AVIRA RESOURCES LTD — Interim / Quarterly Report 2015

Apr 22, 2015

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QUARTERLY REPORT

March 2014

March Quarterly Report Exploration Activities Report Quarter ended 31[st] March 2015

ASX CODE MGS

During the March quarter, MGT Resources Limited (MGT, ASX:MGS) finalised funding arrangements with Auskong International Mining Investment Co., Limited following shareholder approval obtained at a general meeting held on the 16[th] February 2015. After this date MGT resumed exploration at its Pyramid and Mt Garnet Projects.

REGISTRY

Computershare

SHARES ON ISSUE

HIGHLIGHTS

318,157,040

• MGT announced in the last quarter that it has entered into an Investments and Implementation Agreement with Auskong International Mining Investment Co., Limited for up to $4.2M of new funding. This was approved by shareholders at a general meeting on 16[th] February 2015.

• MGT received positive gold assay results for soil sampling conducted at the Pyramid Project. Gold values greater than 50 ppb (parts per billion gold) occur along the whole West Pyramid range structure, with significant zones greater than 100 ppb. Extremely anomalous samples with 1500 ppb i.e. 1.5 ppm gold, were also found

Tin Price: US$15,520/t Gold Price: US$1,187/oz

• Two new EPMs were granted during the quarter: EPM25154 ‘Pyramid 2’ - 49 sub-blocks at the Pyramid Project and EPM25690 ‘Nymbool West’ – 11 sub-blocks at the Mt Garnet Project.

• Follow-up work at Pyramid was conducted during the quarter and involved infill soil sampling, rock chip sampling and assessing potential drill targets with the view to a drilling programme mid-year.

• 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

MGT has cash reserves of $2M as at 31st March 2015.

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 to increasing the confidence and size of the JORC resource.

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

New Exploration Permit granted

On the 30[th] March 2015, EPM25690 (“Nymbool West”) was granted for a term of 5 years. The EPM covers 11 sub-blocks to the west of the Nymbool tenement and contains numerous tin, copper and tungsten occurrences.

Potential exists for a number of styles of tin mineralisation within the application area including greisen mineralisation with the apical portions of intrusives, lode style mineralisation within fractures in the granites and skarn/lode mineralisation within favourable lithologies/structures in Chillagoe Formation sediments. An iron occurrence with an associated airborne magnetic anomaly in the southern part of the application areas is suggestive of possible skarn development.

MGT has received notices from the Department of Natural Resources and Mines indicating that two other new Exploration Permits in the area will soon be progressed to grant.

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

Soil sampling programme reveals gold anomalies along 5 km structure

Last year, MGT conducted a soil sampling programme at Pyramid (EPM12887) over the arsenic-gold prospective trend that extends 5km from the Sellheim Prospect in the northeast to the Pradesh Prospect in the southwest covering an area of approximately 6.66 km[2] .

A total of 550 samples of -80 mesh (180 micron) sieved fraction were collected along 200 m spaced lines with a sample spacing of 50 m. Samples were initially analysed for base metal and major elements in Townsville using a Niton Portable XRF bench top analysis. The 40 elements that can be collected reliably on the XRF were analysed, including copper, lead, zinc and arsenic.

In previous soil sampling in the area, gold is closely correlated with arsenic. Since the portable XRF results returned positive arsenic anomalies, samples were sent to ALS for gold assay using an aqua regia extraction with ICPMS finish. During the March quarter the final gold assay results were received.

The results of the soil sampling survey show that the previously identified northeast trending goldbearing structure is clearly delineated in the arsenic results, which were obtained using the portable XRF. This structure is of regional significance, marking as it does the boundary between the Drummond Group volcano-sedimentary units and the older horst block of Anakie Metasediments (graphitic schists and sandstones) with some intervening limey units of the Ukalunda formation.

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Figure One: Contoured laboratory-assayed gold geochemical anomalies identified from soil sampling programme.

Laboratory-assayed gold values greater than 50 ppb gold occur along the whole West Pyramid range structure, with significant zones greater than 100 ppb gold up to extremely anomalous samples with

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1500 ppb (1.5 ppm) gold (see Fig. 1). There are obvious gaps with little information to the north of Sellheim and south to Pradesh, both areas having anomalous gold values at the end of the lines. Also, significant is the highly anomalous gold zone on the eastern side of the outcropping Anakie Metamorphics, suggesting there is a subparallel gold-bearing structure developed on both sides of the horst block.

