FENIX RESOURCES LTD — Interim / Quarterly Report 2013

Mar 14, 2013

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EMERGENT RESOURCES LIMITED

ABN 68 125 323 622

Interim Financial Report

For The Half-Year Ended 31 December 2012

Emergent Resources Limited ABN 68 125 323 622

Contents

	Page
Directors’ Report	3-4
Auditor’s Independence Declaration	5
Statement of Comprehensive Income	6
Statement of Financial Position	7
Statement of Changes in Equity	8
Statement of Cash Flows	9
Notes to the Interim Financial Statements	10-12
Directors’ Declaration	13
Independent Review Report	14

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Emergent Resources Limited ABN 68 125 323 622

Directors’ Report

The Directors present their interim financial report of Emergent Resources Limited for the half-year ended 31 December 2012.

Directors

The following persons were directors of Emergent Resources Limited at any time during the half-year and up to the date of this report:

Wolfgang Fischer (Non-Executive Chairman) Francis De Souza (Non-Executive Director) Jian-Hua Sang (Non-Executive Director, appointed 17 September 2012) Nathan Lude (Non-Executive Director, resigned 29 November 2012)

Executive and management

Kevin Hart (Company Secretary)

Review of Operations

The net loss after income tax for the half-year was $1,247,104 (31 December 2011: $343,092).

At the end of the half-year the Company had $3,073,615 (30 June 2012: $3,445,912) in cash and at call deposits. Capitalised mineral exploration and evaluation expenditure is $4,235,432 (30 June 2012: $5,126,148).

During the half year the Company continued its review for new projects in Australia and overseas. The Company’s Board is focussed on reshaping Emergent’s project portfolios and setting the Company on a path that will effectively deliver near term value for the shareholders.

Significant Changes in the State of Affairs

There is no significant changes occurred during the reporting period.

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Emergent Resources Limited ABN 68 125 323 622

Directors’ Report

Events occurring after the balance sheet date

Other than the following, there has not arisen in the interval between the end of the period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company to affect substantially the operations of the Company, the results of those operations or the state of affairs of the Company in subsequent financial years.

• On 21 January 2013, the Company announced that it has entered into a conditional agreement (the “Agreement”) acquire West Rock Resources Ltd (“West Rock”),repositioning the Company as a Colombian-focused base and precious metals explorer. On 5 March 2013, the Company announced that it would not be proceeding with the transaction.

Auditor’s Independence Declaration

A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act is set out on page 5.

This report is made in accordance with a resolution of the Directors.

DATED at Perth this 15th day of March 2013

Wolfgang Fischer Non-Executive Chairman

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Grant Thornton Audit Pty Ltd ACN 130 913 594

10 Kings Park Road West Perth WA 6005 PO Box 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

Auditor’s Independence Declaration

To The Directors of Emergent Resources Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Emergent Resources Limited for the half-year ended 31 December 2012, I declare that, to the best of my knowledge and belief, there have been:

• a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b no contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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P W Warr Partner - Audit & Assurance

Perth, 15 March 2013

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation

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Emergent Resources Limited ABN 68 125 323 622

Statement of Comprehensive Income For the half-year ended 31 December 2012

Statement of Comprehensive Income For the half-year ended 31 December 2012
Note Continuing Operations Interest income Gain on disposal of assets Total revenue Administration expenses Employee expenses Corporate expenses Occupancy expenses Marketing expenses Depreciation expenses Impairment of exploration costs Loss before income tax 3 Income tax benefit – research and development tax concession 5 Net loss for the period Other comprehensive Income Total comprehensive income for the period Loss per share Basic loss per share (cents) Diluted loss per share (cents)	31 December 2012 31 December 2011 $ $ 81,003 9,506 - 6,137
	81,003 15,643 (43,345) (121,584) (119,732) (307,772) (76,730) (166,642) (8,285) (43,416) (910) (9,379) (3,807) (8,971) (1,075,298) (213,443)
	(1,247,104) (855,564) - 512,472
	(1,247,104) (343,092)
	- -
	(1,247,104) (343,092)
	(0.6) (0.3) (0.6) (0.3)

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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Emergent Resources Limited ABN 68 125 323 622

