MINREX RESOURCES LIMITED — Interim / Quarterly Report 2016

Oct 28, 2015

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Quarterly Activities Report for the Period Ended 30 September 2015

HIGHLIGHTS

• Assays were received from the April 2015 panned-concentrate, stream sediment sampling program at the Heemskirk Tin Project.

• Eight of the 49 new samples returned values over 1% tin, with the highest being 6.9% tin (in the panned concentrate). A further eight samples returned values between 0.5% and 1.0% tin.

• Re-analysis of the earlier 2012 sampling also returned values up to 2.8% tin.

• MinRex is engaged in the proposed acquisition of all of the share capital in Hello Real Estate Limited.

• At the end of September 2015 the Company had available cash of $1.363 million.

About MinRex

MinRex Resources NL (“MinRex”) is an exploration company, listed on the Australian Securities Exchange, with its present focus being the exploration of gold, base metal and tin projects in Western Australia and Tasmania. The Company is also actively pursuing the proposed transaction to acquire all of the share capital in Hello Real Estate Limited (Hello).

MinRex currently holds two projects, the Deflector Extended Gold Project at Gullewa in Western Australia and the Heemskirk Tin Project in Tasmania (Figure 1). MinRex’s Deflector Extended Gold Project is along strike from Doray Minerals Limited’s Deflector Gold Project, where construction is underway on new plant and facilities for the recommencement of mining and treatment, in 2016.

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Figure 1: Location of MinRex Project Areas

Heemskirk Tin Project

The Heemskirk Tin Project (E18/2011) is in a remote known tin-bearing area, on the north-western coast of Tasmania, to the WNW of the town of Zeehan (Figure 2). MinRex has been exploring the Heemskirk Tin Project for tin and tungsten mineralisation through 2012-15.

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Figure 2: Overview of part of MinRex’s Heemskirk Tin Project in Tasmania (E18/2011)

In 2012, rock chip and stream sediment samples (23 samples) were collected from multiple small deposits of tin, tungsten and base metals in the granitic rock sequences in the area. The same year, a 30 sample, panned stream sediment sampling program was also completed in the Area A quadrant (Figure 6). In the June Quarter 2015, this panned stream sediment sampling was continued, with the collection of some 49 samples from the Area B and C quadrants (Figure 6).

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Figure 3: Granite Creek (sampled in 2015) in the Heemskirk Tin Project in Tasmania

The 2012 and 2015 field work included extensive field surveys locating, examining and sampling historic workings and geology. The area contains many small, but rich, tin oxide bodies associated with various vein types (Figures 4 and 5). Many old workings were located and examined, with these generally thought to date from between 1876 and 1900. Vein hosted and replacement mineralisation was noted at the McGuinness and Iron Blow workings and a large area of alteration was seen immediately to the west of South Gap Creek. These areas may have the potential to be associated with larger mineralised systems.

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Figure 4: Plan of the Old Tin Workings identified in the 2012 and 2015 sampling at Heemskirk

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Figure 5: Old Tin Workings seen during the 2015 sampling at Heemskirk

The 49 new panned stream sediment samples from Areas B and C, collected in 2015, were submitted to the Bureau Veritas Laboratory in Perth, as the earlier 30 samples from Area A had been. In case the original assays on the first samples had understated their contained tin values, due to cassiterite, the main tin-bearing mineral, being extremely refractory and hence difficult to dissolve with an acid digest; the new samples were analysed by fused bead laser ablation – which does not require an acid digest. The residual samples (pulps) from the initial 30 panned stream sediment samples (and 23 rock chip/stream samples) were also reanalysed using this same method – which is newly installed at the Bureau Veritas Laboratory.

It was found that the new analyses were of a higher-grade for tin, with the reanalysis of the initial 30 panned stream sediment samples returning tin grades nearly 90 times higher than the initial assays. Of the total 79 samples from Areas A, B and C, 11 have values over 1% tin and another 11 have values between 0.5 and 1% tin, for a total of 22 (or 28%) of the samples being over 0.5% tin. The samples are panned concentrate samples and are therefore higher grade than the actual in-situ stream sediments; nonetheless, it is thought

that the higher grade samples will be directly relatable to the bedrock areas with the highest distribution of contained tin-minerals. A plan showing the 22 assays over 0.5% tin has been prepared and is included below as Figure 6. The full table of assay results, for all 79 panned stream sediment samples (2012 and 2015), is also included below as Table 1.

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Figure 6: Plan of the Panned-Concentrate Assay Grades from Stream Sampling at Heemskirk

Deflector Extended Gold Project

MinRex’s Deflector Extended Gold Project (E59/1657) lies about 5km to the north-east of the Deflector Gold Project at the Gullewa Mining Centre.

No work was completed at the Deflector Extended Gold Project during the current period, following the recent successful soil sampling program which demonstrated a concurrence of the highest copper and arsenic values, the geological contact and a possible fault zone, all within the same structure as the nearby Deflector deposit (Figure 7).

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Figure 7: Mutiny (Doray) plan showing prospects along trend towards MinRex’s E59/1657

Further exploration of these projects are on hold until shareholders are given the opportunity to vote on the proposed acquisition of all the of the share capital in Hello Real Estate Limited at the Annual General Meeting on 23 November 2015.

