MINREX RESOURCES LIMITED — Interim / Quarterly Report 2023

Apr 27, 2023

ASX Code: MRR

28 April 2023

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ASX Release

31 MARCH 2023 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

• Maiden drilling program over historic tin workings at the Coondina Project in East Pilbara competed.

• The drilling results confirmed the potential for rare earth element (REE) mineralisation in the remainder of the Coondina Project.

• The maiden reconnaissance drilling campaign was completed at the end of December 2022 across the Talga-Moolyella, Tambourah and Sisters Projects.

• Aggressive on ground field exploration programs now underway across the portfolio of tenements.

• Company assessing new projects targeting advanced lithium assets.

• Current non-core project reviews underway.  The Company remains well funded with cash at bank $12.42M with minimal creditors.

MinRex Resources Limited ( ASX: MRR ) (“ MinRex ” or “the Company ”) is pleased to provide the following report on its activities for the quarter ended 31 March 2023.

MinRex Resources Limited Managing Director Mr Karageorge commented:

“I was pleased to announce the completion and assay results from the stage 1 approximately 9,000m reconnaissance maiden RC drilling programs over Coondina, Sisters, Talga- Moolyella and Tambourah North Lithium and Rare Earth Elements Projects during the quarter”.

“The notable results with multiple intersections of mineralized Lithium Oxide and Rare Earth Elements requires further follow up investigation on pegmatites at surface and undercover”.

“The drilling programs to date only cover minimal areas over the 5 key lithium projects and further targets over the highly anomalous outcropping Pegmatites and Pegmatites undercover at the Sisters Project has commenced at improving stand up drill targets in the coming months”.

“MinRex will consider new geophysical methods to map pegmatites below cover and over existing reconnaissance drill holes and along strike creating more targets for upcoming drilling programs on a priority campaign basis”.

“The MinRex Team and I remain very confident of developing our current project portfolios as the Company also looks to pursue complimentary advanced project opportunities”.

MinRex Resources Limited ABN 81 151 185 867 Tel +61 (08) 9481 0389 Email info@minrex.com.au Level 2, 7 Havelock Street West Perth WA 6005 Website: www.minrex.com.au

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ASX Code: MRR

“MinRex will maintain an aggressive exploration program in 2023 and is currently reviewing multiple opportunities for potential lithium partnering and acquisitions on a Western Australian and global platform thanks to our highly lucrative cash position of over $12M”.

Exploration Summary

Coondina REE Project Area

Coondina is located approximately 18 km south of Hillside Station homestead on the east bank of the Shaw River, roughly 10 km away from the Hillside Station to Nullagine Road. Within the central eastern portion of the tenement, the Coondina Monzogranite is believed to host highly anomalous REE assays.

The program comprised drilling 80 shallow vertical RC holes for 1,760m to test for REE mineralisation. Drilling was undertaken on 7 lines across and limited to the disturbed historic tintantalum mining area.

Assays were received for a suite of elements including Total Rare Earth Elements (TREE). Notable intercepts include:

• 12m at 730ppm TREE from 3m (CNRC052);

• 9m at 564ppm TREE from 3m (CNRC054);

• 6m at 567ppm TREE from 6m (CNRC056); and

• 6m at 640ppm TREE from 6m (CNRC060).

MinRex Resources Limited ABN 81 151 185 867 Tel +61 (08) 9481 0389 Email info@minrex.com.au Level 2, 7 Havelock Street West Perth WA 6005 Website: www.minrex.com.au

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ASX Code: MRR

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Figure 1 – Location of RC Drilling at Coondina Project

Tambourah North Lithium Project

By the end of December 2022, the Company completed 9 RC drillholes totalling 1,159m over the Tambourah North Lithium Project. Thick intersections of pegmatites were successfully drilled with all 9 drillholes intersecting pegmatites at various intervals.

The Western Australian Government Regulator, DMIRS, granted approval for drilling on the Southern portion of the tenement, which was mapped and sampled in May 2022. However, final approval for the proposed drilling program is subject to additional prerequisites, such as approval by the Native Title Owners and a heritage survey to demarcate drilling areas.

To determine whether the mineralized lithium in the assay results is muscovite, lepidolite, or very fine-grained acicular spodumene crystal, further analysis including petrology is necessary.

MinRex Resources Limited ABN 81 151 185 867 Tel +61 (08) 9481 0389 Email info@minrex.com.au Level 2, 7 Havelock Street West Perth WA 6005 Website: www.minrex.com.au

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ASX Code: MRR

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Figure 2 – Tambourah North RC Drilling

Talga Moolyella Lithium Project

In December 2022, the Talga Lithium Project (formerly Moolyella) completed a shallow, vertical RC drilling program consisting of 39 drillholes for a total of 2,825 meters.

