FENIX RESOURCES LTD — Interim / Quarterly Report 2009

Apr 29, 2009

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ASX QUARTERLY REPORT for the Period Ending — 31 March 2009

HIGHLIGHTS

EMERGENT REOURCES LIMITED

IRON – Beyondie Magnetite Iron Project

• “An emerging Western Australian mineral resource company

• focused on iron (DR magnetite) and base metals”

ASX Code: EMG

Total shares on issue; 42,150,001 1 for 2 Options (issued January 2009); 21,075,001

Directors

George J McMaster - Non-Executive Chairman Garry R Hemming - Managing Director Kevin E Judge - Non-Executive Director

Projects

Beyondie Magnetite Project : Drilling in progress to define and develop a world class high grade low impurity magnetite resource.

• 2[nd] stage drilling program commenced to follow-up wide high grade drill intersections from recent drilling program.

• Two of the known magnetite schist units are being drilled to 150 metres depth over true thicknesses of up to +100 metres.

• New drilling program expanded to 3700 metres for early definition of a resource over an initial strike length of 7 kilometres.

• Further work on the total defined 45 kilometre strike length held by Emergent.

• Comprehensive internal Business Plan completed by independent engineers MSP to assist going forward with the project.

• Presentations to potential partners in China for participation in the Beyondie Iron Project April 2009.

• Investigation of mining, metallurgy, process, logistics and engineering aspects progressed.

BASE METALS -Glengarry Base Metal

Glengarry Base Metal Project : comprising 2500 square kilometers of highly prospective ground for Cu, Pb, Zn, precious metals and uranium.

Mt Narryer Gold, Copper, Uranium Project: exploring high order anomalies in important geological setting.

Marble Bar Copper, Gold Project: potential for VMS deposits.

Paterson Uranium, Copper, Gold Project: potential for Kintyre, Maroochydore and Nifty style deposits.

• Assessment of company generated airborne and surface sampling data show high level targets on Glengarry Base Metal Project ground (2500 square kilometres of tenure).

• Encouraging results returned from exploration to date. Extensive MMI geochemical program analysis totaling 3785 samples. Progressing to define drill targets.

Mt Narryer Uranium Copper Gold Project

• Airborne survey data analysis in progress.

CORPORATE

• An issue of 1 for 2 options to all shareholders was finalised during the Quarter raising $210,750 before costs with 100% take up.

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QUARTERLY REPORT for the Period Ending—31 March 2009

Overview

Emergent Resources Limited (Emergent) continued to carry out a high level of exploration work. At Beyondie preparation for 2[nd] phase drilling was carried out. Beginning at the end of March the drilling is still in progress at the date of this report.

A comprehensive internal Business Plan has been prepared for Beyondie during the Quarter in conjunction with independent engineers MSP Engineering Pty Ltd to assist going forward with the development program and covering all aspects of mining, metallurgy, process and engineering aspects and transport options.

The work assisted in preparations for early stage meetings with potential partners in China during a trip in April 2009. The trip was planned in response to interest expressed by a number of Chinese groups to develop mutually acceptable parameters for future off-take arrangements and investment partnerships for the development of the Beyondie Project.

Emergent also progressed the computer assisted interpretation of the extensive airborne database collected late last year for the company’s base metal projects.

The base metal work programme has two aims;

1. To define drill targets for future testwork,

2. An extension of the work is a study of the entire Capricorn Province which contains the projects with a view to locate high order targets for acquisition using the opportunity of the economic downturn to obtain new projects. Encouraging results are apparent from the work to date.

Beyondie Magnetite Project E52/1806, ELA52/2215 (EMG earning 80%)

The Beyondie Magnetite Project is developing to be a world class Western Australian magnetite project

with potential for a long life iron ore operation.

The 2[nd] stage drilling program at Beyondie commenced at the end of the quarter and will determine grades of the two thickest magnetite zones (BMS1 & BMS2 of +100 metres each) to 150 metres vertical depth. The new drilling program has been expanded to 3700 metres to enable clear definition of the two zones over a strike length of 7 kilometres to improve the ability of the independent geologist to state a resource at the end of the program. This entails extensive Davis tube determinations as well as analyses.

Further definition work on the 45 kilometre strike length held to the east by Emergent shows over 20 kilometres of thickened magnetite schist.

Emergent’s joint venture is located between the Mid West Iron Province and the Pilbara Iron Mining Region of Western Australia. Covering an area of 839 square kilometers the project is being developed to produce a Direct Reduction (DR) magnetite export concentrate. The Dampier, Goldfields Gas Pipeline traverses the leases for access to cheap power, and the Great Northern Highway is located a few kilometers to the west of the leases allowing transport of concentrate to the northern Pilbara iron ore mining town of Newman (160 kilometres by road) or 200 kilometres south to connect to the developing Mid West iron mining centre.

