MINREX RESOURCES LIMITED — Interim / Quarterly Report 2013

Oct 30, 2012

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Quarterly Report 30 September 2012

KEY HIGHLIGHTS

• Minrex Resources NL has continued exploration of its Heemskirk tenement in northern Tasmania.

• Detailed analysis of existing airborne magnetic and radiometric data was completed.

• A preliminary follow-up stream sediment sampling program has been designed and contractors engaged.

• Minrex is continuing to explore for opportunities that will complement its existing exploration portfolio.

• At the end of the quarter the Company had available cash of $2.83 million.

OVERVIEW

Heemskirk Tin Project

Southern Mineral Exploration Geophysics (SMEG) was contracted by Minrex Resources NL (‘Minrex’ or ‘Company’) to conduct a detailed assessment of airborne magnetic and radiometric data across its exploration tenement (EL18/2011), located on the West coast of Tasmania.

Airborne Magnetics

Salient observations with regard to underlying geology and known mineralisation, derived from magnetic survey data include:

• likely association of tin mineralisation with subtle variations in magnetic signature, linked to magnetite concentration within a more prospective ‘White Granite’ host;

• practical application of Tilt Derivative techniques to enhance subtle magnetic features within local granitic intrusions; and

• identification of a 1.5 km long Tilt-enhanced anomaly near the Peripatetic Mine, together with subtle magnetic anomalies, to the east and south of Fisher and Smiths Section Working (Figure 1).

Whereas the significance of these refined magnetic anomalies is not easily determined at this stage, follow-up activities are planned to test the precision of such magnetic exploration vectors.

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Figure 1 : TILT Enhanced Magnetics + Historic Tin Deposits + Preliminary Tin Geochemistry

Airborne Radiometrics

The main observations with regard to underlying geology and known mineralisation, derived from radiometric survey data, include:

• delineation of drainage and topographic anomalies associated with a local, potassium-enriched ‘Red Granite’;

• identification of a radiometric high, proximal to known mineralisation at Fisher and Smiths Section Working; and

• the potential use of low uranium-thorium (U-Th) ratio’s as an exploration vector, together with the presence of depressed U-Th signatures along northern sections of EL 18/2011, encompassing the McGuiness and the Peripatetic Mines (Figure 2).

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Figure 2 : Uranium-Thorium Ratio + Historic Tin Deposits + Preliminary Tin Geochemistry

Exploration Geochemistry:

Based on earlier recommendations for follow-up exploration work, Minrex has engaged Ron Gregory Prospecting to undertake a detailed stream sediment sampling program, commencing with drainages surrounding historic workings, including the Peripatetic and McGuiness Mines (Figure 3).

This initial exploratory program will be used to reconfirm the effectiveness of these sampling techniques, while establishing a statistical base from which to distinguish background from anomalous assays for a range of base and precious metals comprising: tin, tungsten, molybdenum, copper, gold and silver.

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Figure 3 : Stream Sediment Sampling – Prospective Site Locations

Follow-up Exploration Activities :

Exploration activities planned by the Company over the next quarter for both its project areas in Western Australia and Tasmania are given below.

Deflector Extended

• Completion of a follow-up ground prospecting survey, focussing on areas of known mineralisation.

• Finalisation of a preliminary RAB drill program.

• Rig positioning and commencement of drilling.

Heemskirk

• Completion of a preliminary (Phase 1) stream sediment sampling program.

• Validation of geophysical exploration vectors using ground prospecting techniques.

• Assessment and delineation of prospective greisen zones using conventional tin – tungsten deposit genetic modelling.

Corporate

As at 30 June 2012, the Company had available cash of $2.83 million. The Company is also continuing to assess a broad range of exploration opportunities that have the potential to complement the existing tenement portfolio.

For further information, please contact:

Richard Procter Non-Executive Chairman T: +61 8 9486 8806 F: +61 8 9321 3559 info@minrex.com.au

About Minrex

Minrex has two principal projects. The Deflector Extended Gold Project is located within the Gullewa Greenstone Belt, south of Yalgoo in Western Australia. Mineralisation is exclusive to sulphidic or auriferous (coarse gold) quartz veining. Historical production commenced in the region in 1897 from the Daisy, Shannadoh, Gullewa Queen, Monarch, Phoenix, Victory United, Golden Stream, Mugga King and Mugga Queen Mines to the south west of the Deflector Extended Gold Project area. This historical production continued into the early 1940’s. During this period a total of 35,726 ounces of gold was produced from a total of 24,000 tonnes of ore at an overall grade of 46.3 g/t Au. The Deflector Extended Gold Project has received cursory regional exploration including soilgeochemistry surveys, rock chip sampling and RAB/AC drilling. Overlapping structural and soil geochemistry anomalies at Deflector Extended are the compelling exploration targets to be investigated by Minrex.

Within the Heemskirk Tin Project historical exploration is limited to non-systematic prospecting activities and has only focussed on surface mineralisation. The most substantial exploration efforts have focussed on the Peripatetic mine which consists of five adits, three shafts and numerous small open pits. Numerous historical workings within the project area present a number of opportunities to evaluate. Detailed mapping and geochemical sampling will be conducted across the prospect.

Competent Persons Statement:

The information in this announcement that relates to Exploration Results is based on information compiled by Dr. Geoffrey Booth, Consulting Geologist. Geoffrey Booth is employed as a consultant for Minrex and is also a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Geoffrey Booth consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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

Name of entity
MINREX RESOURCES NL
ABN 81 151 185 867	Quarter ended (“current quarter”)
81 151 185 867	30 SEPTEMBER 2012

Consolidated statement of cash flows	Consolidated statement of cash flows
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 1.7 Other (provide details if material) – Start up costs for business Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	(18) - - (138) - 25 - - 7	(18) - - (138) - 25 - - 7
	(124)	(124)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (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)	- - - - - - - - -	- - - - - - - - -
	-	-
	(124)	(124)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(124)	(124)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) – costs associated with listing and raising equity Net financing cash flows	- - - - - -	- - - - - -
	-	-
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	(124) 2,956 -	(124) 2,956 -
	**2,832 **	**2,832 **

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 $A'000
		9
		-
1.25	Explanation necessaryfor an understandingof the transactions
	N/A

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

N/A

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

• See chapter 19 for defined terms.

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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 available $A’000	Amount used $A’000
		-	-
		-	-
Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration		$A’000
			100
			-
			-
			50
Total			**150 **

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	-	6
	2,832	2,950
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	**2,832 **	**2,956 **

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased N/A 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.	6.2 Interests in mining tenements acquired or increased N/A 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.	6.2 Interests in mining tenements acquired or increased N/A 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.	6.2 Interests in mining tenements acquired or increased N/A 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.	6.2 Interests in mining tenements acquired or increased N/A 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	N/A
	N/A
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	17,500,001 17,500,000	17,500,001 -	N/A 20 cents	N/A 1 cent
	17,500,001 17,500,000 -	17,500,001 - -	N/A 20 cents -	N/A 1 cent -
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	N/A
	N/A
7.7 Options (description and conversion factor) 7.8 Issued during quarter	N/A		Exercise price	Expiry date
	N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.9 Exercised during quarter 7.10 Expired during quarter	N/A
	N/A
7.11 Debentures (totals only)	N/A
7.12 Unsecured notes(totals only)	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 / ~~does not*~~ (delete one) give a true and fair view of the matters disclosed.

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Sign here: Company Secretary Date: 30 October 2012 Print name: Pierre Malherbe

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.

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• See chapter 19 for defined terms.

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