Statement of Financial Position As At 31 December 2012

Current assets Cash and cash equivalents Trade and other receivables Other current assets Total current assets Non-current assets Property, plant and equipment Capitalised mineral exploration and evaluation expenditure Bonds and deposits Total non-current assets Total assets Current liabilities Trade and other payables Employee benefits liability Total current liabilities Total liabilities Net assets Equity Issued capital 4 Share based payments reserve Accumulated losses Total equity	31 December 2012 30 June 2012 $ $ 3,073,615 3,445,912 3,979 6,320 -
	3,077,594 3,452,232
	33,692 37,499 4,235,432 5,126,148 57,132 57,132
	4,326,256 5,220,779
	7,403,850 8,673,011
	21,930 39,783 - 5,669
	21,930 45,452
	21,930 45,452
	7,381,920 8,627,559
	19,131,199 19,131,199 43,299 250,779 (11,792,578) (10,754,419)
	7,381,920 8,627,559

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

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Emergent Resources Limited ABN 68 125 323 622

Statement of Changes in Equity For the half-year ended 31 December 2012

Note Balance at 1 July 2011 Loss for the period Transfer from share based payments reserve to accumulated losses on expiry of options Securities issued during the financial period - shares 4 Movement in share based payments reserve Costs of the issues of securities 4 Balance at 31 December 2011 Balance at 1 July 2011 Loss for the period Transfer from share based payments reserve to accumulated losses on expiry of options Securities issued during the financial period - shares 4 Movement in share based payments reserve Costs of the issues of securities 4 Balance at 31 December 2012	Issued capital – Ordinary Shares Share based payments reserve Accumulated Losses Total $ $ $ $ 15,112,849 217,010 (4,391,512) 10,938,347 - - (343,092) (343,092) - (7,528) 7,528 - 3,968,380 - - 3,968,380 - 5,569 - 5,569 (51,031) - - (51,031)
	19,030,198 215,051 (4,727,076) 14,518,173
	19,131,199 250,779 (10,754,419) 8,627,559
	- - (1,247,104) (1,247,104) - (208,945) 208,945 -
	- 1,465 - 1,465 - - - -
	19,131,199 43,299 (11,792,578) 7,381,920

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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Emergent Resources Limited ABN 68 125 323 622

Statement of Cash Flows For the half-year ended 31 December 2012

Cash flows from operating activities Interest received Payments to suppliers and employees Net cash used in operating activities Cash flows from investing activities Payments for exploration and evaluation Payments for environmental bonds Proceeds from sale of plant and equipment Payments for plant and equipment Net cash used in investing activities Cash flows from financing activities Proceeds from the issue of securities Payments for transaction costs relating to securities issues Net cash provided by financing activities Net increase/(decrease) in cash held Cash at the beginning of the period Cash at the end of the period	31 December 2012 31 December 2010 $ $ 81,003 13,013 (268,718) (700,076)
	(187,715) (687,063)
	(184,582) (505,303) - - - 55,432 - (8,043)
	(184,582) (457,914)
	- 3,968,380 - (51,031)
	- 3,917,349
	(372,297) 2,772,372 3,445,912 819,685
	3,073,615 3,592,057

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

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Emergent Resources Limited ABN 68 125 323 622

Notes to the Interim Financial Statements For the half-year ended 31 December 2012

Note 1 Basis of preparation of half-year report

This general purpose financial report for the interim half-year reporting period ended 31 December 2012 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting , Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

This interim financial report does not include all the disclosure and notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2012 and any public announcements made by Emergent Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

The half year report has been prepared on an accruals basis and is based on historic costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Adoption of new and revised accounting standards

In the half year ended 31 December 2012, the Company has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2011. It has been determined by the Company that, other than for the following new accounting standards adopted during the reporting period, there is no impact, material or otherwise, of the new and revised standards and interpretations on its business and therefore no change is necessary to Company accounting policies.

New accounting standards adopted since the end of the last reporting period

The Company has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2012. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Company accounting policies

No retrospective change in accounting policy or material reclassification has occurred requiring the inclusion of a third Statement of Financial Position as at the beginning of the comparative financial period, as required under AASB 101.

The consolidated interim financial statements were approved by the Board of Directors on 15th March 2013.

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Emergent Resources Limited ABN 68 125 323 622

Notes to the Interim Financial Statements For the half-year ended 31 December 2012

Note 2 Segment information

The Company has identified its operating segments based on the internal reports that are reviewed and used by the board of directors in assessing performance and determining the allocation of resources. Reportable segments disclosed are based on aggregating operating segments, where the segments have similar characteristics.

