FENIX RESOURCES LTD — Capital/Financing Update 2010

Jun 2, 2010

==> picture [108 x 108] intentionally omitted <==

De Grey Mining Ltd

A.B.N. 65 094 206 292

The Bold Explorer

03 June 2010

ASX/MEDIA RELEASE

UPDATE – BEYONDIE SALE AND PURCHASE AGREEMENT

Under the terms of the Sale and Purchase Agreement with Emergent Resources Limited, De Grey is 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

Emergent now advises that certain conditions precedent to completion remain to be fulfilled and they will seek a further extension to the timeframe for completion. The terms for such extension are currently being negotiated between the two companies and shareholders will be advised of those terms when they are substantially agreed.

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