FENIX RESOURCES LTD — Investor Presentation 2019

Jun 4, 2019

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I R O N R I D G E P R O J E C T P R E M I U M G R A D E I R O N O R E

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 Exploration Results is based on information compiled by Mr James Potter. Mr Potter is a full-time employee of CSA Global Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Potter 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 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 Potter consents to the disclosure of the information in this presentation 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 the report to which this statement is attached that relates to Mineral Resources is based on information compiled by Alex Whishaw, a Competent Person who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy. Mr Whishaw is a full-time employee of CSA Global Pty Ltd, independent mining industry consultants. Mr Whishaw has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’. Mr Whishaw consents to the inclusion in the presentation of the matters based on his information 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 premium-
grade products to the
steel industry
Iron Ridge is our foundation asset,
it hosts a high-grade Mineral
Resource of 9.2Mt
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Focused management and
Board of Directors with
industry specific and
corporate experience
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Plan to commercialise
Iron Ridge and build a
trusted customer base
Target acquisitions
leveraging synergies with
Iron Ridge
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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 Overview
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Capital Structure & Pricing	Capital Structure & Pricing
Ordinary shares on issue	249.7m
Vendor Performance Shares1	112.5m
Employee Performance Rights1	20.8m
Unlisted Options2	59.0m
Share Price (28 May 2019)	$0.088
Market capitalisation (undiluted)	$22.0m
Cash3	$3.9m
Debt	Nil
Enterprise Value (undiluted)	$18.1m

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 31 March 2019 $2.11m+ $1.75m April Placement

Board & Management	Board & Management
Bevan Tarratt	Non Executive Chairman
Rob Brierley	Executive Director
Garry Plowright	Executive Director
Petar Tomasevic	Non Executive Director

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Share Price History
Volume (m) ClosePrice
12 300
10 250
8 200
6 150
4 100
2 50
- 0
Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19
Daily Closing Price(cps)
Daily Volume (Shares Traded)
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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 Market Dynamics

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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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Buoyancy in Iron Ore Pricing
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Premium Iron Ore Prices have been strong as Chinese Iron Ore Stockpiles trend downwards

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)
$120
150
$110
145
$100 140
135
$90
130
$80
125
$70
120
$60 115
Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19
Source: Bloomberg
$US / dmt
Port Inventory (Mt)
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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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Structural Change Favours High Grade Ore
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• Premium Iron Ore Market is applicable

• Environmental policies in China have created a structural change which favours high grade ore

• Lower supply from Brazil also a factor

• Noticeable shift toward quality projects and widening premium recently reversed due to tight supply from Brazil

• Premium of ~US$35/t for 65% Fe product versus 58% Fe product

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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 Hematite Iron Ore Project in the Midwest

• Fenix entered into an agreement to acquire the project in May 2018 for only $1m in shares

• Identified that it has significant potential to host a small mining operation that produces high quality product

• Commenced its maiden drill campaign in November 2018, which was very successful

• In March 2019, an updated mineral resource estimate was established – confirming the project’s potential

• Total Mineral Resource Estimate of 9.2 Mt @ 64.1% Fe , 3.36% SiO2, 2.66% Al O 2 3 and 0.045% P[1]

• Significant potential to further expand the Mineral Resource along strike

1 Refer ASX release from Fenix Resources Ltd (FEX) dated 19 March 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).

• Granted Mining Lease with historical mining of micaceous iron oxide

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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Location, Tenure & Infrastructure
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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 recently formed a strategic alliance, via a 50/50 JVC, with Minehaul Pty Ltd . 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

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± 490 km
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Excellent Tenure 100% owned Granted mining lease (M20/118) valid until 2030. Lease pre-dates Native Title with Ministerial approval for the small-scale mining of iron ore

Convenient Location Located ~67km north of Cue in the Mid-West region of WA, providing easy access to supporting town site facilities

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

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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Favourable Geology
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• Mineralisation plunges gently to the south-west along strike

• Deepest mineralisation intersected is at 230m beneath surface

• Consistent high grades recorded in the main BIF after 20-40m hardcapped mineralisation (minor elevated alumina)

• No issues identified in processing mineralisation below the water table

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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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Excellent Mineral Resource Upgrade
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✓ High grade overall Resource at 64.1% Fe

