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MINREX RESOURCES LIMITED Interim / Quarterly Report 2018

Jul 18, 2018

65375_rns_2018-07-18_26bd9731-07f1-454f-b7e2-920100ffab5d.pdf

Interim / Quarterly Report

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Quarterly Activities and Cash Flow Report for the Quarter Ended 30 June 2018

19 July 2018

HIGHLIGHTS

  • On the 21 June 2018, MinRex announced that the assay results had been received for the rock sampling completed at MinRex’s four East Pilbara Project areas during May 2018. A total of 190 samples were collected from old workings, prospects, outcrops and float in these leases.

  • Sampling of the old workings in the Marble Bar North Project area (P45/3040) returned gold assays of up to 42.9g/t Au, the average grade of all 40 samples was 4.86g/t Au. Similarly, samples from the old workings in the Marble Bar South Project area (P45/3039) returned gold assays of up to 47.6g/t Au, with the average grade of all 40 samples being 4.16g/t Au.

  • Sampling of the old workings, dumps, outcrop and float in the Daltons Project area (E45/4681) returned assays of up to 163g/t Au and 8.17% Cu, with the average grade of all 60 samples being 9.9g/t Au and 0.49% Cu.

  • There are no old workings in MinRex’s Bamboo Creek Project area (E45/4560 & 4853) but the 50 samples collected, at previously identified gold, copper, chrome, nickel and polymetallic prospects, outcrop and float, returned assay values of up to 7.8g/t Au, 42g/t Ag, 14.3% Cu, 0.18% Cr, 0.11% Ni, 0.12% Pb and 0.09% Zn.

  • The two Marble Bar Project licences (P45/3039 & 3040) were granted on the 2 July 2018.

  • On the 21 June 2018, MinRex announced that, following completion of the due diligence process, it had terminated the proposed acquisition of Clean Power Resources Pty Ltd (CPR).

  • As at 30 June 2018 the Company had available cash of $1.540 million.

About MinRex

MinRex Resources Limited (ASX:MRR) (“MinRex” or “the Company”) is an exploration company, listed on the Australian Securities Exchange, with its present focus being the exploration of gold and base metal projects in Western Australia and a tin project in Tasmania. During the Quarter, the Company carried out due diligence towards a proposed acquisition of cobalt-scandiumcopper-nickel projects in NSW and WA, but decided not to proceed in June 2018.

MinRex currently holds six projects, four in the East Pilbara area of WA – the Daltons Gold Project, the Bamboo Creek Gold Project, the Marble Bar North Gold Project and the Marble Bar South Gold Project; as well as the Deflector Extended Gold Project at Gullewa in Western Australia and the Heemskirk Tin Project on the west coast of Tasmania (Figure 1).

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

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Figure 1: Location of MinRex Project Areas

East Pilbara Gold Projects

Acquisition of a 70% interest in the four East Pilbara Project areas was finalized in February 2018 and MinRex completed a large detailed surface geological evaluation and sampling program on these properties, near Marble Bar in the East Pilbara Region, during May and June 2018.

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Figure 2: Satellite Image showing MinRex’s four East Pilbara Project Areas

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

As announced on the 21 June 2018, a detailed data compilation and review of historic mining and mineral exploration within the East Pilbara project areas had been completed, leading to the field exploration work commencing, during May 2018. This first stage of field exploration included geological mapping, rock sampling and ground verification of previous exploration and sampling programs. The initial exploration of the East Pilbara Project areas included the collection of a considerable number of rock samples from the areas of old workings in both P45/3040 and P45/3039, at the Marble Bar North and South Project areas, and the workings at the Daltons Project (E45/4681) and the previously defined prospect areas at the Bamboo Creek Project (E45/4560 & 4853).

Marble Bar North Project

At Marble Bar North (P45/3040) a total of 40 rock samples were collected from the extensive old workings, variously named Ironclad, Jo Jo North and Betty Boo, during May 2018. The gold mineralisation in this area occurs as quartz veins in sheared greenstones, and associated alteration zones, in dolerite and other mafic rock types, close to the greenstone/granite contact.

This lease has been worked extensively in the past and, within the lease, a line of old gold workings lies along the lithological contact between sheared and metamorphosed mafic volcanic rocks and intrusive granite. This highly sheared contact zone trends north-south and hosts an extensive gold-bearing quartz vein system that dips shallowly to the west, within the encompassing shear zone.

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Figure 3: View to the north (along strike) at the Ironclad Gold Mine Workings in P45/3040

The Ironclad Gold Mine workings form part of the Marble Bar Group of gold mines, which contain a total of 29 gold occurrences, with a historic gold production of about 1,298kg, within a strike extent of about 4km. The Ironclad Mine was worked from the 1890’s until 1933 and produced 1,451oz of gold from 2,843t of ore treated; a sizeable proportion of this production was from the area now covered by P45/3040.

