AVIRA RESOURCES LTD — Interim / Quarterly Report 2016

Apr 26, 2016

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QUARTERLY REPORT

March 2016

March Quarterly Report Exploration Activities Report Quarter ended 31[st] March 2016

During the March quarter, MGT Resources Limited (MGT, ASX:MGS) finalised the Dalcouth resource update and conducted a soil sampling program at Mt Steadman, and focused on capital restructuring.

ASX CODE

MGS

REGISTRY

Computershare

HIGHLIGHTS

• During the quarter, MGT’s focus has been on capital restructuring including entering into a term sheet with Cloud Adventurer Limited and Marvel Network Limited to convert their $6,000,000 outstanding convertible notes into preference shares and options.

SHARES ON ISSUE

342,157,040

• MGT also commenced its pursuit of its new strategy of investment in uranium mining assets via the purchase of $2,000,000 Cauldron Energy Limited ordinary shares.

• The Dalcouth mineral resource tonnage has been increased by 385% to 495,000 t @ 0.31% Sn

Tin Price: US$17,478/t Gold Price: US$1,245/oz

• The JORC confidence level has increased from Inferred level. Over 80% of the mineral resource is now classified as Measured Resource with the remainder now classified as Indicated Resource.

• Geological modelling using Leapfrog[TM] has increased our understanding of the controls of mineralisation and identified areas that could be drilled to extend mineralised zones.

• An infill soil sampling and rock chip sampling program was conducted at Mt. Steadman. Some encouraging gold results were returned suggesting that the Fitzroy Main gold anomaly may extend further to the south and lending support for further work to be conducted there and at the Fitzroy North prospect, and Venus and London workings.

MGT has cash reserves of $636,000 as at 31[st] March 2016.

MGT

Resources Limited 1305/109 Pitt St 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

Dalcouth resource tonnage increases by 385%

During the March Quarter MGT Resources Limited (MGT or The Company; ASX:MGS), through its 89.48% owned subsidiary MGT Mining Limited finalised an updated Mineral Resource estimate for the Dalcouth Prospect (located within the Summer Hills Mining Lease, ML20547). This was released to the market on 19[th] April 2016, subsequent to the end of the Quarter. The new estimate was updated to include extensive infill and expansion drilling that MGT has conducted at the prospect. The combined Dalcouth Measured and Indicated Mineral Resource now stands at 495,000 t @ 0.31% Sn , an increase of 341% contained tin over the 2011 Mineral Resource (385% increase in tonnage).

Dalcouth Mineral Resource Summary (0.1% Sn lower cut off)	Dalcouth Mineral Resource Summary (0.1% Sn lower cut off)	Dalcouth Mineral Resource Summary (0.1% Sn lower cut off)	Dalcouth Mineral Resource Summary (0.1% Sn lower cut off)
	ktonnes	Sn %	Sn tonnes
MeasuredResource	408	0.32	1306
IndicatedResource	87	0.24	209
Total Resource	495	**0.31 **	1535

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Figure 1 : Dalcouth block model on topography (Sn cut-off >0.1%)

Modelling and estimation was provided by Tim Callaghan, who calculated the previous 2011 resource estimate: 102,400 t @ 0.34% Sn Inferred Resource. The mineral resource estimate is classified in accordance with the JORC (2012) guidelines. For full details please refer to the ASX announcement dated 19[th] April 2016.

This improvement in the JORC confidence level, from the 2011 inferred resource, is a result of work undertaken by MGT to increase the geological understanding of the Dalcouth area through drilling of diamond core holes, detailed geological mapping, geological modelling, petrographic studies and bulk density measurements. In addition MGT conducted extensive QAQC work including independent laboratory analyses to verify results.

Improved geological model of Dalcouth

The geological model of the Dalcouth deposit is much improved since the 2011 resource estimation. A significantly increased amount of accurate geological information derived from 10m sectional RC drilling has greatly assisted the geological understanding of the deposit. The drilling programs have been complemented by detailed surface mapping, petrographic and metallurgical studies and a Leapfrog[TM] geological interpretation.

Tin mineralisation of the Dalcouth deposit is hosted in Hodgkinson Formation turbiditic sandstones and siltstones. The sediments have been strongly deformed into complexly faulted northwestsoutheast, north-south and northeast-southwest trending folds. A rhyolite intrusive is spatially associated with the three main mineralised zones, and is clearly important to the formation of the deposit, although a genetic association has not yet been established.

