FENIX RESOURCES LTD — Investor Presentation 2019

Dec 3, 2019

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I R O N R I D G E P R O J E C T R E S O U R C E S R I S I N G S TA R S I N V E S TO R P R E S E N TAT I O N

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 )

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Important Disclosure
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Disclaimer

• The material in this presentation has been prepared by Fenix Resources Limited (“Fenix”) and is general background information on 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 Person’s Statement

• The information in this report that relates to Mineral Resources is based on information compiled by Mr Alex Whishaw, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and is employee by CSA Global Pty Ltd. Mr Whishaw has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 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 (JORC Code). Mr Whishaw consents to the disclosure of information in this report in the form and context in which it appears.

• The information in this report that relates to the Processing and Metallurgy for the Iron Ridge Project is based on and fairly represents, information and supporting documentation compiled by Damian Connelly who is a Fellow of The Australasian Institute of Mining and Metallurgy and a full time employee of METS Engineering Group. Damian Connelly 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 Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Damian Connelly consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

• The information in this report that relates to Ore Reserves is based on information compiled by Mr John Battista, a Competent Person who is a Member and Chartered Professional (Mining) of the Australasian Institute of Mining and Metallurgy and is currently employed by Mining Plus (UK) Ltd. Mr Battista has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 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 (JORC Code). Mr Battista consents to the disclosure of information in this report 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 )

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Company Overview

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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 )
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Corporate Strategy
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Ideally placed to generate value from a high quality project

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Aim to supply premiumgrade products to the steel industry Iron Ridge is our foundation asset, it hosts a high-grade Mineral Resource of 10.5Mt @ 64.2% Fe

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Plan to commercialise
Iron Ridge and build a
trusted customer base
Focused management and
Board of Directors with
industry specific and
corporate experience
Target acquisitions
leveraging synergies with
Iron Ridge
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Corporate Overview
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Capital Structure & Pricing	Capital Structure & Pricing
Ordinary shares on issue	274.0m
Vendor Performance Shares1	97.5m
Employee Performance Rights1	19.3m
Unlisted Options2	59.0m
Share Price (29 November 2019)	$0.037
Market capitalisation (undiluted)	$10.1m
Cash3	$2.7m
Debt	Nil
Enterprise Value (undiluted)	$7.4m

1. Hurdles aligned with key asset development milestones

2. Exercise price of 8 cents and expiry date of 21 Nov 2021

3. Cash as at 30 September 2019

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Share Price History
Volume (m) ClosePrice
14 300
12
250
10
200
8
150
6
100
4
50
2
- 0
Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19
Daily ClosingPrice (cents pershare)
Daily Volume (Shares Traded)
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Board & Management	Board & Management
Bevan Tarratt	Non Executive Chairman
Rob Brierley	Managing Director
Garry Plowright	Executive Director
Petar Tomasevic	Non Executive Director

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Iron Ridge Project

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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 )
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Iron Ridge Project
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High Grade Iron Ore Project in the Midwest

• Fenix acquired the right to 100% of the project in May 2018 and completed the transaction in November 2018.

• Commenced a maiden drill campaign in November 2018, further drilling took place in 2019 and an mineral resource

• June/July updated estimate was generated in August 2019

• Mineral Resource Estimate of 10.5 Mt @ 64.2% Fe , 3.26% SiO2, 2.57% Al2O3 and 0.046% P[1]

• Granted Mining Lease with historical mining of micaceous iron oxide

• CSIRO testing in September 2019 confirmed positive Metallurgy

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• Feasibility Study Completed November 2019

1 Refer ASX release from Fenix Resources Ltd (FEX) dated 21 August 2019. Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC).

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Feasibility Study Highlights
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The Feasibility Study (“FS”) reveals a high-grade and high-
quality Project that provides strong returns over a
moderate mine life
Initial C1 Cash
Capex Costs
$11.9m $76.86/dmt
Average
6.5 Year Annual
LOM EBITDA
$16.4m
NPV IRR
10
$54.3m 59%
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Operating Metric	Unit	Feasibility Study
Processing Capacity	Mtpa	1.25
Average Strip Ratio	Waste:ore	2.86:1
Total Mineral Inventory	Mt	8.0
Initial Mine Life	Months	77
Average C1 Cash costs	A$/dmt	76.86
Ore Reserve	Mt	7.76
Reserve Grade	%	63.9
Financial Metrics	Unit	Feasibility Study
Project Life of Mine Revenue (FOB)	A$m	802.9
Project net cash flow	A$m	110.4
Estimated C1 cash operating cost	A$/dmt	76.86
Pre-Production Capex inc. contingency	A$m	11.9
NPV10	$m	54.3
IRR	%	58.9
Annual Average EBITDA	$m	16.4

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Geology & Mining
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• Mineralisation at Iron Ridge starts at surface and plunges gently to the south-west along strike with the deepest mineralisation intersected 230m below surface

• Consistent high grades recorded in the main BIF after 2040m hard cap mineralisation (minor elevated alumina)

• Feasibility assumes a single open pit operation using conventional excavator‐truck mining fleet, adopting 10m benches and mining these benches in 3 flitches

• Ore and waste will be hauled to the ROM pad and waste dump respectively by a fleet of 100 tonne haul trucks

• Drill and blast will be conducted using a top hammer drill rig and ANFO or heavy ANFO explosives

• The Feasibility Study determined that over the 6.5 year LOM, ~8 million tonnes of high-grade hematite grading approximately 64% Fe will be extracted

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Simple Processing
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• Low deleterious elements, well within acceptable limits

• No beneficiation is required

• Anticipated to produce premium >65% Fe lump and >63% Fe fines products (25-30% lump)