The 40 rock samples from the Marble Bar North Project area were collected from old mine workings, spoil piles and outcropping quartz veins. The samples were analysed for a total of 20 elements at Bureau Veritas in Perth; these included gold, silver, arsenic, cobalt, copper, chrome, bismuth, iron, lithium, manganese, molybdenum, nickel, lead, antimony, tin, tellurium, thorium, uranium, tungsten and zinc. A few samples were anomalous in various elements but the outstanding results were in the gold assays which varied from 10ppb Au up to 42.9g/t Au, with an

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

average for all 40 samples of 4.86g/t Au, and 17 of the 40 samples assaying over 1.0g/t Au. The full assay results for gold and base metals are in Appendix 1, with the gold results also shown on the plan below (Figure 4). The full results were detailed in the ASX release of the 21 June 2018.

The next phase of field work at the Marble Bar North Project will comprise further rock sampling, soil sampling in colluvium and soil covered areas and detailed geological mapping to better understand this gold mineralised system. It is probable that this work will be completed in the next few months during the current field season in the East Pilbara.

The Marble Bar North Project licence (P45/3040) was granted on the 2 July 2018, for a period of four years.

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Figure 4: Marble Bar North Project P45/3040 showing workings and current gold assay results

Marble Bar South Project

At the Marble Bar South Project (P45/3039) a total of 40 rock samples were collected to add to the ten collected in December 2017. The lease has a line of old workings running along a 30-40m high ridge of greenstone rocks. The old mine was known as McKays Find and the mineralisation occurs as a 2m wide zone of pyritic-fuchsite-carbonate rock, with associated quartz veining. The mined zone was 100m long, 0.5-2m wide, strikes at 010[o] and dips at 70-90[o] to the east, the ore shoot plunges east/southeast, parallel to the intersection of fracturing and regional schistosity.

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

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Figure 5: View of some of the old workings at McKays Find in P45/3039

The 40 rock samples from the Marble Bar South Project were also collected from old mine workings, spoil piles and outcropping quartz veins. The samples were analysed for a total of 20 elements at Bureau Veritas in Perth; these included gold, silver, arsenic, cobalt, copper, chrome, bismuth, iron, lithium, manganese, molybdenum, nickel, lead, antimony, tin, tellurium, thorium, uranium, tungsten and zinc. A few samples were anomalous in various elements but the outstanding results were in the gold assays which varied from 7ppb Au up to 47.6g/t Au, with an average for all 40 samples of 4.16g/t Au, and 14 of the 40 samples assaying over 1.0g/t Au. The full assay results for gold and base metals are in Appendix 2, with the gold results also shown on the plan below (Figure 7). The full results were detailed in the ASX release of the 21 June 2018.

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Figure 6: View to the north along the ridge hosting the gold mineralisation in P45/3039

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

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Figure 7: Marble Bar South Project P45/3039 showing workings and current gold assay results

The next phase of field work at the Marble Bar South Project will closely mirror that at the Marble Bar North Project, comprising further rock sampling, soil sampling in colluvium and soil covered areas and detailed geological mapping to better understand this gold mineralised system. It is probable that this work will also be completed in the next few months during the current field season in the Pilbara.

The Marble Bar South Project licence (P45/3039) was granted on the 2 July 2018, for a period of four years.

Daltons Project

At the Daltons Project (E45/4681) a total of 60 rock samples were collected from the extensive old workings, variously named Daltons, McLeods Reward, Thomas’s, Eclipse and Corona, during May 2018. These old gold workings are located along a north-northwest-trending line of quartz and quartz-carbonate veins which have intruded the foliation of mafic greenstone schist and associated alteration zones in dolerite and other mafic rock types. The geology strikes northnorthwest, is steeply dipping and layered with bands of jaspilite, quartzite, ultramafic, felsic, mafic and amphibolite rocks. There are many structurally complex areas, numerous shear zones and steeply plunging fold axes, with dips being between steeply east-dipping and vertical.

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

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Figure 8: View to the south along the line of old workings at Daltons in E45/4681

The 60 rock samples collected at the Daltons Project were from the old mine workings, spoil piles and outcropping quartz veins. The samples were analysed for a total of 20 elements at Bureau Veritas in Perth; these included gold, silver, arsenic, cobalt, copper, chrome, bismuth, iron, lithium, manganese, molybdenum, nickel, lead, antimony, tin, tellurium, thorium, uranium, tungsten and zinc. The outstanding results were in the gold and copper assays which were up to 163g/t Au and 8.17% Cu, with the average grade of all 60 samples being 9.9g/t Au and 0.49% Cu, and 19 of the 60 samples assaying over 1.0g/t Au. The full assay results for gold and base metals are in Appendix 3, with the gold results also shown on the plan below (Figure 10). The full results were detailed in the ASX release of the 21 June 2018.

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Figure 9: View of the old decline and a shaft and spoil dump at Daltons in E45/4681

The Daltons gold workings can be traced for about 1500m in strike length, with the main quartz lode marked by workings for about 700m, the maximum width is up to 10m and the strike is 170[o] . Recorded production was 5.543kg of gold from 409.5t of ore, for an average grade of 13.54g/t Au. The quartz reefs are principally parallel with the schistosity within the greenstones. There are several shafts, two of which extend to depths of about 20m and some open cutting – there are copper minerals associated with the gold mineralisation in the workings.