In prior reporting periods the Company had defined the Beyondie Iron Project as a separate reporting segment. During the reporting period, the Directors resolved to impair all other areas of interest, leaving only the Beyondie Iron Project as its only exploration asset on the statement of financial position.

As a result the Company’s only material reportable segment for the financial period has been identified as the Company as a whole and as such the reporting segment is represented by the primary statements forming these financial statements.

Note 3 Loss for the period

Loss before income tax includes the following specific expenses:

Depreciation Office equipment Plant and equipment Impairment of exploration costs*	31 December 2012 31 December 2011 $ $ (2,541) (6,427) (1,266) (2,544)
	(3,807) 8,971
	(1,075,298) (213,443)

* During the period, the Directors resolved to write-off exploration expenditure on several of the Company’s areas of interest. At 31 December 2012, the total exploration and evaluation asset relates solely to the Beyondie Iron Project.

Note 4 Issued capital – Ordinary fully paid shares

Issue price Balance at the start of the period Share placement $0.03 Non-renounceable entitlement issue $0.03 Share placement $0.04 Share issue costs Balance at the end of the period	31 December 2012 31 December 2011 31 December 2012 31 December 2011 No. No. $ $ 206,991,001 80,309,529 19,131,199 15,112,849 - 11,813,667 - 354,410 - 92,123,196 - 2,763,696 - 20,244,609 - 850,274 - - - (51,031)
	206,991,001 204,491,001 19,131,199 19,030,198

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Emergent Resources Limited ABN 68 125 323 622

Notes to the Interim Financial Statements For the half-year ended 31 December 2012

Note 5 Dividends

No dividends were paid or proposed during the period.

The Company has no franking credits available as at 31 December 2012 (31 December 2011: Nil).

Note 6 Contingencies

(i) Contingent liabilities

There were no material contingent liabilities not provided for in the financial statements of the Company as at the reporting dates, other than:

Native Title and Aboriginal Heritage

Native title claims have been made with respect to areas which include tenements in which the Company has an interest. The Company is unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not and to what extent the claims may significantly affect the Company or its projects. Agreement is being or has been reached with various native title claimants in relation to Aboriginal Heritage issues regarding certain areas in which the Company has an interest.

There has been no change in contingent liabilities since the last annual reporting date.

(ii) Contingent assets There were no material contingent assets as at the reporting dates.

Note 7 Events occurring after the balance sheet date

Other than the following, there has not arisen in the interval between the end of the period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company to affect substantially the operations of the Company, the results of those operations or the state of affairs of the Company in subsequent financial years.

• On 21 January 2013, the Company announced that it has entered into a conditional agreement (the “Agreement”) acquire West Rock Resources Ltd (“West Rock”),repositioning the Company as a Colombian-focused base and precious metals explorer. On 5 March 2013, the Company announced that it would not be proceeding with the transaction.

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Emergent Resources Limited ABN 68 125 323 622

Directors’ Declaration

The Directors of Emergent Resources Limited declare that:

• (a) the interim financial statements and notes set out on pages 6 to 12 are in accordance with the Corporations Act 2001, including:

• (i) complying with Australian Accounting Standard AASB134 – Interim Financial Reporting , and the Corporations Regulations; and

• (ii) give a true and fair view of the financial position as at 31 December 2012 and of the performance for the half-year ended on that date of the Company.

• (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Directors.

Signed at Perth this 15th day of March 2013

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Wolfgang Fischer Non-Executive Chairman

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Grant Thornton Audit Pty Ltd ACN 130 913 594

10 Kings Park Road West Perth WA 6005 PO Box 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

Independent Auditor’s Review Report To the Members of Emergent Resources Limited

We have reviewed the accompanying half-year financial report of Emergent Resources Limited (“the Company”), which comprises the statement of financial position as at 31 December 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement or description of accounting policies, other explanatory information and the directors’ declaration.

Directors’ responsibility for the half-year financial report

The directors of Emergent Resources Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Emergent Resources Limited financial position as at 31 December 2012 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Emergent Resources Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation

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procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Emergent Resources Limited is not in accordance with the Corporations Act 2001, including:

• a giving a true and fair view of the Company’s financial position as at 31 December 2012 and of its performance for the half-year ended on that date; and

• b complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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P W Warr Partner - Audit & Assurance

Perth, 15 March 2013

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