FENIX RESOURCES LTD — Interim / Quarterly Report 2013

Jul 29, 2013

ASX QUARTERLY REPORT for the Period Ending - 30 June 2013

BOARD CHANGES

On 24 June Emergent Resources Ltd ( EMG or the Company) announced the appointment of Dr Andrew Tunks, a geologist and resource company director of 25+ years’ experience, as an Executive Director. Dr Tunks has led successful exploration teams in Africa leading to the discovery of several gold deposits in Ghana as well as Botswana’s largest Uranium deposit and two coal discoveries. As Managing Director of A-Cap Resources Ltd he raised over $40M to fund its Botswana uranium exploration. Dr Tunks has been charged with developing the Company’s existing assets and leveraging the Company’s excellent capital structure and strong cash position to grow the Company through acquisition and investment.

In addition, the Company appointed Mr SK Wong, a Hong Kong based lawyer, as a Non-Executive Director. Mr Wong is admitted to practice law in Hong Kong and New York and also has Chinese legal qualifications. He has been involved in the restructuring, financing and listing of commercial enterprises in Hong Kong and mainland China as both a lawyer and executive and brings excellent legal and commercial contacts to the Company.

EMERGENT RESOURCES LIMITED

ASX Code: EMG

Shares on issue 226,991,001 Unlisted options 125,000 @ $1.50 30/09/13 5,000,000 @ 2.5c 21/06/17 5,000,000 @ 5c 21/06/18

Directors

Mr Jian Hua Sang Non Executive Chairman Mr Andrew Tunks Executive Director Mr Patrick Burke Non Executive Director Mr Sai Kit Wong Non Executive Director Mr Wolfgang Fischer Non Executive Director

Projects

Extension and Extension North Gold Project: Extension to the Plutonic Well Greenstone Belt with previous drilling for Au

Beyondie Iron Project : (80% EMG, 20% DEG ) Established 561 Mt inferred magnetite resource

CAPTIAL RAISING AND CONTINUED SOUND CASH POSITION

The Company’s cash reserves at the end of June 2013 were $2,797,000. In addition, the Company raised $260,000 after the end of the quarter by placing 20,000,000 shares at 1.3c per to Advanced Endeavour Enterprises Limited, a company associated with sophisticated investor Mr Wei Rong Yang. The Company is in a very sound cash position to fund exploration on its existing projects and potential future projects.

NEW PROJECTS

The Company has allocated part of its working capital budget to the identification and evaluation of new mineral resource opportunities in Australia and overseas. In this regard the Company is actively reviewing a number of projects across a range of commodities. Newly appointed Executive Director, Dr Andrew Tunks, brings a wealth of experience in sourcing, review, securing and development of new mineral resource projects. Along with continuing to develop the Company’s existing assets, Dr Tunks is focussed on growing the Company through strategic investment and acquisition.

In addition to its cash reserves of approximately $3,000,000, the Company has the support of its two major Chinese shareholders, International Natural Resources and Advanced Endeavour Enterprises Limited, who have confirmed their interest in possible additional financial backing for any investment or acquisition made by the Company. This has greatly expanded the range of projects under consideration by the Company.

The Company considers that its combination of corporate and technical expertise, significant financial backing and cash reserves at a substantial premium to its current market capitalisation makes it ideally placed to grow through investment and acquisition. Particularly at a time when asset values have come back so sharply giving rise to a large number of attractively priced potential acquisitions and investments.

EXTENSION GOLD PROJECT

Following an extensive review of the Extension Gold Project during the quarter, and as announced following the end of the quarter, the Company intends to conduct a targeted drilling program to test gold in soil Mobile Metal Ions (MMI) anomalies generated by previous exploration conducted on its Extension Gold Project. The gold anomalies are coincident with mineralisation intersected in previous drilling of a major shear zone close to a mafic-granite contact, geological features that are prospective for gold mineralisation.

