MINREX RESOURCES LIMITED — Interim / Quarterly Report 2015

Apr 29, 2015

Quarterly Activities Report for the Period Ended 31 March 2015

HIGHLIGHTS

• Field sampling and exploration programs have recently commenced at both the Deflector Extended Gold Project and the Heemskirk Tin Project.

• This exploration work will be completed and reported on in the June Quarter.

• During the March Quarter exploration program planning and assessment of previous results continued at both Projects.

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

• At the end of the March 2015 Quarter the Company had available cash of $1.655 million.

About MinRex

MinRex Resources NL (“MinRex”) is an exploration company, listed on the Australian Securities Exchange, with its principal focus being the exploration and development of gold, base metal and tin projects in Australia. The Company is also actively evaluating other exploration and corporate opportunities, both within Australia and overseas.

MinRex holds two principal projects, the Deflector Extended Gold Project at Gullewa in Western Australia and the Heemskirk Tin Project in Tasmania (Figure 1). Significantly, MinRex’s Deflector Extended Gold Project is adjacent to Doray Minerals Limited’s Deflector Gold Project (Doray Minerals has recently taken over Mutiny Gold Limited) where planning is underway to recommence mining and treatment at this gold/copper deposit (Figure 2).

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Figure 1: Location of MinRex Project Areas

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Deflector Extended Gold Project

The Deflector Extended Gold Project (E59/1657) lies along a north-eastern extension of the Deflector mineralisation trend at the Gullewa Mining Centre. Doray Minerals Limited has recently reported ore reserves of 1.78Mt at 5.6g/t Au, 0.9% Cu and 6.3g/t Ag at their Deflector Gold Project, which lies about 5km to the SW of the MinRex tenement (Figure 2).

The Deflector Extended Gold 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, rock chip sampling and limited RAB and AC drilling. The completed exploration work is interesting, especially the early geochemistry and drilling that shows some anomalous gold values within the tenement.

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Figure 2: Geology Map of Deflector Extended Gold Project Area (E59/1657)

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During the March 2015 quarter, MinRex has continued work on integrating the earlier surface geochemical surveys and drilling with the results from the recent surface sampling programs. A geological mapping, soil sampling and rock chip sampling program has been designed and is now commencing. This new exploration program will be completed during the June 2015 quarter.

Heemskirk Tin Project

The Heemskirk Tin Project (E18/2011) is located in north-western Tasmania, to the WNW of the town of Zeehan. MinRex has been exploring the Heemskirk Tin Project for tin-tungsten mineralisation through 2012-15. Previously, rock chip samples were collected from multiple small deposits of tin, tungsten and base metals in the granitic rock sequences in the area, and a panned stream sediment sampling exercise was also completed in the Area A quadrant (Figure 3). A continuation of this stream sediment sampling has now commenced, with the aim of covering the Areas B and C over the coming two months. This will allow assessment of the relevant drainage areas for hidden metal deposits.

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Figure 3: Location Plan Showing Heemskirk Tin Project Area

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The current stream sediment sampling work was planned to commence earlier in the year but has been delayed due to weather, access and logistical requirements and has now commenced in April 2015. The 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.

Opportunities

The Company is continuing to assess a range of exploration and corporate opportunities that have the potential to complement the existing tenement portfolio. The past year has seen an active program of assessments and a broad range of opportunities considered. This work will continue through the coming period.

MinRex, for a junior company, is currently in a good position to consider opportunities as a result of the Company’s favourable cash holdings. This places it in a good position to take advantage of mineral resource and other assets that are becoming available, as a consequence of the difficulty many smaller companies are experiencing in raising the necessary funding for exploration and development.

Corporate

As at 31 March 2015, the Company had available cash of $1.655 million.

For further information, please contact:

Simon Durack Executive Director & 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.

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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”) 31 MARCH 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 (...9....months) $A’000
	- (12) - - (69) - 8 - - -	- (33) - - (390) - 30 - - -
	(73)	(393)
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)	- - - - - - - - -	- - - - - - - - -
	-	-
	(73)	(393)

• 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)	(73)	(393)
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	(73) 1,728 -	(393) 2,048 -
	1,655	1,655

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
		15
		-
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
			50
			-
			-
			50
Total			100
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
	1,652		1,725
	-		-
	-		-
Total: cash at end of quarter(item 1.22)	1,655		1,728

• 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: 30/04/2015 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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