MINREX RESOURCES LIMITED — Interim / Quarterly Report 2014

Oct 28, 2013

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Quarterly Activities Report for the Period Ended 30 September 2013

HIGHLIGHTS

• Anomalous assay results returned from August 2013 reconnaissance sampling at the Deflector Extended Gold Project.

• MinRex is continuing to evaluate exploration and corporate opportunities that will complement its existing exploration portfolio.

• At the end of the September Quarter the Company had available cash of $2.468 million.

About MinRex

MinRex has two principal projects. The Deflector Extended Gold Project lies to the north of Perth, within the Gullewa Greenstone Belt of the Murchison Goldfield. Deposits of goldcopper mineralisation in primary quartz-sulphide veins and secondary gold deposits in surface clays and laterite have been mined in the Gullewa area, in proximity to MinRex’s Project area.

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Figure 1: Location of MinRex Project Areas

The Heemskirk Tin Project in north-western Tasmania has been the site of limited prospecting and exploration activities, focussed on surface mineralisation. The most substantial exploration efforts have been at the Peripatetic Mine which consists of several adits and shafts and numerous small open pits. Within the Project area numerous historical workings, for tin, tungsten and copper, present a number of exploration opportunities.

Exploration activities, comprising surface sampling and geological examination, are being carried out by MinRex on both of the Project areas.

Deflector Extended Gold Project

The Deflector Extended Gold Project (E59/1657) is located approximately 370 km north of Perth and approximately 50 km southwest of Yalgoo, within the Archean Gullewa Greenstone Belt of the Murchison Terrane of Western Australia. To the southwest of the Project area, historically the Deflector Central and Deflector West open pits have been mined for goldcopper mineralisation in shear zones in metabasalt, while the Golden Stream Mine exploited the gold in shear zone-hosted quartz veins in metabasalt.

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Figure 2: Geological Map of the Gullewa Area showing Deflector Extended Gold Project

Gold was discovered at Gullewa in 1894 and historic production occurred in the region from 1897 to 1942. During this period a reported total of 36,000 ounces of gold was produced from a total of 24,000 tonnes of ore at an overall grade of 46.3 g/t Au. Mining recommenced in 1994 and by 2003 a total of 530,000 tonnes of ore at a grade of 2.6 g/t Au had resulted in the production of some 39,000 ounces of gold, mainly from open cut mining but also with a small underground component. The Deflector Extended Gold Project lies along strike from the Deflector and Golden Stream open cut pit areas.

The Project area is predominantly covered by transported soil, colluvium and alluvium, which effectively conceal any mineralisation present. The area has historically been examined by regional soil geochemistry surveys, rock chip sampling and limited RAB / AC drilling. The previously completed exploration work is encouraging, especially the early geochemistry and RAB drilling that shows some clearly anomalous gold values within the tenement. Overlapping structural and soil geochemistry anomalies have been delineated on the Deflector Extended tenement and now provide the priority exploration targets which

are being investigated by MinRex.

In the district, mineralisation occurs in shear zones which are focussed on structures within greenstones, or in structures on the margins of greenstones (i.e. along internal sediment horizons or near the contact with granites). The main structural trend is southwest-northeast, although some deposits are on structures in other orientations.

Following a comprehensive review of all available data, field reconnaissance programs commenced in 2012 and it is planned that these will be followed with a limited program of RAB or AC drilling. In early 2012, a total of 157 auger holes were completed at 400 m x 200 m spacing (a few at 400 m x 100 m) with a maximum depth of 3.2 m and an average depth of 1.7 m. Anomalous gold values (up to 17 ppb), copper (up to 327 ppm) and nickel (up to 628 ppm) were returned from this program.

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Figure 3: View from chert outcrop on Cagacaroon Hill looking across the buried Gearless Well Granite Intrusion and colluvium in the valley of Salt Creek

In March 2013, a preliminary surface sampling program was conducted over the lease and observations made of the geomorphology, soil types and rock outcrops; and a total of thirty rock chip samples, of vein quartz, cherty sediments, aplite and ironstone, were collected. The rock chip samples returned anomalous gold values (up to 68 ppb), copper (up to 426 ppm) and lead (up to 146 ppm).

