FENIX RESOURCES LTD — Interim / Quarterly Report 2010

Jan 30, 2011

ASX QUARTERLY REPORT for the Period Ending — 31st December 2010 HIGHLIGHTS BEYONDIE IRON PROJECT  Current Mineral Resource and Exploration Targets substantiate the large scale, of the Beyondie magnetite ore body and indicate its potential to be one of Australia’s most significant new iron projects.  Completion of seven diamond drill core holes totalling 883m in tenement E52/1806. The holes were evenly distributed above the Company’s JORC inferred Magnetite Resource of 561 million tonnes and were aimed at sampling the transitional zone that overlies the fresh magnetite ore body.  Success with planned metallurgical test work of the transitional ore has the potential to add significantly to the mineral resource and will increase the profitability of a mining operation at the Beyondie Iron Project.  The Company completed a 4684 m Aircore drilling program, collecting samples across tenements E52/1806 & E52/2215.  Drilling was conducted on a nominal 800m line spacing with holes located every 50 metres along the line, with the aim of testing the grade and width of the identified zones of near surface hematite enrichment.  Commencement of metallurgical test work to establish saleable product from ‘bedded’ hematite, and hematite- enriched gravels.  The near surface hematite provides further potential for the Company to deliver early cash flows from the Project. GLENGARRY PROJECTS  The Company has completed a detailed mineral mapping and alteration study of its base metal assets at Glengarry in a collaborative study with the CSIRO’s Minerals and Environmental Sensing Group.  Priority base metal and uranium exploration targets have been identified.  Exploration programs at the Glengarry Project near Wiluna in Western Australia are set to commence in early February 2011. EMERGENT REOURCES LIMITED “An emerging Western Australian mineral resource company focused on iron and base metals” ASX Code: EMG Total shares on issue 80,076,767 Unlisted options 5,421,443 Directors Mr Wolfgang Fischer – Executive Chairman Mr George McMaster – Non Executive Director Mr Robert Boylan – Non Executive Director Management Mr Nathan Lude – Chief Executive Officer Projects Beyondie Iron Project: Working to develop the project into one of Australia’s most significant, high grade iron ore mining operations. Glengarry Base Metal Project: Comprising 2500 square kilometres of 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 gold and VMS deposits. Paterson Uranium, Copper, Gold Project: Potential for Kintyre, Maroochydore and Nifty style deposits.

QUARTERLY REPORT for the Period Ending — 31[st] December 2010

OVERVIEW

Emergent Resources’ (“Emergent” or the “Company”) activities for the quarter ending 31[st] December: The Company continued its work on the Beyondie Project in the mid-west region of Western Australia (see Figure1: Project location map).

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Figure 1: Project location map.

The highlights of exploration activities during the quarter included a diamond core drilling program that was aimed at sampling the transitional zone that overlies the fresh magnetite ore body (see ASX announcement 16[th] November). Seven diamond drill-core holes totalling 883m in tenement E52/1806 were completed (See Figure 2: Magnetite JORC Resource area).

Tenement E52/1806 hosts a JORC Inferred Magnetite Mineral Resource of 561 million tonnes at 27.5% Fe and an Exploration Target of 480–520 million tonnes grading 27.0%–28.5% Fe. *

The total strike length of the deposit is over 60 kilometres and has a total Exploration Target of 3.7 – 4.2 billion tonnes grading 27.0%–28.5% Fe across the project area. Figure 2: Transitional ore

The Company also completed a 4684m Aircore drilling program, obtaining samples across tenements E52/1806 and E52/2215. Drilling was conducted on a nominal 800m line spacing with holes located every 50m along the line. The aim of the drill program was to test the grade and width of near surface hematite mineralisation identified at two broad localities along the Beyondie magnetite ore body.

Approximately 383 exploration holes were tested along 12.8 km of strike over the Beyondie magnetite deposit on E52/1806 and a further 70 holes were tested along a strike length of 6.6km located 10km east of the Beyondie magnetite deposit on tenement E52/2215.

Reporting of the results of the metallurgical analysis of the samples will be available in February,2011.

The Company believes the near surface hematite at Beyondie could provide the Company with early positive cash flow from the Project (due to its ‘free-dig’ attributes).

The Beyondie Project is located adjacent to the Great Northern Highway and Goldfields Gas Pipeline in the northern part of WA’s mid-west iron ore precinct. Emergent is investigating options to access rail and port infrastructure to ship ore from Beyondie and develop the project into a long term, large scale, high grade iron ore mining operation.

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Figure 3: Resource location and inventory

BEYONDIE IRON PROJECT E52/1806, E52/2215 (80% EMG) and ELA52/2474, ELA69/2625, ELA69/2669 (100% EMG)

During the quarter the Company continued with its exploration programs designed to develop the Beyondie Project into a significant iron ore project. The Company completed drill programs focused on advancing a hematite mining operation, delivering early positive cash flow for the Company and a longer term magnetite mine.

The Company is undertaking significant metallurgical test work to evaluate options for both hematite and magnetite mining operations.

The Beyondie Project currently comprises:

• A Magnetite Inferred JORC Mineral Resource of 561 million tonnes grading 27.5% Fe in tenement E52/1806

• A Magnetite Exploration Target of 480 to 520 million tonnes grading 27.0 to 28.5% Fe in E52/1806, and

• A Magnetite Exploration Target of 3.7 to 4.2 billion tonnes grading 27.0 to 28.5% Fe at outside of E52/1806

The current Mineral Resource and Exploration Targets indicates the magnitude of the Beyondie magnetite ore body and its potential to be one of Australia’s most significant new iron projects.