Corporate

As at 30 September 2015, the Company had available cash of $1.363 million.

Dated: 29 October 2015

For further information, please contact:

Simon Durack Non-Executive Director and Company Secretary 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, a Competent Person who is 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 is employed as an independent geological consultant by MinRex and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Table 1 – Heemskirk Panned Stream Sediment (Concentrate) Sample Assay Results

Sample	Easting	Northing	S XRF	Ag	As	Cu	Mo	Pb	Sn	Sn	W	Zn
No.	m	m	%	ppm	ppm	ppm	ppm	ppm	ppm	%	ppm	ppm
53201	346721	5366847	0.009	-0.1	4	-2	2.4	14	28100	2.8	88.1	15
53202	346729	5366840	0.007	-0.1	5.4	-2	0.8	7	2780	0.3	17.7	35
53203	346665	5366748	0.002	-0.1	0.8	2	0.8	7	1940	0.2	12.2	40
53204	346287	5366435	0.003	-0.1	-0.2	4	0.6	11	743	0.1	23.8	15
53205	346294	5366425	0.006	0.1	-0.2	-2	1.2	26	11000	1.1	122	30
53206	346229	5366333	0.006	0.2	1.6	-2	1.8	17	6610	0.7	199	85
53207	346472	5366268	0.002	-0.1	1.6	-2	0.2	4	677	0.1	6.55	30
53208	346570	5366190	0.004	-0.1	2.4	-2	0.4	5	248	0.0	10.1	50
53209	346724	5365864	0.003	0.2	2.4	-2	0.4	7	487	0.0	9.25	70
53211	346820	5365652	0.003	-0.1	1.2	6	0.6	6	689	0.1	12.2	25
53212	346739	5365581	0.002	0.4	3.2	10	0.4	5	554	0.1	9.35	35
53213	346860	5365584	0.004	0.3	7.2	6	0.6	6	38.8	0.0	7.3	40
53214	346894	5365598	0.004	-0.1	1.6	4	0.8	4	246	0.0	8.95	15
53215	347265	5365761	0.019	-0.1	2.8	2	0.8	6	733	0.1	33.1	20
53216	347266	5365751	0.004	-0.1	2	2	0.6	5	117	0.0	8.75	30
53217	347172	5365235	0.003	0.2	3.2	2	0.8	7	342	0.0	13.6	25
53218	347303	5365144	0.004	0.2	2.8	2	0.8	6	72.2	0.0	8	25
53219	347315	5365150	0.005	-0.1	2.4	-2	0.4	6	42.4	0.0	15	20
53221	346359	5365741	0.004	-0.1	2.8	4	0.6	5	916	0.1	29.1	35
53222	346418	5365612	0.002	-0.1	1.2	-2	-0.2	5	215	0.0	5.2	30
53223	346361	5365592	0.004	0.1	0.6	-2	0.6	5	1750	0.2	15.5	40
53224	345923	5365650	0.004	-0.1	1.2	-2	0.4	3	2410	0.2	14.4	35
53225	345956	5365661	0.003	-0.1	-0.2	2	0.6	8	5460	0.5	66.9	40
53226	346140	5365020	0.004	-0.1	-0.2	-2	0.4	7	10700	1.1	80.4	35
53227	346252	5364988	0.003	-0.1	1.6	-2	0.6	6	3050	0.3	60.6	35
53228	346214	5364719	0.002	-0.1	1.6	-2	0.4	4	404	0.0	11	35
53229	346335	5364685	0.002	-0.1	2.2	2	0.2	3	243	0.0	5.85	30
53230	346443	5364690	0.004	-0.1	1.4	-2	0.8	7	1560	0.2	109	35
53231	346788	5364715	0.006	0.1	7.6	2	0.8	7	254	0.0	10.9	35
53232	346789	5364723	0.006	0.1	3.4	-2	0.8	8	447	0.0	31.4	35
53233	343900	5363655	0.012	-0.1	1.4	2	0.2	2	5370	0.5	25.7	65
53234	343867	5363714	0.002	-0.1	-0.2	-2	0.4	3	1390	0.1	8.6	35
53235	343626	5364157	0.002	-0.1	0.6	2	-0.2	4	3270	0.3	17.2	40
53236	343531	5364203	0.002	-0.1	-0.2	-2	0.4	3	2130	0.2	13.2	50
53237	343689	5364095	0.004	-0.1	0.4	-2	-0.2	2	3940	0.4	14.5	25
53238	344083	5363819	0.005	-0.1	-0.2	4	3.2	4	11800	1.2	44.6	40
53239	344125	5363770	0.004	-0.1	-0.2	4	1	6	5200	0.5	28.4	55
53240	344529	5363206	0.004	-0.1	3.6	-2	0.6	3	680	0.1	7	55
53241	344744	5363185	0.005	-0.1	3.6	2	0.6	5	24300	2.4	75.9	55
53242	344744	5363185	0.007	-0.1	-0.2	-2	2.4	10	66500	6.7	269	60
53243	345017	5363601	0.004	-0.1	-0.2	-2	1.2	9	22600	2.3	100	55

