MAGONTEC LIMITED — Interim / Quarterly Report 2012

Jan 30, 2013

Limited

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

31 January 2013

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

Dear Sirs,

Appendix 4C – Quarter Ended 31 December 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 31 December 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 31 December 2012)

Ordinary Shares (ASX Code MGL) 428,097,560 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

Non-Executive Directors (as at 31 December 2012)

Zhongjun Li

Guenter Franke

Kangmin Xie

Independent Director (as at 31 December 2012)

Robert Shaw

Management Team

Nicholas Andrews Executive Chairman

John Talbot Chief Financial Officer

Company Secretary John Talbot

Major Shareholders	No. of shares	Percent
KWE(HK)Investment Development Co Limited	55,797,298	13.034
Qinghai Salt Lake Magnesium IndustryLimited	55,435,784	12.949
Straits Mine Management Pty Limited	40,499,167	9.460
Citicorp Nominees Pty Limited	32,300,661	7.545

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 31 December 2012 Quarterly Report

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Appendix 4C

Quarterly Report

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

Name of entity ABN 51 010 441 666

Magontec Limited

Quarter ended (“current quarter”)

31-Dec-12

• 1.1 Cash flows from operating activities a Receipts from customers b Payments to suppliers and employees c Interest received d Interest expense

• e Net cash (used)/generated in operating activities

Quarter Ended 31 Dec 2012 $A	Year to date (6 months) $A
$30,639,154 ($32,218,289) $8,415 ($390,915)	$65,074,379 ($61,589,171) $14,113 ($1,612,447)
($1,961,635)	$1,886,873

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	($10,925) ($806,179) ($784,724) $0	($11,184) ($959,187) ($820,233) $0
	($1,601,827)	($1,790,604)

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Appendix 4C Magontec Limited 31 December 2012 Quarterly Report

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1.3 Cash flows from financing activities a Loans from/ (repayments to) related parties b 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 cash provided by financing activities Net increase (decrease) in cash held 1.4 Cash at beginning of quarter /year to date 1.5 Cash at end of quarter /year to date	Current quarter $A $0 $0 $1,592,582 $10,721,093 $1,732	Year to date (6 months) $A ($200,743) ($0) ($2,323,938) $10,721,093 $472,204
	$12,315,408	$8,668,617
	$8,751,945 $4,787,951	$8,764,887 $4,775,010
	$13,539,897	$13,539,897

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 (a) (b)	Aggregate amount of payments to the relevant parties (aggregate fees paid to directors)	Current quarter $A
		$8,750
	Exchange rate indemnity paid to KWE(HK) Investment Development Co Ltd (KWE) in relation to its original equityinvestment in Magontec Limited	$140,000
1.7	Aggregate amount of loans to the relevantparties	Nil
1.8	Explanation necessary for an understanding of the transactions
	The exchange rate indemnity payment to KWE was part of the arrangements in relation to the investment by Magontec in the HNKWE joint venture It indemnified the other HNKWE joint venture parties against an exchange rate loss on their original investment in Magontec Limited if the RMB-AUD exchange rate increased above 5.3. The payment in 1.6(b) is the first instalment of a total payment of $189,183.

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Appendix 4C Magontec Limited 31 December 2012 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 January 2013 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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