MINREX RESOURCES LIMITED — Interim / Quarterly Report 2012

Apr 29, 2012

Minrex Resources NL LinQ House 17 Ord Street West Perth WA 6005

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Quarterly Report 31 March 2012

Completion of Initial Program of Work and Tasmanian Exploration Licence Issued

HIGHLIGHTS

• Minrex completed a preliminary auger and MAGLAG sampling survey at the Deflector Extended prospect located near Yalgoo, Western Australia.

• A total of 187 auger soil samples were collected on 400 m traverse lines, at intervals ranging from 100 m - 200 m.

• Sample analysis was undertaken by Ultratrace Geoanalytical Laboratories for a series of precious and base metals, including Au, Ag, As, Cu, Mo, Ni and W.

• Coincident MAGLAG samples were analysed using portable XRF (Niton) instrumentation.

• A series of follow-up targets have been identified for further work.

• The Tasmanian Department of Infrastructure, Energy and Resources has issued Minrex with the exploration licence for the Heemskirk Tin Project.

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

Overview

Deflector Extended Gold Project

The project area of interest within Deflector was selected based on its proximity to and alignment with, north-eastern extensions of the Deflector mineralisation trend (Figure 1). Aeromagnetic survey data confirmed the presence of the Gearless Well intrusion which extends into the southern sections of the tenement. This granite exhibits a close spatial relationship with the Deflector and Golden Stream gold-copper deposits, which occur on the western contact of the intrusion and are coincident with a series of crosscutting northeast - southwest trending faults.

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Figure 1: Deflector Extended Prospect – Mineralisation / Structural Trends

Exploration Program

Minrex Resources NL (‘Minrex’ or the ‘Company’) used Pathfinder Exploration Pty Ltd (Pathfinder) to carry out the initial surface exploration geochemical program at its Deflector Extended Gold Project. The program included the collection of 187 auger soil and MAGLAG samples, from 10 traverses spaced 400 m apart with sample intervals between 100 m and 200 m apart, on east-west traverse lines. ICP-OES analysis of collected samples was completed on aqua regia digests for Au, Ag, As, Cu, Mo, Ni and W by Ultratrace Geoanalytical Laboratories (Appendix 1). Coincident MAGLAG samples were collected and analysed using a portable handheld (Niton) X-Ray Fluorescence spectrometer.

– Auger Soil Samples Key Analytical Results

Gold

An irregular Au response was observed in the vicinity of the Deflector structural corridor in the northern sections of the lease, with samples peaking at 17 ppb Au in areas to its immediate west. A larger halo appears downslope from the Cagacaroon Hills, comprising samples assaying up to 12 ppb Au, coincident with a central, northeast-southwest structural lineament. In southern tenement areas, a separate and diffuse Au trend with multiple 7 ppb Au assays was observed, broadly concurrent with a third northeast-southwest trending structure.

Copper

An elevated Cu signature is observed in the Deflector structural trend, with peak concentrations of 327 ppm defined. Extensive Cu dispersion is observed across both central and southern lineaments, whilst weaker in downslope areas from the Cagacaroon Hills.

Nickel

Ni assays exhibit a strong correlation with Cu and appear anomalous in the vicinity of the Deflector corridor, with peak concentrations of 628 ppm observed.

Planned Follow-up Activities

Auger soil / rock chip geochemistry and MAGLAG data have combined to define three Deflector Extended target areas (Figure 2), which coincide with northeast-southwest structures and appear amenable to sub-surface investigation using cost effective drilling techniques such as RAB +/- Aircore methods.

2

These areas include:

Target Area 1: Overlapping elevated auger Au, Cu and As values, supported by high MAGLAG Cu and As assays.

Target Area 2: Coincident Au and Cu enrichment, together with select elevated As assays.

Target Area 3: Coincident elevated auger Au and Cu values, together with spot As and Ni highs.

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Figure 2 : Deflector Extended - Prospective Follow-up Target Areas

Minrex will continue its systematic exploration activities at its Deflector Extended prospect to identify the source of enrichment observed to date, with a view to the intersection of economically significant precious and base metal mineralisation. These activities will be managed in conjunction with the Company’s ongoing pursuit for new projects to complement its existing exploration activities.

Heemskirk Tin Project

The Company is pleased to announce that it has been issued the Exploration Licence (EL 18/2011) covering its Heemskirk Tin Project. The exploration program for this area will now be assessed prior to the Company embarking on exploration activities on this tenement.

For further information, please contact:

Richard Procter Non-Executive Chairman T: +61 8 9488 8888 F: +61 8 9481 0666 info@minrex.com.au

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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 soil geochemistry 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.

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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	31 MARCH 2012

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 (5 months) $A’000
	(45) - - (92) - 32 - - 34	(66) - - (230) - 41 - - (171)
	(71)	(426)
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)	- - - - - - - - -	- - - - - - - - -
	-	-
	(71)	(426)

• 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)	(71)	(426)
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	- - - - - -	3,675 - - - - (246)
	-	3,429
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	(71) 3,074 -	3,003 - -
	3,003	3,003

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
		8
		-
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 reporting entity has 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		Amount used
$A’000		$A’000
	-		-
	-		-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	120
	-
	-
	50
Total	170

Reconciliation of cash

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	12
	2,997	3,062
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	3,003	3,074

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 April 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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