Following preparatory works, the drilling program will comprise 800-1,000 metres of RC drilling, allowing the program to test structures at depth and across lithologies. The program will consist of 3 drilling sections to investigate the shear zone in the areas of highest MMI anomalism. Final planning for holes is yet to be completed but it is expected that the first hole will target the up-dip expression of an 8m at 5.3g/t Au intercept in GCM hole MD5.

BEYONDIE IRON ORE PROJECT

The Company has spent considerable exploration effort since 2007 at the Beyondie Iron Ore project resulting in a primary inferred magnetite resource of 561 Mt at 27.5% Fe . Potential still exists to further expand the resource base at Beyondie with exploration potential present for both Magnetite and Hematite mineralisation. The Company is currently conducting a complete review of its very large database with a view to determining how best to expand the resource base at Beyondie.

ASSET REVIEW

During the Quarter, as part of a regular process, the Company’s assets were reviewed. As a result of this asset review the decision was taken to relinquish Beyondie North Project tenements E69/2625, E69/2669 and E69/2919 and Mt Bartle Project tenement E53/1584 and to withdraw applications E45/3029, E52/2525 and E69/2685. In addition, following the end of the quarter, the Company relinquished Extension Gold Project tenement E52/2474.

For further information please contact:

Dr Andrew Tunks Executive Director m +61 (0)400 205 555 e atunks@emergentresources.com.au

Pat Burke Director m +61 (0)404 826 533 e pburke@emergentresources.com.au

Competent Persons Statement

Competent Persons Statement The information in this report which relates to Exploration Results and Mineral Resources is based on information compiled by Dr Andrew Tunks, a Director, who is a Member of the Australian Institute of Geoscientists. Dr Tunks has sufficient experience which is relevant to the style of mineralisation and type of deposit 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) . Dr Tunks consents to the inclusion in this announcement of the statements based on this information in the form and context in which it appears.

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

	Emergent Resources Ltd	Emergent Resources Ltd
	ABN 68 125 323 622 Consolidated statement of cash flows
			30 June 2013
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & 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 (12 months) $A’000
		- (110) - - (54) - 29 - - -		- (364) - - (428) - 144 - - -
		(136)		(648)
Cash flows related to investing activities 1.8 Payment for purchases of: (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)		- - - - - - - - - -		- - - - - - - - - -
		-		-
		(135)		(648)

• 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)	(135)	(648)
Cash flows related to financing activities 1.14 Proceeds 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 – Share issue costs Net financing cash flows	- - - - - -	- - - - - -
	-	-
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 ofquarter	(135) 2,932 -	(648) 3,445 -
	2,797	2,797

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

related entities
1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	23
	-

• 1.25 Explanation necessary for an understanding of 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

Not Applicable

• 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

Not Applicable

Financing facilities available

Add notes as necessary for an understanding of the position.

• 3.1 Loan facilities 3.2 Credit standby arrangements

Amount available Amount used $A’000 $A’000 - - - -

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration Total	$A’000
	200
	-
	-
	50
	250

Reconciliation of cash Reconciliationof 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)	197	132
	2,600	2,800
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	2,797	2,932

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 of quarter	Interest at end of quarter
	E69/2625 E69/2669 E69/2919 E45/3092 E52/2525 E69/2685 E53/1584	Surrendered Surrendered Surrendered Application Withdrawn Withdrawn Withdrawn Surrendered	100% 100% 100% 100% Earning 60% Earning 60% 100%	- - - - - - -
	N/A	-	-	-

• 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 note3) (cents)	Amount paid up per security (see note3) (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	206,991,001	206,991,001
	- -	- -	-	-
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	125,000 5,000,000 5,000,000	- - -	Exercise price $1.50 $0.025 $0.05	Expiry date 30/09/2013 21/06/2017 21/06/2018
	5,000,000 5,000,000	- -	$0.025 $0.05	21/06/2017 21/06/2018
	-	-	-	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 5).

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

Sign here: Date: 30 July 2013

(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: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

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