FENIX RESOURCES LTD — Capital/Financing Update 2010

Jul 11, 2010

==> picture [102 x 102] intentionally omitted <==

De Grey Mining Ltd

A.B.N. 65 094 206 292

The Bold Explorer

12 July 2010

ASX/MEDIA RELEASE

UPDATE – BEYONDIE SALE AND PURCHASE AGREEMENT

De Grey Mining (ASX:DEG) and Emergent Resources Limited (Emergent) have agreed to vary the Beyondie Sale and Purchase Agreement such that Emergent will complete its purchase of De Grey’s 20% interest in the Beyondie magnetite iron ore project by:

• payment of $5 million as soon as practicable following Emergent’s share placement to Beijing China Metallurgical Investment Co. Limited (CMIC); and

• payment of a further $1.05 million on or before 30 November 2010.

The revised total purchase price of $6.05 million comprises:

• the originally proposed purchase price of $4.5 million; and

• payment of $1.55 million at completion in lieu of $2.25 million in conditional future payments.

De Grey regards the removal of project risk from the terms of the Sale and Purchase Agreement as advantageous.

Emergent advises that it expects its issue of shares to CMIC to complete imminently.

Upon receipt of the initial $5 million payment, De Grey will have $7.3 million cash available to fund exploration and project acquisitions .

(Under the original terms of the Sale and Purchase Agreement with Emergent, De Grey was to receive $4.5 million cash within 30 days of the Completion Date (31 May 2010), together with $2.25 million, plus interest, in future payments after commencement of commercial production at the project, for the sale of its 20% interest in Beyondie magnetite iron ore project.)

For further information:

Gary Brabham

De Grey Mining Limited Ph: +61 8 9285 7500

Suite 4, 100 Hay Street, Subiaco, WA 6008 ▪ PO Box 8289, Subiaco East, WA 6008 ▪ Tel: +61 8 9285 7500 ▪ Fax: +61 8 9285 7599 Email: frontdesk@degreymining.com.au ▪ Website: www.degreymining.com.au