53244	345046	5363594	0.004	-0.1	-0.2	-2	0.4	8	6170	0.6	100	35
53245	343445	5363211	0.003	-0.1	1	-2	0.2	2	4550	0.5	22.2	40
53246	345295	5364374	0.002	-0.1	-0.2	-2	1	8	5810	0.6	89.6	30
53247	345235	5364402	0.002	-0.1	1.2	-2	0.4	4	197	0.0	10.1	25
53248	345184	5364445	0.003	-0.1	1	-2	0.4	7	867	0.1	14.7	40
53249	344864	5364429	0.003	-0.1	1.8	-2	1.2	4	296	0.0	11.2	35
53250	344771	5364442	0.003	-0.1	-0.2	-2	0.4	5	2590	0.3	20.4	40
53251	344391	5364614	0.003	-0.1	0.8	-2	0.2	4	1450	0.1	12	40
53252	344268	5364593	0.003	-0.1	0.8	-2	0.4	2	683	0.1	8.65	50
53253	343433	5364773	0.004	-0.1	0.4	8	-0.2	5	390	0.0	11.4	40
53254	343475	5364719	0.06	-0.1	0.6	4	1.6	17	49500	5.0	213	85
53255	343889	5365140	0.005	-0.1	-0.2	-2	0.6	16	7110	0.7	45.1	65
53256	343870	5365161	0.009	-0.1	-0.2	-2	0.2	14	69100	6.9	284	90
53257	343950	5364546	0.003	-0.1	0.4	-2	0.6	4	2910	0.3	360	50
53258	343975	5364494	0.004	0.2	0.4	-2	-0.2	8	10700	1.1	58.3	50
53259	346370	5361130	0.005	0.1	1.8	-2	0.2	8	321	0.0	6.25	80
53260	346339	5361307	0.002	-0.1	1.8	4	3.6	5	345	0.0	8.5	40
53261	346601	5361333	0.002	-0.1	1.6	-2	0.2	5	1300	0.1	27.9	40
53262	346621	5361311	0.002	0.1	0.4	-2	0.4	4	1320	0.1	13.3	35
53263	346393	5361658	0.001	-0.1	2.2	-2	-0.2	3	126	0.0	3.55	30
53264	346531	5361709	0.002	-0.1	0.4	-2	1	6	2060	0.2	17.8	30
53265	346903	5362223	0.003	-0.1	2	-2	0.4	5	481	0.0	15.3	35
53266	346888	5362236	0.006	-0.1	1.6	-2	0.4	6	1120	0.1	36.5	75
53267	346714	5362262	0.004	0.2	2.2	-2	0.6	8	2080	0.2	58.4	35
53268	346629	5361980	0.003	0.1	-0.2	-2	-0.2	11	1630	0.2	22.3	30
53269	346456	5362050	0.004	-0.1	-0.2	-2	0.4	14	14200	1.4	94.7	60
53270	346416	5361911	0.004	-0.1	1.8	-2	0.4	4	258	0.0	9.15	30
53271	346434	5632934	0.005	-0.1	2.8	-2	1	5	5570	0.6	128	50
53272	346470	5362853	0.003	-0.1	1.4	-2	0.8	7	1790	0.2	47.4	65
53273	346444	5362835	0.006	-0.1	1.6	-2	1.4	11	5400	0.5	109	90
53274	346290	5362854	0.005	0.1	2.4	-2	-0.2	6	878	0.1	7.2	30
53275	345962	5362662	0.003	-0.1	1.6	-2	0.4	5	1370	0.1	13.5	35
53276	345907	5362707	0.006	-0.1	-0.2	-2	0.6	10	9640	1.0	70.5	35
53277	345976	5362903	0.002	-0.1	1.2	-2	0.6	9	3270	0.3	100	40
53278	346176	5362766	0.005	-0.1	0.4	-2	0.8	8	1210	0.1	25.5	30
53279	347105	5363055	0.005	-0.1	2.2	-2	-0.2	5	86	0.0	3.4	35
53280	346690	5363001	0.004	0.2	0.8	-2	0.6	10	1250	0.1	39.5	50
53281	346482	5363110	0.004	0.1	2	-2	0.6	6	992	0.1	28.7	50

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 2015

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
	- (24) - - (146) - 7 - - -	- (24) - - (146) - 7 - - -
	(163)	(163)
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)	- - - - - - - - -	- - - - - - - - -
	-	-
	(163)	(163)

• 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)	(163)	(163)
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	(163) 1,526 -	(163) 1,526 -
	1,363	1,363

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
		44
		-
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
			10
			-
			-
			400
Total			410
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)	2		2
	1,361		1,361
	-		-
	-		-
Total: cash at end of quarter(item 1.22)	1,363		1,363

• 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

Changes in interests in mining tenements and petroleum tenements	Changes in interests in mining tenements and petroleum tenements	Changes in interests in mining tenements and petroleum tenements	Changes in interests in mining tenements and petroleum tenements	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.
	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: 29/10/2015 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.

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