AVIRA RESOURCES LTD — Interim / Quarterly Report 2020

Apr 26, 2020

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27 April 2020

AVIRA RESOURCES LIMITED QUARTERLY ACTIVITIES REPORT (MARCH 2020)

Avira Resources Limited (ASX: AVW) ( Avira or the Company ) wishes to advise on the following activities during the quarter ending 31 March 2020.

Corporate Activities

COVID-19 impact and response

The Company has implemented measures to reduce costs (both operational and administrative) during this period in order to preserve cash and progress work programs. The work programs may be subject to delays due to COVID-19 impact on resource availability and mobility of personnel. The health and wellbeing of Company officers, contractors and stakeholders is of paramount importance, and the Company has implemented, and will continue to proactively implement, protocols to minimise the potential transmission of COVID-19.

Board transition and appointment

On the 17 March 2020, the Company announced the appointment of Mr Sonu Cheema as Nonexecutive Director of the Company.

Mr Cheema has over 10 years’ experience working with public and private companies in Australia and abroad. He currently serves as the Company Secretary of eMetals Limited (ASX: EMT), Yojee Limited (ASX: YOJ), Silver City Minerals Limited (ASX: SCI), Comet Resources Limited (ASX: CRL) and Technology Metals Australia Limited (ASX: TMT). He has completed a Bachelor of Commerce majoring in Accounting and is a CPA member. Mr Cheema’s core competencies and key areas of focus include financial reporting, management and governance.

Mr Cheema replaced Mr Maciej Rosiewicz who resigned from the Board to pursue other commercial interests. Mr Cheema retained his position as Avira’s Company Secretary.

Operational Activities

Throssell Range & Mount Macpherson (Paterson Range Project) Western Australia

The applications for grant of exploration licences for the Patterson Range projects; Mount Macpherson (E45/5572) and Throssell Range (E45/5567) continue to progress albeit with expected delays as there are now substantial restrictions on travel and access to remote communities and parts of Western Australia as a result of COVID-19.

The Company anticipates that these restrictions will have a significant impact on native title parties’ ability to comply with Tribunal processes. We also anticipate delays in negotiation and finalisation of heritage agreements over this period as a result of the restrictions.

Avira Resources Limited Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia T: 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au

ABN: 38 131 715 645

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We note that the Wardens Court has issued a statement in light of medical advice about limiting the spread of COVID-19, and after consultation with the Chief Magistrate, the Warden has issued a direction that proceedings in the Warden’s Court will be suspended until mid-April at which time the situation will be reviewed.

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Figure 1. Location of the Mount Macpherson and Throssell Range Projects

The Paterson Range precinct has been the focus of a lot of new exploration and corporate activity recently, led by tier one mining companies Rio Tinto (RIO), Fortescue Metals Group (FMG), Independence Group (IGO), Newmont Goldcorp (Newmont) and Newcrest Mining Limited (Newcrest). Exploration by junior explorers Encounter Resources (Encounter), Rumble Resources (Rumble) and Antipa Minerals (Antipa) also continues to generate targets that attract investment into the area.

Significantly for Avira, Encounter recently announced that IGO Limited had elected to enter an earnin and joint venture agreement to sole fund up to $15 million in exploration expenditure to earn a 70% interest in the Yeneena copper-cobalt project located in the Patterson Province of WA.

Avira Resources Limited Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia T: 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au

ABN: 38 131 715 645

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Figure 2. Avira’s tenement packages (highlighted in blue) in relation to IGO Limited’s Yeena project.

Avira is currently planning early stage exploration activities and reviewing the very limited past exploration work on and adjacent to its projects. Further detailed budgets and logistical planning and timetabling are currently being developed in anticipation of grant of the exploration licenses.

Pyramid Gold Project, Queensland

The Company has now completed its geo-chemical exploration program on its exploration assets located in the East Pyramid Range in North Eastern Queensland. Indicative estimated costings of potential follow-on exploration programs are currently being worked up and will be presented and considered in due course as AVW continues to identify and assess the value of additional exploration expenditure in the East Pyramid Range against other opportunities consistent with the Company’s focus on creating value for its shareholders in the resource exploration space.

