MAGONTEC : Appendix 4C - quarterly

Limited

Office No.10 Level 8

139 Macquarie St

Sydney NSW 2000

Australia

Ph:+ 61 2 8231 7085

FAX: [phone]

29 January 2014

Company Announcements Office

Australian Stock Exchange Limited

20 Bridge Street

Sydney, NSW, 2000

Dear Sirs,

Appendix 4C - Quarter Ended 31 December 2013

The above quarterly cash flow statement is attached.

The Company's audited financial results and report for the 12 months ended 31 December 2013 is planned for release by 28 February 2014. Therefore, the Company's practice of releasing quarterly unaudited financial accounts and summary report by the Executive Chairman is suspended for this quarter.

Yours Sincerely

John Talbot Company Secretary. Magontec Limited

Limited

QUARTERLY CASHFLOW - APPENDIX 4C

for the Period Ended 31 December 2013

Magontec Limited

ABN: 51 010 441 666

Registered & Principal Office: Office 10, Level 8,

139 Macquarie Street,

Sydney, NSW 2000 Australia

Tel: [phone]

Fax: [phone]

Website: www.magontec.com

Email: [e-mail]

Issued Capital (as at 31 December 2013)

Ordinary Shares (ASX Code MGL)

813,609,635 fully paid Ordinary shares on issue

Options

Non-Executive Directors (as at 31

December 2013)

Zhongjun Li

Kangmin Xie

Independent Directors (as at 31

December 2013)

Robert Shaw

Robert Kaye

Management Team

Nicholas Andrews

Executive Chairman

John Talbot

Chief Financial Officer

Company Secretary

John Talbot

Substantial Shareholders

Major Shareholders	No. of shares	Percent
Qinghai Salt Lake Magnesium Industry Limited	180,535,784	22.19
KWE(HK)Investment Development Co Limited	55,797,298	6.86
Citicorp Nominees Pty Limited	52,551,234	6.46
Straits Mine Management Pty Limited	152,536,385	18.75

Share Registry Services

Boardroom Pty Limited Level 7, 207 Kent St Sydney NSW 2000

Postal:

GPO Box 3993

Sydney NSW 2001

Tel: [phone] or

International: [phone]

Fax: [phone]

Website: http://www.boardroomlimited.com.au

The current share price can be obtained from the ASX Website

Appendix 4C Magontec Limited

31 December 2013 Quarterly Report

Rule 4.7B + See chapter 19 for defined terms

Appendix 4C

Introduced 31/3/2000. Amended 30/9/2001.

Name of entity

Quarterly Report

Magontec Limited

ABN Quarter ended ("current quarter")

51 010 441 666 31 December 2013

1.1	a	Cash flows from operating activities Receipts from customers
	b c d e	Payments to suppliers and employees Interest received Interest expense Taxation
	f	Net cash (used)/generated in operating activities

1.2		Cash flows from investing activities
	a	Movement in security deposits
	b	Payment for property, plant & equipment
	c	Group Information Technology software
	d e	Other Net cash provided by/(used in) investing activities

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Appendix 4C Magontec Limited

31 December 2013 Quarterly Report

Rule 4.7B + See chapter 19 for defined terms

1.3

Cash flows from financing activities

a Loans from/ (repayments to) related parties

Principal reduction on debt owing to Straits Mine Management

b Pty Ltd

c Bank Loans

d Net capital raised from issue of the Company's shares

e Net cash provided by financing activities

Net increase (decrease) in cash held

1.4Cash at beginning of quarter /year to date

1.5Cash at end of quarter /year to date

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.6 (a) (b)	Aggregate amount of payments to the relevant parties (aggregate fees paid to directors)	Quarter Ended 31 December 2013 $A
1.6 (a) (b)	Aggregate amount of payments to the relevant parties (aggregate fees paid to directors)	$24,791
1.6 (a) (b)
1.7Aggregate amount of loans to the relevant parties	Nil

1.8Explanation necessary for an understanding of the transactions

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Appendix 4C Magontec Limited

31 December 2013 Quarterly Report

Rule 4.7B + See chapter 19 for defined terms

Compliance statement

1
This statement has been prepared under accounting policies which comply with accounting
standards as defined in the Corporations Act 2001 (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
2 This statement does give a true and fair view of the matters disclosed.
Sign here:

Date: 29 January 2014
Executive Chairman
Magontec Limited
Print
name: Mr Nicholas Andrews

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 definitions in, and provisions of, AASB 107: Cash Flow Statements apply to this report except for the paragraphs of the Standard set out below.
Aus20.1 - reconciliation of cash flows arising from operating activities to operating profit or loss
39 - 42 - itemised disclosure relating to acquisitions and disposals
48 - 52 - disclosure of restrictions on use of cash
3 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.

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