FENIX RESOURCES LTD — Investor Presentation 2018

Sep 24, 2018

==> picture [222 x 101] intentionally omitted <==

FENIX RESOURCES LIMITED I R O N R I D G E A C Q U I S I T I O N H I G H G R A D E H E M A T I T E I R O N O R E P R O J E C T

ASX : FEX

DISCLAIMER

The material in this presentation has been prepared by Fenix Resources Limited (recently renamed from Emergent Resources Limited) (Fenix) and is general background information about an acquisition by Fenix. This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs.

Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Fenix Resources’ businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. Fenix Resources does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Fenix Resources’ control. Past performance is not a reliable indication of future performance.

Competent Persons Statement

Information in this presentation that relates to Exploration Results/Exploration Target is based on, and fairly reflects, information compiled by Mr Mark Pudovskis, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Pudovskis is a consultant to the Company, employed by CSA Global, independent mining industry consultants. Mr Pudovskis has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Pudovskis consents to the inclusion of the data in this presentation in the form and context in which it appears.

The information in this presentation that relates to Mineral Resources is based on information compiled by Mr Alex Whishaw. Mr Whishaw is a full-time employee of CSA Global and is a Member of the Australasian Institute of Mining and Metallurgy. Mr Whishaw has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Whishaw consents to the disclosure of the information in this presentation in the form and context in which it appears.

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

==> picture [65 x 30] intentionally omitted <==

2

CORPORATE STRATEGY

On re-listing, FEX market cap will be ca.$8.5m with >$4m in cash (EV of <$4.5m)

==> picture [85 x 85] intentionally omitted <==

Aim to supply high-grade iron ore products to the steel industry

==> picture [110 x 112] intentionally omitted <==

==> picture [85 x 85] intentionally omitted <==

Plan to commercialise Iron Ridge and build a trusted customer base

==> picture [85 x 85] intentionally omitted <==

Focused management and Board of Directors with industry specific and corporate experience

==> picture [85 x 85] intentionally omitted <==

Iron Ridge is a relatively low-risk foundation asset with an Inferred Resource of 5Mt @ 64.1% Fe with upside potential

Target additional asset acquisitions leveraging synergies with Iron Ridge

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

==> picture [65 x 30] intentionally omitted <==

3

BOARD & MANAGEMENT Broad industry and corporate experience

Bevan Tarratt

Non Executive Chairman

Garry Plowright Executive Director

Rob Brierley Petar Tomasevic Executive Director Non Executive Director

Extensive background in capital markets, accounting and corporate advisory with a specific focus on small cap Australian equities.

Experienced executive with over 25 years’ experience in finance, commercial and technical development within the mining and exploration industry, working for some of Australia’s leading resource companies.

Mining engineer and finance executive experienced in project and mine management, corporate finance, leadership, corporate governance and equities research.

Significant experience in the financial services industry having worked with numerous ASX listed companies in marketing and investor relations roles.

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

==> picture [65 x 30] intentionally omitted <==

4

IRON RIDGE PROJECT HIGHLIGHTS

DSO Deposit

• High Grade Hematite Iron Ore Project

• JORC 2012 Inferred Resource 5Mt @ 64.1% Fe at 50% Fe cut off grade[1]

• Resource expansion potential @ depth & along strike[1]

• Initial drill program targeting Main BIF Unit designed to derive an updated Resource[1]

• Low to acceptable impurities with 0.05% P, 2.7% Al2O3 & 3.3% SiO 1 2

• Historical mining of micaceous iron oxide[1]

1 Refer ASX release from Emergent Resources Ltd (EMG) dated 7 May 2018

==> picture [450 x 355] intentionally omitted <==

==> picture [65 x 30] intentionally omitted <==

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

5

IRON RIDGE DSO PROJECT HIGHLIGHTS

Location/Tenure/Infrastructure

• 100% owned Granted mining lease valid until 2030

• Lease pre-dates Native Title with Ministerial approval for the mining of iron ore

• Located ~67km from Cue in the Mid-West region of Western Australia

• Sealed highway to within ~ 15km of project

• 350km (490km by road) northeast of Geraldton Port

• 4Mtpa spare port capacity and 5,000tph dedicated ship loading facility at Geraldton Port

• Low Capex contract mining & trucking concept

==> picture [441 x 369] intentionally omitted <==

----- Start of picture text -----

Geraldton Port
Iron Ore loading
& storage facility.
~4Mtpa spare
capacity
----- End of picture text -----

==> picture [65 x 30] intentionally omitted <==

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

6

Iron Ridge Premium Iron Ore Market Structural Change Favours High Grade Ore

MB 65% Fe versus Platts 62% Fe Monthly Averages

==> picture [783 x 162] intentionally omitted <==

----- Start of picture text -----

110 60.00%
100
50.00%
90
40.00%
80
30.00%
70
20.00%
60
10.00%
50
40 0.00%
----- End of picture text -----

Premium Platts 62% IODEX CFR China (US$/dmt) 65% Fe Metal Bulletin CFR China (US$/dmt)

• Metal Bulletin (MB) 65% Fe average price for the year ending June 2018 was US$88.27/dmt, CFR China

• Platts 62% IODEX average price for the year ending June 2018 was US$69.04/dmt, CFR China

• Average Premium of MB 65% to Platts 62% IODEX for the year ending June 2018 was 27.9%

