FENIX RESOURCES LTD — Interim / Quarterly Report 2015

Mar 8, 2015

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EMERGENT RESOURCES LIMITED

ABN 68 125 323 622

Interim Financial Report

For The Half-Year Ended 31 December 2014

Emergent Resources Limited ABN 68 125 323 622

Contents

	Page
Directors’ Report	3
Auditor’s Independence Declaration	6
Statement of Profit or Loss and Other Comprehensive Income	7
Statement of Financial Position	8
Statement of Changes in Equity	9
Statement of Cash Flows	10
Notes to the Interim Financial Statements	11
Directors’ Declaration	15
Independent Auditor’s Review Report	16

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Emergent Resources Limited ABN 68 125 323 622

Directors’ Report

Directors’ Report

The Directors present their interim financial report of Emergent Resources Limited for the half-year ended 31 December 2014.

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:

Jian-Hua Sang (Non-Executive Chairman) Wolfgang Fischer (Non-Executive Director) Sai Kit Wong (Non-Executive Director) Faldi Ismail (Non-Executive Director)

Company Secretary

Patrick Burke (Company Secretary)

Review of Operations

The net loss after income tax for the half-year was $49,281 (31 December 2013: $301,760). At the end of the half-year the Company had $2,376,023 (30 June 2014: $2,517,454) in cash and at call deposits. Capitalised mineral exploration and evaluation expenditure is $4,601,145 (30 June 2014: $4,480,333).

New Projects

During the half-year the Company 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 reviewed a number of projects across a range of commodities and countries and is confident of securing a project in the near term that will add significant shareholder value.

The Company considers that its combination of corporate and technical expertise and significant financial backing 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.

Beyondie Iron Project

During the half-year, so as to build on the upgrade to the JORC Inferred Mineral Resource to 714Mt at 27.4% Fe achieved in early 2014, the Company commenced 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 due for completion by end of first Quarter 2015.

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Emergent Resources Limited ABN 68 125 323 622

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 800-1,000 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 by end of first Quarter 2015.

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

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.

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 6.

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

DATED at Perth this 9[th] day of March 2015.

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Jian-Hua Sang Non-Executive Chairman

Competent Persons Statement

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.

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Auditor’s Independence Declaration

Level 1 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

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 2014, 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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C A Becker Partner - Audit & Assurance

Perth, 9 March 2015

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

Emergent Resources Limited ABN 68 125 323 622

Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 December 2014

For the half-year ended 31 December 2014
Note Continuing Operations Interest income Total revenue Administration expenses Employee expenses Corporate expenses Occupancy expenses Marketing expenses Depreciation expenses Exploration costs written off Impairment of exploration costs Loss before income tax 3 Income tax expense Net loss for the period Other comprehensive income, net of tax Total comprehensive income for the period Loss per share Basic loss per share (cents) Diluted loss per share (cents)	31 December 2014 31 December 2013 $ $ 34,233 59,412
	34,233 59,412 (43,887) (79,355) (2,303) (87,632) (33,411) (43,064) (1,503) (15,886) (50) - (2,360) (2,979) - (9,242) - (123,014)
	(49,281) (301,760) - -
	(49,281) (301,760)
	- -
	(49,281) (301,760)
	(0.02) (0.13) (0.02) (0.13)

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 2014

Current assets Cash and cash equivalents Trade and other receivables 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 Total current liabilities Total liabilities Net assets Equity Issued capital 4 Accumulated losses Total equity	31 December 2014 30 June 2014 $ $ 2,376,023 2,517,454 24,978 14,174
	2,401,001 2,531,628
	21,418 23,778 4,601,145 4,480,333 - 46,700
	4,622,563 4,550,811
	7,023,564 7,082,439
	25,945 35,539
	25,945 35,539
	25,945 35,539
	6,997,619 7,046,900
	19,375,907 19,375,907 (12,378,288) (12,329,007)
	6,997,619 7,046,900