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

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Figure 10: Daltons Project E45/4681 showing workings and current gold assay results

This lease area is large and holds the remains of an old battery, with old tracks that provide access to most of the workings. The mineralisation occurs as gold-copper in quartz veins with the highest copper content (shown by green malachite and red cuprite minerals in the quartz) being associated with the highest gold grades. The lease is remote and accessed by driving abut 89km to the southwest of Marble Bar via various unsealed roads and tracks – about 2 ½ hours travel time from Marble Bar.

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

Bamboo Creek Project

At the Bamboo Creek Project (E45/4560 & 4853) a total of 50 rock samples were collected, including several samples from some of the previously named prospects, including Norms Find, BC07 and Nobb Well, as well as various outcropping quartz veins and breccia zones.

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Figure 11: Views of the Nobb Well and BC07 prospect areas and close-up of fluorite-rich sulphide mineralisation from BC07, in the Bamboo Creek Project in E45/4560

There are no old workings in MinRex’s Bamboo Creek Project area (E45/4560 & 4853) but the 50 samples collected at previously identified gold, copper, chrome, nickel and polymetallic prospects, outcrop and float returned assay values of up to 7.8g/t Au, 42g/t Ag, 14.3% Cu, 0.18% Cr, 0.11% Ni, 0.12% Pb and 0.09% Zn. The full assay results for gold and base metals are in Appendix 4, with the gold, copper, nickel and chrome results also shown on the plans below (Figures 12 & 13). The full results were detailed in the ASX release of the 21 June 2018.

Gold mineralisation in the Bamboo Creek area is associated with quartz veins, while Norms Find is a copper-gold prospect (containing green malachite), BC07 is a quartz vein in granite, associated with sulphide minerals and high fluorite content, and Nobb Well is a large intrusive ultramafic body with elevated nickel and chrome contents.

Previous explorers of the Norms Find prospect identified gossanous structures and malachite-staining within this northerly striking, sub-vertical quartz vein structure; while previous work at the BC07 prospect area identified chalcopyrite, pyrite, molybdenite and fluorite at this large quartz vein system, which strikes north-northeast.

The Bamboo Creek Project is large, being several times the size of all the other East Pilbara Project areas combined, with reasonable access via the unsealed road to Coppins Gap and various station tracks; however, the tracks are limited, and it is generally

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

necessary to complete foot traverses to the various prospects due to the rocky undulating terrain.

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Figure 12: Northern part of the Bamboo Creek Project with Norms Find and BC07 prospect areas

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Figure 13: Central part of the Bamboo Creek Project with the Nobb Well prospect area

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

The next phase of field work in the East Pilbara Region will again incorporate visits to all of the project areas in the Marble Bar area. More detailed rock sampling, soil sampling in colluvium and soil covered areas and detailed geological mapping will be utilised to better understand these gold, base metal and poly-metallic mineralised systems. It is probable that this work will be completed in the next few months during the current field season in the Pilbara.

Termination of Clean Power Resources Pty Ltd Acquisition

On the 26 March 2018, MinRex announced that it was proposing to acquire Clean Power Resources Pty Ltd, an exploration company with three cobalt-scandium-copper-nickel project areas in NSW and WA. These projects were to be acquired by MinRex in order to secure, explore and develop prospective areas with known cobalt, scandium and nickel mineralisation.

Due diligence and detailed studies of these project areas continued throughout the Quarter, with regular updates being released by MinRex in April, May and June of 2018 (4 April, 20 April, 24 April, 14 May, 24 May and 6 June 2018). On 21 June 2018, MinRex announced that following completion of the due diligence work, the Company had decided not to proceed with the acquisition of Clean Power Resources Pty Ltd, and had terminated the binding Heads of Agreement in accordance with its terms. As announced on the 25[th] June 2018, the General Meeting of MinRex shareholders held on that date passed Resolution 1, with Resolutions 2 and 3 being withdrawn by the Company prior to the General Meeting, following termination of the proposed acquisition.

Deflector Extended Gold Project

MinRex’s Deflector Extended Gold Project (E59/1657) lies to the northeast of the Doray Minerals Limited (“Doray”) Deflector Mine, where copper-gold mineralisation occurs in shear zones in meta-basalt, and also the Golden Stream open cut, where gold was produced from shear zonehosted quartz veins in meta-basalt. Both deposits trend towards MinRex’s tenement, where deep cover sequences have hindered previous exploration work. The Deflector Mine was opened in May 2016, as an underground mining operation on copper-gold sulphide lodes; Doray is also actively exploring its Deflector area tenements, with drilling at the Deflector Mine and other mines and prospects in the area.

About 85% of the area of E59/1657 is covered by sand, colluvium, scree and alluvium, with only about 15% outcrop of mafic meta-basalts in the Cagacaroon Hills area, and other small areas of granite and dolerite. Minrex has been actively exploring the Project area since 2011, utilising surface sampling and geological mapping to hone in to buried mineralized structures and favourable settings for mineralization.

During November 2017, an extensive surface exploration program was conducted at MinRex’s Deflector Extended Gold Project, including geological mapping and the collection of 184 new surface rock samples; the full results of this program were reported in an ASX announcement on 11 December 2017.

