FENIX RESOURCES LTD — Capital/Financing Update 2010

Dec 23, 2010

ASX/MEDIA RELEASE

24[th] December, 2010

BEYONDIE IRON PROJECT: COMPLETION OF DIAMOND CORE DRILLING

Key Points:

• Seven diamond drill core holes totalling 883 m, aimed at advancing the company’s metallurgical and development program, have been completed.

• Metallurgical samples will be analysed to establish the optimum processing pathways and iron products available from the near surface detrital hematite and the weathered transitional materials that overlie the JORC inferred magnetite ore body.

• Successful metallurgical testing of the gravels and transitional ore has the potential to add significant additional mineable resources to the existing resource.

Emergent Resources has completed drilling seven diamond drill core holes totalling 883.35 meters in tenement E52/1806 at the Company’s Beyondie Iron Project (see attached map). The holes, evenly distributed above the company’s JORC Inferred Magnetite Resource of 561 million tonnes, specifically sampled near surface detrital hematite and the weathered transition zone[1] material immediately above the resource. Metallurgical testing of these samples, recovered via drill cores, will ascertain the likely products, their recovery rates, grades and establish methods by which to optimise their recovery and grade.

Davis Tube Recovery and assay results from the seven holes will be compared with sample analyses from twinned counterpart reverse circulation (RC) drill holes previously drilled.

The test work will be managed by Engenium, a leader in the development of iron ore projects. The metallurgical results are anticipated to be reported in March 2011.

Successful testing of the near surface detrital hematite and transitional material has the potential to add significantly to the mineable resource at Beyondie. It will also validate Emergent's aggressive drilling and testing schedule in exploring the potential near surface hematite targeted to deliver early positive cash flow while at the same time progressing the development of Emergent's large scale Beyondie magnetite project.

1 The transitional material represents that part of the ore body that has been subject to oxidation and where the original magnetite has largely converted to hematite (and occasionally martite).

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For further information please contact:

Nathan Lude Wolfgang Fischer Chief Executive Officer Executive Chairman

Emergent Resources Limited PH: 08 94816600 E: admin@emergentresources.com.au Website: www.emergentresources.com.au

Competent Persons Statements

Technical information in this report has been prepared under the supervision of Mr Jonathan King, Chief Geologist for the company and a member of the Australasian Institute on Mining and Metallurgy (AusIMM). Mr King 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 King consents to the inclusion in this report of the Information, in the form and context in which it appears.

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----- Start of picture text ----- New DrillingEmergent ResourcesDrillholesBEYONDIE IRON PROJECTTracks Magnetic Anomaly withDate:9/12/2010 New Diamond Core HolesBeyondieNatural Gas Pipeline Project December 2010Office: West PerthTenement BoundaryScale: 1:300,000 Projection: MGA Zone 50 (GDA 94)----- End of picture text -----