MINREX RESOURCES LIMITED — Interim / Quarterly Report 2015

Jan 28, 2016

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Quarterly Activities Report for the Period Ended 31 December 2015

29 January 2016

HIGHLIGHTS

• MinRex and Hello called off the RTO and terminated the Share Purchase Agreement on 15 January 2016, due to market volatility.

• The Company has resumed its focus on the exploration of its two tenements, both of which have returned results in the past year.

• On 15 January 2016, MinRex changed its status from a ‘No Liability’ to a ‘Limited’ company following shareholder and ASIC approval.

• At the end of December 2015, the Company had available cash of $1.021 million.

About MinRex

MinRex Resources Limited (“MinRex”) is an exploration company, listed on the Australian Securities Exchange, with its present focus on the exploration of gold, base metal and tin projects in Western Australia and Tasmania.

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 mid-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 to 2015.

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

The field work completed between 2012 and 2015 has included reconnaissance surveys, stream sediment sampling, examining and sampling historic workings and geology. The area contains many small, but rich, tin oxide bodies associated with various vein types. Many old workings have been located and examined, with these generally thought to date from between 1876 and 1900 (Figure 3). Some of these areas of old workings have been identified as worthy of further inspection and having the potential to be associated with larger mineralised systems.

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Figure 3: Plan of the Old Tin Workings identified in the 2012 to 2015 sampling at Heemskirk

To date some 79 panned stream sediment samples have been collected from Areas A, B and C (Figure 4). Of these samples, 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 directly correlate with bedrock areas with high distributions of contained tinminerals. A plan showing the locations of the 22 assays over 0.5% tin is included below as Figure 4.

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Figure 4: Plan of the Panned-Concentrate Assay Grades from Stream Sampling at Heemskirk

An additional 23 rock chip and stream sediment samples have also been collected from the vicinity of several small deposits of tin, tungsten and base metals in the granitic rock sequences in the area.

The full exploration results to date are now being assessed and the next stage of the exploration program is being planned. However, the initial conclusions are that more work is required in several discrete areas which returned the highest assay results. In particular, in the northern part of Area A, close to the St Dizier alluvial tin workings, in the north of Area B, upstream from the old Peripatetic Tin Mine, and also in the south east of Area B, to the east of the old Fisher and Smith Tin Mine. Area D also remains to be sampled in the future.

Deflector Extended Gold Project

MinRex’s Deflector Extended Gold Project (E59/1657) lies some 5km to the north-east of the Doray Minerals Limited (“Doray”) Deflector Gold Project at the Gullewa Mining Centre (Figure 5). In their latest update (20 January 2016), Doray reported that the open pit mining contractor has mobilised to site and commenced work, the plant will be commissioned in May 2016 and gold production will commence in June 2016. The Deflector Gold Project is projected to produce the equivalent of 150-160,000ozpa of gold (with copper credits) over a 6 year mine life.

No work was completed at the Deflector Extended Gold Project during the current period, following the 2015 soil sampling program which demonstrated a concurrence of the highest copper and arsenic values, the geological contact and a possible fault zone, all lying along the same structure as the nearby Deflector deposit.

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Figure 5: Doray plan showing prospects along trend towards MinRex’s E59/1657

Future Opportunities

MinRex remains in a good position to consider other opportunities both inside and outside of the mining sector, as they arise.

Corporate

On 15 January 2016, MinRex and Hello Real Estate Limited called the RTO off and immediately terminated the Share Purchase Agreement on the same day.

Following shareholder approval on 23 November 2015, ASIC changed the status of MinRex Resources from a ‘No Liability’ to a ‘Limited’ company. Henceforth, the company will be known as MinRex Resources Limited.

As at 31 December 2015, the Company had available cash of $1.021 million.

For further information, please contact:

Simon Durack Executive Director MinRex Resources Limited 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.

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 LIMITED

ABN

81 151 185 867

Quarter ended (“current quarter”) 31 DECEMBER 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 (...6....months) $A’000
	- (13) - - (333) 4 - - -	- (37) - - (479) - 11 - - -
	(342)	(505)
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)	- - - - - - - - -	- - - - - - - - -
	-	-
	(342)	(505)

• 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)	(342)	(505)
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	(342) 1,363 -	(505) 1,526 -
	1,021	1,021

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
		62
		-
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
	-
	-
	150
Total	200

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)	4	2
	1,017	1,361
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,021	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
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	18,375,001	18,375,001	N/A	N/A
	- (17,500,000)	875,000 -	- -	- -
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	16,625,000	-	Exercise price 20 cents	Expiry date 11 July 2016
	16,625,000		20 cents	11 July 2016
	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: 29/01/2016 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.

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• See chapter 19 for defined terms.

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