FENIX RESOURCES LTD — Interim / Quarterly Report 2015

Apr 27, 2015

ASX QUARTERLY REPORT for the Period Ending – 31 March 2015

NEW PROJECTS

Emergent Resources Limited (EMG or 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 during the quarter actively reviewed a number of projects across a range of commodities and countries and is confident of securing a project that will add significant shareholder value.

The Company has now also expanded this to the review of opportunities in the IT and Biotech sectors.

The Company considers that its combination of corporate and technical expertise, significant financial backing and cash reserves 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 opportunities.

EMERGENT RESOURCES LIMITED

ASX Code: EMG

Shares on issue: 226,991,001

Directors

Mr Jian Hua Sang Chairman Mr Faldi Ismail Director Mr Sai Kit Wong Director Mr Wolfgang Fischer Director

Projects

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

Beyondie Iron Project : (80% EMG, 20% DEG ) Established 714 Mt inferred magnetite resource

CONTINUED SOUND CASH POSITION

The Company’s cash reserves at the end of March 2015 were $2,262,000. The Company is in a very

sound cash position to fund exploration on its existing projects and potential future projects.

BEYONDIE IRON ORE PROJECT

During the quarter, so as to build on the upgrade to the JORC Inferred Mineral Resource to 714Mt at 27.4% Fe achieved in 2014, the Company continued a technical review of the Project comprising:

• Review of all project data;

• Review of drilling and recommendations (including detailed work proposals) targeting moving tonnes from exploration target into Measured/Indicated/Inferred Resources;

• Preparation of a scope of work for additional metallurgical test work on ‘typical BMS’ which previously returned ‘saleable grades’;

• Review of exploration and completion of regional targeting exercise, generating new targets; and

• Annual audit of the Inferred Resource and Exploration Target.

This review is now due for completion during second Quarter 2015.

EXTENSION GOLD PROJECT

As part of the technical review referred to above, a review of work conducted on the Extension Gold Project is also being undertaken with particular attention paid to the currently proposed 8001,000 metres RC drilling program to test gold in soil Mobile Metal Ions (MMI) anomalies. Significantly, one of the surface anomalies occurs above mineralisation intersected by Great Central Mines in drill hole MD5 with 8m at 5.3g/t Au, and is coincident with a major shear zone close to the mafic-granite contact which has produced significant amounts of gold elsewhere in the Plutonic Well Greenstone Belt. The Review comprises:

• Review and audit of gold project database;

• Review of exploration drilling, in particular small historic resource area in southern region of the tenement (non JORC compliant) with recommendations and detailed work proposals for future work; and

• regional targeting exercise (above) with aim of generating new targets.

This work is also scheduled for completion during the second- Quarter 2015.

TENEMENT SCHEDULES

The Company’s interests in tenements is as follows:

Location	Project	Tenement No	Interest
Western Australia	Beyondie	E52/1806	80% interest in Iron Ore, Vanadium and Manganese (20% De Grey Mining Limited)
Western Australia	Beyondie	E52/2215	80% interest in Iron Ore, Vanadium and Manganese (20% De Grey Mining Limited)
Western Australia	Extension	E52/2259	100%

No tenements were acquired or surrendered during the Quarter.

Information in this report that relates to Mineral Resources, Exploration Targets and Exploration Results is extracted from ASX announcement “Addendum Substantial Increase to Inferred Magnetite Resource” released on 19 February 2014 and is available on www.emergentresources.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms that the form and content in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

For further information please contact:

Jian Hua Sang Director (T) (08) 9486 7244 (e) jhs595@gmail.com

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
			31 March 2015
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 (9 months) $A’000
		- (100) - - (38) - 20 - - -		- (208) - - (153) - 59 - - -
		(118)		(302)
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 - Bonds Returned Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - - - - - - - - 4		- - - - - - - - - 47
		4		47
		(114)		(255)

• 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)	(114)	(255)
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	(114) 2,376 -	(255) 2,517 -
	2,262	2,262

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

Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 40 1.24 Aggregate amount of loans to the parties included in item 1.10 -

• 1.25 Explanation necessary for an understanding of the transactions Item 1.23 – Remuneration of Directors and Company Secretary

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.

Appendix 5B Page 2

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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
	100
	-
	-
	50
	150

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)	122	236
	2,140	2,140
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	2,262	2,376

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
	nil	n/a	n/a	n/a
	nil	n/a	n/a	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	226,991,001	226,991,001
	- -	- -	-	-
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 7.10 Cancelled/Expir ed during quarter	-	-	Exercise price -	Expiry date -
	-	-	-	-
	-	-	-	-
	-	-	-	-
7.11 Debentures (totals only)	-	-

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B Mining exploration entity quarterly report

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: 28 April 2015

(Company secretary)

Print name: Patrick Burke

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

== == == == ==

• See chapter 19 for defined terms.

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