In August 2013, a more detailed geological mapping and sampling program was conducted over the Deflector Extended Project area. A preliminary geological map of the area has been prepared from this work (Figure 4) and a further 35 samples of rock chips, float and laterite were collected for analysis. These samples returned anomalous copper values (up to 186ppm), nickel (up to 421 ppm) and zinc (118 ppm). The data is shown in Table 1.

The two 2013 surface sampling programs supplemented the earlier pattern auger and other geochemical surveys, where the large spacing of the sample points may have missed narrow mineralised structures. It is planned to conduct further follow up surface sampling and evaluation in the area of these anomalous results.

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Figure 4: Geological Plan Showing Sampling Sites at the Deflector Extended Gold Project (August 2013 samples shown in red)

Once further surface work is completed, it is expected that a collation of the geology, structure, depth of weathering, previous geochemistry and RAB drill results will be used to deduce the most favourable sites for small, highly-targeted drill programs in the Project area.

Table 1

Assay Results for 35 Rock Chip Samples Collected at Deflector Extended Gold Project in August 2013

Sample	Location	Location	Au(AR)	Ag	As	Cu	Mo	Ni	Pb	Zn
No.	Easting	Northing	ppb	ppm	ppm	ppm	ppm	ppm	ppm	ppm
DEK036	443,381	6,830,706	4	0.2	4.4	17	0.8	16	20	3
DEK037	443,362	6,830,703	0	0	0.4	2	1	1	0	0
DEK038	443,339	6,830,707	0	0	0.4	2	2	2	2	3
DEK039	443,305	6,830,698	0	0	0.4	1	0.6	4	0	0
DEK040	443,305	6,830,698	0	0	0	2	0.6	7	0	3
DEK041	443,486	6,830,673	0	0	4.4	2	1.4	2	2	6
DEK042	443,212	6,830,477	0	0	0.2	3	18	3	2	4
DEK043	443,130	6,830,528	0	0	0	1	1	2	0	4
DEK044	443,013	6,830,656	0	0	42.2	28	0.4	93	3	31
DEK045	443,089	6,830,674	0	0	23	63	0.4	166	4	65
DEK046	443,469	6,831,191	0	0	1.2	3	0.6	9	0	5
DEK047	443,144	6,831,308	4	0.1	12.4	85	1.8	92	3	19
DEK048	443,140	6,831,314	0	0.65	56	186	4.2	421	3	105
DEK049	443,079	6,831,326	0	0	1.6	30	30.4	9	30	7
DEK050	443,020	6,831,320	0	0	0.4	8	1	3	0	4
DEK051	443,010	6,831,210	0	0	0.2	30	6	7	42	5
DEK052	443,980	6,831,592	0	0	0.8	3	1	8	1	5
DEK053	443,954	6,831,509	0	0	59.6	29	1.8	17	6	8
DEK054	444,017	6,831,899	0	0	0.6	3	0.8	3	0	1
DEK055	443,893	6,831,701	0	0	1.8	13	1.8	7	0	4
DEK056	444,349	6,832,001	0	0	0.2	3	0.8	7	0	4
DEK057	444,126	6,832,040	0	0	0	9	1.2	6	2	5
DEK058	442,620	6,833,148	0	0	0	9	6.2	3	18	10
DEK059	442,534	6,833,184	0	0	0	2	3.6	3	3	4
DEK060	442,542	6,833,190	0	0	0.8	11	0.4	3	11	12
DEK061	442,388	6,832,997	1	0	3.2	9	13.8	18	37	8
DEK062	442,396	6,832,984	0	0	11.2	37	1.8	13	14	54
DEK063	442,477	6,832,888	0	0	0.8	5	0.8	7	1	11
DEK064	442,478	6,832,913	0	0	3.2	43	1	6	47	14
DEK065	441,971	6,833,306	0	0	0.6	2	1	4	2	6
DEK066	442,130	6,833,178	0	0	0.2	3	0.8	0	1	5
DEK067	442,130	6,833,178	0	0	10.2	61	0.8	42	24	118
DEK068	442,011	6,832,839	1	0	28.6	118	5	79	3	32
DEK069	441,909	6,832,922	0	0	2.2	12	1	6	2	18
DEK070	441,723	6,833,047	0	0	1.2	3	0.8	4	2	4