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Figure Two : Quartz percentage and rhyolite intrusive association with Sn mineralisation. Sectional Leapfrog[TM] modelling showing the three zones of mineralisation. >800ppm modelled Sn is shown in light blue. Quartz percentage values are shown overlaying modelled tin (0.5-1% QV- yellow, 1-2% QVorange, >2% QV- red). The Correlation between quartz veining and Sn mineralisation is evident. The modelled rhyolitic body is shown in dark blue and the close association between this intrusive and the western zone of mineralisation is clear.

Mineralisation is hosted in fine anastomosing quartz-cassiterite veins and fractures associated with strong chlorite alteration of the host rock. Chlorite alteration presents as strong hematite development within the weathered zone. Quartz veining, rhyolite intrusives and mineralisation are associated with a northwest trending, steeply southwest dipping fracture zone.

Mineralisation extends northwest over 350m in length and achieves a maximum width of 130m at the southeast end, possibly representing a dilation zone. The main Dalcouth area consists of three main structural zones of mineralisation, the Western Zone, Central Zone and Eastern Zone (see figure 2). Each zone consists of multiple stacked lenses of mineralisation. The three zones merge in the centre of the deposit. Mineralisation is less complex and more constrained northwest of this point, but this may possibly be a function of broader drillhole spacing.

2. SOUTHERN QUEENSLAND PROJECTS (MGT 89.48%)

Includes Yarrol EPM 8402; Mt Steadman EPM 12834; Gooroolba EPM 15426

During the quarter, a small soil sampling program was conducted at the Mt Steadman tenement.

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Figure Three: Infill soil sampling at the Fitzroy Main prospect, Mt Steadman. New infill soil results are overlayed on historical Probe Resources Ltd contours. Gold assays show good consistency with previous results, however a 1.2g/t gold result in the southernmost line extends the gold anomaly further to the south. Opportunistic rock sampling locations and best results are also shown.

Infill soil sampling and rock chip sampling was conducted at the Fitzroy Main and Fitzroy North gold prospects (see appendix 2 for more details). Previous sampling by historical holders had been on a 50m spacing, and MGT collected ten infill lines of soil samples at 25m spacing, in order to better define and validate the mineralised zone. Additional reconnaissance work at the nearby historical Venus and London Gold Mine workings was also conducted.

Previous drilling has been conducted at these prospects by the Probe Resources Ltd/CRAE Joint Venture, including 17 RC and diamond core holes to test for gold at the Fitzroy Main and Fitzroy

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South prospects. Probe expanded the CRAE soil grid and drilled 22 RC holes for a total of 1120m into the Fitzroy Main Zone, Fitzroy North, and London and Venus areas. A number of these holes were drilled beneath the soil gold anomalies. The two drilling programs resulted in an indicated resource of 1,170,000 tonnes @ 0.95 g/t gold. In 2006, Diatreme Resources Ltd drilled seven RC holes (980m) at the London, Steadman and Venus workings.

The 65 soil samples submitted to ALS Orange were analysed for gold using a fire assay technique, and molybdenum and arsenic using an ICPAES technique. Gold assays ranged up to 1.56g/t and showed good consistency with previous gold-in-soil assay contours on most infill sampling lines at Fitzroy Main (see figure 3). Of most interest is a 1.2 g/t gold result on the southernmost line, which may extend the gold anomaly further to the south in future sampling.

Infill soil sampling at Fitzroy North was conducted to further define the existing gold anomaly and establish, if possible, local quartz veining orientations. Gold results seemed inconsistent with previously drawn contours around existing anomalies, however a 0.57g/t Au assay and a 0.41 g/t Au ppm assay lend support for further work at this prospect.

The 16 rock samples submitted were analysed for gold using a fire assay technique and molybdenum and arsenic using a ICPAES technique. Sampling was opportunistic. Significant gold values occurred in quartz veining sampled at Fitzroy Main including samples with 9.42 g/t Au, 3.67 g/t Au and 13.5 g/t Au (see figure three). Two of the samples taken from Fitzroy North, from an in-situ aplite dyke and granite with a large quartz vein contained 2.89 g/t Au and 4.85 g/t respectively.