MinRex has now collected a total of 534 surface rock, scree and float samples in the Deflector Extended Gold Project area, along with many soil samples and auger drill results, which have defined significant anomalous zones for further exploration and sampling. There have also been prior programs of RAB drilling, aircore drilling and soil sampling, by earlier explorers of the area, the results from which support the definition of these anomalous zones. The full results from all 534 rock samples to date are shown below in Figure 14.

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

The best results are from an area, now known as Corner Creek, where a number of anomalous surface assay values (up to 2.9g/t Au) cluster in a distinct scree-covered area, adjacent to mafic meta-basalt and an interpreted fault zone, near the central corner of the lease. The prevalence of higher gold values in rock and soil values in areas of mafic colluvium suggests that concealed mineralisation may lie below the blanket of scree surrounding the Cagacaroon Hills meta-basalt outcrop area, especially immediately to the north of the rocky outcrop area.

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Figure 14: Plan showing the geology and all rock sample results to date, in E59/1657.

It is anticipated that the next stage of work at the Deflector Extended Gold Project will comprise a shallow, vertical aircore drilling program of lines of holes within this anomalous area. Commencement of the heritage survey process, with archaeological and ethnographic surveys over the proposed drilling areas will be in 2018, along with the collection of further surface rock and soil samples, with a view to further pin pointing the most anomalous areas for subsequent drilling. This work will concentrate on the defined anomalous zones, but also include some further reconnaissance work elsewhere in the Deflector Extended Gold Project.

Heemskirk Tin Project

The Heemskirk Tin Project lies in exploration licence EL18/2011, on the west coast of Tasmania. MinRex has now held its Heemskirk Tin Project since 2012 and has been successful in identifying a number of the old tin workings, dating from the 1870’s-1880’s, and has collected a total of 129 stream sediment concentrate samples, 99 rock chip samples and 78 soil samples, for a total of 306 samples (Figure 15), in a search for large low-grade, or smaller, high to medium-grade tin deposits

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

The Extension of Term Application, to Mineral Resources Tasmania, seeking a one year extension to this licence was granted on the 30 April 2018 and thereby extends the term of EL18/2011 to the 2[nd] April 2019.

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Figure 15: Plan of all Panned-Concentrate Stream Sediment Assay Values from Heemskirk

Work on collating all of the exploration results to date has been completed and plans made for the next stage of exploration, a new field program is expected to commence, later in 2018 or early in 2019. This new program is likely to include extending the stream sediment concentrate sampling into the north-western portion of the project area.

MinRex Tenement List

Region Project Tenement Area Grant Expiry MinRex
approx. Date Date Interest
East Pilbara
East Pilbara
East Pilbara
East Pilbara
East Pilbara
Daltons
Bamboo Creek
Bamboo Creek
Marble Bar South
Marble Bar North
E45/4681
E45/4560
E45/4853
P45/3039
P45/3040
9 km2
69 km2
6 km2
8.26 ha
3.03 ha
13-07-17
27-10-17
11-10-17
02-07-18
02-07-18
12-07-22
26-10-22
10-10-22
01-07-22
01-07-22
70%
70%
70%
70%
70%
Murchison Deflector Extended E59/1657 15 km2 12-07-11 11-07-21 100%
Tasmania Heemskirk EL18/2011 9 km2 03-04-11 02-04-19 100%

Table 1: Current listing of the Tenement holdings of MinRex Resources Ltd

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

Corporate

As at 30 June 2018, the Company had available cash of $1.540 million.

For further information, please contact:

Simon Durack Executive Director MinRex Resources Limited T: +61 8 9486 8806 F: +61 8 9321 3559 [email protected]

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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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