Six small target areas were tested through drilling over historical soil samples and mapped pegmatites, which accounted for less than approximately 11% coverage over the tenement area. The RC drill chips revealed various pegmatite compositions, including plagioclase-orthoclase feldspars, muscovite-biotite, garnet, tourmaline beryl, and rose quartz.

The mapped pegmatites, which are stacked and in sheets across strike from east to west, may extend at depth beyond the shallow drilling (with an average hole depth of approximately 70 meters), and the surface pegmatite sheets could be part of a larger pegmatite source at depth. The pegmatite below the current drilling may also host higher grade lithium, tin, and tantalum mineralization within thicker zones.

The Company plans to follow up on the current results with additional drill targets to infill and extend drilling between the drillholes pursuing continuity along strike and mineralisation that remains open between the areas yet to be drilled. About 70% of the norther portion of the tenement remains completely untested by surface geochemistry and geological mapping. The Company will focus ground exploration activities in the northern portion of the project area, with additional heritage surveys planned for this year.

MinRex Resources Limited ABN 81 151 185 867 Tel +61 (08) 9481 0389 Email info@minrex.com.au Level 2, 7 Havelock Street West Perth WA 6005 Website: www.minrex.com.au

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ASX Code: MRR

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Figure 3 – Talga Project RC Drilling

Sisters Lithium Project

In October 2022, a total of 14 RC drillholes amounting to 2,350m, were drilled.

However, the drill results at Sisters were found to be unsatisfactory. To address this, the company plans to utilize new geophysical technology, including Deep Ground Penetrating Radar (DGPR) and Ambient Noise Tomography (ANT), to identify pegmatites and determine new targets both within and outside the areas that were previously explored through reconnaissance drilling for Sisters, Talga, and Tambourah Projects.

The elevated soil lithium-tin-tantalum anomalies found in work conducted by BCI Minerals Limited in 2017 cover a much larger area than the footprint of the reconnaissance RC drilling. Therefore, target generation remains an ongoing process.

MinRex Resources Limited ABN 81 151 185 867 Tel +61 (08) 9481 0389 Email info@minrex.com.au Level 2, 7 Havelock Street West Perth WA 6005 Website: www.minrex.com.au

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ASX Code: MRR

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Figure 4 – Sisters Project RC Drilling

– NSW Project Activity Sunny Corner EL5964

The Company advises it has provided 30 days’ notice to Sunny Silver Pty Ltd and Sunshine Reclamation Pty Ltd to formally withdraw from the farm in agreement announced on 17 September 2021.

The withdrawal allows the Company to focus on its core lithium and gold projects. The Company is also relieved of its obligation to pay a further 55,000,000 Fully Paid Ordinary Shares as deferred consideration to Argent Minerals Limited (ASX: ARD).

Corporate Summary

On 8 February 2023, the Company appointed Alex Krstic as Non-Executive Director, rounding out the two-month recruitment program undertaken by the Company.

Mr Krstic brings invaluable experience to the team. An engineering professional with extensive commercial and operational expertise gained from holding senior positions within critical minerals, energy and iron ore industries in Australia and overseas.

Mr Pedro Kastellorizos also resigned from his position as Non-Executive Director on the same date.

Cash At Bank $12.42M

Attached to this report is the Appendix 5B containing the Company’s cash flow statement for the quarter ended 31 March 2023.

MinRex Resources Limited ABN 81 151 185 867 Tel +61 (08) 9481 0389 Email info@minrex.com.au Level 2, 7 Havelock Street West Perth WA 6005 Website: www.minrex.com.au

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ASX Code: MRR

Additional ASX Information

ASX Listing Rule 5.3.1

Exploration and Evaluation during the quarter was $705,398 being $667,712 on field exploration in Western Australia and $37,686 on field exploration in New South Wales.

ASX Listing Rule 5.3.2

There was no substantive mining production and development activities during the quarter.

ASX Listing Rule 5.3.5

During the period, the Company paid $127,384 to related parties, these payments were made to directors of MinRex for salaries and directors fees, on normal commercial terms.

The mining tenement interests acquired or relinquished during the quarter and their location Not applicable.

This ASX announcement has been authorised for release by the Board of MinRex Resources Limited.

For further information, please contact:

George Karageorge Managing Director MinRex Resources Limited T: +61 8 9481 0389 info@minrex.com.au

About MinRex Resources Ltd

MinRex Resources Limited (ASX: MRR) is an Australian-based ASX-listed emergent battery metals explorer with Lithium-Tin-Tantalum Projects in the Pilbara (WA) in close proximity to world-class Lithium and Tantalum producers Pilbara Minerals, Mineral Resources, and Global Lithium. MinRex also has a highly prospective portfolio of Gold-Copper projects in the Murchison and Pilbara Regions (WA) and Gold-Silver-Copper and other metals projects in the Lachlan Fold Belt (NSW). The Company’s tenements package cover 1,000km[2] of highly prospective ground targeting multi-commodities type deposits. The Company also currently has JORC 2012 Resources totalling 352,213 oz gold at its Sofala Project (NSW).

