MAGONTEC LIMITED — Interim / Quarterly Report 2012

Oct 30, 2012

Limited

Office No.10 Level 8 139 Macquarie St Sydney NSW 2000 Australia Ph:+ 61 2 8231 7085 FAX: +61 2 9252 8960

31 October 2012

Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney, NSW, 2000

Dear Sirs,

Appendix 4C – Quarter Ended 30 September 2012

The above quarterly cash flow report is attached.

Yours Sincerely

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John Talbot Company Secretary. Magontec Limited

Limited

QUARTERLY CASHFLOW - APPENDIX 4C

for the Period Ended 30 September 2012

Magontec Limited

ABN: 51 010 441 666 Registered & Principal Office: Office 10, Level 8, 139 Macquarie Street, Sydney, NSW 2000 Australia

Tel: +61 2 8231 7085 Fax: +61 2 9252 8960 Website: www.magontec.com Email: Corporate@magontec.com

Issued Capital (as at 30 September 2012)

Ordinary Shares (ASX Code MGL) 425,007,674 fully paid Ordinary shares on issue

Unlisted Securities

Unlisted Options	**Number **	Grant Date	Expiry Date	Exercise Price $
Employee Share Option Plan	1,300,000	16 Aug 2010	16 Aug 2013	$0.10

Substantial Shareholders

Independent Directors (as at 30 September 2012)

Zhongjun Li Non-Executive Director

Robert Shaw Non-Executive Director

Management Team

Nicholas Andrews Executive Chairman

Guenter Franke Executive Director and Chief Operating Officer)

John Talbot Chief Financial Officer

Company Secretary John Talbot

Major Shareholders	No. of shares	Percent
KWE(HK)Investment Development Co Limited	55,797,298	13.13
Qinghai Salt Lake Magnesium IndustryLimited	55,435,784	13.04
Straits Mine Management Pty Limited	40,499,167	9.53
Citicorp Nominees Pty Limited	32,477,661	7.64

Share Registry Services

Boardroom Pty Limited Level 7, 207 Kent St Sydney NSW 2000

Postal:

GPO Box 3993 Sydney NSW 2001

Tel: 1300 737 760 or International: +61 2 9290 9600 Fax: 1300 653 459 Website: http://www.boardroomlimited.com.au

The current share price can be obtained from the ASX Website

Appendix 4C Magontec Limited 30 September Quarterly Report

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Appendix 4C

Quarterly Report

Introduced 31/3/2000. Amended 30/9/2001.

Name of entity

Magontec Limited

ABN

51 010 441 666

Quarter ended (“current quarter”)

30-Sep-12

1.1 Cash flows from operating activities a Receipts from customers b Payments to suppliers and employees c Personnel d Corporate e Interest received f Interest expense g Net cash (used)/generated in operating activities 1.2 Cash flows from investing activities a Movement in security deposits b Payment for property, plant & equipment c Group Information Technology software d Other e Net cash provided by/(used in) investing activities	Quarter Ended 30 Sep 2012 $A	Year to date (3 months) $A
	$34,435,225 ($27,635,272) ($1,420,541) ($315,069) $5,697 ($331,798)	$34,435,225 ($27,635,272) ($1,420,541) ($315,069) $5,697 ($331,798)
	$4,738,242	$4,738,242
	($260) ($153,008) ($35,508) $0	($260) ($153,008) ($35,508) $0
	($188,776)	($188,776)

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Appendix 4C Magontec Limited 30 September Quarterly Report

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1.3 Cash flows from financing activities a b Loans from/ (repayments to) related parties Principal reduction on debt owing to Straits Mine Management Pty Ltd c Net inflow/(outflow) on bank loans d Net capital raised from issue of the Company's shares e New equity in Magontec Shanxi Company Limited joint venture f Net cashprovided by financing activities	Current quarter $A ($200,743) ($889,734) ($3,916,520) $0 $470,472	Year to date (3 months) $A ($200,743) ($889,734) ($3,916,520) $0 $470,472
	($4,536,525)	($4,536,525)
Net increase (decrease) in cash held 1.4 Cash at beginning of quarter /year to date 1.5 Cash at end ofquarter /year to date	$12,941 $4,775,010	$12,941 $4,775,010
	$4,787,951	$4,787,951

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.6	Aggregate amount of payments to the relevant parties (aggregate fees paid to directors)	Current quarter $A
		$17,500
1.7	Aggregate amount of loans to the relevant parties	Nil
1.8	Explanation necessary for an understanding of the transactions
	On 11 May 2012 Magontec announced its intention to dispose of its interest in HNKWE. Formal contractual arrangements regarding disposal were announced on 12 July 2012. The contractual arrangements for disposal are subject to approval by the shareholders of Magontec. Cash reported in Appendix 4C for the quarter ended 30 June 2012 included cash held in HNKWE which has now been deconsolidated.

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Appendix 4C Magontec Limited 30 September Quarterly Report

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Compliance statement

1

This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act 2001 (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

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

Sign here:

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Date: 31 Oct 2012 Executive Chairman Magontec Limited

Print name: Mr Nicholas Andrews

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 definitions in, and provisions of, AASB 107: Cash Flow Statements apply to this report except for the paragraphs of the Standard set out below.

• Aus20.1 - reconciliation of cash flows arising from operating activities to operating profit or loss • 39 - 42 - itemised disclosure relating to acquisitions and disposals • 48 - 52 - disclosure of restrictions on use of cash

• 3

Accounting Standards. ASX will accept, for example, the use of International Accounting 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.

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