AVIRA RESOURCES LTD — Interim / Quarterly Report 2015

Oct 28, 2015

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QUARTERLY REPORT

September 2015

September Quarterly Report Exploration Activities Report Quarter ended 30[th] September 2015

ASX CODE MGS

During the September quarter, MGT Resources Limited (MGT, ASX:MGS) completed a 24 hole drilling program at the Pyramid Project.

REGISTRY

HIGHLIGHTS

Computershare

• MGT follows up high grade intersection at the Pyramid Project with more excellent results. Better intervals include:

SHARES ON ISSUE

• 34m @ 2.83 g/t gold from 15m (including 15m @ 5.63 g/t gold which includes 2m @ 28.95 g/t gold ) (MGTRC018)

318,157,040

• 36m @ 0.96 g/t gold from 52m (including 14m @ 1.66 g/t gold ) (MGTRC018)

• 10m @1.84 g/t gold from 122m (including 4m @ 2.61 g/t gold ) (MGTRC018)

Tin Price: US$15,248/t Gold Price: US$1,176/oz

• 22m @ 1.11 g/t gold from 108m (including 4m @ 3.44 g/t gold ) (MGTRC019)

• 17m @ 2.46 g/t gold from 50m (including 3m @ 4.59 g/t gold and 2m @ 11.50 g/t gold ) (MGTRC020)

*These are downhole widths which may not reflect true width. The geometry of mineralisation at parts of the prospects is still uncertain.

• New drilling data supports recent structural re-interpretations of the prospect and enhances the overall grade of the prospect by allowing definition of high grade zones

• 3D Modelling of new results extends mineralised envelope significantly at Gettysberg prospect and establishes continuity between high-grade zones

• MGTRC021 extends mineralisation to the greatest depths so far (~170 m downhole) and remains open at depth

• MGT continues to work on development of a new geological model at the Dalcouth prospect as part of a planned resource estimate update

MGT

Resources Limited

Suite 1305, 109 Pitt 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

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1. SUMMER HILLS TIN PROJECT, QUEENSLAND (MGT 89.48%) Includes: Summer Hills ML20547; Mt Veteran Mill ML4349; Nanyetta EPM25433; Valetta ML20066

Continuing work towards a new resource estimate for Dalcouth

MGT, through its 89.48% owned subsidiary MGT Mining Limited (MGTM) has been working towards developing a new resource estimate for the Dalcouth prospect. New data gathered from the latest drilling at Dalcouth will allow development of a more detailed geological model for the project with the aim of increasing the confidence and size of the JORC resource. The exploration team is currently relogging sections of older holes to address discrepancies in the model.

2. NYMBOOL PROJECT, QUEENSLAND (MGT 89.48%) Includes Heads or Tails ML20655; Nymbool EPM16948; Nymbool West EPM25690

No significant exploration work was undertaken on the Nymbool Project during the September quarter.

3. PYRAMID GOLD PROJECT, QUEENSLAND (MGT 89.48%) Includes Pyramid EPM 12887; Pyramid 2 EPM25154; Pyramid 3 EPM 19554

MGT has completed a 24 hole (3566m) drilling program at the Pyramid Project. The purpose of the drilling program was to explore extensions to mineralisation at the Gettysberg Prospect (previously drilled by MGT in 2012), as well as test new structural models at the Gettysberg, Sellheim, Marrakesh and Pradesh Prospects.

Further high-grade gold intersections at the Gettysberg Prospect

MGT are pleased to report that the remaining assay results from the Gettysberg Prospect contained further high-grade gold intersections (see Fig. 1 and 3).

Better results at the Gettysberg Prospect from the first two 2015 sample batches include:

• MGTRC016: 35m @ 6.1g/t gold from 33m (including 5m @ 37.1 g/t gold from 33m which includes 1m @ 146 g/t gold )

• MGTRC018: 34m @ 2.83 g/t gold from 15m (including 15m @ 5.63 g/t gold which includes 2m @ 28.95 g/t gold )

• Further down the same hole an intercept of: 36m @ 0.96 g/t gold from 52m (including 14m @ 1.66 g/t gold )

• Further down the same hole an intercept of: 10m @1.84 g/t gold from 122m (including 4m @ 2.61 g/t gold )

• MGTRC019: 12m @ 0.96 g/t gold from 76m (including 3m @ 1.79 g/t gold )

• Further down the same hole an intercept of: 31m @ 0.85 g/t gold from 101m (including 22m @ 1.11g/t gold including 4m @ 3.44 g/t gold )

*These are downhole widths which may not reflect true width. The geometry of mineralisation at parts of the prospects is still uncertain.