Appendix 1 – Marble Bar North Project - May 2018 Rock Sample Assay Results

Sample Easting Northing Au Ag As Cr Pb Cu Ni Zn
No. m m ppm ppm ppm ppm ppm ppm ppm ppm
MNR001 786383 7657702 0.18 0.0 11 15 3 23 10 6
MNR002 786383 7657702 3.10 0.4 123 635 67 1550 645 127
MNR003 786371 7657629 0.28 0.0 16 30 3 15 30 6
MNR004 786371 7657629 5.26 0.3 26 30 8 49 42 6
MNR005 786371 7657629 24.60 1.9 165 20 18 23 73 4
MNR006 786369 7657633 0.87 0.1 13 15 2 2 19 2
MNR007 786369 7657633 18.10 0.4 46 95 9 122 106 31
MNR008 786375 7657611 10.50 0.3 14 100 5 114 57 12
MNR009 786375 7657611 7.54 0.3 77 50 4 651 149 8
MNR010 786375 7657611 3.94 0.8 47 80 5 1840 278 16
MNR011 786376 7657598 1.27 0.5 27.8 240 5 220 170 13
MNR012 786376 7657598 0.97 0.3 60.2 55 2 2250 478 17
MNR013 786359 7657697 8.96 0.3 40.2 15 10 16 17 4
MNR014 786359 7657697 16.80 4.0 206 95 3310 172 88 1050
MNR015 786358 7657541 0.22 0.1 5 185 11 41 93 18
MNR016 786372 7657544 0.23 0.1 8.8 100 8 29 42 6
MNR017 786372 7657544 0.11 0.0 10.2 985 3 116 452 63
MNR018 786354 7657538 15.90 0.8 20 475 22 230 314 28
MNR019 786375 7657532 2.29 0.1 9 60 26 91 49 18
MNR020 786375 7657532 0.06 0.0 3.4 120 2 19 45 10
MNR021 786292 7657487 0.02 0.0 2.2 40 0 1 18 4
MNR022 786296 7657497 0.02 0.0 1.8 15 0 2 9 2
MNR023 786348 7557457 0.12 0.0 9.4 20 0 4 18 6
MNR024 786348 7657456 0.01 0.0 30.4 570 6 81 512 106
MNR025 786371 7657466 1.34 0.3 42.8 100 17 231 102 13
MNR026 786371 7657466 3.58 1.0 83.8 135 16 485 170 37
MNR027 786375 7657479 0.06 0.1 15.2 130 0 66 73 12
MNR028 786387 7657501 0.35 0.0 5.8 55 2 16 22 7
MNR029 786387 7657501 0.06 0.0 16.2 225 6 122 118 28
MNR030 786381 7657532 42.90 2.4 22.4 80 6 130 93 6
MNR031 786382 7657520 0.03 0.0 1.6 60 0 9 14 4
MNR032 786382 7657520 0.04 0.0 1.8 60 0 5 19 5
MNR033 786382 7657516 0.03 0.0 7 315 2 11 101 19
MNR034 786382 7657516 0.03 0.0 15.2 70 2 22 42 12
MNR035 786382 7657516 0.01 0.0 2.8 60 0 2 27 14
MNR036 786354 7657670 0.06 0.0 42 25 7 12 22 5
MNR037 786354 7657670 0.44 0.0 19.6 20 2 6 17 8
MNR038 786359 7657700 22.80 0.4 297 35 5 22 72 9
MNR039 786383 7657737 1.40 0.1 8.2 35 0 18 26 6
MNR040 786383 7657737 0.05 0.0 5.6 25 2 7 39 7

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

Appendix 2 – Marble Bar South Project - May 2018 Rock Sample Assay Results

Sample Easting Northing Au Ag As Cr Pb Cu Ni Zn
No. m m ppm ppm ppm ppm ppm ppm ppm ppm
MSR011 783818 7648193 1.8 0.5 177 305 22 74 99 21
MSR012 783818 7648193 0.6 1.1 56 30 5 152 30 7
MSR013 783802 7648145 2.7 0.2 72 605 3 16 258 21
MSR014 783802 7648145 0.2 0.0 58 345 0 26 123 15
MSR015 783791 7648148 5.0 0.3 59 200 1 35 74 24
MSR016 783789 7648151 45.9 2.1 777 230 511 540 232 132
MSR017 783785 7648153 0.0 0.0 17 95 3 3 23 13
MSR018 783790 7648139 0.2 0.0 12 25 3 8 11 4
MSR019 783788 7648095 0.6 0.2 144 270 2 102 109 26
MSR020 783788 7648095 1.3 0.3 396 950 6 85 378 91
MSR021 783791 7648092 10.7 0.5 44 145 1 37 60 20
MSR022 783788 7648099 0.1 0.0 21 350 0 14 145 10
MSR023 783788 7648099 0.2 0.0 103 1940 2 64 722 59
MSR024 783788 7648099 0.1 0.0 90 740 0 91 284 77
MSR025 783855 7648097 0.0 0.0 11 45 0 2 29 24
MSR026 783848 7648098 0.0 0.0 3 440 2 28 199 40
MSR027 783788 7648088 0.0 0.0 11 55 0 2 22 10
MSR028 783804 7648079 0.6 0.0 34 155 0 7 61 14
MSR029 783805 7648081 1.2 0.2 93 640 3 31 253 50
MSR030 783796 7648079 5.4 0.1 113 300 1 8 134 33
MSR031 783786 7648073 0.2 0.0 20 90 0 6 30 9
MSR032 783778 7648068 0.1 0.0 73 255 2 11 167 36
MSR033 783778 7648066 0.2 0.0 11 115 0 4 51 17
MSR034 783778 7648067 1.4 0.2 76 855 2 36 289 69
MSR035 783777 7648067 47.6 2.0 9 50 0 36 23 14
MSR036 783766 7648078 30.8 1.6 56 85 1 39 54 15
MSR037 783767 7648078 0.4 0.1 23 135 0 3 40 13
MSR038 783768 7648078 0.1 0.0 37 115 0 2 74 38
MSR039 783899 7648027 0.0 0.0 0 15 1 18 54 16
MSR040 783870 7647997 0.0 0.0 1 5 1 12 52 12
MSR041 783768 7648067 3.2 0.1 10 45 0 8 20 8
MSR042 783768 7648067 1.7 0.2 131 575 6 58 129 27
MSR043 783764 7648066 4.0 0.2 7 60 2 4 35 12
MSR044 783762 7648071 0.0 0.0 5 30 2 9 22 15
MSR045 783763 7648059 0.1 0.0 19 175 1 25 103 24
MSR046 783719 7648015 0.0 0.0 6 45 0 18 17 4
MSR047 783777 7648049 0.0 0.0 12 20 0 13 31 15
MSR048 783796 7648048 0.0 0.0 2 20 0 2 11 0
MSR049 783802 7648051 0.1 0.1 51 55 1 4 24 4
MSR050 783779 7648064 0.1 0.0 24 140 0 6 71 16

