FENIX RESOURCES LTD — Capital/Financing Update 2010

Sep 15, 2010

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ASX/MEDIA RELEASE

16 September 2010

ASX Codes: EMG, EMGO

Beyondie Iron Project Joint Venture Agreement with CMIC not proceeding

Emergent Resources Limited (ASX: EMG) (Emergent, the Company) advises that it will not proceed with its proposed Joint Venture Agreement with Beijing China Metallurgical Investment Co Limited (CMIC) for the development of Emergent’s Beyondie Iron Project.

Under the terms of Emergent's proposed $200 million joint venture with CMIC for the development of the Beyondie project, announced on October 28 last year, Emergent was to receive $5,004,073.10 from a placement of shares and options to CMIC.

Emergent recently advised the market (in an ASX announcement on 30 August) that the receipt of the placement funds from CMIC was expected by 15 September. The Company now advises that these funds have not been received, and that it has not received confirmation from CMIC regarding the transfer of the funds.

Given that the proposed date for the payment of these placement funds has not been met, Emergent has decided it will not proceed with the proposed joint venture with CMIC for the Beyondie Iron Project.

Proceeding with drilling of hematite discovery

In June 2010 Emergent discovered a potential new, large, near surface Hematite Direct Shipping Ore (DSO) deposit in tenement E52/2215 at the Beyondie Iron Project, adjacent to tenement E52/1806 - which hosts a JORC Inferred Magnetite Resource of 561 million tonnes grading 27.5% Fe. The Hematite discovery may result in earlier cash flows then the current planned magnetitie concentrate production scheduled for 2014.

The Company will continue with its plans to develop the Beyondie project into a large scale, long term, iron ore mining operation, and will pursue partnership arrangements with other interested parties.

Emergent has commenced the RC drill program for the Direct Shipping Ore (DSO) hematite iron deposit at Beyondie. Subject to successful results the Company plans to expand the drill program with a second phase campaign at the hematite deposit, entailing an additional 10,000 metres (at a nominal 400 metre spacing) along an extended total strike length of over 12 kilometres, which will significantly progress steps to defining a DSO mineral resource. (Refer ASX release 2 June 2010).

Emergent managing director Garry Hemming said: “Given the world class potential of Beyondie, we are confident in the Company’s ability to attract other key strategic partners to help deliver the maximum economic value. We will now move ahead with our next phase of exploration at the project to expand the magnetite Resource base and confirm a maiden DSO hematite resource.”

ENDS

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For further information please contact:

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

James Moses Media and Investor Relations Mandate Corporate Mob: 0420 991 574 E: james@mndatecorporate.com.au

About the Beyondie Iron Project

The Beyondie Project is located adjacent to the Great Northern Highway and Goldfields Gas Pipeline 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.

The project has a JORC Inferred Resource of 561 million tonnes grading 27.5% Fe and an additional 480–520 million tonne Exploration Target in the drilled area, plus another 3.7-4.2 billion tonne Exploration Target outside the drilled area. (Refer ASX release 25 November 2009). The latter Target mineralisation is based on aeromagnetic data and geological mapping with the interpreted volumes modelled and confirmed as part of the independent Beyondie Mineral Resource Modelling study.

Initial metallurgical test work 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).

In addition, Emergent recently announced a new, large Direct Shipping Ore hematite iron discovery at the project, of an independently assessed Exploration Target of 70-120Mt over a 6.5km portion in tenement E52/2215 (Refer ASX release 2 June 2010).

The potential quantity and grade of the Exploration Targets is conceptual in nature as there has been insufficient exploration to define a Mineral Resource, and it is uncertain if further exploration will result in the determination of a Mineral Resource.

The Company plans ongoing exploration programs to expand the size of the magnetite Resource base at the project, and confirm a hematite Resource.

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.

The information in this statement that relates to Mineral Resources and ExplorationTargets is based on information compiled bySharron Sylvester who is a full time employee of AMC Consultants Pty Ltd and a Member of the Australian Institute of Geoscientists and has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration to qualify as a Competent Person as defined in the JORC Code (2004). Sharron consents to the inclusion of this information in the form and context in which it appears.

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