* The potential quantity and grade of the above Exploration Targets is conceptual in nature. There has been insufficient exploration to define a Mineral Resource, and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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THE GLENGARRY PROJECT

E53/1302, E53/1332, P53/1417, P53/1418, P53/1419, E53/1301, E51/1191, E51/1204, E51/1205, E51/1206, E51/1207, E51/1208 (100% EMG), E53/977 (80% EMG)

The Company has completed a detailed mineral mapping and alteration study of its Glengarry base metals assets. The study, in collaboration with the CSIRO’s Minerals and Environmental Sensing Group has outlined several base metal and uranium surface targets for early exploration.

The study incorporated interpretation of Emergent’s Hyperspectral infrared reflectance spectral data.

The CSIRO study

The CSIRO was tasked with producing and interpreting a series of mineral maps (which highlight the mineralised fluid migration pathways from source rocks to depositional sites). The mineral maps were subsequently overlain over the lithostructural framework (the structures which promote and/or arrest fluid migration) established by Emergent. This was used to prioritise targets.

The resulting interpretation identified targets which include redox and pH-driven uranium mineralisation, and several occurrences of alunite, which is possibly associated with base metal mineralisation.

Emergent now plans to commence field exploration activities in support of the study results in early February 2011. Field teams are currently preparing to initiate work programs that will see commencement of planned field operations.

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Figure 4: Glengarry project tenor and targets

Resignation of Director

Mr George McMaster, a Non-Executive Director of the Company tendered his resignation from Emergent’s Board, effective 28 February 2011 (see ASX announcement 30[th] November, 2010).

The company would like to thank Mr McMaster for his contributions to the board and in the development of the Company from its IPO.

The Company is currently in discussions with a number of highly qualified potential candidates for Non-Executive Director roles and the first of several new Board appointments will be made prior to Mr McMaster’s departure.

For further information please contact:

Nathan Lude Chief Executive Officer Emergent Resources Limited

Wolfgang Fischer Executive Chairman

Ph: +61 8 94816600 E: admin@emergentresources.com.au Website: www.emergentresources.com.au

Media David Brook Professional Public Relations Ph: +61 8 9388 0944 E: david.brook@ppr.com.au

Competent Persons Statements

Technical information in this report has been prepared under the supervision of Mr Jonathan King, Chief Geologist for the company and a member of the Australasian Institute on Mining and Metallurgy (AusIMM). Mr King 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 King consents to the inclusion in this report of the Information, in the form and context in which it appears.

The information in this statement that relates to Mineral Resources and Exploration Targets is based on information compiled by Sharron Sylvester who is a full time employee of AMC Consultants Pty Ltd and a Member of the Australian Institute of Geoscientists and has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration to qualify as a Competent Person as defined in the JORC Code (2004). Sharron consents to the inclusion of this information in the form and context in which it appears.

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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 December 2010	Quarter ended (“current quarter”) 31 December 2010
	Emergent Resources Limited
	ABN 68 125 323 622 Consolidated statement of cash flows
			31 December 2010
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 – R&D tax refund Net Operating Cash Flows			Current quarter $A’000	Year to date (6 months) $A’000
			- (1,140) - - (527) - 35 - - -	- (1,767) - - (883) - 44 - - -
			(1,632)	(2,606)
Cash flows related to investing activities 1.8 Payment for purchases: (a) prospects (b) equity investments (c) other fixed assets (d) environmental bonds 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)			- - (3) - - - - - - -	- - (10) (25) - - - - - -
			(3)	(35)
			(1,635)	(2,641)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,635)	(2,641)
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	763 - - - - (253)	4,554 - - - - (314)
	510	4,240
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	(1,125) 3,603 -	1,599 879 -
	2,478	2,478

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
		176
		-
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

• During the quarter the company issued shares in respect of the underwriting of the options expiring the 30 September 2010, in lieu of cash payment for underwriting and associated services amounting to $271,280.

• 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

• N/A

• See chapter 19 for defined terms.

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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 4.3 Production 4.4 Administration	$A’000
	460
	-
	-
	310
Total	770

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	2,478	3,603
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	2,478	3,603

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
	-	-	-	-
	E53/1584	Granted	0%	80%

• See chapter 19 for defined terms.

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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 Escrow	80,076,767	80,076,767
	11,396,485 - -	11,396,485 - -
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	3,700,000 300,000 1,046,443 125,000 125,000 125,000	- - - - - -	Exercise price $0.20 $0.26 $0.26 $0.50 $1.00 $1.50	Expiry date 31/08/2012 08/09/2012 27/10/2012 30/09/2011 30/09/2012 14/12/2010
	1,046,443 125,000 125,000 125,000	- - - -	$0.26 $0.50 $1.00 $1.50	27/10/2012 30/09/2011 30/09/2012 14/12/2012
	-	-	-	-

• See chapter 19 for defined terms.

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7.10 Expired during quarter	-	-	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes (totals only)	-	-

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: (Company secretary)

Date: 31 January 2011

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.

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• See chapter 19 for defined terms.

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