The Deflector Extended Gold Project area is clearly prospective for hidden gold or goldcopper deposits, as demonstrated by the known deposit density in the Gullewa region, the favourable geological setting and the presence of the known Deflector Deposit owned by Mutiny Gold Limited which has an established JORC Code compliant Mineral Resource of 2.8 Mt grading 6.6 g/t Au and is within a short distance of the Deflector Extended tenement (some 2 km), on a structure that trends into the tenement. Any mineralised structures in the area are not showing up in the available geophysics and any deposits present are showing muted responses to geochemistry and therefore will require further detailed surface geochemistry and geological mapping to define.

Heemskirk Tin Project

The Heemskirk Tin Project (E18/2011) covers 44 km² and is located in north-western Tasmania and centred approximately 16 km WNW of Zeehan town. The area is thought to be highly prospective for tin mineralisation, but may also host copper, lead, zinc and bismuth mineralisation as sulphides.

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Figure 5: Location Plan Showing Heemskirk Tin Project Area

No field work was completed at the Project site in the September 2013 Quarter, the winter months being unsuitable for access to this remote area of Tasmania.

The Heemskirk Tin Project area is large and poorly explored and there remains many areas with old workings and known tin anomalism that are yet to be tested. Further field programs, and possibly geophysics, are planned to hone in on potential mineralisation.

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 Gold Project

• Results from the recent sampling program are now being assessed and further field work will be completed to follow up in the areas with anomalous results. This aims to better delineate the geology and potential targets prior to consideration being given to a drilling and sampling program within the Deflector Extended Gold Project.

Heemskirk Tin Project

• Further assessment of the results received to date will be made prior to conducting follow up field sampling. It is considered that the prospectivity of the area warrants further work and a follow-up sampling program is being designed to further test the Heemskirk Tin Project area.

Corporate

As at 30 September 2013, the Company had available cash of $2.468 million. The Company continues to assess a broad range of exploration and corporate opportunities that have the potential to complement the existing tenement portfolio. Some of the opportunities that have been considered by the Company have reached an advanced stage of evaluation, but as yet none have met the Companies strict criteria for completing a transaction. The Board remains prudent in its approach towards capital expenditure and investment.

For further information, please contact:

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

Competent Persons Statement:

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Kieron Munro, Consulting Geologist. Mr Munro is employed as a consultant for MinRex and is also a Member of the Australian Institute of Geoscientists 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”. Mr Munro 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 and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas 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, 01/05/2013

Name of entity

MINREX RESOURCES NL

ABN 81 151 185 867

Quarter ended (“current quarter”) 30 SEPTEMBER 2013

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) Net Operating Cash Flows	Current quarter $A’000	Year to date (...3....months) $A’000
	- (4) - - (101) - 16 - - -	- (4) - - (101) - 16 - - -
	(89)	(89)
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)	- - - - - - - - -	- - - - - - - - -
	-	-
	(89)	(89)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(89)	(89)
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) 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 of quarter	(89) 2,557 -	(89) 2,557 -
	2,468	2,468

Payments to directors of the entity, associates of the directors, 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

• See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

• 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

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 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
			120
			-
			-
			80
Total			200
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)	3		3
	2,465		2,465
	-		-
	-		-
Total: cash at end of quarter(item 1.22)	2,468		2,468

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed N/A 6.2 Interests in mining tenements and petroleum 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed N/A 6.2 Interests in mining tenements and petroleum 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed N/A 6.2 Interests in mining tenements and petroleum 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed N/A 6.2 Interests in mining tenements and petroleum 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed N/A 6.2 Interests in mining tenements and petroleum 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
	- -	- -	- -	- -
7.5 +Convertible debt securities (description)	N/A

• See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	N/A
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	N/A		Exercise price	Expiry date
	N/A
	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 give a true and fair view of the matters disclosed.

Sign here: Date: 29/10/13 Director

Print name: .Simon Durack.....................................

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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

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 and petroleum 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 or petroleum 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.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

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