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

==> picture [65 x 30] intentionally omitted <==

7

IRON RIDGE Premium Iron Ore Market – Structural Change Favours High Grade Ore

==> picture [493 x 348] intentionally omitted <==

==> picture [334 x 190] intentionally omitted <==

65% Current ca.US$50/t premium for 65% Fe product versus 58% Fe product supports planned 490km of trucking to Geraldton Port

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

==> picture [65 x 30] intentionally omitted <==

8

IRON RIDGE Project Geology

• Multiple mineralised lenses dipping around 80º to the south east

• Significant intercepts of high grade mineralisation

• In the Main BIF unit, grade averages 62% Fe near surface and increases to well in excess of 65% Fe at depth

• Enrichment of BIF occurring through 2 distinct hypogene alteration events replacing Silica-rich/Iron-poor bands with Fe oxide rich bands

• Supergene Goethite-hematite ore zones controlled by brittle faults intersecting the enriched ore zones

==> picture [512 x 352] intentionally omitted <==

==> picture [65 x 30] intentionally omitted <==

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

9

IRON RIDGE Indicative Cross-Section

==> picture [933 x 330] intentionally omitted <==

Please refer to ASX release by Emergent Resources Limited (EMG) dated 7 May 2018

==> picture [65 x 30] intentionally omitted <==

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

IRON RIDGE Capex and Opex Considerations

CAPEX requirement is expected to be modest due to:

1. No additional port infrastructure required as Geraldton Port currently has abundant surplus capacity for ore storage and ship loading

2. Existing road used by Crossland Resources/Murchison Metals to haul iron ore from its Jack Hills project (20062011) passes within 15km of Iron Ridge

3. High grade product needs only minimal processing and no tailings disposal facility OPEX likely to be majority related to transport and logistics, such as :

4. Road transport some 490km to Geraldton Port

5. Port storage and handling fees

6. F E N I X R E S O U R C E S L I M I T E D A S X : F E X

==> picture [65 x 30] intentionally omitted <==

11

IRON RIDGE

Transaction Summary

PROSPECTUS OFFERS OPEN 12 September 2018

• FEX to acquire 100% of Prometheus Mining Pty Ltd (PML), holder of 100% of Iron Ridge Project

• Initial consideration for PML is 25m shares, 100% escrowed

• Additional consideration is by Performance Shares that convert on resource and production milestones

• $4.5m prospectus capital raising at 4 cents via

• $2.0m priority offer (fully underwritten) – indicative closing date 3 October

o $2.5m public offer – indicative closing date 17 October

==> picture [42 x 45] intentionally omitted <==

CASH AT BANK POST LISTING >$4.0m

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

==> picture [65 x 30] intentionally omitted <==

12

FENIX RESOURCES Transaction Summar - Ca ital Structure y p

Capital Structure (FEX to acquire PML)	Price	Shares	Options	Cash	Market Cap	EV
Existing Shares on issue post 1 for 5 reconstruction	$0.04	45,398,200		$423,000	$1,815,928
Initial Vendor Consideration	$0.04	25,000,000			$1,000,000
Conversion of PML Convertible Note	$0.04	30,000,000			$1,200,000
Unlisted Options(ex 8 cents, expiry 3years)			59,000,000
Capital Raise($2mpriority offer &$2.5mpublic offer)	$0.04	112,500,000		$4,500,000	$4,500,000
Offer costs				-$600,000
Undiluted Shares	$0.04	212,898,200	59,000,000	**$4,323,000 **	$ 8,515,928	$ 4,192,928

Performance Share Consideration	Shares
1. Class A Performance Shares: JORC 2012 Inferred Mineral Resource of 8Mt @ 65% Fe within 6 months of drilling start	15,000,000
2. Class B Performance Shares: Cumproduction of 1Mt of Iron Ore at Operating Margin >US$15/dmt(within 24 months of mining start)	30,000,000
3. Class C Performance Shares: Cumproduction of 2Mt of Iron Ore at Operating Margin >US$15/dmt(within 36 months of mining start)	37,500,000
4. Class D Performance Shares: Cumproduction of 3Mt of Iron Ore at Operating Margin >US$15/dmt(within 48 months of mining start)	30,000,000
TOTAL PERFORMANCE SHARES	112,500,000

==> picture [65 x 30] intentionally omitted <==

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

13

IRON RIDGE News Flow Post Re-admission To ASX Trading

• ❖ Preliminary agreements on road ore haulage and port storage & handling services

• ❖ Drilling program commencement and results

==> picture [142 x 143] intentionally omitted <==

• ❖ : Resource updates

• ❖ Targeting the main BIF unit to increase high grade resource (aiming for 65% Fe) ❖ Infill drilling to increase resource confidence (aiming for a predominantly Indicated Resource)

• ❖ Metallurgical study

• ❖ Confirmation of ore classification including the determination of contaminant element concentrations and lump to fines ratio

• ❖ Finalisation of mining, transport and port contracts and completion of Scoping and PFS studies

• ❖ Bulk Sample - Trial production and shipment

• ❖ Product offtake agreement(s) and potential financing

• ❖ Additional project acquisition(s)

• F E N I X R E S O U R C E S L I M I T E D A S X : F E X

==> picture [65 x 30] intentionally omitted <==

14

==> picture [222 x 101] intentionally omitted <==

FENIX RESOURCES LIMITED

w w w . f e n i x r e s o u r c e s . c o m . a u i n f o @ f e n i x r e s o u r c e s . c o m . a u + 6 1 8 9 4 8 6 4 0 3 6