AVIRA RESOURCES LTD — Interim / Quarterly Report 2014

Jan 21, 2015

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QUARTERLY REPORT

December 2014

December Quarterly Report Exploration Activities Report Quarter ended 31[st] December 2014

ASX CODE MGS

During the December quarter MGT Resources Limited (MGT, ASX:MGS) has been finalising funding arrangements as set out in the notice of meeting to shareholders announced to the ASX on 15[th] January 2015 which will allow the continued financing of our projects going forward. There has been and will continue to be minimal exploration activity while funding arrangements are being finalised and until shareholder approval is obtained for such arrangements on 16[th] February 2015.

REGISTRY

Computershare

SHARES ON ISSUE

288,157,040

HIGHLIGHTS

• MGT announced on the 19[th] December 2014 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 to be approved by shareholders at a general meeting on 16[th] February 2015

Tin Price: US$19,345/t Gold Price: US$1,293/oz

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

• EPM19554 “Pyramid 3” was granted on the 16[th] of December 2014. This forms part of the Pyramid Project and covers areas along strike from the structure of interest

• Planning has begun for a drilling programme at Pyramid to be conducted after the wet season ends

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

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

Continuing work towards a new resource estimate for Dalcouth

MGT, through its 89.48% owned subsidiary MGT Mining Limited (MGTM) had been working towards developing a new resource estimate for the Dalcouth prospect. Collation of drilling information is nearing completion. 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

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

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

During the December quarter preliminary 3D modelling was conducted on the Gettysberg prospect to define targets for expansion of the mineralised zone. These targets and soil sampling conducted in the previous quarter will be used to assist design for further drilling at the prospect.

On December 16[th] 2014, EPM19554 (“Pyramid 3”) was granted. The EPM covers ground primarily to the northeast and southwest of the main Pyramid Project area. This new area is along strike in both directions from the prospective structural corridor which the Gettysberg and other prospects are located on.

Next Steps

MGT is in the process of planning a drilling programme at the Pyramid Project which will be conducted upon approval of the funding agreement and the finish of the wet season. The programme will focus on expanding the resource at Gettysberg, as well as testing new areas of interest.

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 December quarter.

3. MGT CORPORATE

3.1 Cash

Cash at hand as at 31st December 2014 was $0.58 million.

ASX ANNOUNCEMENT

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

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3.2 Tin Market Summary

The latest ‘Tin monitor’ CRU Group release indicates that the “Tin Price has been recovering since the price drop below US$19,000/t just before Christmas. However, as the Australian dollar has rapidly weakened against the US$ in the last 6 month, for Australian producers the tin price basically remains the same. There is very little growth in the demand side but the supply side has had a surprising outburst from Myanmar and Indonesia in the last 2 month of 2014.”

ENDS

Investor and media enquiries:

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

ABOUT MGT RESOURCES

MGT is an Australian mining and exploration company listed on the Australian Securities Exchange (ASX:MGS). The board’s corporate objective is to build MGT into a fully-fledged tin mining company. The company’s strategy to achieve this is to develop short-term cash flow from its existing projects.

ABOUT THE SUMMER HILLS TIN PROJECT

MGT’s flagship Summer Hills Tin Project is located a three hour 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 and a shipment of tin was sent the following month to a London Metals Exchange approved smelter in Asia.

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 such as Dalcouth, Extended, Summer Hill, Viking, May Day and Padstow.

ASX ANNOUNCEMENT

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

3

Appendix 1

Mining tenements held at the end of the quarter and their location:

State	Tenement Name	Tenement ID	Location	Interest	Holder	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 Extended	EPMA 25347	Mt Garnet	89.48%	MGTM	Application
QLD	Nymbool West	EPMA 25690	Mt Garnet	89.48%	MGTM	Application
QLD	FuzzyHill	EPMA 25716	Mt Garnet	89.48%	MGTM	Application
QLD	Pyramid	EPM 12887	Drummond	89.48%	MGTM	Granted
			Basin
QLD	Pyramid 3	EPMA 19554	Drummond	89.48%	MGTM	Granted
			Basin
QLD	MGT North	EPMA 25154	Drummond	100%	MGS	Application
			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

Beneficial percentage interests held in farm-in or farm-out agreements at end of the quarter:

• Not applicable this quarter

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter:

• Not applicable this quarter

Abbreviations
EPMA	Exploration Permit for Minerals Application
EPM	Exploration Permit for Minerals
MLA	MiningLease Application
ML	MiningLease
MGS	MGT Resources Limited
MGTM	MGT MiningLimited,an unlisted Australianpublic company
QLD	Queensland,Australia

ASX ANNOUNCEMENT

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”) 31 December 2014	Quarter ended (“current quarter”) 31 December 2014
			31 December 2014
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 R&D Tax Rebate 1.72 Other Net Operating Cash Flows		Current quarter 31/12/2014 $A’000		Year to date (6 months) $A’000
		(272) - - (283) - 8 (120) - - 9		(611) - - (833) - 18 (360) - 35 9
		(658)		(1,742)
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)		- - - - - - - - -		- - - - - - - - -
		(658)		(1,742)

• 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)	(658)	(1,742)
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	(658) 1,234	(1,742) 2,318
	576	576

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 31/12/2014 $A’000
		36
		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
	150
	-
	-
	330
Total	480

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)	31/12/2014	30/09/2014
to the related items in the accounts is as follows.	$A’000	$A’000
5.1 Cash on hand and at bank	326	334
5.2 Deposits at call	250	900
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter(item 1.22)	576	1,234

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	N/A	N/A	N/A	N/A
	19554	Exploration Permit (14 sub-blocks)	0%	100%

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

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 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	$0.0875 $0.20 $0.11 $0.11	$1 $1 $1 $1
	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

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	Nil	Exercise price $0.15 $0.15	Expiry date 7 November 2016 17December 2016
	N/A	N/A	N/A	N/A
	N/A	N/A	N/A	N/A
	300,000 2,250,000 1,200,000 50,000	N/A	$0.30 $0.30 $0.20 $0.15	17 October 2014 25 November 2014 25 November 2014 17 December 2016
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.

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Sign here: ............................................................ Date: 22[nd] January 2015 (Company secretary)

Print name: Jacqueline Butler

Notes

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 5

Appendix 5B Mining exploration entity quarterly report

• 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.

There have been no additional convertible notes issued during the Quarter to 31/12/2014.

• See chapter 19 for defined terms.

Appendix 5B Page 6

Appendix 5B Mining exploration entity quarterly report

• 7 There are 288,157,040 fully paid ordinary shares on issue, with 139,931,455 quoted on the ASX as at the end of the quarter to 31/12/2014. The remaining 148,225,585 shares are fully paid ordinary shares that were restricted and remained escrowed for 24 months from the date of quotation until 9[th] January 2015. On the 9[th] January 2015 the remaining 148,225,585 fully paid ordinary shares were released from escrow.

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• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 7