AVIRA RESOURCES LTD — Interim / Quarterly Report 2015

Jan 28, 2016

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QUARTERLY REPORT

December 2015

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

ASX CODE MGS

During the December quarter, MGT Resources Limited (MGT, ASX:MGS) worked towards finalising the Dalcouth resource update and a planned a soil sampling program at Mt Steadman.

REGISTRY

Computershare

HIGHLIGHTS

• Auskong International Mining Investment Co., Limited converted their 24 million share options into ordinary shares at 5 cents per share for $1,200,000 on 24 November 2015.

SHARES ON ISSUE

342,157,040

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

• An infill soil sampling and rock chip sampling program was planned during the Quarter, and conducted in early January. MGT is currently awaiting laboratory results.

Tin Price: US$14,290/t Gold Price: US$1,115/oz

MGT has cash reserves of $1.26M as at 31/12/2015.

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

Finalising work on 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 has completed re-logging sections of older holes and is working to finalise the geological model. It is anticipated, barring any unforeseen issues, that the resource update will be completed by the end of the March Quarter.

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

During the quarter, planning for a small soil sampling program at the Mt Steadman tenement was conducted. The program was carried out in early January and MGT is currently awaiting results.

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Soil sampling at Fitzroy North Prospect (Mt Steadman)

Infill soil sampling and rock chip sampling was conducted at the Fitzroy Main and Fitzroy North gold prospects. Previous sampling by historical holders had been on a 50m spacing, and MGT collected ten infill sampling lines at 25m spacing, in order to better define the grade and distribution of gold. Additional reconnaissance work at the nearby historical Venus and London Gold Mine workings was also conducted.

ASX RELEASE

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

2

Twelve rock chip samples, collected from Fitzroy Main, Fitzroy North and the Venus and London workings, have been submitted for laboratory analysis.

3. NYMBOOL PROJECT, QUEENSLAND (MGT 89.48%)

Includes Heads or Tails ML20655; Nymbool EPM16948; Nymbool West EPM25690

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

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

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Appendix 1

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

State	Tenement Name	Tenement ID	Location	Interest	Holder	Comments	Comments
QLD	Mt Veteran	ML 4349	Mt Garnet	89.48%	MGTM	Granted
QLD	Summer Hills	ML 20547	Mt Garnet	89.48%	MGTM	Granted
QLD	Heads or Tails	ML 20655	Mt Garnet	89.48%	MGTM	Granted
QLD	Valetta	ML 20066	Mt Garnet	100%	MGS	Granted
QLD	Nymbool	EPM 16948	Mt Garnet	89.48%	MGTM	Granted
QLD	Nanyetta	EPM 25433	Mt Garnet	89.48%	MGTM	Granted
QLD	Nymbool	EPM 25347	Mt Garnet	89.48%	MGTM	Granted
	Extended
QLD	Nymbool West	EPM 25690	Mt Garnet	89.48%	MGTM	Granted
QLD	FuzzyHill	EPM 25716	Mt Garnet	89.48%	MGTM	Granted
QLD	Pyramid	EPM 12887	Drummond	89.48%	MGTM	Granted
			Basin
QLD	Pyramid 3	EPM 19554	Drummond	89.48%	MGTM	Granted
			Basin
QLD	Pyramid 2	EPM 25154	Drummond	100%	MGS	Granted
			Basin
QLD	Yarrol	EPM 8402	Monto	89.48%	MGTM	Granted
QLD	Mt Steadman	EPM 12834	Gayndah	89.48%	MGTM	Granted
QLD	Gooroolba	EPM 15426	Gayndah	89.48%	MGTM	Granted
Abbreviations
EPMA	Exploration Permit for Minerals Application
EPM	Exploration Permit for Minerals
MLA	Mining	Lease Application
ML	Mining	Lease
MGS	MGT Resources Limited
MGTM	MGT MiningLimited,an unlisted Australianpublic company
QLD	Queensland,Australia

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 December 2015	Quarter ended (“current quarter”) 31 December 2015
			31 December 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 R&D Tax Rebate 1.72 Other Net Operating Cash Flows		Current quarter 31/12/2015 $A’000		Year to date (6 months) $A’000
		(97) - - (281) - 1 (61) - - -		(547) - - (625) - 8 (302) - - -
		(438)		(1,466)
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)		- - - - - 39 - - -		- - - - - 39 - - -
		39		39
		(399)		(1,427)

• 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)	(399)	(1,427)
Cash flows related to financing activities 1.14 Proceeds from exercise of 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	1,200,000 - - - - -	1,200,000 - - - - -
	1,200,000	1,200,000
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	801 463	(227) 1,491
	1,264	1,264

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 31/12/2015 $A’000
		82
		N/A
1.25	Explanation necessaryfor an understandingof the transactions

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2	Details of outlays made by other entities to establish or increase their share in projects in
	which the reportingentityhas an interest

• See chapter 19 for defined terms.

Appendix 5B Page 2

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	N/A	N/A
	N/A	N/A

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	81
	-
	-
	351
Total	432

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)	31/12/2015	30/09/2015
to the related items in the accounts is as follows.	$A’000	$A’000
5.1 Cash on hand and at bank	164	463
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)	1,264	463

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
	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

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
	24,000,000	24,000,000	N/A per Note 3 below – all fully paid	N/A per Note 3 below – all fully paid
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	1,500,000 1,500,000 3,000,000 3,000,000 See Note 6 below for more information.	Nil Nil Nil Nil	$0.03 $0.0875 $0.11 $0.11	$1 $1 $1 $1
	N/A	N/A	N/A	N/A

• See chapter 19 for defined terms.

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 1,050,000	Nil	Exercise price $0.15 $0.15	Expiry date 7 November 2016 17 December 2016
	N/A	N/A	N/A	N/A
	24,000,000	N/A	$0.05	31 December 2015
	N/A	N/A	N/A	N/A
7.11 Debentures (totals only)	N/A	N/A
7.12 Unsecured notes(totals only)	N/A	N/A

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 29[th] January 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 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.

• See chapter 19 for defined terms.

Appendix 5B Page 6

Appendix 5B Mining exploration entity quarterly report

There have been no additional convertible notes issued during the Quarter to 31/12/2015.

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 31/12/2015.

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• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 7