NEURIZER LTD — Interim / Quarterly Report 2014

Apr 29, 2014

30 April 2014

COMPANY ANNOUNCEMENTS OFFICE AUSTRALIAN SECURITIES EXCHNAGE

ASX CODE MTN

QUARTERLY ACTIVITIES REPORT

Period – 1 January 2014 to 31 March 2014

QUARTERLY ACTIVITIES

Marathon Resources Limited (ASX:”MTN”) presents its Activities report for the Quarter ending 31 March 2014.

Exploration Activity

Marathon Resources has adopted a cost effective approach to exploration by pursuing “earn-in” opportunities. This approach enabled the Company to limit its exposure should a decision be made not to proceed further with exploration and analysis. In line with this strategy, the Company has advised Australian Desalinated Water Pty Ltd (“ADW”) & SAEX Pty Ltd that it wishes to terminate arrangements with both companies and to exit without further financial obligations.

ADW and its associated company, Ausmin Developments Pty Ltd, hold a portfolio of assets in South Australia and Victoria principally at Oakvale, Alice Park and Pernatty Lagoon which have been explored for mineral sands and other minerals. Marathon Resources undertook targeted drilling program on all three areas. The mineralisation found by those drilling programs was consistent with previous drilling results but not considered to be of sufficient commercial value to warrant an advanced exploration effort.

SAEX Pty Ltd holds exploration leases known as the Walparuta Project, in the Curnamona Province of northern South Australia which were prospective for base and precious metals. Marathon Resources conducted an airborne electromagnetic survey over the most prospective portions of the leases. A significant electromagnetic anomaly was located on the western margins of the Creagh Dhubh prospect. However, mapping was unable to establish any association with the surface geology and the isolated location of the electromagnetic anomaly. The projected depth to the top of the electromagnetic anomaly was estimated to be approximately 250m. The significant depth to this single anomaly, along with the associated costs of logistical and regulatory requirements was considered to be prohibitively expensive for any ongoing exploration.

A second area within the Walparuta Project contained a skarn-like body with associated magnetic and geochemical anomalies. In addition to the airborne electromagnetic survey, Marathon Resources undertook detailed geological mapping, a ground magnetic survey and a ground geochemical survey. These detailed programs did not identify any obvious drill targets.

Other Initiatives

Marathon Resources had been negotiating on other opportunities and described an investment and corporate opportunity (“Proposal”) in the Target’s Statement issued on 6 November 2013 in response to the onmarket offer to acquire all the ordinary shares of Marathon by Bentley Capital Limited (ASX : BEL). The Proposal was referred to in paragraph 3.3 on page 9 of the Target’s Statement and we further advise that the technical review by one of the two third parties referred to, has not yet been completed. Marathon Resources will not continue with negotiations relating to the Proposal.

The Company remains active in reviewing a number of corporate opportunities in Australia and overseas. In the current market where many explorers have very limited cash resources and little opportunity to raise additional capital, Marathon Resources has:

• Reduced all financial commitments on existing exploration leases;

• Reduced operating costs and overheads to preserve the Company’s reserves;

• Examined several acquisition & merger opportunities:

Your directors remain committed to a strategy of increasing shareholder value through acquisition or merger. We continue to vigorously assess available options in line with such strategy.

MEDIA CONTACT :

Peter Williams Chairman Marathon Resources Limited (08) 8348 3500

John Field Managing Director Field Public Relations (08) 8234 9555 0418 819 527

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining 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

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
			31 March 2014
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 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) (1) Takeover Defence costs (2) Other Initiatives Net Operating Cash Flows		Current quarter $A’000		Year to date (9months) $A’000
		(46) (200) (22) (47) - 75 - - (11) -		(172) (563) (198) (133) - 173 - - (97) (81)
		(251)		(1,071)
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 (carriedforward)		13		14
		13		14
		(238)		(1,057)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(238)	(1,057)
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 – Capital Raising Costs 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	(238) 4,103 -	(1,057) 4,922 -
	3,865	3,865

Payments to directors of the entity and associates of the directors Payments to 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
		37
		-
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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration

Total

$A’000 100 250 350

Reconciliation of cash

Total Reconciliation of cash	350
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 – deposit release on surrender of government guarantee	46	40
	3,819	4,063
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	3,865	4,103

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
		At 31stMarch 2014 Company no longer holds directly any exploration tenements

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased	EL 5203 EL 5202 EL 5238 ML 5787 EL 4520 EL 5306 EL 5436	Unincorporated JV earned entitlement 78% on following tenements: Alice Park Oakvale Kangaroo Flat Pernatty Lagoon Unincorporated JV entitlement 75% on following tenements: Walparuta Project Kaniva	0% 0%	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.

dates.
	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	N/A
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)	N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,000,000 750,000 750,000	- - -	Exercise Price On Issue 1.10 1.25 1.75 After Rights Issue 1.077 1.227 1.727	Expiry date 28.12.2014 01.11.2014 01.11.2015
	-	-	-	-
	-	-	-	-
	-	-	-	-
7.11 Debentures (totals only)	-
7.12 Unsecured notes(totals only)	-

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.

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Sign here:. ........................................................... (Company secretary) Print name: Stuart Appleyard

Date: 30 April 2014

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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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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