AVIRA RESOURCES LTD — Interim / Quarterly Report 2015

Jul 30, 2015

==> picture [134 x 56] intentionally omitted <==

QUARTERLY REPORT

June 2015

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

ASX CODE MGS

During the June quarter, MGT Resources Limited (MGT, ASX:MGS) completed an infill soil sampling program at Pyramid and began a 24 hole drilling program.

REGISTRY

Computershare

HIGHLIGHTS

• MGT intersects the highest grade gold to date at the Pyramid Project ( 5m @ 37.1 g/t gold including 1m @ 146 g/t ) from an intersection of 35m @ 6.1 g/t gold from 33m (MGTRC016)

SHARES ON ISSUE

318,157,040

• Long intersections of lower grade gold at the Sellheim Prospect including:

• 123m @ 0.26 g/t gold from 25m to end of hole 149m, (including 18m @ 0.52 g/t gold from 82m) (MGTRC015)

Tin Price: US$16,265/t Gold Price: US$1,089/oz

• 52m @ 0.27 g/t gold from 25m (including 8m @ 0.53 g/t gold from 49m) (MGTRC014)

• 67m @ 0.24 g/t gold from 88m to end of hole 155m, (including 4m @ 0.76 g/t gold from 105m) (MGTRC014)

• Results from a further 19 holes at the Pyramid Project are still pending. 14 of these are from the Gettysberg Prospect with the remainder drilled at the Pradesh and Marrakesh Prospects.

• Completion of an infill soil sampling program at Pyramid added to the value of the project, with the overall campaign now delineating 30 ha of soil anomalies at >100 ppb Au and 71 ha at >50 ppb Au within or attached to the established prospects, as well as new anomalous areas

• Two new EPMs were granted at the Mt Garnet Project during the quarter: EPM25716 ‘Fuzzy Hill’ – 9 sub-blocks and EPM25347 ‘Nymbool Extended’ – 2 sub-blocks.

• 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 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

MGT has cash reserves of $1.49M as at 30th June 2015.

==> picture [541 x 86] intentionally omitted <==

1

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

New Exploration Permits granted

On the 30[th] April 2015, EPM25716 (‘Fuzzy Hill’) was granted for a term of 5 years. The EPM covers 9 sub-blocks between the Nymbool and Summer Hills tenures.

Potential exists for a number of styles of tin mineralisation within the application area including greisen mineralisation within the apical portions of intrusives, lode style tin mineralisation within fractures in both the granites and intruded Hodgkinson/Chillagoe Formations and skarn/lode mineralisation within favourable lithologies and structures in the Chillagoe Formation sediments. There are number of mineral occurrences in the easternmost part of the application area, localised in the Hodgkinson Formation sediments. These include the White Rose; a small abandoned tin mine plus a number of small abandoned copper and/or lead mines.

On the 5[th] May 2015, EPM25347 (‘Nymbool Extended’) was granted for a term of 5 years. The EPM covers 2 sub-blocks. The area is contiguous with MGT’s Nymbool tenure where polymetallic zones of interest have already been identified.

3. PYRAMID GOLD PROJECT, QUEENSLAND (MGT 89.48%)

Includes Pyramid EPM 12887; Pyramid 2 EPM25154; Pyramid 3 EPM 19554

Infill soil sampling adds value to Pyramid Project

During the Quarter, MGT completed an infill soil sampling program and structural re-interpretation at the Pyramid Project. Field-work was conducted in April-May to follow-up on the positive results from the 2014 sampling program.

During the two programs a total of 1120 samples of -80 mesh (180 micron) sieved fraction were collected along 200 m spaced lines with a sample spacing of 50 m. The survey targeted an arsenicgold prospective trend that extends 8.5km from the Sellheim Prospect in the north east, to the Pradesh prospect in the south west (see Fig.1).

The overall campaign has now delineated 30 ha of soil anomalies at more than 100 ppb Au and 71 ha at more than 50 ppb Au within attached or established prospects, as well as several new anomalous areas.

Several new findings have enhanced the apparent prospectivity of the Pyramid project. The Marrakesh prospect is shown to extend to the ESE for 1.2 km. The trend is marked by anomalous soil

ASX RELEASE

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

2

Au that is generally >50 ppb Au, commonly >100 ppb Au and locally >250 ppb Au. The regional NE trend of mineralisation also passes through Marrakesh, particularly southwards toward Pradesh.

==> picture [398 x 584] intentionally omitted <==

Figure One: Contoured laboratory-assayed gold geochemical anomalies over more than 6km strike length identified from soil sampling programs (2014 and infill 2015 program).