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MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

Appendix 3 – Daltons Project - May 2018 Rock Sample Assay Results

Sample Easting Northing Au Ag As Cr Pb Cu Ni Zn
No. m m ppm ppm ppm ppm ppm ppm ppm ppm
DAR001 734304 7624815 0.02 0.15 2 65 1 356 29 37
DAR002 734306 7624815 0.05 0.1 2.6 90 2 328 44 38
DAR003 734305 7624815 0.02 0.05 1.6 80 1 405 30 38
DAR004 734304 7624815 0.05 0.1 2.4 70 1 233 43 29
DAR005 734304 7624815 0.05 0.05 3.4 120 0 168 64 63
DAR006 734303 7624815 0.05 0.6 4.4 170 2 249 78 73
DAR007 734302 7624815 0.11 0.0 3.8 140 2 152 61 75
DAR008 734299 7624807 11.2 4.45 12.6 110 2 15400 16 26
DAR009 734299 7624808 2.09 10.4 8 35 5 28500 44 52
DAR010 734299 7624809 0.00 0.0 74.2 150 1 109 151 162
DAR011 734312 7624804 140.0 26.6 9.6 65 2 81700 16 44
DAR012 734316 7624798 0.04 0.15 19 75 0 285 48 53
DAR013 734316 7624797 0.10 0.35 12.4 65 1 233 138 329
DAR014 734320 7624794 2.66 0.2 7.2 20 1 264 23 159
DAR015 734321 7624785 0.03 0.0 16 40 0 127 161 633
DAR016 734335 7624764 0.01 0.0 6.6 15 0 5 2 6
DAR017 734337 7624739 0.62 0.05 9.2 110 0 55 47 15
DAR018 734376 7624652 0.02 0.0 8.4 15 3 182 88 1160
DAR019 734374 7624656 0.20 0.0 8.4 15 1 84 92 98
DAR020 734408 7624568 1.10 0.1 23.6 65 2 147 138 120
DAR021 734413 7624559 0.22 0.0 6.6 30 2 1740 129 66
DAR022 734463 7624498 0.01 0.0 6 125 1 104 152 115
DAR023 734471 7624495 0.03 0.0 2.4 115 2 82 112 155
DAR024 734473 7624493 0.02 0.0 5.6 180 3 146 188 160
DAR025 734468 7624474 0.45 0.2 18.6 40 1 18600 230 241
DAR026 734468 7624472 2.94 0.5 14.2 40 0 17400 229 77
DAR027 734471 7624467 3.45 0.7 39.2 60 2 2740 222 1160
DAR028 734469 7624470 4.32 0.8 39.4 45 1 27700 315 115
DAR029 734464 7624417 0.00 0.0 7.2 75 0 134 225 103
DAR030 734480 7624407 7.03 1.75 34.2 20 0 756 52 22
DAR031 734494 7624393 0.81 0.2 46.6 105 0 42900 190 65
DAR032 734488 7624404 0.04 0.15 5.8 60 0 405 163 127
DAR033 734489 7624376 24.3 11.2 507 10 4 17500 483 47
DAR034 734485 7624385 0.01 0.05 25.8 10 0 299 18 26
DAR035 734488 7624411 0.92 0.15 8.4 50 0 163 31 20
DAR036 734472 7624358 0.01 0.0 2.8 15 0 41 21 12
DAR037 734469 7624357 0.01 0.0 14 60 0 218 122 115
DAR038 734464 7624363 5.86 1.0 25.4 25 0 438 144 28
DAR039 734481 7624384 0.01 0.0 9.6 10 0 55 29 21
DAR040 734535 7624400 0.02 0.0 14.4 20 0 52 24 19
DAR041 734527 7624409 0.00 0.0 21.8 30 0 45 50 57
DAR042 734502 7624307 0.02 0.0 60.4 15 0 26 29 21

17

MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

Sample
No.
DAR043
DAR044
DAR045
DAR046
DAR047
DAR048
DAR049
DAR050
DAR051
DAR052
DAR053
DAR054
DAR055
DAR056
DAR057
DAR058
DAR059
DAR060
Easting Northing Au Ag As Cr Pb Cu Ni Zn
m m ppm ppm ppm ppm ppm ppm ppm ppm
734498 7624311 0.02 0.0 76.6 20 0 88 85 49
734501 7624274 0.01 0.0 13.6 15 0 17 19 12
734586 7623995 0.05 0.0 12.8 15 0 213 18 24
734527 7624018 0.02 0.0 5.8 20 0 69 11 19
734494 7624047 0.00 0.0 1.2 5 0 3 36 43
734530 7624068 0.00 0.0 5.6 10 0 166 52 54
734413 7623706 0.00 0.0 44.6 15 0 66 160 207
734360 7623595 13.3 0.6 94 25 1 387 39 158
734724 7623370 62.4 6.25 31.8 10 0 4130 78 9
734728 7623368 103.0 8.1 154 15 3 10400 216 348
734731 7623368 12.4 1.0 25 20 0 4410 105 59
734731 7623365 1.24 0.15 23.2 15 0 3810 66 112
734727 7623363 25.1 2.25 25.2 15 0 1400 42 64
734710 7623387 0.51 0.05 2.8 10 0 69 7 1
734720 7623370 163.0 10.1 5.2 10 0 8500 40 52
734725 7623373 3.62 0.55 22.2 10 0 428 22 54
734784 7623043 0.03 0.0 18.4 10 0 210 28 27
734787 7622755 0.05 0.0 0.8 10 0 3 0 1

