FENIX RESOURCES LTD — Capital/Financing Update 2022

Dec 29, 2022

ASX ANNOUNCEMENT

FENIX EXTENDS IRON ORE HEDGING COVER

50KT PER MONTH HEDGED AT A$173/T TO JUNE 2023

Fenix Resources ( ASX: FEX ) ( Fenix or the Company ) is pleased to advise the Company has extended existing hedging arrangements to ensure cover is in place for a total of 50,000 dry metric tonnes (dmt) of iron ore per month from January 2023 through to June 2023 at a fixed price of A$173.25 per dmt.

The new iron ore hedging has been established by iron ore swap arrangements for an additional 15,000 dmt per month over the six-month period to June 2023 and extends the Company’s existing swap arrangements for 35,000 tonnes per month up to and including June 2023. The existing hedges were placed in June 2022 and continue to provide strong margin support for Fenix iron ore production and cash flows.

Fenix’s iron ore swap arrangements consist of contracts which are cash settled at the end of each month for an amount equivalent to the difference between the fixed price of the contracts and the Monthly Average Platts TSI 62 Index converted to AUD.

Fenix’s swap arrangements are consistent with the Company’s Price Protection Policy designed to support the medium-term profitability of production from the Iron Ridge Iron Ore Mine whilst maintaining positive exposure to iron ore prices.

Chairman of Fenix, Mr John Welborn, commented:

“Hedging has been an important component of Fenix’s success as a highly profitable iron ore producer. We are focused on maintaining a strong margin on our high-grade iron ore products throughout the iron ore price cycle. Our ongoing hedging arrangements secure a solid margin on a base level of our production and support our ability to continue to generate strong cashflows and profitability.”

Authorised by the Board of Fenix Resources Limited.

For further information, contact:

John Welborn Dannika Warburton Chairman Investor & Media Relations Fenix Resources Limited +61 401 094 261 john@welborn.com.au dannika@investability.com.au

Follow Fenix Resources:

Twitter: twitter.com/Fenix_Resources LinkedIn: www.linkedin.com/company/fenix-resources Facebook: www.facebook.com/fenixresources1 Website: fenixresources.com.au

Join Fenix’ mailing list: https://fenixresources.com.au/subscribe/

P +61 08 9226 2011 E info@fenixresources.com.au ABN 68 125 323 622

FENIX RESOURCES LTD

ASX:FEX fenixresources.com.au

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Fenix Resources (ASX: FEX) is a high grade, high margin iron ore producer located in the mid-west mining region of Western Australia.

The Company’s 100% owned, flagship Iron Ridge Iron Ore Mine is a premium direct shipping ore deposit that hosts some of the highest grade iron ore in Western Australia. Fenix’s high grade iron ore attracts a premium price on the seaborne market. Increasingly, global customers are demanding high grade ore to meet increasingly strict government regulations.

Fenix operates a unique fully integrated mining and logistics business. Mining at Iron Ridge is via conventional open pit methods with a low strip ratio and simple crushing and screening of high-grade lump and fines direct shipping ore products. High quality iron ore products from Iron Ridge are transported by road to Geraldton using the Company’s 100% owned FenixNewhaul haulage and logistics business. The Company operates its own loading and storage facilities at the Geraldton Port.

Production commenced at Iron Ridge in December 2020 and is operating at the planned production run rate of 1.3 million tonnes per annum. Fenix has produced and exported more than 2 million tonnes of premium iron ore, generating excellent cash flow and profitability since commencement of production. The unaudited net operating margin for the first two million dry metric tonnes of iron ore sold from Iron Ridge averaged A$56 per dry metric tonnes shipped, representing an unaudited gross cashflow operating margin of more than A$112 million in just 19 months of operation.

Fenix has a generous dividend policy to distribute between 50% and 80% of after-tax profits as fully franked dividends. For the year ended 30 June 2022, Fenix declared a final fully franked dividend of 5.25 cents per share.

The Company is led by a proven team with deep mining experience and benefits from strategic alliances and agreements with key stakeholders, including the Wajarri Yamatji people who are the Traditional Custodians of the land on which the Iron Ridge Iron Ore Mine is located.

Fenix is focused on promoting opportunities for local businesses and the community. The Company has generated more than 200 local jobs. Fenix is proud to have a strong indigenous representation in the Company’s workforce and to be in partnership with leading contract service providers including MACA Ltd, Alpha 1 WA Pty Ltd, Champion Bay Electrical Ltd, the Schwarze Brothers Pty Ltd, and other leading local and national service providers.

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