Competent Persons Statement

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Ian Shackleton. Mr. Shackleton is the Technical Director of MinRex Resources Limited and is a Member of the AIG of whom have sufficient experience relevant to the styles of mineralisation under consideration and to the activity being reported 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. Ian Shackleton has verified the data disclosed in this release and consent to the inclusion in this release of the matters based on the information in the form and context in which it appears.

Forward Statement

This release includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning MinRex’s planned exploration programs and other statements that are not historical facts. When used in this release, the words such as “could”, “plan”, “estimate”, “expect”, “anticipate”, “intend”, “may”, “potential”, “should”, “might” and similar expressions are forward-looking statements. Although MinRex believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve known and unknown risks and uncertainties and are subject to factors outside of MinRex’s control. Accordingly, no assurance can be given that actual results will be consistent with these forward-looking statements.

MinRex Resources Limited ABN 81 151 185 867 Tel +61 (08) 9481 0389 Email info@minrex.com.au Level 2, 7 Havelock Street West Perth WA 6005 Website: www.minrex.com.au

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

MINREX RESOURCES LIMITED
ABN		Quarter ended (“current quarter”)
81 151 185 867		31 MARCH 2023

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Consolidated statement of cash flows Current quarter Year to date
$A’000 (9 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (705) (2,549)
- -
(b) development
- -
(c) production
- -
(d) staff costs
(e) administration and corporate costs (200) (1,094)
1.3 Dividends received (see note 3) - -
1.4 Interest received 97 225
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (GST Refund) 108 360
1.9 Net cash from / (used in) operating (700) (3,058)
activities
2. Cash flows from investing activities
2.1 Payments to acquire or for:
- -
(a) entities
-
(b) tenements (1)
-
(c) property, plant and equipment (61)
- -
(d) exploration & evaluation
- -
(e) investments
(f) other non-current assets - -
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ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

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Consolidated statement of cash flows Current quarter Year to date
$A’000 (9 months)
$A’000
2.2 Proceeds from the disposal of:
- -
(a) entities
- -
(b) tenements
(c) property, plant and equipment 114 114
- -
(d) investments
- -
(e) other non-current assets
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing 114 52
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities
(excluding convertible debt securities) - 925
3.2 Proceeds from issue of convertible debt - -
securities
3.3 Proceeds from exercise of options - 339
3.4 Transaction costs related to issues of equity
securities or convertible debt securities - (4)
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 – Repayment of lease liability (11) (31)
3.9 Other – Share capital received in advance - -
3.10 Net cash from / (used in) financing (11) 1,229
activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of 13,017 14,197
period
4.2 Net cash from / (used in) operating (700) (3,058)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities 114 52
(item 2.6 above)
4.4 Net cash from / (used in) financing activities (11) 1,229
(item 3.10 above)
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ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

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Consolidated statement of cash flows Current quarter Year to date
$A’000 (9 months)
$A’000
4.5 Effect of movement in exchange rates on - -
cash held
4.6 Cash and cash equivalents at end of 12,420 12,420
period
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 12,420 13,017
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 12,420 13,017
quarter (should equal item 4.6 above)
6. Payments to related parties of the entity and their Current quarter
associates $A'000
6.1 Aggregate amount of payments to related parties and their 127
associates included in item 1
6.2 Aggregate amount of payments to related parties and their -
associates included in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an
explanation for, such payments.
7. Financing facilities Total facility Amount drawn at
Note: the term “facility’ includes all forms of financing amount at quarter quarter end
arrangements available to the entity.
end $A’000
Add notes as necessary for an understanding of the
sources of finance available to the entity. $A’000
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the lender, interest
rate, maturity date and whether it is secured or unsecured. If any additional financing
facilities have been entered into or are proposed to be entered into after quarter end,
include a note providing details of those facilities as well.
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ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

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8. Estimated cash available for future operating activities $A’000
8.1 Net cash from / (used in) operating activities (item 1.9) (700)
8.2 (Payments for exploration & evaluation classified as investing -
activities) (item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (700)
8.4 Cash and cash equivalents at quarter end (item 4.6) 12,420
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 12,420
8.7 Estimated quarters of funding available (item 8.6 divided by 17.781
item 8.3)
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”.
Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions:
8.8.1 Does the entity expect that it will continue to have the current level of net operating
cash flows for the time being and, if not, why not?
N/A
8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further
cash to fund its operations and, if so, what are those steps and how likely does it
believe that they will be successful?
N/A
8.8.3 Does the entity expect to be able to continue its operations and to meet its business
objectives and, if so, on what basis?
N/A
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.
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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.

Date: 28 April 2023

Authorised by: By the Board

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow 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 cash flow 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.

ASX Listing Rules Appendix 5B (17/07/20)

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• See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

1. 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.

2. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

3. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20)

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• See chapter 19 of the ASX Listing Rules for defined terms.