FENIX RESOURCES LTD — Capital/Financing Update 2010

Sep 13, 2010

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ASX/MEDIA RELEASE 14 September 2010

ASX Codes: EMG, EMGO

DRILLING COMMENCES AT DSO HEMATITE DEPOSIT AT BEYONDIE IRON PROJECT

Emergent Resources Limited (ASX: EMG) (Emergent) is pleased to announce that drilling has commenced at the Company’s Direct Shipping Ore (DSO) hematite iron deposit at the Beyondie Iron project in the mid west region of Western Australia.

The drill program will consist of a 40 hole, 4,000 metre Reverse Circulation (RC) program over a 5 kilometre strike length at the recently discovered DSO hematite deposit. Drilling will be conducted on a nominal 800 metre line spacing (angled at 60 degrees) to a depth of 100 metres into the steeply dipping mineralisation.

The aim of the initial program at the DSO deposit is to define the boundaries of the three zones of hematite that were identified at the time of the discovery as well as test the grade with the wide spaced holes.

Subject to successful results the Company plans to expand the drill program with a second phase campaign at the hematite deposit of an additional 10,000 metres (at a nominal 400 metre spacing) along an extended total strike length of over 12 kilometres.

The DSO deposit at the Beyondie project was discovered in June this year. It is located within the E52/2215 tenement at the Beyondie Project, adjacent to tenement E52/1806 - which hosts a JORC Inferred Magnetite Resource of 561 million tonnes grading 27.5% Fe.

The Company’s independent geological consultants AMC Consultants Pty Ltd have estimated a total Exploration Target of 70-120 million tonnes at an overall grade of 52-57% Iron (Fe) at the DSO deposit. This is made up of two exploration targets; 25- 45Mt @ 55- 60% Fe, and 45-75Mt @ 50-55% Fe (Refer ASX release 2 June 2010).

The DSO deposit outcrops at surface, and the surface iron is predominantly hematite. It is estimated that the depth of hematite is approximately 50-70 metres overlying fresh magnetite.

To date, geological mapping and sampling has been completed over an area of about 1,000 metres in width and a 15 kilometres strike length. Also, approximately 750 geological samples have been collected across 920 equidistant survey locations.

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Details of DSO hematite deposit

The hematite deposit is interpreted as three parallel hematite units. The hematite units steeply dip at approximately 70-80 degrees and are enveloped in relatively soft phylite material, separated by narrow phylite units approximately 60 metres wide. In places the hematite bands structurally abut each other.

The deposit is situated in a low spinifex hillside above an alluvial plain, and mineralisation mapped to date is largely under cover with three minor ephemeral watercourses covering the deposit with alluvium and detrital sediment eroded from the ridges and deposited down slope.

The western limb of the mineralisation is approximately 200 metres wide, mostly under cover with two iron units in close proximity observable. Towards the east the prospect thickens into three distinct units with an overall width of about 380 metres. The mineralisation is bounded by a clay rich relatively soft phylite unit with multiple narrow high grade hematite inclusions.

The iron enriched units are interpreted as the oxidized surface expression of a deeper magnetite body that provides the impressive magnetic high identified on aerial imagery from data collected by Emergent. The surface iron is predominantly hematite and goethite with martite that suggest the transformation from a magnetite origin.

The potential quantity and grade of the Exploration Target at the DSO deposit 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.

ENDS

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

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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About the Beyondie Iron Project

The Beyondie Iron 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 Mineral 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 later 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. The potential quantity and grade of the Exploration Target 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.

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, in June 2010 Emergent announced a new, large Direct Shipping Ore hematite iron discovery at the project, of an independently assessed Exploration Target of 70-120Mt over a 6.6km portion in tenement E52/2215 (Refer ASX release 2 June 2010).

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