Appendix 4 – Bamboo Creek Project - May 2018 Rock Sample Assay Results

Sample Easting Northing Au Ag As Cr Pb Cu Ni Zn
No. m m ppm ppm ppm ppm ppm ppm ppm ppm
BBR001 200330 7687559 0.00 0.0 0.8 10 0 16 10 6
BBR002 200268 7687460 0.00 0.1 5.4 15 114 32 16 7
BBR003 200325 7687457 0.00 0.1 126 50 5 17 31 27
BBR004 200323 7687457 0.00 0.0 70.2 90 3 88 111 45
BBR005 200329 7687469 0.01 0.1 8.6 5 10 41 25 70
BBR006 200330 7687465 0.01 0.0 37.4 30 0 53 45 29
BBR007 200320 7687499 0.00 0.0 16.6 10 30 12 25 104
BBR008 200171 7687306 0.00 0.0 4.4 25 0 11 14 11
BBR009 200318 7687301 0.00 0.0 1.8 15 0 11 8 8
BBR010 200336 7687300 0.00 0.0 1.2 30 2 18 16 16
BBR011 200434 7687334 0.00 0.0 2.8 35 2 31 26 32
BBR012 200557 7687278 0.00 0.1 10.4 35 2 79 38 27
BBR013 200633 7687152 0.00 0.1 1.2 10 0 14 5 5
BBR014 200684 7687040 0.00 0.0 0.8 10 1 5 1 4
BBR015 200684 7687040 0.02 0.0 291 25 10 555 77 210
BBR016 200631 7686994 0.00 0.1 2.2 30 0 16 20 7

18

MinRex Resources Limited – Quarterly Activities and Cash Flow Report for the Quarter ended 30 June 2018

Sample Easting Northing Au Ag As Cr Pb Cu Ni Zn
No. m m ppm ppm ppm ppm ppm ppm ppm ppm
BBR017 200624 7687052 0.31 2.6 203 10 17 2160 31 66
BBR018 200625 7687075 2.90 41.5 10 10 0 143000 15 12
BBR019 200622 7687085 7.80 16.0 205 10 19 14600 14 191
BBR020 200388 7687503 0.01 0.6 47 10 1 420 50 11
BBR021 200367 7687517 0.01 0.1 436 20 2 319 114 273
BBR022 197856 7684033 0.01 0.5 3.8 35 50 134 7 38
BBR023 197903 7684172 0.03 0.3 5 170 50 213 53 110
BBR024 197957 7684136 0.02 0.1 2 45 34 128 9 15
BBR025 197932 7684105 0.01 0.3 1.2 200 140 367 60 71
BBR026 197908 7684050 0.02 0.3 1 10 84 127 2 7
BBR027 197903 7684030 0.02 0.1 1.2 10 130 240 2 11
BBR028 197898 7684014 0.11 0.3 6 25 228 1790 3 61
BBR029 197899 7684004 0.89 4.3 1.8 15 738 1630 2 37
BBR030 197879 7683974 0.01 0.3 0.8 10 44 73 1 10
BBR031 197820 7683747 0.04 0.6 1.6 100 199 236 13 74
BBR032 197887 7683821 0.00 0.1 1 20 93 41 2 20
BBR033 197826 7683836 0.04 2.5 0.8 5 177 203 3 8
BBR034 207188 7676825 0.00 0.0 8 10 11 29 2 8
BBR035 207179 7676817 0.00 0.3 19.2 10 207 26 1 3
BBR036 207183 7676788 0.00 0.0 93.6 10 3 322 4 7
BBR037 208494 7677016 0.00 0.0 1.6 1540 2 10 937 52
BBR038 208495 7677005 0.00 0.0 3.2 1640 0 7 457 39
BBR039 208519 7676946 0.00 0.0 1.6 20 1 2 51 21
BBR040 208552 7676941 0.00 0.0 40.4 1630 1 7 910 42
BBR041 208577 7676939 0.00 0.0 3 1780 2 6 1070 16
BBR042 208650 7676900 0.00 0.0 0.8 1440 0 4 852 20
BBR043 208601 7676810 0.00 0.0 4.4 1720 7 9 581 16
BBR044 208553 7676863 0.00 0.0 5.2 560 1 79 614 75
BBR045 208499 7676879 0.00 0.0 1.8 1430 0 10 770 41
BBR046 207953 7676948 0.00 0.1 10.2 25 12 8 12 8
BBR047 207946 7676951 1.05 1.1 662 20 1170 344 13 913
BBR048 207893 7677202 0.00 0.0 4.2 10 6 5 2 5
BBR049 197830 7683841 0.10 9.3 3.4 10 1040 965 4 10
BBR050 197838 7683855 0.01 1.1 1.2 10 148 2970 4 21