Opportunistic samples taken from mine dumps at the Venus and London workings also returned significant gold results including 2.08 g/t Au, 3.95 g/t Au, 6.4 g/t Au and 15.95 g/t Au. The latter sample contained visible gold and was taken from the Venus workings.

The recording of both east-west and northeast-southwest oriented quartz vein sets, with moderate to steep easterly dips, at the Fitzroy Main, Fitzroy North and Venus and London gold workings suggests that future drill hole planning should take both trends into consideration.

3. NYMBOOL PROJECT, QUEENSLAND (MGT 89.48%)

Includes Heads or Tails ML20655; Nymbool EPM16948; Nymbool West EPM25690; Fuzzy Hill EPM25716; Nymbool Extended EPM25347

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

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

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

No significant exploration work was undertaken on the Pyramid Project during the March quarter.

5. MGT CORPORATE

Cash

Cash at hand as at 31st March was $636,000.

The Mt Garnet tin project continues to be on care and maintenance.

During the last quarter, MGT’s focus has been on capital restructuring including entering into a term sheet with Cloud Adventurer Limited and Marvel Network Limited to convert their $6,000,000 outstanding convertible notes into preference shares and options.

MGT also commenced its pursuit of its new strategy of investment in uranium mining assets via the purchase of $2,000,000 Cauldron Energy Limited ordinary shares as announced to the market on 24[th] March 2016.

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A notice of meeting will be circulated to shareholders in due course and a general meeting to approve the above is expected to take place in mid to late June 2016.

Competent Person Statements

Information in this report related to exploration results or mineral resources are based on information compiled by MGT technical staff and checked by Max Rangott of Rangott Mineral Exploration Pty Ltd, who is a member of both the AIG and the AusIMM. Mr Rangott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’. Mr Rangott consents to the inclusion in the report of the statements based on the information in the form and context in which it appears.

Information in this report related to Mineral Resources is extracted from the following report: “MGT increases Dalcouth mineral resource tonnage by 385%, 19[th] April, 2016. This report is 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.

ENDS

Investor and media enquiries:

Gary Kuo Managing Director, 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
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	MiningLease Application
ML	MiningLease
MGS	MGT Resources Limited
MGTM	MGT MiningLimited,an unlisted Australianpublic company
QLD	Queensland,Australia

Appendix 2

JORC CODE TABLE 1: Soil and Rock sampling results

Section 1: Sampling Techniques and Data

Criteria	Explanation		Commentary
Sampling techniques	Nature and quality of sampling (e.g.	cut	Sampling results are from infill soil
	channels, random chips, or specific		sampling and opportunistic rock chip
	specialised industry standard		sampling.
	measurement tools appropriate to	the
	minerals under investigation, such	as
	down hole gamma sondes, or handheld
	XRF instruments, etc.) These examples
	should not be taken as limiting the broad
	meaning of sampling.
	Include reference to measures taken to		Infill soil sampling was planned at 25
	ensure sampling representivity and	the	metre-spaced sample points. Several
	appropriate calibration of	any	sample points were relocated on the job
	measurement tools or systems used.		owing to boulder scree, tree cover, and
			tree roots interfering with the ‘planned’
			sample location. Some other planned
			points were found to occur close to an
			access track cut face, and were relocated
			to enable samplingof a clearlyexposed