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

8

Emergent Resources Limited ABN 68 125 323 622

Statement of Changes in Equity For the half-year ended 31 December 2014

Note Balance at 1 July 2013 Employee share-based payment options Issue of share capital 4 Total Transactions with Owners Reported Loss for the period Other comprehensive income Total comprehensive income/(loss) Balance at 31 December 2013 Balance at 1 July 2014 Loss for the period Other comprehensive income Total comprehensive income/(loss) Balance at 31 December 2014	Issued capital – Ordinary Shares Share based payments reserve Accumulated Losses Total $ $ $ $ 19,131,199 11,790 (11,972,719) 7,170,270 - (11,790) 11,790 - 244,707 - - 244,707
	244,707 (11,790) 11,790 244,707 - - (301,760) (301,760) - - - -
	- - (301,760) (301,760)
	19,375,906 - (12,262,689) 7,113,217
	19,375,907 - (12,329,007) 7,046,900
	- - (49,281) (49,281) - - - -
	- - (49,281) (49,281) 19,375,907 - (12,378,288) 6,997,619

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 2014

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 Security bonds returned 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 2014 31 December 2013 $ $ 35,371 62,889 (103,744) (232,098)
	(68,373) (169,209)
	(119,758) (161,683) 46,700 -
	(73,058) (161,683)
	- 260,000 - (15,518)
	- 244,482
	(141,431) (86,410) 2,517,454 2,797,344
	2,376,023 2,710,934

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 2014

Note 1 Basis of preparation of half-year report

This general purpose financial report for the interim half-year reporting period ended 31 December 2014 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. Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

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 2014 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 2014, 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 January 2014. It has been determined by the Company that none of the new accounting standards adopted during the reporting period, have any impact, material or otherwise, 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 2014. 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 interim financial statements were approved by the Board of Directors on 9[th] March 2015.

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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 2014

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. The Company’s only material reportable segment for the financial period has been identified as the Beyondie Project in the Mid-West region of Western Australia.

Capitalised exploration for the period: Beyondie Project Other Result for the period: Beyondie Project Other Total segment assets: Beyondie Project Other	Dec 2014 June 2014 $ $ 120,813 277,837 - -
	120,813 277,837
	- (123,014) (49,281) (245,0534)
	(49,281) (368,067)
	4,601,145 4,480,332 2,422,419 2,602,107
	7,023,564 7,082,439

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Emergent Resources Limited ABN 68 125 323 622

Note 3 Loss for the period

Loss before income tax includes the following specific expenses:

specific expenses:
			31		31
		December		December
			2014		2013
			$		$
Depreciation:
Office equipment			(1,484)		(1,932)
Plant and equipment			(876)		(1,047)
			(2,360)		(2,979)
Impairment of exploration costs			-		(123,014)
Note 4 Issued capital – Ordinary fully paid	shares
	31			31
Issue	December	30 June	December		30	June
price	2014	2014		2014		2014
	No.	No.		$		$
Balance at the start of the period	226,991,001	226,991,001	19,375,907		19,375,907
Balance at the end of the period	226,991,001	226,991,001	19,375,907		19,375,907

Note 5 Dividends

No dividends were paid or proposed during the period.

The Company has no franking credits available as at 31 December 2014 (31 December 2013: 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.

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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 2014

Note 7 Events occurring after the balance sheet date

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.

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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 7 to 13 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 2014 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 signed in accordance with a resolution of the Board of Directors made pursuant to s.303(5) of the Corporations Act 2001.

Signed at Perth this 9[th] day of March 2015.

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Jian-Hua Sang Non-Executive Chairman

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Independent Auditor’s Review Report

Level 1 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

To the Members of Emergent Resources Limited

We have reviewed the accompanying half-year financial report of Emergent Resources Limited (“Company”), which comprises the statement of financial position as at 31 December 2014, and the statement of profit or loss and other 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 2014 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.

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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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 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 2014 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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C A Becker Partner - Audit & Assurance

Perth, 9 March 2015