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The 1[st] stage program drill holes returned magnetite schist intersections of at least 90 metres true thickness with the end of most of the holes being still in magnetite schist. Analytical results returned true widths of up to 76 metres averaging 30.8%Fe, equivalent to 43% contained magnetite, again open at the end of the hole (internal waste of maximum 8 metres used). The deposit features abundant magnetite, a relatively coarse grainsize and very low impurities of aluminum (Al), titanium (Ti), phosphorous (P), and sulphur (S).

A pre-scoping study is progressing with engineers assessing aspects of production of magnetite concentrate, mining, metallurgical properties, processing, and transport options. The scale of the deposit, quality of the magnetite, expected low waste ore stripping ratio and grainsize characteristics provide a preliminary indication of favorable cost structure for mining and processing.

Magnetite versus Hematite

Magnetite occurs in lower grade deposits than hematite, however, is beneficiated to a higher grade concentrate (generally +68% Fe) which is sought after for Direct Reduction (DR) feed in the smelting process.

The low impurities and exothermic properties of magnetite concentrate have important cost and environmental considerations.

Details of the 1[st] Stage Drilling E52/1806, ELA52/2215 (EMG earning 80%)

Emergent completed a maiden drilling program comprising 21 Reverse Circulation (RC) holes totalling 2210 metres during the December Quarter. Drilling encountered a series of thick, east striking Banded Iron Formation (BIF) horizons. Eight drill traverses were completed over a 12 kilometre strike length, a small portion of the total BIF sequence. Each drill traverse comprises several holes spaced at 50 to 100 metres. Five hundred and fourteen (514) two metre composite samples were submitted to Ultra Trace Geoanalytical Laboratories in Perth for a suite including Fe, Al, Si, P, S, Mn, Ti, K, Mg, Na, and LOI.

A series of three thick, east striking Banded Iron Formation (BIF) horizons were drill tested over a 12 kilometre strike length, a small portion of the total 45 kilometre strike of the BIF sequence. The three BIF horizons are named Beyondie Magnetite Schist (BMS1, BMS2 and BMS3) and are portrayed on Figure

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Figure 1. Location of drill hole traverses on detailed processed magnetic

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The drilling confirmed the remarkable thicknesses and consistency of the magnetite schist horizons (BMS). Geophysical modelling, completed by geophysicists, Resource Potentials Pty Ltd, suggests an average width to each band of up to 140 metres. The extraordinary widths and the horizons moderate dip, of approximately 30 to 40° to the north-west, is optimal for low strip ratio in an open cut mine.

Traverse and collar locations were planned utilising EMG’s recently acquired detailed airborne magnetic data. Each drill traverse comprises several holes spaced at 50 to 100 metres.

Table 1 below summarises the drill results with details in Tables 2 and 3. The cross-sections in Figures 1, 2 and 3 below show Drill Traverses 3, 5 and 6 with outcropping BMS and significant intersections. The dip is such that drill holes show true widths of up to:

76 metres averaging 30.8%Fe, (equivalent to 44% contained magnetite) Note: The BMS is still open at the end of the hole. One 8 metre interval of internal waste occurs in the intersection.

Table 1 Summary of Drilling Results

Hole ID	From m	To m		Fe2O3 _%	Fe %	SiO2 _%	Al2O3 _%	TiO2 _%	P_XRF _%	S_XRF _%
BDC006	**37 **	90	53	**40.02 **	27.68	51.65	4.22	0.18	0.04	0
BDC010	30	89	59	39.27	27.46	50.3	4.16	0.14	0.18	0.01
BDC012	63	**137 **	74	40.4	28.25	47.13	4.04	0.15	0.21	0.02
BDC018	43	120	65	40.69	28.45	51.75	4.48	0.20	0.03	0
BDC019	86	133	47	**44.62 **	31.2	47.41	4.03	0.19	0.04	0.01
BDC019	141	170	29	43.19	30.2	50.60	4.69	0.19	0.06	0.01
BDC019	86	170	76	**44.07 **	30.8	48.62	4.28	0.19	0.05	0.01
BDC021	**94 **	118	24	44.49	31.11	45.47	2.27	0.08	0.23	0.09

The grade compares favorably to similar developing magnetite operations in Western Australia. Intersections in the table include some internal waste and improvements in a grade control mining operation may occur.