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Criteria	Explanation	Commentary
		soil profile.
		Rock chip sampling was opportunistic		and
		should not be regarded as representative
		of grades in the prospect as a whole.
	Aspects of the determination of	Most of the soil samples	were sieved in
	mineralisation that are Material to the	the field to a minus 2.36mm fraction.
	Public Report. In cases where ‘industry	However, consistent rainfall on the		first
	standard’ work has been done this would	day resulted in twelve sample locations
	be relatively simple (e.g. ‘reverse	with damp soil being encountered,		and
	circulation drilling was used to obtain 1m	the samples were sieved to a minus 7mm
	samples from which 3kg was pulverised	fraction to be later dried before re-sieving
	to produce a 30g charge for fire assay’).	to minus 2.36mm fraction.
	In other cases more explanation may be
	required, such as where there is coarse	Each soil sample was analysed using fire
	gold that has inherent sampling problems.	assay with an AAS finish (Au-AA22).
	Unusual commodities or mineralisation	Analyses were conducted by Australian
	types (e.g. submarine nodules) may	Laboratory Services Ltd.	Samples were
	warrant disclosure of detailed information.	also analysed for	arsenic	and
		molybdenum using an ICPAES technique
		(ME-ICP41).
		Each rock sample was	pulverised,	and
		then analysed for	arsenic	and
		molybdenum using a	multi-element
		ICPAES technique (ME-ICP41). Gold		was
		analysed using an ore-grade technique;
		fire assay with an AAS finish.
Drilling techniques	Drill type (e.g. core, reverse circulation,	No drilling conducted.
	open-hole hammer, rotary air blast,
	auger, Bangka, sonic, etc.) and details
	(e.g. core diameter, triple or standard
	tube, depth of diamond tails, face-
	sampling bit or other type, whether core is
	oriented and if so, by what method, etc.)
Drill sample recovery	Method of recording and assessing core	No drilling conducted.
	and chip sample recoveries and results
	assessed.
	Measures taken to maximise sample	No drilling conducted
	recovery and ensure representative
	nature of the samples.
	Whether a relationship exists between	No drilling conducted.
	sample recovery and grade and whether
	sample bias may have occurred due to
	preferential loss/gain of fine/coarse
	material.
Logging	Whether core and chip samples have	No drilling conducted.
	been geologically and geotechnically
	logged to a level of detail to support
	appropriate Mineral Resource estimation,
	mining studies and metallurgical studies
	Whether logging is qualitative or	No drilling conducted.
	quantitative in nature. Core (or costean,
	channel etc.) photography.
	The total length and percentage of the	No drilling conducted.
	relevant intersections logged.
Sub-sampling	If core, whether cut or sawn and whether	No drilling conducted.
techniques and	quarter, half or all core taken.
sample preparation
	If non-core, whether riffled, tube sampled,	No drilling conducted.
	rotary split, etc. and whether sampled wet
	or dry.
	For all sample types, the nature, quality	The sample preparation	was conducted
	and appropriateness of the sample	according to industry best	practice.
	preparation technique.

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Criteria	Explanation	Commentary
	Quality control procedures adopted for all	No QAQC procedures adopted.
	sub-sampling stages to maximise
	representativity of samples.
	Measures taken to ensure that the	No duplicates taken.
	sampling is representative of the in situ
	material collected, including for instance
	results for field duplicate/second-half
	sampling.
	Whether sample sizes are appropriate to	The sample size is deemed to appropriate
	the grain size of the material being	for the material sampled.
	sampled.
Quality of assay data	The nature, quality and appropriateness	Assays were conducted at	ALS
and laboratory tests	of the assaying and laboratory	Laboratories using an ICPAES	multi-
	procedures used and whether the	element technique (method ICP-41). Gold
	technique is considered partial or total.	was analysed using a fire	assay
		technique with an AAS finish (AU-AA22)
		The fire assay technique is considered
		total, while ICP-41 is partial.
	For geophysical tools, spectrometers,	No additional tools were used.
	handheld XRF instruments, etc. the
	parameters used in determining the
	analysis including instrument make and
	model, reading times, calibration factors
	applied and their derivation, etc.
	Nature of quality control procedures	One commercial standard sample was
	adopted (e.g. standards, blanks,	submitted in the soil sample batch,	which
	duplicates, external laboratory checks)	gave a gold value within 1% of its nominal
	and whether acceptable levels of	value.
	accuracy (i.e. lack of bias) and precision
	have been established.	The laboratory also included 7 standards
		in the soil sample batch, and 8 standards
		with the rock sample batch, and all
		reported within their nominated upper and
		lower bounds.
Verification of	The verification of significant intersections	No verification has been conducted.
sampling and	by either independent or alternative
assaying	company personnel.
	The use of twinned holes.	None.
	Documentation of primary data, data	Data is collected by qualified geologists
	entry procedures, data verifications, data	and experienced field assistants.
	storage (physical and electronic)
	protocols.	Data is stored as ALS format certificates.
		Data is stored on a server in the
		Company’s head office, with regular
		backups and archival copies of the
		database made.
	Discuss any adjustment to assay data.	No adjustments are made to the	data.
		Data is in its original raw format.
Location of data	Accuracy and quality of surveys used to	Locations were recorded handheld GPS
points	locate drill holes (collar and down-hole	with positional accuracy of approximately
	surveys), trenches, mine workings and	±5m.
	other locations used in Mineral Resource
	estimation.
	Specification of the grid system used.	Coordinate system is UTM Zone 56 and
		datum is GDA94
	Quality and adequacy of topographic	No Digital Terrain Model available.
	control.
Data spacing and	Data spacing for reporting of Exploration	Infill soil sampling was conducted at 25m
distribution	Results.	spaced sample points (midway between
		the historical 50m spaced 1995	CRA
		sample lines).
	Whether the data spacing and distribution	Further work is necessary.
	is sufficient to establish the degree of

