 million.

2.4 Tin Market Summary

Indonesia drawing balance of power away from London

Indonesia, the world’s leading tin mining country[1] , has enforced a new export regulation requiring all Indonesian tin ingots to be exported via the Indonesia Commodity and Derivatives Exchange (ICDX), set up by the Indonesians as a alternative the London Metals Exchange. 8,245 tonnes of tin were traded through the ICDX in December, a huge jump from the 795 tonnes traded in September.[2]

Tin price down slightly

The tin price declined slightly to around $22,500 per tonne in US dollar terms during the December quarter, possibly as a result of the surge in trading on the ICDX. The high trading in December reflects catch-up sales by producers that were out of the market between August and October as the new export regulation came into effect. ITRI suggest that volumes may drop in the first quarter of 2014 to bring sales back into line with current production.

1 As of 2011, noted in “Tin for Tomorrow” page 24, an ITRI Publication found at www.itri.co.uk 2 www.itri.co.uk

ASX RELEASE

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

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ENDS

For more information:

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) focused on tin mining at the Mt Garnet Tin Project in far North Queensland, and on exploration of its Pyramid Gold Project near Charters Towers and its Southern Queensland Gold Project near Gayndah.

The Mt Garnet Tin Project is located in the historic Herberton Tin Fields, 3 hours west of Cairns in Queensland. Dams, roads, power, water and stage 1 plant upgrade to 70,000 input tonnes per annum is now complete.

ABOUT THE MT GARNET TIN PROJECT

MGT’s flagship Mt Garnet Tin Project is 3 hours’ 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. The Summer Hills ML, the main tenement on MGT's flagship Mt Garnet Tin Project, is 1,170 Ha in area, making it one of the largest mining leases in the region. The mining lease was granted for a period of 21 years.

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, including the Dalcouth and Extended prospects.

Dalcouth is MGT’s first open pit mining target. Recent petrographic reports confirmed the presence of rhyolite porphyry dykes throughout the ML, and present within the Dalcouth resource.

Grades of up to 15.75% tin have been intersected at Extended. For investors unfamiliar with tin, 1% tin is approximately equivalent in value terms to 4.5 grams per tonne of gold, or 3% copper.

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