FENIX RESOURCES LTD — Interim / Quarterly Report 2016

Jan 28, 2016

ASX QUARTERLY REPORT for the Period Ending – 31 December 2015

REVIEW OF PROJECTS IN IT AND BIOTECH SECTORS

Emergent Resources Limited ( EMG or the Company ) has allocated part of its working capital budget to the identification and evaluation of opportunities in the technology sector, with a particular, but not exclusive, focus on opportunities in Asia given the strong support for this new direction of the Company’s cornerstone Chinese investors. In this regard, during the quarter the Company actively reviewed a number of IT and Biotech projects and continued to narrowed its focus in this regard. 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 December 2015 were $2,010,000. The Company is in a very sound cash position to fund exploration on its existing projects and potential future projects in the IT and Biotech sectors.

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;

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

• Annual audit of the Inferred Resource and Exploration Target,

The Company continued its assessment of rationalisation of this Project with a view to best allocation of 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.

Subsequent to quarter end, the Company advised of the appointment of Mr Matthew Foy as Company Secretary of the Company. Matthew is an experienced Company Secretary and an active member of the WA State Governance Council of Governance Institute Australia (GIA). Matthew was previously a senior adviser at ASX, facilitating the listing and compliance of companies and is currently Company Secretary to several ASX-listed companies.

The Company further advised that Mr Patrick Burke had resigned as Company Secretary. The Company wishes Mr Burke all the best in future endeavours.

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)

The Company’s interests in E52/1806 and E52/2559 were 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 the Company on:

Bevan Tarratt Non-Executive Director

(T) 9226 2011 (e) btarratt@emergentresources.com.au