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Criteria	Explanation	Commentary
	geological and grade continuity
	appropriate for the Mineral Resource and
	Ore Reserve estimation procedure(s) and
	classifications applied.
	Whether sample compositing has been	Not applicable.
	applied.
Orientation of data in	Whether the orientation of sampling	The orientation of sampling lines is
relation to geological	achieves unbiased sampling of possible	considered appropriate.
structure	structures and the extent to which this is
	known, considering the deposit type.
	If the relationship between drilling	No drilling has been conducted.
	orientation and the orientation of key
	mineralised structures is considered to
	have introduced a sampling bias, this
	should be assessed and reported if
	material.
Sample security	The measures taken to endure sample	Chain of custody was managed by
	security.	Rangott Mineral Exploration Pty Ltd.
		Samples were transferred by them to
		ALS.
Audits or reviews	The results of any audits or reviews of	To date there has not been an audit of
	sampling techniques and data.	samplingtechniques and data.

Section 2: Reporting of Exploration Results

Mineral tenement and	Type,	reference name/number, location	reference name/number, location	reference name/number, location	reference name/number, location	EPM12834 ‘Mt Steadman’ is 100% held
land tenure status	and ownership including agreements or					by MGT Mining Ltd.
	material issues with		third parties such as
	joint ventures, partnerships, overriding					There is a 5% royalty agreement in place
	royalties, native title interests, historical					with Equatorial Coal Ltd.
	sites,	wilderness	or national		and
	environmental settings.
	The security of the tenure held at the				time	EPM12834 has recently been granted
	of reporting along with			any known		renewal for a further period of three
	impediments to obtaining			a license to		years. The tenure is considered secure.
	operate in the area.
Exploration done by	Acknowledgement		and	appraisal	of	The Mt Steadman mines (Mt Steadman,
other parties	exploration by other parties.					Venus and London) were worked mainly
						between 1891 and 1902. Some desultory
						operations took place during the 1920s,
						30s and 40s.
						Exploration drilling was undertaken by
						Homestake Australia Ltd/ MF Davidson
						JV in 1991 at the London/Venus/Mt
						Steadman workings.
						Soil sampling by M F Davidson (1992-
						1994) on the western slope of Mt
						Steadman led to the discovery of an
						intense sheeted quartz vein system, later
						named the Fitzroy Prospect.
						CRAE completed programs of geological
						mapping, soil geochemistry, ground
						magenetics and RC and Diamond drilling
						over the Fitzroy Prospect in 1995. Probe
						Resources NL then went on to expand
						the CRAE soil grid and commission a
						detailed interpretation of the ground
						magnetics. They then completed a 1120
						RC drilling program (22 holes) into the
						Main Fitzroy Prospect, Fitzroy North,
						LondonandVenus. This drillingresulted

