MAGONTEC LIMITED — Interim / Quarterly Report 2013

Jan 28, 2014

Limited

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

29 January 2014

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

Dear Sirs,

Appendix 4C – Quarter Ended 31 December 2013

The above quarterly cash flow statement is attached.

The Company’s audited financial results and report for the 12 months ended 31 December 2013 is planned for release by 28 February 2014. Therefore, the Company’s practice of releasing quarterly unaudited financial accounts and summary report by the Executive Chairman is suspended for this quarter.

Yours Sincerely

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John Talbot Company Secretary. Magontec Limited

Limited

QUARTERLY CASHFLOW - APPENDIX 4C

for the Period Ended 31 December 2013

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 2013)

Ordinary Shares (ASX Code MGL) 813,609,635 fully paid Ordinary shares on issue

Options

Options	**Number **	Grant Date	Expiry Date	Exercise Price $
Unlisted Options in Convertible Note	20,292,542	29 November 2012	29 November 2015	$0.050
Listed options	392,978,605	4 Jan 2013	3 Jan 2014	$0.02

Substantial Shareholders

Non-Executive Directors (as at 31 December 2013)

Zhongjun Li Kangmin Xie

Independent Directors (as at 31 December 2013)

Robert Shaw Robert Kaye

Management Team

Nicholas Andrews Executive Chairman

John Talbot Chief Financial Officer

Company Secretary John Talbot

Major Shareholders	No. of shares	Percent
Qinghai Salt Lake Magnesium Industry Limited	180,535,784	22.19
KWE(HK)Investment Development CoLimited	55,797,298	6.86
Citicorp Nominees Pty Limited	52,551,234	6.46
Straits Mine Management Pty Limited	152,536,385	18.75

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 2013 Quarterly Report

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Appendix 4C

Quarterly Report

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

Name of entity	Name of entity	Name of entity	Name of entity
Magontec Limited
ABN 51 010 441 666 1.1 Cash flows from operating activities a Receipts from customers b Payments to suppliers and employees c Interest received d Interest expense e Taxation f Net cash (used)/generated in operating activities	Quarter ended (“current quarter”)
		31 December 2013
		Quarter Ended 31 December 2013 $A	Year to date (12 months) $A
		$20,936,967 ($23,284,039) $28,685 ($232,814) $476,569	$121,739,406 ($121,549,302) $260,711 ($972,796) $230,637
		($2,074,633)	($291,343)

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	($68,095) ($1,146,188) ($25,078) $0	$31,296 ($1,489,814) ($34,600) $0
	($1,239,362)	($1,493,119)

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Appendix 4C Magontec Limited 31 December 2013 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 Bank Loans d Net capital raised from issue of the Company's shares e Net cash provided by financing activities	Quarter Ended 31 December 2013 $A $0 ($0) $3,948,049 $1,641,767	Year to date (12 months) $A ($49,184) ($2,000,000) ($2,908,874) $1,484,486
	$5,589,815	($3,473,571)

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	$2,275,820 $6,006,043	($5,258,034) $13,539,897
	$8,281,863	$8,281,863

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)	Quarter Ended 31 December 2013 $A
		$24,791
1.7	Aggregate amount of loans to the relevantparties	Nil
1.8	Explanation necessary for an understanding of the transactions

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Appendix 4C Magontec Limited 31 December 2013 Quarterly Report

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: 29 January 2014 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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