ASX RELEASE

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

3

Structural re-evaluation gives new insight into controls on mineralisation

The extended survey shows that the arsenic anomalies are structurally bounded, and are located mostly along the boundaries of and within the Anakie Inlier. Although the overall trend of mineralisation is along the north east trending structure, new structural data, combined with geochemical results and re-evaluation of the diamond drill core by consultant geologists Terra Search in Townsville, has led to a reinterpretation of the structural control on mineralisation.

In particular, the data has suggested the need for a greater appreciation of the importance of north west trending faults that cross-cut the north east trending Anakie Inlier. Sharp drops in gold grade in scissor-oriented diamond cores drilled at Gettysberg are associated with a breccia that juxtaposes the Ukalunda Formation against the phyllites of the Anakie Inlier. This fault is constrained to be oriented north west. The fault’s relative movement and location is consistent with surface observations in the weak, steeply dipping shale beds at Gettysberg, which indicate movement of the southern blocks to the southeast. This displacement has been traced laterally for hundreds of meters as conjugates to structures that dextrally displaced conglomerates east of the prospect.

At Gettysberg, when the north west fault is used as a structural trend during 3D ore-body modelling, the effect is to increase the continuity of modelled mineralisation in the dip direction of the fault (i.e. plunging shoots to the north east). The end result is more confidence in the model (see Fig. 8).

Evidence for similar structural control at other prospects along the main Anakie Trend is extensive (see Fig. 2). At the Sellheim prospect, north west sinistral displacements can be traced in marker beds west of the prospect, and within and north of the prospect. At Marrakesh, the prospect is elongate in a west north west-east south east direction, and the projection of the identified trend passes through the Madras prospect further to the north west, which is known to be related to north west trending structures. Further to the south the Pradesh prospect lies on a west north west trending topographic anomaly that has yet to be investigated.

First results from the Pyramid Drilling Project

==> picture [416 x 313] intentionally omitted <==

ASX RELEASE

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

4

During the June Quarter MGT began a 19 hole drilling program to explore extensions to mineralisation at the Gettysberg Prospect (previously drilled by MGT in 2012), as well as testing new structural models at the Gettysberg, Sellheim, Marrakesh and Pradesh Prospects. The program was originally 19 holes (see Fig. 2), but a further 5 holes were drilled, using existing drill pads, following positive assay results being received. A total of 3566 m were drilled at the project.

==> picture [460 x 523] intentionally omitted <==

Figure Two: Locations of proposed drill holes for Pyramid Project drilling in June overlaying soil sampling results.

ASX RELEASE

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

5

High grade gold intersected at Gettysberg

MGTRC016, the first hole drilled at the Gettysberg Prospect, intersected a zone of high grade gold ( 35m @ 6.1 g/t gold from 33m (including 5m @ 37.1 g/t gold ) (see Figs 4, 5 and 8). The mineralisation occurs at the southern end of the prospect and consists of fine (styolitic) veins of chlorite-pyrite-quartz and quartz vein breccia, primarily hosted in fine sericite pyrite altered quartz sandstone. Visible gold has previously been located at the surface 50m to the west of the collar of hole MGTRC016.

==> picture [452 x 340] intentionally omitted <==

Figure Three : Visible gold from a rock chip in the metre that returned a grade of 146 g/t (Hole MGTRC016)

In 2012, MGT previously conducted an 11 hole RC drilling program at Gettysberg. The results indicated higher grade gold zones within a low grade gold envelope. The mineralisation envelope is open to the north and in some sections at depth. Recent structural analysis of the prospect has identified the importance of north-west trending faults in controlling gold grade. The current program was planned with the purpose of testing this model and delineating extensions to mineralisation (see Fig. 8). Previous drilling has intersected similar high grade zones to that in MGTRC016, and these intercepts are located over hundreds of metres of strike length (see Fig. 4).

ASX RELEASE

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

6

==> picture [425 x 626] intentionally omitted <==

Figure Four : Map showing drillhole traces and Au assays for new hole MGTRC016 at Gettysberg and pre2015 drilling (MGT and historical). MGTRC016 drills toward the NNE in the lower left of the image. Note that MGTRC016 drilled into a ~70 m wide gap in previous drilling, and across an apparent E-W jog in the soil Au anomaly.

ASX RELEASE

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

7

==> picture [430 x 295] intentionally omitted <==

Figure Five : Section viewed toward the west showing the best results from new and 2012 drilling at Gettysberg. Note the lack of any previous drilling in the area of MGTRC016, and the traces of follow up holes (MGTRC031-035) for which results are pending. The section has a 25m envelope width and the section line is shown in red on the plan in Figure 4.

After receiving the results from MGTRC016, the decision was made by MGT to drill an additional 5 holes using existing drill pads to follow up on the high-grade intersection. MGT is still awaiting results from 13 holes that have been completed at Gettysberg for a total of 1887m.

The next step for MGT will be to try to determine continuity between these high grade zones with further drilling.