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		in an indicated resource estimate of
		approximately 1 million tonnes grading
		about 1 g/t gold to shallow depths. The
		gold mineralisation is spatially associated
		with a moderate to shallow dipping zone
		of sheeted quartz veining and alteration
		within a granite. Auriferous quartz veins
		have been mined at a number of other
		localities within the EPM.
		Strike Exploration Pty Ltd sponsored an
		honours student to establish a genetic
		model for the mineralisation at Mt
		Steadman in 1999.
		Diatreme Resources Ltd (2000-2006)
		conducted regional rock chip and soil
		sampling, as well as detailed geological
		mapping at the Fitzroy and Venus
		prospects. A drilling program of seven RC
		percussion holes (980m) was completed.
		Xtreme resources then completed a
		resource review in 2008.
Geology	Deposit type, geological setting and style	Exploration Permit for Minerals (EPM)
	of mineralisation.	12834 “Mount Steadman” covers part of
		the Chowey Goldfield and was acquired
		to explore mainly for gold but also for
		base metals.
		The tenement is considered prospective
		for porphyry-related copper-gold
		mineralisation, specifically gold-in-granite
		(IRG) style mineralisation hosted within
		the Permian Chowey Granite along the
		Bin Bin Range northwest of Biggenden,
		southeast Queensland.
		The Chowey Granite is a relatively small
		polyphase stock with a core of medium to
		coarse grained biotite-hornblende granite,
		which gives way to a highly potassic
		(syenitic) marginal phase. Aplite, porphyry
		and dolerite dykes intrude the granite.
		At the Fitzroy Prospect, gold
		mineralisation is associated with a
		moderately easterly dipping zone of
		sheeted quartz veining in the Chowey
		granite. The auriferous zone varies from
		4m to 33m in true thickness. The Chowey
		Granite is a relatively small polyphase
		stock with a core of medium to coarse
		grained biotite-hornblende granite, which
		gives way to a highly potassic (syenitic)
		marginal phase. Aplite, porphyry and
		dolerite dykes intrude the granite.
		Previous exploration drilling at the Fitzroy
		Gold Prospect on Mt Steadman resulted
		in a resource estimate of approximately 1
		million tonnes grading about 1 g/t gold to
		shallow depths. The gold mineralisation is
		spatially associated with a moderate to
		shallow dipping zone of sheeted quartz
		veiningand alteration within agranite.

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		Auriferous quartz veins have been mined
		at a number of other localities within the
		EPM.
Drill hole information	A summary of all information material to	No drilling conducted.
	the understanding of the exploration
	results including a tabulation of the
	following information for all Material drill
	holes:
	 Easting and northing of the drill hole
	collar
	 Elevation or RL (Reduced Level –
	elevation above sea level in metres)
	of the drill hole collar
	 Dip and azimuth of the hole
	 Down hole length and interception
	depth
	 Hole length
	If the exclusion of this information is
	justified on the basis that the information
	is not Material and this exclusion does not
	detract from the understanding of the
	report, the Competent Person should
	clearly explain why this is the case.
Data aggregation	In reporting Exploration Results,	Not applicable.
methods	weighting averaging techniques,
	maximum and/or minimum grade
	truncations (e.g. cutting of high grades)
	and cut-off grades are usually Material
	and should be stated.
	Where aggregate intercepts incorporate	No aggregate intercepts reported.
	short lengths of high grade results and
	longer lengths of low grade results, the
	procedure used for such aggregation
	should be stated and some typical
	examples of such aggregations be shown
	in detail
	The assumptions used for any reporting	No metal equivalents have been used in
	of metal equivalent values should be	reporting.
	clearly stated.
Relationship between	The relationships are particularly	Not applicable. No drilling conducted.
mineralisation widths	important in the reporting of Exploration
and intercept lengths	Results.
	If the geometry of the mineralisation with
	respect to the drill hole angle is known, its
	nature should be reported
	If it is not known and only the down hole
	lengths are reported, there should be a
	clear statement to this effect (e.g. down
	hole length, true width not known).
Diagrams	Appropriate maps and sections (with	No drilling conducted.
	scale) and tabulations of intercepts
	should be included for any significant
	discovery being reported. These should
	include, but not be limited to a plan view
	of drill hole collar locations and
	appropriate sectional views.
Balanced reporting	Where comprehensive reporting of all	Not applicable.
	Exploration Results is not practicable,
	representative reporting of both low and
	high grades and/or widths should be
	practised to avoid misleading reporting of
	Exploration Results.
Other substantive	Other exploration data, if meaningful and	Not applicable.
exploration data	material, should be reported including
	(but not limited to): geological
	observations; geophysical survey results;

ASX RELEASE

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

13

	geochemical survey results; bulk samples
	– size and method of treatment;
	metallurgical test results; bulk density,
	groundwater, geotechnical and rock
	characteristics; potential deleterious or
	contaminating substances.
Further work	The nature and scale of planned further	Further work is currently being planned
	work (e.g. test for lateral extensions or	based on funding arrangements.
	depth extensions or large-scale step-out
	drilling).
	Diagrams clearly highlighting the areas of	Not applicable at this time.
	possible extensions, including the main
	geological interpretations and future
	drilling areas, provided this information is
	not commercially sensitive.