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• MGTRC020: 17m @ 2.46 g/t gold from 50m (including 3m @ 4.59 g/t gold and 2m @ 11.50 g/t gold )

• MGTRC022: 13m @ 1.00 g/t gold from 23m (including 1m @ 6.09 g/t gold )

• MGTRC024: 60m @ 0.56 g/t gold from 68m (including 6m @ 1.07 g/t gold and 3m @ 1.08 g/t gold )

*These are downhole widths which may not reflect true width. The geometry of mineralisation at parts of the prospects is still uncertain.

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Figure One : Map showing drilling traces (2015 and historical) at Gettysberg. Au assays are shown for new 2015 drilling, as well as MGT’s 2012 drilling program).

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The results from the 2015 holes have indicated a number of extensions to mineralisation. MGTRC016 and MGTRC017 were drilled into a previously undrilled area where visible gold had previously been found at surface. The results from MGTRC016 were the highest grade to date at the project ( 35m @ 6.1g/t gold from 33m (including 5m @ 37.1 g/t gold from 33m) and the results of MGTRC017 expanded on the mineralised zone (see Figs 2 - 5).

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Figure Two : 180RL plan of the Gettysberg prospect, showing drill holes within 10 m of the section plane. Heavy traces represent 2015 drilling. Note that high grade zones in the south are a result of, or significantly enhanced by, 2015 drilling. ‘Long’ and ‘Fence’ refer to long (Fig. 3) and fence sections (Fig. 4). Modelling is restricted to within 25 m of drillhole data.

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Hole MGTRC020 ( 17m @ 2.46 g/t gold from 50m (including 3m @ 4.59 g/t gold and 2m @ 11.50 g/t gold ) was drilled to the west of the previously identified mineralised zone and MGTRC019 ( 12m @ 0.96 g/t gold from 76m (including 3m @ 1.79 g/t gold ) was drilled to the east (see Fig. 1). The positive results in these holes have expanded the width of known mineralisation.

The program was also designed to test extensions to mineralisation at depth, and positive intersections in holes MGTRC018 and MCTRC021 indicate that mineralisation continues down-dip to a greater depth than previously identified (see Fig. 3). As an example, in hole MGTRC021 there is near-continuous low-grade mineralisation averaging 0.27 g/t Au over the hole length from 0m to 191m, thus increasing the depth of the low-grade gold envelope (see Fig. 3). Gold intersections in MGTRC018 ( 36m @ 0.96 g/t gold from 52m (including 14m @ 1.66 g/t gold ); and 10m @ 1.84 g/t gold from 122m (including 4m @ 2.61 g/t gold ) indicate that higher gold grades extend down-dip (see Fig. 3).

Low-grade intersections in Hole MGTRC024 have expanded the mineralisation envelope to the north at this location ( 60m @ 0.56 g/t gold from 68m (including 6m @ 1.07 g/t gold and 3m @ 1.08 g/t gold ) (see Fig. 1).

Low grade gold envelope intersected at Pradesh

The Pradesh prospect is located at a distance of approximately 6 km along-strike to the southwest of the Gettysberg Prospect. Pradesh is situated where the northeast trending, Anakie bounding structure intersects with an east south east trending cross structure. Previous drilling of the Pradesh anomaly has trended parallel with the cross-cutting structure and perpendicular to the Anakie bounding structure. The two recent holes were drilled, in light of the improvements in our understanding of related prospects and were oriented perpendicular to the cross-cutting structure.

Results from Pradesh indicate that lower grade gold was intersected. Better results include:

• MGTRC026: 15m @ 0.31 g/t Au from surface

• Further down the same hole an intercept of: 3m @ 0.56 g/t Au from 27m (including 1m @ 1.23 g/t )

• Further down the same hole an intercept of: 7m @ 0.41 g/t Au from 159m (including 1m @ 1.00 g/t )

• MGTRC027: 17m @ 0.34 g/t Au from 17m (including 5m @ 0.69 g/t )

*These are downhole widths which may not reflect true width. The geometry of mineralisation at parts of the prospects is still uncertain.