Cross Sections

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Figure 2 Traverse 6 shows partially tested wide BMS1

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Figure 3 Traverse 5 shows wide BMS2 and partially tested BMS1

The extraordinary widths auger well for relatively low mining costs and a low strip ratio should the project progress toward development to produce a magnetite concentrate for shipping. The abundance and grain size characteristics of the magnetite in the BIF and schist units provide a preliminary indication of favorable metallurgical characteristics.

This proposed magnetite concentrate is expected to be a Direct Reduction (DR) product i.e. high quality and very low impurity for low cost smelting. Work was begun during the December Quarter on a desk top Business Plan study including work on the geological modelling of the magnetite horizons (supported by the geophysical models); metallurgy; process and engineering aspects, transport options and approvals on environment, government, and community issues of the project. Further the design of a two stage RC and a large diameter PQ diamond drill program is in progress to define a resource at Beyondie and facilitate the commencement of a Bankable Feasibility Study to produce a DR magnetite concentrate.

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Figure 4 Traverse 3 showing thinning to the west of the BMS1 and BMS2 horizons to 50 metres each

Table 2. Drilling Results Details

Hole ID	From m	To m		Fe2O3 _%	Fe %	SiO2 _%	Al2O3 _%	TiO2 _%	P_XRF _%	S_XRF _%	LOI _%
BDC003	0	6	6	42.99	30.06	35.86	13.42	0.7	0.03	0.04	6.18
BDC003	48	81	33	38.4	26.86	53.79	4.59	0.18	0.03	0	1.85
BDC004	23	29	6	43.05	30.1	37.85	8.2	0.3	0.45	0.01	5.96
BDC005	68	89	21	42.23	29.53	40.87	2.05	0.08	0.2	0.02	3.47
BDC006	**37 **	90	53	**40.02 **	27.68	51.65	4.22	0.18	0.04	0	2.61
BDC007	66	100	34	41.76	29.2	49.71	3.85	0.18	0.07	0	1.86
BDC008	58	81	23	37.91	26.51	50.72	4.91	0.19	0.06	0.01	3.82
BDC009	95	120	25	40.86	28.58	52.35	3.7	0.17	0.06	0.01	2.03
BDC010	30	89	59	39.27	27.46	50.3	4.16	0.14	0.18	0.01	3.54
BDC011	97	120	23	39.73	27.78	46.13	3.4	0.12	0.16	0.17	5.31
BDC012	63	**137 **	74	40.4	28.25	47.13	4.04	0.15	0.21	0.02	3.21
BDC014	40	46	6	38.63	27.02	54.63	4.05	0.16	0.03	0	1.59
BDC016	0	10	10	53.43	37.36	24.62	12.9	0.87	0.03	0.07	7.37
BDC017	17	20	3	41.27	28.86	51.8	4.28	0.2	0.02	0.01	2.15
BDC017	56	99	43	37.7	26.36	54.7	4.81	0.19	0.02	0	1.55
BDC018	43	71	28	41.84	29.26	50.77	4.36	0.21	0.03	0	1.59
BDC018	83	120	37	39.82	27.85	52.5	4.56	0.19	0.03	0	1.55
BDC018	43	120	65	40.69	28.45	51.75	4.48	0.20	0.03	0	**1.57 **
BDC019	86	133	47	**44.62 **	31.2	47.41	4.03	0.19	0.04	0.01	1.77
BDC019	141	170	29	43.19	30.2	50.60	4.69	0.19	0.06	0.01	2.18
BDC019	86	170	76	**44.07 **	30.8	48.62	4.28	0.19	0.05	0.01	1.92
BDC021	94	118	24	44.49	31.11	45.47	2.27	0.08	0.23	0.09	3.68

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Table 3 Hole Locations Details

HoleID	MaxDepth	Datum	National_East	National_North	DTM_RL	Dip	Mag Azi
BDC001	80	GDA94	765914	7238671	580.54	-60	157
BDC002	100	GDA94	765848	7238765	580	-60	157
BDC003	100	GDA94	767835	7239232	594.52	-60	157
BDC004	100	GDA94	767801	7239323	591.36	-60	157
BDC005	100	GDA94	768578	7239521	594	-60	157
BDC006	100	GDA94	768537	7239627	589.84	-60	157
BDC007	100	GDA94	768512	7239673	588.3	-60	157
BDC008	100	GDA94	770418	7240315	579.78	-60	157
BDC009	120	GDA94	770374	7240420	579.5	-60	157
BDC010	100	GDA94	775313	7242113	591.52	-60	157
BDC011	120	GDA94	775272	7242215	591.83	-60	157
BDC012	140	GDA94	775283	7242174	591.67	-60	157
BDC013	100	GDA94	776963	7242827	597.65	-60	157
BDC014	100	GDA94	767858	7239184	596.27	-60	157
BDC015	100	GDA94	768616	7239474	595.48	-60	157
BDC016	10	GDA94	768540	7239564	592.17	-60	157
BDC017	100	GDA94	773356	7241501	590.11	-60	157
BDC018	120	GDA94	773350	7241549	590.42	-60	157
BDC019	170	GDA94	773335	7241626	590.95	-60	157
BDC020	130	GDA94	770464	7240288	579.72	-60	157
BDC021	120	GDA94	773385	7241260	588.65	-60	157

