FENIX RESOURCES LTD — Capital/Financing Update 2019

Jun 3, 2019

4 June 2019

ASX Announcement

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Fenix Commences New Drill Program at Iron Ridge

Summary

• Fenix to commence a combined infill and geotechnical drilling program at Iron Ridge

• Planned diamond drill program consisting of:

  - **Seven infill holes for 880m targeting the conversion of existing inferred mineral resource** 
  
     - **to indicated category;** 
  
  - **Four dedicated geotechnical holes for 690m; and** 
  
  - **145m of extensions to the infill holes for geotechnical evaluation purposes** 
  

• Results from the program should be available from July 2019, with a feasibility study on Iron

  • Ridge expected to be completed in October 2019

Fenix Resources Limited (ASX: FEX, “ Fenix” or “ Company” ) is pleased to announce that it is due to commence a combined infill and geotechnical diamond drill program at its Iron Ridge Project (“ Project ”), which is located in the Mid-West region of Western Australia.

The planned drill program consists of seven holes for 880m of infill diamond drilling targeting the conversion of a portion of the existing Inferred Mineral Resource (see ASX release dated 19 March 2019 titled “Significant Upgrade to Iron Ridge Mineral Resource”) to Indicated category, plus four geotechnical assessment holes for 690m and two extensions to the resource infill holes for a further 145m.

Results from this program should be progressively released from July 2019 onwards. The Project feasibility study is now due to be completed in October 2019.

Over the next few months, Fenix is expected to commence a further 650m of drilling for the purpose of hydrological studies.

Managing Director Comment

Commenting on the imminent commencement of drilling, Fenix’s Managing Director, Robert Brierley, commented:

“ This drill program is an important step in completing the necessary technical assessments required to complete the feasibility study on development of the Iron Ridge Project. We look forward to intersecting more iron ore mineralisation and reporting back to shareholders as we progress towards direct shipping production in the fastest possible timeframe, all the while maintaining high standards of quality control and risk management. By combining the infill and geotechnical drilling programs we have saved valuable drill meterage and preserved cash resources in the process.”

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On Behalf of Fenix Resources Limited:

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Robert Brierley Managing Director Fenix Resources Limited

Competent Persons Statement

The information in this report that relates to Mineral Resources is based on information compiled by Alex Whishaw. Mr Whishaw is a full-time employee of CSA Global Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy. Mr Whishaw has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). Mr Whishaw consents to the disclosure of information in this report in the form and context in which it appears.

The information in this report that relates to Sampling Techniques and Data and Exploration Results is based on information compiled by Mr James Potter. Mr Potter is a full-time employee of CSA Global Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Potter has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). Mr Potter consents to the disclosure of the information in this report in the form and context in which it appears.

About Fenix Resources

Fenix Resources is a WA-based minerals explorer transitioning to miner.

The company’s 100% owned, flagship Iron Ridge Iron Ore Project is a premium DSO deposit which hosts a JORC 2012 compliant resource located around 490 km by road from Geraldton port.

High grade iron ore attracts a premium price on the seaborne market as Chinese steel works increasingly demand more pure inputs with lower emissions due to increasing strict government regulations.

Only requiring crushing and screening, the ore is proposed to be trucked to the port by a JV signed off on 7 May, with trucking specialist Minehaul Pty Ltd headed by respected logistics expert Craig Mitchell who was the founder and owner of Mitchell Corp before selling to Toll Group.

Negotiations are well advanced with Mid West Ports Authority at Geraldton where export capacity is available.

Pit planning, metallurgical work and mining and environmental approvals are currently being undertaken.

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