Remodelling based on 2015 program results indicates extension of mineralised zone

The Gettysberg prospect has been remodelled based on the new drilling data (see Figs 2-5). Overall, the new data supports recent re-interpretations of the prospect as a NE trending zone of mineralisation with enhanced grade adjacent to cross-cutting, approximately E-W structures that offset the mineralised rocks. The high grade intercepts in the 2015 drilling significantly enhance the overall grade of the prospect and allow definition of high grade pockets within an enhanced overall envelope. MGTRC021 extends the mineralisation to the greatest depths so far, and remains open at depth (see Fig. 3).

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Figure Three : Long section along Gettysberg prospect showing all drillhole traces. Note that MGTRC021 extends the mineralisation down the dip of the inferred fault to the greatest depths so far and remains open at depth. Heavy traces represent 2015 drilling. Note the shallow mineralisation in the south and the abrupt deepening in the north, where geochemical data has been used with field mapping to identify Drummond Basin sediments. For long section line in plan see Figure 2.

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Figure Four : Fence section along Gettysberg prospect. Drill traces are not shown. Note high grade mineralisation in the south of the prospect, and that mineralisation is open at depth in the north of the prospect. For fence section line in plan see Figure 2.

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Figure Twelve : Drill holes and modelled mineralisation at Gettysberg before (top) and after (bottom) 2015 drilling. View to NW – North to right. Thick drillholes are drilled in 2015, and were intended to test the fault control model. Several were drilled with an azimuth perpendicular to the strike of the fault, whereas the north dipping holes tested the continuity of fault parallel ore shoots based on the fault control model. The northernmost holes tested the continuity between the central and northern mineralisation. Note the large increase in high grade zones in the south, the greatly enhanced thickness of mineralisation in the centre of the model, and the enhanced continuity in the north.

Geochemical modelling assists with distinguishing mineralised zones

Portable XRF (PXRF) and fire assay gold analysis has now been completed for the entire suite of holes at Gettysberg and Sellheim. Principal component analysis (PCA) has been modelled for the prospects using a pseudo-3D approaches for all but the final four Gettysberg holes.

PCA indicates that the mineralisation has a marked association with As, Bi, Mo, S, Sb and Si at Gettysberg, and with the same elements as well as base metals (Cu, Pb, Zn) at Sellheim. The PCA also clearly distinguishes major contrasts such as down-faulted Drummond Basin sediments at the northern end of Gettysberg. PCA was also able to distinguish mineralised sandstones from enigmatic, unaltered black shales underlying the northern part of the Sellheim prospect. The two units are separated by a major structure that was intersected in two of the holes (MGTRC012 and MGTRC013).

Next steps for Pyramid

Once final geochemical review and modelling of the last drilling results is complete, MGT intends to prepare a JORC resource estimate based on the latest drilling and the new understanding of the geological model.

In addition, the growing understanding of the structural setting of Gettysberg, in particular, suggests that further oriented diamond drilling is warranted. The existing historical diamond cores, despite their

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poor condition have proven invaluable in providing additional information in the association of mineralisation with small scale structure. Identification of breccia within the core strongly suggests the importance of north west faulting for mineralisation, but the kinematics of the fault are still unconstrained and existing core does not allow unique characterisation of the structures and their relationship to surface mapped geology. Oriented cores drilled within a known mineralised shoot will provide the best opportunity to achieve this goal and will greatly aid in the confidence of the resource estimate.

Results of previously reported soil surveys (see ASX Announcements on 20[th] April 2015 and 2[nd] June 2015) show that the 6 km West Pyramid Range structure is potentially mineralised from the Sellheim Prospect through Gettysberg to Marrakesh and Pradesh. The results from this drilling program provide a positive indication of the potential for Sellheim and Pradesh to contain higher grade mineralised zones, within the lower grade envelope, as at the Gettysberg Prospect (see ASX announcements on 27[th] July and 11[th] August 2015). Further analysis will be required prior to follow-up drilling to determine what the controls to higher grade mineralisation might be.

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

No significant exploration work was undertaken on the Southern Queensland Projects during the September quarter.

3. MGT CORPORATE

Cash

Cash at hand as at 30[th] September 2015 was $0.46M.

Signs of metal commodity market improvement but still unstable

In this quarter the market continues to be volatile. Despite signs of improvement the metal price remains weak and investment sentiment in the resource sector remains gloomy. Fortunately for MGT tin price has shown much better performance compare to other metals and the price went from a low of US$14,000 to mid-$15,000 in the September quarter. Although the demand for tin has not increased, the supply shortage due to Indonesia’s tighter export regulations and falling production from major tin producers, has helped the tin price.

