FENIX RESOURCES LTD — Interim / Quarterly Report 2016

Jul 28, 2016

ASX QUARTERLY ACTIVITIES REPORT for the Period Ending 30 June 2016

REVIEW OF PROJECTS IN IT AND AGRICULTURAL SECTORS

During the June quarter Emergent Resources Limited ( EMG or the Company ) continued its assessment and evaluation of opportunities in the technology sector and also the agricultural sector, with a particular, but not exclusive, focus on opportunities in Asia given the strong support for this new direction by the Company’s cornerstone Chinese investors. In this regard, during the quarter the Company actively reviewed a number of projects and assessed new projects in the agricultural sector. The Company appreciates that this process is taking an extended period, however this is a result of EMG’s desire to undertake a high quality investment.

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.

CONTINUED SOUND CASH POSITION

The Company’s cash reserves at the end of June 2016 were approximately $1.85 million. 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, having the results of its 2015 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; and

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

The Company continued its assessment of rationalisation of this Project with a view to best allocate the Company’s resources in the current climate for magnetite projects. It is expected that the results of this process will be finalised and released to the market in the coming quarters.

CORPORATE

On 25 January 2016, the Company advised that Mr David Rod had been appointed as NonExecutive Director of the Company. David Rod has more than 30 years’ experience in both the legal profession and commercial enterprises. David successfully listed a number of companies in South Africa before emigrating to Australia in 1996. Since his arrival in Australia, David has completed a number of property developments and has grown Spectrum Legal Group into a successful boutique legal practice which is currently growing it's large and diverse practice areas.

TENEMENT SCHEDULE

The Company’s interests in tenements is as follows:

Location	Project	Tenement No.	Interest
Western Australia	Beyondie	E52/2215	80% interest in Iron Ore, Vanadium andManganese (20% De Grey MiningLimited)

For further information please contact the Company on:

Bevan Tarratt Non-Executive Director (T) 9486 4036 (e) info@emergentresources.com.au