Southern Queensland Projects

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

Avira Resources Limited Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia T: 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au

ABN: 38 131 715 645

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Tenement Status

LEASE	NAME	NAME	AREA	AREA UNITS	RENEW	GRANT DATE	EXPIRY DATE	HOLDER	HOLDER	EA
Mount Garnet
ML 20066		Valetta - Sugarbag	1.5	Hectares		30-Jan--92	30-Jun-21	AVIRA		EPSX00364013
Pyramid
EPM 12887		Pyramid	16	Sub-Blocks		5-Aug-04	4-Aug-20	MGTM		EPSX00705113
EPM 19554		Pyramid 3	14	Sub-Blocks		16-Dec-14	15-Dec-22	MGTM		EPSX00705113
EPM 25154		Pyramid 2	25	Sub-Blocks		23-Feb-15	22-Feb-23	AVIRA		EPSX00899513
Southern Queensland
EPM 12834		Mount Steadman	4	Sub-Blocks		17-Dec-99	16-Dec-20	MGTM		EPSX00600613
EPM 8402V		Yarrol	2	Sub-Blocks		13-Nov-91	12-Nov-20	MGTM		EPSX00600713

-ENDS-

Forward looking statements

This announcement contains forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, or ‘intends’ and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the directors and our management. We cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this prospectus will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. We have no intention to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by law. These forward looking statements are subject to various risk factors that could cause our actual results to differ materially from the results expressed or anticipated in these statements.

Competent Persons Statement

The information in this announcement that relates to Exploration Results is based on and fairly represents information and supporting documentation prepared by Mr Roland Gotthard. Mr Gotthard is a consultant geologist for AVW and a member of the Australian Institute of Mining and Metallurgy. Mr Gotthard has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this announcement and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”). Mr Gotthard consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

ASX Listing Rules Compliance

In preparing the Quarterly Report for the period ended 31 March 2020 and to date, the Company has relied on the following ASX

announcements

announcements
ASX Announcement	3/4/20	AVWOperations Update and Covid-19Response
ASX Announcement	12/3/20	Halfyearaccounts
ASX Announcement	29/11/19	ACQUISITIONSETTLEMENT FOR MOUNT MACPHERSON PROJECT
ASX Announcement	18/11/19	AVW ENTERSINTO SALE AGREEMENT FOR TENEMENT ACQUISITION
ASX Announcement	30/10/19	QuarterlyActivitiesReportandAppendix5B
ASX Announcement	29/10/19	AVWCompletes Surface GeochemicalSurvey on East Pyramid
ASX Announcement	8/10/19	AVW ESTABLISHESA FOOTHOLD IN PROSPECTIVE PATERSON BELT
ASX Announcement	27/09/19	AVW - Annual Report30 June2019

Compliance Statement

This report contains information extracted from reports cited herein. These are available to view on the website www.aviraresourcesltd.com.au. In relying on the above ASX announcements and pursuant to ASX Listing Rule 5.23.2, the Company confirms that it is not aware of any new information or data that materially affects the information included in the abovementioned announcements or this Quarterly Report for the period ended 31 March 2020 and to date.

Avira Resources Limited Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia T: 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au

ABN: 38 131 715 645

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity Avira Resources Limited ABN Quarter ended (“current quarter”) 38 131 715 645 31 March 2020

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (if expensed) (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (68) - - (21) (97) - - - - - -	- (206) - - (78) (191) - - - - 32 -
	(185)	(442)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (if capitalised) (e) investments (f) other non-current assets	- - - - - -	- - - - - -

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - - - - - -
	-	-
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - - - - - -
	-	-
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	612 (185) - -	869 (442) - -

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	427	427
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	427 - - -	427 - - -
	427	427
6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 11 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must and an explanation for, such payments
		Current quarter $A'000
		34
		-
		include a description of,

1 The Company engages Cicero Group Pty Ltd, of which Mr Sonu Cheema is a director and provides administrative, rent and company secretarial services.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (please specify) - - 7.4 Total financing facilities - - 7.5 Unused financing facilities available at quarter end - 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-
	-	-
-

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7	Net cash from / (used in) operating activities (Item 1.9) Capitalised exploration & evaluation (Item 2.1(d)) Total relevant outgoings (Item 8.1 + Item 8.2) Cash and cash equivalents at quarter end (Item 4.6) Unused finance facilities available at quarter end (Item 7.5) Total available funding (Item 8.4 + Item 8.5) Estimated quarters of funding available (Item 8.6 divided by Item 8.3)	(185) - (185) 427 - 427
		2.31
8.8	If Item 8.7 is less than 2 quarters, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
	Answer: NA
	2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: NA
	3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: NA

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

Date: ..........27/4/20.............................................................

Authorised by: ................................................................................... (Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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