19

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, 01/05/13, 01/09/16

Name of entity

MINREX RESOURCES LIMITED and its Controlled Entities

ABN Quarter ended (“current quarter”) 81 151 185 867 30 June 2018

Consolidated statement of cash flows Current quarter
$A’000
Year to date
(12 months)
$A’000
1.
Cash flows from operating activities
1.1
Receipts from customers
1.2
Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) staff costs
(e) administration and corporate costs
1.3
Dividends received (see note 3)
1.4
Interest received
1.5
Interest and other costs of finance paid
1.6
Income taxes paid
1.7
Research and development refunds
1.8
Other (provide details if material)
1.9
Net cash from / (used in) operating
activities
-
(130)
-
-
-
(244)
-
-
-
-
-
-
(236)
-
-
(19)
(845)
-
8
-
-
-
(374) (1,092)
2.
Cash flows from investing activities
2.1
Payments to acquire:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
-
-
-
-
-
-
-
-
  • See chapter 19 for defined terms 1 September 2016

Page 1

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

Consolidated statement of cash flows Current quarter
$A’000
Year to date
(12 months)
$A’000
2.2
Proceeds from the disposal of:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.3
Cash flows from loans to other entities
2.4
Dividends received (see note 3)
2.5
Other – Acquisition of subsidiaries
2.6
Net cash from / (used in) investing
activities
-
-
-
-
-
-
-
-
-
-
-
-
-
(879)
- (879)
3.
Cash flows from financing activities
3.1
Proceeds from issues of shares
3.2
Proceeds from issue of convertible notes
3.3
Proceeds from exercise of share options
3.4
Transaction costs related to issues of
shares, convertible notes or options
3.5
Proceeds from borrowings
3.6
Repayment of borrowings
3.7
Transaction costs related to loans and
borrowings
3.8
Dividends paid
3.9
Other (provide details if material)
3.10
Net cash from / (used in) financing
activities
-
-
-
-
-
-
-
-
-
2,444
-
-
(63)
-
-
-
-
-
- 2,381
4.
Net increase / (decrease) in cash and
cash equivalents for the period
4.1
Cash and cash equivalents at beginning of
period
4.2
Net cash from / (used in) operating
activities (item 1.9 above)
4.3
Net cash from / (used in) investing activities
(item 2.6 above)
4.4
Net cash from / (used in) financing activities
(item 3.10 above)
4.5
Effect of movement in exchange rates on
cash held
4.6
Cash and cash equivalents at end of
period
1,914
(374)
-
-
-
1,130
(1,092)
(879)
2,381
-
1,540 1,540
  • See chapter 19 for defined terms 1 September 2016

Page 2

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

5.
Reconciliation of cash and cash
equivalents
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
Current quarter
$A’000
Previous quarter
$A’000
5.1
Bank balances
5.2
Call deposits
5.3
Bank overdrafts
5.4
Other (provide details)
5.5
Cash and cash equivalents at end of
quarter (should equal item 4.6 above)
1,540
-
-
-
1,914
-
-
-
1,540 1,914
6.
Payments to directors of the entity and their associates
Current quarter
$A'000
6.1
Aggregate amount of payments to these parties included in item 1.2
55
6.2
Aggregate amount of cash flow from loans to these parties included
in item 2.3
-
6.3
Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
Current quarter
$A'000
55
-
-
7.
Payments to related entities of the entity and their
associates
Current quarter
$A'000
7.1
Aggregate amount of payments to these parties included in item 1.2
-
7.2
Aggregate amount of cash flow from loans to these parties included
in item 2.3
-
7.3
Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
Current quarter
$A'000
-
-
-
  • See chapter 19 for defined terms 1 September 2016

Page 3

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

8.
Financing facilities available
Add notes as necessary for an
understanding of the position
Total facility amount
at quarter end
$A’000
Amount drawn at
quarter end
$A’000
8.1
Loan facilities
-
-
8.2
Credit standby arrangements
-
-
8.3
Other (please specify)
-
-
8.4
Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.
Total facility amount
at quarter end
$A’000
Amount drawn at
quarter end
$A’000
- -
- -
- -
9.
Estimated cash outflows for next quarter
$A’000
9.1
Exploration and evaluation
9.2
Development
9.3
Production
9.4
Staff costs
9.5
Administration and corporate costs
9.6
Other (provide details if material)
9.7
Total estimated cash outflows
120
-
-
-
200
-
320
10.
Changes in
tenements
(items 2.1(b) and
2.2(b) above)
Tenement reference
and location
Nature of
interest
Interest
at
beginnin
g of
quarter
Interest
at end of
quarter
10.1
Interests in mining
tenements and
petroleum tenements
lapsed, relinquished
or reduced
10.2
Interests in mining
tenements and
petroleum tenements
acquired or increased
  • See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

  • 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

  • 2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................... Date: 19 July 2018 (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 position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

  2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

  3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

  4. See chapter 19 for defined terms 1 September 2016

Page 5