MINREX RESOURCES LIMITED — Interim / Quarterly Report 2013

Jan 28, 2014

==> picture [116 x 37] intentionally omitted <==

Quarterly Activities Report for the Period Ended 31 December 2013

HIGHLIGHTS

• Assessment of previous work continued at both the Deflector Extended Gold Project and the Heemskirk Tin Project.

• MinRex is actively evaluating exploration and corporate opportunities that will complement its existing exploration portfolio.

• At the end of the December 2013 Quarter the Company had available cash of $2.344 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, where deposits of goldcopper mineralisation in primary quartz-sulphide veins and secondary gold deposits in surface clays and laterite have been mined, in proximity to MinRex’s Project area.

==> picture [306 x 240] intentionally omitted <==

Figure 1: Location of MinRex Project Areas

The Heemskirk Tin Project is located in the north-western region of Tasmania and has been the site of continued prospecting and exploration activities, focussed primarily 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. A large number of small historical workings for tin, tungsten and copper, occur within the Project area.

During 2013, exploration activities, comprising collation of previous results, geological mapping and surface sampling, were 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.

The Project area is predominantly covered by transported soil, colluvium and alluvium, which effectively conceal any gold or copper 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.

During 2013, two surface sampling programs were completed to follow up the earlier pattern auger and other geochemical surveys. In the December 2013 Quarter, work continued on integrating the earlier surface geochemical surveys and RAB drilling with the results from the new surface sampling programs. It is planned to conduct further follow up surface sampling and evaluation of these anomalous results during 2014.

==> picture [386 x 439] intentionally omitted <==

Figure 2: Geological Plan Showing Sampling Sites at the Deflector Extended Gold Project

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, tungsten and bismuth mineralisation.

==> picture [425 x 459] intentionally omitted <==

Figure 3: Location Plan Showing Heemskirk Tin Project Area

No field work was completed at the Heemskirk Tin Project in the December 2013 Quarter. Nonetheless, data collation and evaluation work is continuing to assess the best areas for further follow up geological mapping, sampling and evaluation.

The Heemskirk Tin Project area is large and poorly explored and there remain many areas with old workings and known tin anomalism that are yet to be tested. Further field programs are planned to hone in on potential mineralisation, during 2014.

Opportunities

The Company is continuing to assess a broad range of exploration and corporate opportunities that have the potential to complement the existing tenement portfolio. During the quarter the Company has been actively assessing a broad range of opportunities – this process is still being actively managed.

Corporate

As at 31 December 2013, the Company had available cash of $2.344 million.

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 report that relates to Exploration Targets and 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 that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 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

Name of entity
MINREX RESOURCES NL
ABN 81 151 185 867	Quarter ended (“current quarter”)
81 151 185 867	31 DECEMBER 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 (...6....months) $A’000
	- (21) - - (117) - 14 - - -	- (25) - - (218) - 30 - - -
	(124)	(213)
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)	(213)

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

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

1.13 Total operating and investing cash flows (brought forward)	(124)	(213)
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	(124) 2,468 -	(213) 2,557 -
	2,344	2,344

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.

Appendix 5B Page 2

01/05/2013

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)	5		3
	2,339		2,465
	-		-
	-		-
Total: cash at end of quarter(item 1.22)	2,344		2,468

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

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.

Appendix 5B Page 4

01/05/2013

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: 29/01/14 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.

01/05/2013 Appendix 5B Page 5

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

01/05/2013