Long intersections at Sellheim

The Sellheim Prospect is located approximately 1.5km to the north east of Gettysberg Prospect, along the same regional structure. Four holes were drilled at Sellheim to test a similar model for structural control of mineralisation (see Fig. 6 and 7). At the Sellheim prospect lateral changes in assay are observed in historically drilled holes. The distribution of barren and ore sections in the drill holes is consistent with the orientation of sinistral faults that truncate a limestone marker beds on the north side of Sellheim.

Drilling to test this model intersected long intervals of lower grade gold including (see Figs 6 and 7):

• 123m @ 0.26 g/t gold from 25m to end of hole 149m (including 18m @ 0.52 g/t gold from 82m) (MGTRC015)

• 52m @ 0.27 g/t gold from 25m (including 8m @ 0.53 g/t gold from 49m) (MGTRC014)

• 67m @ 0.24 g/t gold from 88m to end of hole 155m (including 4m @ 0.76 g/t gold from 105m) (MGTRC014)

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

ASX RELEASE

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

8

==> picture [451 x 309] intentionally omitted <==

Figure Six : Section viewed toward the west showing drilling at Sellheim. Section envelope width is 25m and the section line is shown in red on the plan of Sellheim (see Fig. 7). Note the approximately vertical arrangement of higher grades that are shown to trend EW on Figure 7.

Almost the entire lengths of holes MGTRC014 and MGTRC015 were mineralised with grade above 0.1g/t gold (see appendix one).

More drilling at Sellheim will be needed to assess whether high-grade pockets are located amongst the lower grade envelope. As Sellheim exhibits similar features to Gettysberg including mineralisation style, host lithology and alteration mineralogy, this is a distinct possibility. Recent soil sampling has delineated an untested soil anomaly of plus 600 ppb gold (see Fig 7).

ASX RELEASE

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

9

==> picture [406 x 600] intentionally omitted <==

Figure Seven : Map showing drill hole traces and Au assays at Sellheim.

ASX RELEASE

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

10

Next Steps

These results represent the first batch of assays from the drilling program. MGT has drilled another 19 holes at the Pyramid Project and is currently awaiting assays results from the remainder of these (see Fig. 8).

==> picture [437 x 392] intentionally omitted <==

Figure Eight : The figures show modelled mineralisation based on previous drilling by MGT and other companies (1992-2012). The fault shown in brown represents the trend of one of the main interpreted structural controls at the prospect with strong continuity of grade parallel to this structural trend. The top image shows previous drilling completed (pre-2015) and the bottom image shows the traces of recently completed holes from the 2015 drilling program. To date only results for MGTRC016 have been received and validated, these are shown on the figure. MGT is still awaiting the results from the remainder of the holes. Note that MGTRC016 is drilled into a location where there is a gap in the previous drilling.

These include 13 holes drilled at the Gettysberg prospect, which has in the first batch of drilling returned the highest grade gold to date at the Project, as well as a number of holes drilled into less advanced prospects: Marrakesh and Pradesh. These two prospects have been previously drilled by other companies, however MGT is applying a new model based on structural re-analysis of the areas and extensive soil sampling programs. MGT hopes that this new insight will be reflected in the upcoming results.

ASX RELEASE

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

11

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 June quarter.

3. MGT CORPORATE

Cash

Cash at hand as at 30[th] June was $1.49M.

Actions during the resource down market

Since the beginning of April 2015, the global resource sector has continued to experience downward price movements. As with other commodities, the tin price fell sharply (approximately 13%) from US$16,500 to about US$14,300 within this 3 month period. The AUD against USD exchange rate remained around 0.76 as at the end of the June Quarter. During the June Quarter, the best relative performer was gold with its price sitting stable at approximately US$1,200.

For the time being, MGT has placed its Mt Garnet tin project in care and maintenance mode with a skeleton staff on site. However the work continues to finalise the resource estimation on the Dalcouth prospect, and once market conditions permit, MGT will resume its goal in mining and processing the Dalcouth tin prospect.

While the Mt Garnet tin project is in care and maintenance mode, during the last quarter, MGT’s focus has been on the development of its Pyramid gold project located approximately 250 km South of Townsville, Queensland, Australia. There have been a number of historical drilling programs at Pyramid as well as two drilling programs by MGT. Although Pyramid has yet to receive a JORC resource, work is now in progress to delineate an exploration target to be followed by JORC categorisation. The very encouraging results from the new drilling program have further validated Pyramid’s potential of becoming a significant gold prospect.

ENDS

Investor and media enquiries:

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

ASX RELEASE

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

12

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 Permit for 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: ‘Infill soil sampling program adds value to Pyramid Project’, 2[nd] June 2015; ‘MGT commences Pyramid Drilling Program’, 19[th] June, 2015; ‘MGT Intersects High Grade Gold at Pyramid Project’, 27[th] July, 2015; and ‘Amendment to Pyramid Drilling Announcement’, 28[th] July, 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.