Next Steps

Follow up infill soil and rock chip sampling of identified anomalies has recently been completed. MGT is currently awaiting the first results from this work. This work is being conducted to identify drill targets for a drilling programme planned to take place mid-year.

21 additional soil lines were designed to cover the zone from Pradesh to Sellheim with some lines extended to close off already identified anomalies. While collection of these samples took place, follow up of identified anomalies was also conducted. In addition a number of areas were prospected and rock chipped including: the zone between Gettysberg and Sellheim; the zone between Gettysberg and Marrakesh; and the eastern side of the Anakie block down to the south to Pradesh.

New Exploration Permit granted

On the 23[rd] of February 2015, EPM25154 (‘Pyramid 2’) was granted for a period of five years. The EPM covers an extensive area of 49 sub-blocks and consists of two areas to the west and the north of the main Pyramid Project area (EPM12887). The granting of this permit expands the area of ground that MGT holds at the Pyramid Project to approximately 255 km[2] . Part of the new tenure covers the Saint Anns Formation, which is prospective for epithermal gold mineralisation and host to a number of deposits in the region, including Pajingo, Yandan, Wirralie and Twin Hills.

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

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

3. MGT CORPORATE

Cash

Cash at hand as at 31[st] March 2015 was $2M.

Tin Market Summary

The latest ‘Tin monitor’ CRU Group release (16 April 2015) indicates that the downward trend in tin prices has been driven by the strong US Dollar, oversupply from China and additional supply from Myanmar. It is predicted that prices in the short term will continue to weaken as overall market sentiment remains bearish. The Chinese over-supply looks set to continue in the short-term.

‘Tin monitor’, CRU Group, 16 April 2015

ENDS

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Investor and media enquiries:

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

Appendix 1

Mining 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	EPMA 25347	Mt Garnet	89.48%	MGTM	Application
	Extended
QLD	Nymbool West	EPM 25690	Mt Garnet	89.48%	MGTM	Granted
QLD	FuzzyHill	EPMA 25716	Mt Garnet	89.48%	MGTM	Application
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, anunlistedAustralianpublic company
QLD	Queensland,Australia

Competent Persons statement

The Exploration Results presented here are extracted from the following report; ‘Soil sampling programme reveals gold anomalies along 5km structure’, 20[th] April 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”) 31 March 2015	Quarter ended (“current quarter”) 31 March 2015
			31 March 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 1.72 R&D Tax Rebate Settlement Sum for termination of off-take agreement with Taimetco (Note 8) 1.73 Other Net Operating Cash Flows		Current quarter 31/3/2015 $A’000		Year to date (9 months) $A’000
		(168) - - (354) - 4 (240) - - (750) 1		(779) - - (1,187) - 22 (600) - 35 (750) 10
		(1,507)		(3,249)
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) - - - - - -
		(1,508)		(3,250)

• 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)	(1,508)	(3,250)
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 Proceeds from secured loan (Note 8) 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	1,500 - - 1,500 - -	1,500 - - 1,500 - -
	3,000	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	1,492 576	(250) 2,318
	2,068	2,068

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 31/3/2015 $A’000
		66
		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	$A’000
	560
	-
	-
	250
Total	810

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)	31/3/2015	31/12/2014
to the related items in the accounts is as follows.	$A’000	$A’000
5.1 Cash on hand and at bank	1,068	326
5.2 Deposits at call	1,000	250
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter(item 1.22)	2,068	576

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	25690 25154	Exploration Permit (11 sub-blocks) Exploration Permit (49 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
	30,000,000 N/A	178,225,585 Note 7 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	$0.0875 $0.20 $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	N/A	N/A	N/A	N/A
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 1,075,000 1,200,000	Nil	Exercise price $0.15 $0.15 $0.05	Expiry date 7 November 2016 17 December 2016 31 December 2015
	1,200,000	N/A	$0.05	31 December 2015
	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	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.

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Sign here: ............................................................ Date: 23[rd] April 2015 (Company secretary)

Print name: Jacqueline Butler

• 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.

• See chapter 19 for defined terms.

Appendix 5B Page 6

Appendix 5B Mining exploration entity quarterly report

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 31/3/2015.

• 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 31/3/2015. 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 31/3/2015 is $1,500,000.

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• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 7