• Processing plant is mobile, modular and consists of:

• two-stage crushing circuit (primary and secondary crushing)

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multi-deck screen to separate the lump and fines
product into distinct stockpiles for road transport
1,500,000 Annual Production Tonnes
Inferred
1,000,000 Indicated
500,000
0
1 2 3 4 5 6 7
Year of Operation
Tonnes Produced
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Capital & Operating Expenses
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Capex	Capex	Capex	Capex	Capex	Capex
Capital Cost (A$m)	Pre Start-up Capital Cost	Commercial Production Cost	Initial Capex	Year 1 Capital Cost	Total Capex
Roads	2.76	-	2.76	1.89	4.65
Infrastructure Pads	0.33	-	0.33	-	0.33
Contractor Mobilisations	-	0.99	0.99	0.50	1.49
Mine Site Infrastructure	1.20	3.88	5.08	-	5.08
Owners Site Costs	0.79	0.21	1.00	0.43	1.43
Contingency	0.39	0.13	0.52	0.18	0.70
Total Project Development Capex	5.46	5.20	10.67	3.00	13.67
Haulage JV Contribution	1.25	-	1.25	-	1.25
Total Capex	6.71	5.20	11.92	3.00	14.92

Opex

Operating Cost (A$/dmt)	LOM Average Cost
Mining & Processing	20.87
Road Haulage	43.27
Port storage, handling & ship loading	9.27
Corporate & administration	3.45
C1 Operating Cash Costs (FOB)	76.86
Royalties	9.24
Cash Costs (FOB)	86.10

• Initial capex to establish the operation is estimated at $11.9 million, including:

• $0.52 million in contingencies

• $1.25 million of total contributions to the Fenix Newhaul road transport joint venture

• Approximately 44% of the estimated capex is not payable until commercial production

• A further $3 million of capex to be spent in year one of the project mostly in Q4

• C1 Operating Costs are comprised of: 56.3% road transport costs 27.1% to mine and processing 12.1% to port costs

• 4.5% to corporate and administration

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Infrastructure Path
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Low Capex contract mining & trucking concept facilitated by key project characteristics

Good Roads Sealed highway runs within ~15km of project. 490km (by road) to Geraldton Port Trucking Joint Venture Fenix formed a strategic alliance, via a 50/50 JVC, with Newhaul Pty Ltd in May 2019 . Importantly the alliance provides trucking services to the Project; and Introduces the expertise of Craig Mitchell – founder and former owner of transport and logistics provider Mitchell Corp

Port Capacity Substantial spare port capacity and 5,000tph dedicated iron ore ship loading facility at Geraldton Port currently under-utilised

Joint Cooperation Agreement

Fenix has entered into a Joint Cooperation agreement with the manager of Geraldton Port, the Mid West Ports Authority, relating to the provision of Port Access, Capacity Reservation, Handling Services; and product export contracts

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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 )

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Project Development Progress
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(Jan-Feb 2019) (June 2019) (Nov 2019) Drill results Co-operation Feasibility Study demonstrate agreement with Confirms Iron excellent grade Mid-West Port (Sept 2019) Ridge as an CSIRO test work Excellent Project (May 2019) shows Excellent Trucking JV Established Metallurgy Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 (May 2019) Positive Initial Fenix is currently advancing Metallurgical project permitting, and offtake Testwork Results arrangements, as well as project (March 2019) (Aug 2019) finance (debt and strategic equity) Mineral Resource Updated Mineral Demonstrates Resource of 10.5Mt Project Potential @ 64.2% Fe

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Annexures

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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 )
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Iron Ore Pricing
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Iron Ridge production attracts a premium Iron Ore price given its excellent quality

Iron Ore Price (CFR Qingdao)

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Total Chinese Iron Ore Port Inventory (Mt) 62% CFR Qingdao Equivalent (US$/dmt) 65% CFR Qingdao Equivalent (US$/dmt)
$140 140
$130 135
$120 130
$110 125
$100 120
$90 115
$80 110
$70 105
$60 100
Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19
Source: Bloomberg
$US / dmt
Port Inventory (Mt)
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Mineral Resource & Ore Reserve
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• ✓ Resource update in August 2019 delivered a significant increase in overall Resource confidence, with the Indicated Mineral Resource increasing by 51%

• ✓ High grade overall Resource of 10.5Mt @ 64.2% Fe

• ✓ Main BIF higher grade

	Tonnes	Fe	Al2O3	LOI	P	SiO2	TiO2
	Mt	%	%	%	%	%	%
Indicated	10	64.3	2.56	1.9	0.046	3.21	0.09
Inferred	0.5	62.5	2.8	3.13	0.046	4.41	0.12
Total Mineral Resource	10.5	64.2	2.57	1.96	0.046	3.26	0.09
Probable	7.76	63.9	2.79	2.00	0.05	3.46	0.09
Total Ore Reserve	7.76	63.9	2.79	2.00	0.05	3.46	0.09

• ✓ Indicated portion = 10Mt @ 64.3% Fe

• ✓ Strong proportion of Indicated Resource that supports FS

• ✓ Low to acceptable impurities

• ✓ Maiden Ore Reserves declared in November 2019 of 7.76Mt @ 63.9% Fe, representing conversion ratio of ~78% of Indicated Resource to Ore Reserve

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Grade – Tonnage Curve
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• Historical resource estimate used a lower cut-off of 50% Fe

2019 Updated Mineral Resource Estimation – Grade/Tonnage

• The mineral resource estimate updated

• has been reported at a higher cut-of grade of 58% Fe

• This cut off grade was selected as it presents the most appropriate for a

• reporting premium, high-grade product

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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

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 )