Office 10 Level 8

139 Macquarie St

Sydney NSW 2000

Australia

Ph: 61 2 8231 7085 Fax: 61 2 9252 8960

Company Announcements Office

Australian Stock Exchange Limited

20 Bridge Street

Sydney, NSW, 2000

Dear Sirs,

13 December 2013

Magontec Limited (Company) - Conversion of Options Issued In Terms of Renounceable Rights Prospectus Dated 23 November 2012

The attached Appendix 3B records the detail of securities to be listed following the conversion of options issued as per the above Prospectus.

Yours Sincerely

John Talbot

Company Secretary

Appendix 3B

New issue announcement

Appendix 3B

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

New issue announcement,

application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05,

01/08/12

Name of entity

Magontec Limited

ABN

510 1044 1666

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).


1 +Class of +securities issued or to be issued

Fully paid ordinary shares


2 Number of +securities issued or to be issued (if known) or maximum number which may be issued

7,984,778 fully paid ordinary shares


3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid

+securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

7,984,778 shares issued pursuant to shareholders exercising their right to convert options issued in terms of the Company's Prospectus dated 23

November 2012 and released to the ASX

on the same date.

+ See chapter 19 for defined terms.

Appendix 3B Page 2 01/08/2012

Appendix 3B New issue announcement



4 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities?
If the additional securities do not rank equally, please state:
the date from which they do the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

Yes


5 Issue price or consideration 7,984,778 shares issued @ $0.02 per share
6 Purpose of the issue
(If issued as consideration for the acquisition of assets, clearly identify those assets)

An integral part of the Company's fund raising in terms of the aforesaid prospectus



6a Is the entity an +eligible entity No that has obtained security holder approval under rule 7.1A?
If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i

6b The date the security holder NA resolution under rule 7.1A was passed

6c Number of +securities issued NA
without security holder approval
under rule 7.1

6d Number of +securities issued NA
with security holder approval
under rule 7.1A

+ See chapter 19 for defined terms.

01/08/2012 Appendix 3B Page 3

Appendix 3B

New issue announcement



6e Number of +securities issued NA
with security holder approval
under rule 7.3, or another specific security holder approval (specify date of meeting)

6f Number of securities issued NA
under an exception in rule 7.2

6g If securities issued under rule NA
7.1A, was issue price at least
75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation.

6h If securities were issued under NA rule 7.1A for non-cash consideration, state date on
which valuation of consideration was released to ASX Market Announcements

6i Calculate the entity's remaining NA
issue capacity under rule 7.1 and
rule 7.1A - complete Annexure 1 and release to ASX Market Announcements

7 Dates of entering +securities into uncertificated holdings or despatch of certificates

13 December 2013

8 Number and +class of all

+securities quoted on ASX (including the securities in section 2 if applicable)

+ See chapter 19 for defined terms.

Appendix 3B Page 4 01/08/2012

9 Number and +class of all

+securities not quoted on ASX (including the securities in section 2 if applicable)

Appendix 3B New issue announcement


10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

No policy exists

Part 2 - Bonus issue or pro rata issue


11 Is security holder approval NA
required?

12 Is the issue renounceable or non- NA
renounceable?

13 Ratio in which the +securities will NA
be offered

14 +Class of +securities to which the NA
offer relates

15 +Record date to determine NA
entitlements

16 Will holdings on different NA registers (or subregisters) be aggregated for calculating entitlements?

17 Policy for deciding entitlements in NA
relation to fractions

18 Names of countries in which the NA
entity has +security holders who
will not be sent new issue documents

Note: Security holders must be told how their entitlements are to be dealt with.

Cross reference: rule 7.7.

+ See chapter 19 for defined terms.

01/08/2012 Appendix 3B Page 5

Appendix3B

New issue announcement



19 Closing date far receipt

acceptances or renunciations afLI_N_A_J

+ See chapter 19 for defined terms.

Appendix 3B Page 6 01/08/2012

20 Names of any underwriters NA

Appendix 3B New issue announcement

21 Amount of any underwriting fee NA
or commission
22 Names of any brokers to the issue NA
23 Fee or commission payable to the NA
broker to the issue
24 Amount of any handling fee NA payable to brokers who lodge acceptances or renunciations on
behalf of +security holders
25 If the issue is contingent on NA

+security holders' approval, the

date of the meeting
26 Date entitlement and acceptance NA form and prospectus or Product Disclosure Statement will be sent
to persons entitled
27 If the entity has issued options, NA and the terms entitle option holders to participate on exercise,
the date on which notices will be sent to option holders
28 Date rights trading will begin (if NA
applicable)
29 Date rights trading will end (if NA
applicable)
30 How do +security holders sell NA
their entitlements in full through
a broker?
31 How do +security holders sell part NA of their entitlements through a broker and accept for the balance?

32 How do +security holders dispose NA
of their entitlements (except by
sale through a broker)?

+ See chapter 19 for defined terms.

01/08/2012 Appendix 3B Page 7

Appendix3B

New issue announcement


33 +oespatch date NA


+ See chapter 19 for defined terms.

Appendix 3B Page 8 01/08/2012

Appendix 3B New issue announcement

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities
(tick one)

(a)