BASE METAL PROJECTS

Glengarry Base Metal, Gold, Uranium, Project

On the Glengarry Base Metal Project the data from extensive Emergent aerial surveys of magnetic, radiometric and HyVista has been interpreted by computer assisted techniques and complemented by results from a large scale program of surface MMI (Mobile Metal Ion) sampling, and geological work during the Quarter. Targets for zinc, lead, gold, uranium and manganese are apparent in addition to the high priority targets at North Pool and Mt Bartle.

MMI geochemistry for the Glengarry Project was batch and regolith domain leveled. Geochemical leveling is a statistical manipulation of data that minimizes the differences between the different batches of samples and which can unmask the subtle expressions of mineralisation that are commonly obscured by such interbatch analytical variation and also variations in the natural backgrounds between different surface geology units. The leveling techniques are based on the concept that each unique batch contains both anomalous samples and a background population. The aim is to establish a consistency on the thresholds that separate anomalies and backgrounds for each batch.

Figure 5 Overleaf Raw and Leveled MMI geochemistry images for gold (au), Copper (Cu), Lead (Pb), Zinc (Zn) and Silver (Ag)

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----- Start of picture text -----

Raw Leveled
Au Au
Cu Cu
Pb Pb
Zn Zn
Ag Ag
----- End of picture text -----

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The benefits of geochemical leveling are exemplified in Figure 5. Target resolution is greatly improved in the leveled data providing near-drill ready targets. The impact of false anomalies are limited, while new or subtle anomalism is enhanced providing new targets.

The levelled MMI data will be combined with the compiled legacy surface and drilling geochemical data for the Glengarry area. The combined data set, along with interpretations of the detailed airborne magnetic and hyvista data, will form a three- pronged targeting campaign aimed at defining new, drill ready targets within the Glengarry project area.

CORPORATE

An issue of 1 for 2 options to all shareholders was finalised during the Quarter raising $210,750 before costs with 100% take up.

G R Hemming Managing Director

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.

For further information please contact:

Garry Hemming Managing Director Emergent Resources Phone: +61 (0)8 9481 6600 Facsimile: +61 (0)8 9481 6444 Mob: 0419 835 757 Email: ghem@westnet.com.au Website: www.emergentresources.com.au

James Moses Media and Investor Relations Mob: 0420 991 574

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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

	Name of entity		Quarter ended (“current quarter”) 31 March 2009	Quarter ended (“current quarter”) 31 March 2009
	Emergent Resources Limited
	ABN 68 125 323 622 Consolidated statement of cash flows
			31 March 2009
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other Net Operating Cash Flows			Current quarter $A’000	Year to date (9 months) $A’000
			- (448) - - (115) - 6 - - -	- (1,870) - - (526) - 65 - - -
			(557)	(2,331)
Cash flows related to investing activities 1.8 Payment for purchases: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)			- - (4) - - - - - -	- - (46) - - - - - -
			(4)	(46)
			(561)	(2,377)

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(561)	(2,377)
Cash flows related to financing activities 1.14 Proceeds/(refunds) from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – capital raising costs Net financing cash flows	45 - - - - (22)	(692) - - - - (672)
	23	(1,364)
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(538) 1,717 -	(3,741) 4,920 -
	1,179	1,179

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		100
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Item 1.23 - Remuneration of Directors.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development	$A’000
	300
	-
Total	300

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank	79	1,717
5.2 Deposits at call	1,100	-
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: cash at end of quarter(item 1.22)	1,179	1,717

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	-	-	-	-
	-	-	-	-

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	-	-
	- -	- -
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs (c) Released from Escow	42,150,001	24,900,001
	- - -	- - -
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-
	- -	- -
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	3,700,000 21,075,001	- 21,075,001	Exercise price 20 cents 20 cents	Expiry date 31/08/2012 30/09/2010
	6,095,276	6,095,276	20 cents	30/09/2010
	-	-
	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes (totals only)	-	-

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here:

Date: 30 April 2009

(Company secretary)

Print name: Kevin Hart

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Cash Flow Statements apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 5

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