NEURIZER LTD — Interim / Quarterly Report 2013

Jul 30, 2013

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31 July 2013

COMPANY ANNOUNCEMENTS OFFICE AUSTRALIAN SECURITIES EXCHANGE

ASX CODE MTN QUARTERLY ACTIVITIES REPORT

Period - 1st April 2013 to 30th June 2013

QUARTERLY ACTIVITIES - HIGHLIGHTS

• Marathon’s wholly owned subsidiary Bonanza Gold Pty Ltd enters Heads of Agreement with companies associated with mining entrepreneur and geologist, Mr David Clarke;

• Option to acquire holding company with mineral sands and other minerals prospects across a portfolio of assets in South Australia and Victoria;

• “Walk-up” drill targets in all tenements acquired under Heads of Agreement

• Priority drilling on key mineral sands prospects in Murray Basin producing area

• Portfolio of assets considered to be prospective

• Extensive work already carried out on relevant prospects

• Exploratory drilling completed with assay results pending

QUARTERLY ACTIVITIES

Marathon Resources Limited (ASX: “MTN”) presents its Activities Report for the Quarter ending 30[th] June 2013.

Background

As previously advised, refining Marathon’s broad business direction has been a key focus of the Board and management and has included and continues to include identifying opportunities that match the Company’s intended business plans for the future.

Mineral exploration continues to be the core focus for Marathon, and in response to numerous requests from exploration companies, your Company has continued to investigate some exciting prospects within Australia and overseas. Therefore, it was pleasing for the Company to announce on 30 April 2013 that it had entered a Heads of Agreement with companies associated with mining entrepreneur and geologist, Mr David Clarke.

Under the Heads of Agreement signed with related entities of Mr Clarke, Marathon has been granted an exclusive option to acquire all of the issued capital in Clarke family company, Australian Desalinated Water Pty Ltd (“ADW”). ADW holds a portfolio of assets in South Australia and Victoria prospective for mineral sands and other minerals. The Heads of Agreement had been executed by the Company’s wholly-owned Bonanza Gold Pty Ltd subsidiary with three of the Clarke family companies.

Pursuant to the terms of the Heads of Agreement, the option to acquire ADW may be exercised at any time on or before 30[th] June 2017 (or a later date agreed between the parties), subject to Marathon having first completed a bankable feasibility study on the commercial development of mineralisation on any one of the target tenement areas. Marathon will have exclusive rights to explore and evaluate all of the tenements held by ADW pending exercise of the option and ADW will be free carried during that time. Marathon may withdraw from the Heads of Agreement at any time without earning an interest in the tenements or ADW.

It is a further requirement that Marathon position the projects in an entity that is either listed on the ASX or is listed within 120 days of exercise of the option, with the vendor of ADW to be issued with 22% of the post-listed issued capital of (at Marathon’s option) the owner or ultimate owner of the tenements. The issue of such shares will be subject to any shareholder approvals required and any ASX imposed escrow restrictions. The vendor will also retain a 1% gross overriding royalty on any minerals produced from the tenements.

Marathon’s initial exploration program focussed on mineral sands prospects in the Murray Basin region of South Australia and Victoria – already a significant producing area for many years.

Dr Shad Linley, Marathon’s Chief Executive Officer, said the company’s Board considered the portfolio of assets to be prospective and provided an excellent opportunity for Marathon to continue mineral exploration in South Australia.

“We have been encouraged by the extensive work carried out on these prospects to date by Mr Clarke who has previously been involved with several successful resources industry projects and ASX listings, including the former Stuart Petroleum (now part of Senex Energy) and Australian Zircon,” Dr Linley said.

“All of the tenements held by ADW contain ‘walk-up’ drill targets and we believe commercial assessment can be conducted in a cost-effective and expeditious manner after an immediate drilling program on each site.” he said.

“The exploration leases have been subject to magnetics, radiometrics and digital terrain modelling and some drilling has occurred on a mining lease. We see good prospects coming from Marathon’s planned program which will complement the existing knowledge of these promising areas.”

Drilling activity

Exploratory drilling has now been completed at “Alice Park” and “Pernatty Lagoon” and assay results are pending.

Those results, and progress on other drilling sites will be advised to the market as soon as further information is received.

MEDIA CONTACT :

Mr Peter Williams John Field Chairman Managing Director Marathon Resources Limited Field Public Relations (08) 8348 3500 (08) 8234 9555 0418 819 527

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

Rule 5.3

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, 30/9/01,01/06/10. 17/12/10, 01/05/13

Name of entity

	Marathon Resources Limited	Marathon Resources Limited	Marathon Resources Limited	Marathon Resources Limited
	ABN 31 107 531 822 Consolidated statement of cash flows
			30 June 2013
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) (1) Exploration & evaluation (b) (1) Administration (2) Rent/insurance (3) New business (a) Development (b) Due diligence (4) Office relocation 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 (12 months) $A’000
		(59) (460) (40) (47) (18) - - 191 - - -		(59) (1,389) (173) (286) (141) (24) - 275 - - -
		(433)		(1,797)
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		- - (3) - - 2 - - -		- - (3) - - 10 - - -
		(434)		(1,790)

• 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 (carriedforward)
1.13 Total operating and investing cash flows (brought forward)		(434)		(1,790)
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		(434) 5,356 -		(1,790) 6,712 -
		4,922		4,922

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 61 -
1.25	Explanation necessaryforanunderstanding ofthe transactions
	-

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 Nil

• 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

Nil

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
	Nil
	Nil

• See chapter 19 for defined terms.

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

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration Total

$A’000 100 - - 400 500

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	26	48
	4,896	5,308
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	4,922	5,356

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
		At 30th June 2013 Company no longer holds directly any exploration tenements
	EL 5203 EL 5202 ML 5787 ELA270	Unincorporated JV earned entitlement – up to 78% on following tenements: Alice Park Oakvale Kangaroo Flat PernattyLagoon	0%	0%

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.

• See chapter 19 for defined terms.

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

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (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	92,207,789	92,207,789
7.5 +Convertible debt securities (description) 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	1,000,000 490,000 50,000 500,000 750,000 750,000	- - - - - -	Exercise Price On Issue 1.10 0.34 0.75 0.876 1.25 1.75 After Rights Issue 1.077 0.317 0.727 0.853 1.227 1.727	Expiry date 28.12.2014 15.10.2013 15.10.2013 01.11.2013 01.11.2014 01.11.2015
	-	-	-	-
	-	-	-	-
	-	-
7.11 Debentures (totals only)	-
7.12 Unsecured notes(totals only)	-

• See chapter 19 for defined terms.

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

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 / ~~does not~~ * (delete one) give a true and fair view of the matters disclosed.

Sign here:

Date: 31 July 2013

(Company secretary)

Print name: Stuart Appleyard

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 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 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, 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 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 Accounting 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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