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”) 31 March 2016	Quarter ended (“current quarter”) 31 March 2016
			31 March 2016
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 1.73 Other Net Operating Cash Flows		Current quarter 31/3/2016 $A’000		Year to date (9 months) $A’000
		(52) - - (335) - 2 (241) - -		(599) - - (960) - 10 (543) - -
		(626)		(2,092)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) exploration & evaluation (c) other fixed assets (d) Shares in Cauldron Energy Ltd (See note 6) 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		- - - (2,000) - - (2) - - -		- - - (2,000) - - 37 - - -
		(2,002)		(1,963)

• 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)	(2,628)	(4,055)
Cash flows related to financing activities 1.14 Proceeds from exercise of options 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from issue of converting notes (Note 6) 1.17 Proceeds from secured loan (Note 8) 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	- - 2,000 - - -	1,200 - 2,000 - - -
	2,000	3,200
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	(628) 1,264	(855) 1,491
	636	636

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 31/3/2016 $A’000
		105
		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
	95
	-
	-
	404
Total	499

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)	31/3/2016	31/12/2015
to the related items in the accounts is as follows.	$A’000	$A’000
5.1 Cash on hand and at bank	636	164
5.2 Deposits at call	-	1,100
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: cash at end of quarter(item 1.22)	636	1,264

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 N/A N/A N/A N/A 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.	6.2 Interests in mining tenements acquired or increased N/A N/A N/A N/A 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.	6.2 Interests in mining tenements acquired or increased N/A N/A N/A N/A 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.	6.2 Interests in mining tenements acquired or increased N/A N/A N/A N/A 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.	6.2 Interests in mining tenements acquired or increased N/A N/A N/A N/A 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	342,157,040	342,157,040 Note 7	Various	Various
	N/A N/A	N/A N/A	N/A N/A	N/A N/A
7.5 +Convertible debt securities (description)	1,500,000 1,500,000 3,000,000 3,000,000 2,000,000 See Note 6 below for more information.	Nil Nil Nil Nil Nil	$0.03 $0.0875 $0.11 $0.11 $0.033	$1 $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	$2,000,000 (see Note 6 below) N/A	Nil N/A	$0.033 N/A	$1 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 1,050,000	Nil	Exercise price $0.15 $0.15	Expiry date 7 November 2016 17 December 2016
	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	N/A	N/A
7.12 Secured Loan (totals only)	$1,500,000 Note 8	N/A	N/A	31stMarch 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: 27[th] April 2016 (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 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 1[st] April 2016, MGT announced that a the agreement of a term sheet for the conversion of the $3,000,000 Marvel Network Limited Convertible Notes into preference shares and options, subject to MGT

• See chapter 19 for defined terms.

Appendix 5B Page 6

Appendix 5B Mining exploration entity quarterly report

shareholder approval at a general meeting to be held on or around 23rd June 2016.

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. On 1[st] April 2016, MGT announced that a the agreement of a term sheet for the conversion of the $3,000,000 Cloud Adventurer Limited Convertible Notes into preference shares and options, subject to MGT shareholder approval at a general meeting to be held on or around 23rd June 2016.

On 29th March 2016, MGT announced that MGT had issued to Auskong International Mining Investment Co., Limited, one unsecured converting note with the aggregate face value of $2,000,000, subject to shareholder and regulatory approval. In the event that shareholder approval is obtained, the Note will convert into MGT fully paid ordinary shares at $0.033 per MGT share, namely 60,606,061 MGT shares. The Conversion Date will be the date that Shareholder Approval is obtained, being on or around 23rd June 2016.

The $2,000,000 invested in MGT by Auskong International Mining Investment Co., Limited was used to purchase 16,949,176 fully paid ordinary shares in Cauldron Energy Limited (ASX: CXU) for $2,000,000 (CXU Share Placement) by MGT. See announcement dated 30[th] March 2016.

There have been no additional convertible notes issued during the Quarter to 31/3/2016.

• 7 There are 342,157,040 fully paid ordinary shares on issue, with 342,157,040 quoted on the ASX as at the end of the quarter to 31/3/2016.

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.

== == == == ==

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 7