The Mt Garnet tin project currently remains on care and maintenance mode with a skeleton staff on site. However the work to finalise the resource estimation on the Dalcouth prospect is progressing and is due to be completed by the end of the next quarter. Based on the result of the resource, MGT will determine the next move for its tin project.

ENDS

Investor and media enquiries:

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

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Appendix 1

Mineral Tenements held at the end of the quarter and their location:

State	Tenement Name	Tenement ID	Location	Interest	Holder	Comments	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	EPM 25347	Mt Garnet	89.48%	MGTM	Granted
	Extended
QLD	Nymbool West	EPM 25690	Mt Garnet	89.48%	MGTM	Granted
QLD	FuzzyHill	EPM 25716	Mt Garnet	89.48%	MGTM	Granted
QLD	Pyramid	EPM 12887	Drummond	89.48%	MGTM	Granted
			Basin
QLD	Pyramid 3	EPM 19554	Drummond	89.48%	MGTM	Granted
			Basin
QLD	Pyramid 2	EPM 25154	Drummond	100%	MGS	Granted
			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
Abbreviations
EPMA	Exploration Permit for Minerals Application
EPM	Exploration Permitfor Minerals
MLA	Mining	Lease Application
ML	Mining	Lease
MGS	MGT Resources Limited
MGTM	MGT MiningLimited,an unlisted Australianpublic company
QLD	Queensland,Australia

Competent Persons statement

The Exploration Results presented here are extracted from the following reports: ‘More high-grade gold intersections at the Pyramid Project’, 11[th] August, 2015 and ‘Remodelling with new gold results significantly extends mineralised zone’, 31[st] August, 2015 . 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 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 2015	Quarter ended (“current quarter”) 30 September 2015
			30 September 2015
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 1.72 Other Net Operating Cash Flows		Current quarter 30/09/2015 $A’000		Year to date (3 months) $A’000
		(450) - - (344) - 7 (241) - -		(450) - - (344) - 7 (241) - -
		(1,028)		(1,028)
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)		- - - - - - - - -		- - - - - - - - -
		(1,028)		(1,028)

• 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)	(1,028)	(1,028)
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	(1,028) 1,491	(1,028) 1,491
	463	463

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 30/09/2015 $A’000
		97
		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 (including $60,000 interest payment)	$A’000
	70
	115
	352
Total (See Note 8 below)	537

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)	30/09/2015	30/06/2015
to the related items in the accounts is as follows.	$A’000	$A’000
5.1 Cash on hand and at bank	463	491
5.2 Deposits at call	-	1,000
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: cash at end of quarter(item 1.22)	463	1,491

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.

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	318,157,040	318,157,040 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	$0.03 $0.0875 $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	6,800,000 1,050,000 24,000,000	Nil	Exercise price $0.15 $0.15 $0.05	Expiry date 7 November 2016 17 December 2016 31 December 2015
	N/A	N/A	N/A	N/A
	N/A	N/A	N/A	N/A
	N/A	N/A	N/A	N/A
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 2015 (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 10 June 2015, the parent entity MGT Resources Limited issued unsecured convertible notes to Auskong International Mining Investment Co. Limited, with a principal sum of $1,500,000 and a nil interest rate. The Notes may, at the option of the Noteholder, be converted into 50,000,000 ordinary shares in MGT Resources Limited at any time within a 12 month period after the completion of the unsecured convertible note deed on 10 June 2015.

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 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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 30/9/2015.

7 There are 318,157,040 fully paid ordinary shares on issued and quoted on the ASX as at the end of the quarter to 30/9/2015.

8 On 29 September 2015, MGT Resources Limited received a signed exercise notice from Auskong International Mining Investment Co., Limited of their intention to exercise their 24,000,000 share options into 24,000,000 fully paid ordinary shares at 5 cents per share for $1,200,000.

In order to remain well-funded during the period until the $1,200,000 from Auskong International Mining Investment Co., Limited is received, on 29[th] October 2015, MGT Resources Limited entered into a $75,000 line of credit with Mr Jonathan Paul Back, Chairman and Managing Director of MGT Resources Limited and a $75,000 line of credit with Mr Gary Kuo, Chief Operating Officer and Executive Director of MGT Resources Limited.

These redraw facilities are available until the earlier of the date on which further funding is received from Auskong International Mining Investment Co., Limited and 30 November 2015.

An Appendix 3B will be lodged with the ASX once the funds from Auskong International Mining Investment Co., Limited have cleared and the fully paid securities have been issued.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 8