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 38 131 715 645 Consolidated statement of cash flows	ABN 38 131 715 645 Consolidated statement of cash flows	Quarter ended (“current quarter”) 30 June 2015	Quarter ended (“current quarter”) 30 June 2015
			30 June 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 1.71 Settlement Sum for termination of off-take agreement with Taimetco (Note 8) 1.73 Other Net Operating Cash Flows		Current quarter 30/6/2015 $A’000		Year to date (12 months) $A’000
		(337) - - (122) - 5 (124) - - - 1		(1,081) - - (1,310) - 27 (724) - (750) 12
		(577)		(3,826)
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) - - - - - -
		-		(1)
		(577)		(3,827)

• 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)	(577)	(3,827)
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 (Note 6) 1.17 Proceeds from secured loan (Note 8) 1.18 Dividends paid 1.19 Repayment of convertible notes (Note 6) Net financing cash flows	- - 1,500 - - (1,500)	1,500 - 1,500 1,500 - (1,500)
	-	3,000
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	(577) 2,068	(827) 2,318
	1,491	1,491

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 30/6/2015 $A’000
		120
		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 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 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 $240,000 interest payment on Convertible Note)	$A’000
	470
	-
	-
	580
Total	1,050

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)	30/6//2015	31/3/2015
to the related items in the accounts is as follows.	$A’000	$A’000
5.1 Cash on hand and at bank	492	1,068
5.2 Deposits at call	1,000	1,000
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter(item 1.22)	1,492	2,068

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	25347 25716	Exploration Permit (2 sub-blocks) Exploration Permit (9 sub-blocks)	0% 0%	100% 100%

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
	N/A N/A	N/A N/A	N/A per Note 3 below – all fully paid N/A	N/A per Note 3 below – all fully paid N/A
7.5 +Convertible debt securities (description)	$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

• See chapter 19 for defined terms.

Appendix 5B Page 4

Appendix 5B Mining exploration entity quarterly report

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	(a) $1,500,000 Issued to Aukong International Mining Investment Co. Limited on 10 June 2015. (b) ($1,500,000) Redeemed by Armstrong Industries HK Limited on 11 May 2015. See Note 6 for further information.	(a) Nil (b) Nil	(a) $0.03 (b)$0.20	(a) $1 (b)$1
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
	25,000	N/A	$0.15	17 December 2016
7.11 Debentures (totals only)	N/A	N/A	N/A	N/A
7.12 Secured Loan (totals only)	$1,500,000 Note 8	N/A	N/A	6thFebruary 2017

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.

==> picture [100 x 39] intentionally omitted <==

Sign here: ............................................................ Date: 31[st] July 2015 (Company secretary)

Print name: Jacqueline Butler

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 5

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. The $1,500,000 convertible notes were redeemed by Armstrong Industries HK Limited on 11 May 2015.

On 16 August 2013 the Company received $3,000,000 from Marvel Network Limited in the form of a 3 year unsecured 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 shares if the share price is 11 cents per share or more at maturity.

On 16 August 2013 the Company received $3,000,000 from Cloud Adventurer Limited in the form of a 3 year unsecured 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 shares if the share price is 11 cents per share or more at maturity.

• See chapter 19 for defined terms.

Appendix 5B Page 6

Appendix 5B Mining exploration entity quarterly report

On 10[th] June 2015 the Company received $1,500,000 from Auskong International Mining Investment Co. Limited in the form of a 12 month unsecured convertible note. The convertible notes may be redeemed or converted into 50,000,000 ordinary shares if the share price is $0.03 per share or more at maturity. There is no interest payable on the convertible notes.

There have been no further convertible notes issued during the Quarter to 30/6/2015.

• 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 30/6/2015. 148,225,585 previously escrowed shares were released from escrow on 9[th] January 2015. In addition, 30,000,000 shares were issued on 17[th] February 2015, at 5 cents per share, via a share placement.

• 8 On 30[th] March 2015, Taimetco International Co., Limited (‘Taimetco’) advanced $750,000 to MGT Mining Ltd as Tranche 1 of the $1,500,000 secured loan agreement entered into and announced to the ASX on 6[th] February 2015. On the 31[st] March 2015, MGT Resources Limited paid MGT Mining Ltd Tranche 2 of $750,000 on behalf of Taimetco International Co., Limited and in settlement of the termination fee of $750,000 for exiting the off-take agreement between MGT Resources Limited and Taimetco. Following these transactions, the secured loan owing to Taimetco from MGT Mining Limited as at the end of the quarter to 30/6/2015 is $1,500,000.

== == == == ==

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 7