FENIX RESOURCES LTD — Capital/Financing Update 2009

Oct 22, 2009

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ASX/MEDIA RELEASE

23 October 2009

ASX Codes: EMG, EMGO

EMERGENT COMPLETES PHASE III DRILL PROGRAM AT BEYONDIE IRON PROJECT

Key Points

• Phase III resource drill program at Beyondie Iron Project completed including expansion and additional in-fill drilling for resource detail

• Program drilled 70 holes for a total of 10,870 metres over the western-most 12km segment of the known 60km total strike length at the project

• Latest drilling shows increasing thickness in depth and along strike with intersections up to;

• 135m @ 27.63%Fe from surface (BDC065)

• 139m @ 27.65%Fe from 60 metres (BDC066)

• 109m @ 26.90%Fe from surface (BDC070)

• Program designed to upgrade resource at Beyondie Project to 1Billion tonnes

FURTHER recent advances

• Chinese State Owned Enterprise China Metallurgical Investment Co Ltd successfully completed due diligence on $200m Development JV with Emergent for the project

Perth-based exploration company Emergent Resources Limited (ASX: EMG) (Emergent) is pleased to announce that it has completed its Phase III, resource expansion drill program at the Beyondie Magnetite Project in Western Australia’s mid-west Iron Ore region (Figures 1 attached).

Emergent has now completed three drill programs at the Beyondie Iron Project, since listing on the ASX in August last year, achieving the substantial total of 14,311 metres across 116 holes. Based on the recent drilling the Company now looks forward to announcing a significant JORC resource upgrade at the project in the near future (refer Figures 2 & 3).

The Phase III drill program comprised 39 Reverse Circulation drill holes for 7,964 metres bringing the RC total to 11,405 metres and 14 Diamond drill holes for 2,906 metres over a 12km segment of the known 60km total strike length at the Beyondie Project. The program was designed to confirm earlier strong thickness and continuity of the wide Beyondie Magnetite Schist (BMS) and to provide high quality metallurgical and engineering samples for testwork and upgrade the Inferred Resource.

Half of the results have now been received (from 28 of the 56 RC holes; BDC048 to BDC075 inclusive totalling 4,789 metres (roughly 50%), and highlights of the latest intersections show consistency of grade for the envisaged bulk mining operation:

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Significant Results

Hole_ID	From	To	Interval	Grade	Intercept
BDC065	0	135	135	27.63	135m @ 27.63% Fe
BDC066	60	199	139	27.65	139m @ 27.65%Fe
BDC072	38	151	113	27.55	113m @ 27.55%Fe
BDC 70	0	109	109	26.90	109m @27.81%Fe
BDC061	72	159	87	27.85	87m @ 27.85% Fe
BDC056	86	161	75	28.01	75m @ 28.01% Fe

The reported results predominantly infill the existing resource at Beyondie, and also include extra results for strike and depth extensions to the resource.

Drilling at the project has continued to intersect wide, consistent bands of magnetite-bearing BMS with widths locally exceeding 150 metres (refer to Figure 4 and 5). Significantly, the thickest intersections drilled to date lie outside the previously drilled areas used to define the maiden resource. The intersections confirm the continuity of the mineralisation and the potential for the project to host large tonnages of mineralization.

Emergent Managing Director Garry Hemming said: “The latest results demonstrate further proof of the potential for the Beyondie Magnetite Project to be developed into a world class iron magnetite deposit.”

“We continue to be encouraged by drilling results from Beyondie which have been designed to define and extend the extent of mineralisation at the project and we look forward to being able to announce a major resource update in the near future,” Mr Hemming said.

Further Recent Advances

The Company announced last week that that Chinese State Owned Enterprise China Metallurgical Investment Co Ltd (CMIC) has successfully completed its Due Diligence on its proposed $200 million Development Joint Venture with Emergent for the Beyondie Project.

The Company is meeting with CMIC in Beijing to further the formal contract process to establish the Beyondie Development Joint Venture, which provides for a 50:50 Joint Venture, A$200 million funding by CMIC, and a placement of shares and options to CMIC to raise around $5 million and give CMIC an approximate 15% holding in Emergent.

About the Beyondie Iron Project

The Beyondie Project is located immediately adjacent to the Great Northern Highway and Goldfields Gas Pipeline (see Project Location map) in the northern part of WA’s mid-west iron ore precinct. Potential shared rail and port infrastructure developments for the project are in progress.

Under the Beyondie Tenement Sale Agreement executed on 2nd October 2009 Emergent acquired the right to 100% ownership of the Iron ore, Manganese and vanadium rights.

Beyondie has a JORC Inferred Resource of 127Mt @ 28.15% Fe (confirmed from an 11km portion of the project’s total known 60km strike length) and a Target Mineralisation of a further 500-600Mt @ 25-30% Fe reported by the Company’s independent geologists. (Refer ASX announcements 14 July 2009).

The Company is focused on upgrading the Inferred Resource and Target Mineralisation to 1 billion tonnes of continuing comparable grade iron to that already reported, and assay results are expected to be available in the near future.

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Metallurgical test work to date has shown the potential for the project to produce a high grade magnetite concentrate of +68%Fe, with very low impurities (aluminium, titanium, phosphorous and sulphur). Emergent plan to develop the Beyondie Project into a long term, large scale, high grade magnetite concentrate mining operation.

The Target Mineralisation was based on geological modelling from drilling completed to date and was determined as part of the Independent Mineral Resource Estimate at Beyondie. The Target Mineralisation tonnage and grade is conceptual in nature and there has been insufficient exploration at this stage to define an increased Mineral Resource and it is uncertain if further exploration will result in an increased mineral resource.

ENDS

For further information please contact:

Garry Hemming Managing Director Emergent Resources Mob: 0419 835 757 E: ghem@westnet.com.au Website: www.emergentresources.com.au

James Moses Media and Investor Relations Mandate Corporate Mob: 0420 991 574

Technical information in this report has been prepared under the supervision of Mr Garry Hemming, a director of the company and a member of the Australasian Institute on Mining and Metallurgy (AusIMM). Mr Hemming has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr Hemming consents to the inclusion in this report of the Information, in the form and context in which it appears.

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Project Location Map

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Emergent Tenure : distribution of the target Beyondie Magnetite Schist on detailed processed magnetic imagery.

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Resource Area : Infill drilling to support the billion tonne drill target for Beyondie Magnetite Schist, 127 million tonne Inferred Resource, and 500-600 million tonne Target Mineralisation over 11 kilometres strike length.

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Section 28400 mE (Preliminary) : mineralised intercepts are shown in red

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135 m @
27.63% Fe
139 m @
27.65% Fe
Section 28800 mE (Preliminary): mineralised intercepts are shown in red
139 m
intercept
109 m @
26.9% Fe
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