✓ Main BIF higher grade

✓ indicated portion = 5.9Mt @ 65% Fe

✓ Strong proportion of Indicated Resource to support study work

✓ Scale of 9.2Mt exceeds Company’s expectations

✓ Low to acceptable impurities

			Tonnes	Fe	Al2O3	LOI	P	SiO2	TiO2
	Category	Stratigraphy
			Mt	%	%	%	%	%	%
	Indicated	Main BIF	5.9	65.0	2.38	1.36	0.038	2.92	0.09
	Indicated	Little BIF	0.7	60.0	3.60	5.05	0.072	5.05	0.09
	Total Indicated		6.6	64.5	2.51	1.74	0.042	3.14	0.09
	Inferred	Main BIF	2.3	63.8	2.95	1.68	0.050	3.68	0.12
	Inferred	Little BIF	0.3	59.3	3.67	5.43	0.083	5.75	0.09
	Total Inferred		2.6	63.2	3.04	2.13	0.054	3.93	0.12
	Grand Total		9.2	64.1	2.66	1.85	0.045	3.36	0.10

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

• The mineral resource updated

• estimate has been at a reported

• 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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2019 Updated Mineral Resource Estimation – Grade/Tonnage
12 72.0
11
70.0
10
68.0
9
66.0
8
64.0
7
6 62.0
5
60.0
4
58.0
3
56.0
2
54.0
1
0 52.0
Fe %
Millions
Tonnes
45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68
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% Fe cutoff

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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Successful Confirmation Drilling
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• 3,435m of RC drilling in 21 holes and 1,210m of diamond drilling in 8 holes

• Successfully confirmed the extensions to the Mineral Resource

• Diamond drill program just commenced designed for 880m of infill and 835m of geotechnical

	Hole ID	From (m)	To (m)	Width (m)	Fe (%)	Al2O3(%)	P (%)	SiO2(%)	LOI (%)
	IR001	36	87	51	63.93	2.99	0.06	3.37	1.8
	IR002	79.3	137.5	58.2	66.58	1.85	0.03	2.23	1.05
	IR003	159.2	182.2	23	67.83	1.21	0.02	1.52	0.75
	IR004	91	161	70	64.41	2.63	0.05	3.14	1.53
	IR005	161	212.1	51.1	65.94	1.83	0.04	2.01	1.08
	IR006	41	57.2	16.2	65.94	1.65	0.03	3.04	0.87
	IR011	72	142	70	64.84	2.37	0.04	2.99	1.35
	IR012	164	204	40	65.58	1.87	0.04	2.19	1.32
	IR015	80	146	66	66.24	1.69	0.04	2.1	1.17
	IR016	152	202	50	66.56	1.63	0.03	2.68	0.92
	IR017	54	110	56	63.57	2.99	0.04	3.58	1.51
	IR018	84	142	58	66.68	1.51	0.02	1.78	0.83
	IR020	73.8	113.5	39.7	65.86	1.91	0.02	2.31	1.01
	IR022 IR033D IR035	70 211 130	90 249.9 182	20 38.9 52	65.87 66.73 66.17	1.76 1.44 1.62	0.02 0.03 0.04	2.3 1.69 2.24	0.87 1.07 1.17
	IR036	206	252	46	66.32	1.73	0.04	2.22	1.16
	IR046	74	100	26	65.61	2.20	0.02	2.68	1.09

Significant Intercepts as announced 17 January, 23 January and 5 February 2019

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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Excellent Preliminary Metallurgical Results
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• Low deleterious elements, well within acceptable limits

• The project is anticipated to produce Premium >65% Fe lump and >63% Fe fines products

• Estimates 25-30% as a lump product (the ability of Fenix to extract premium prices will be determined during offtake discussions)

• Average Crushing Work Index (CWi) of 2.6 kWh/t (low power consumption for crushing)

• Average Bond Abrasion Index indicates low equipment consumable consumption rates

• Lump properties (Reduction Index, Reduction-Disintegration Index and Decrepitation Index) positive for blast furnace use

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Capex / Opex Considerations
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CAPEX requirement is expected to be modest due to:

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

• Existing sealed road used previously by Crossland Resources/Murchison Metals to haul iron ore from its Jack Hills project (2006-2011) passes within 15km of Iron Ridge

• High grade product needs only minimal processing (crushing and screening) and no tailings disposal facility

OPEX likely to be majority related to transport and logistics, such as:

• Road transport path 490km to Geraldton Port

• The recent trucking JV entered into is expected to materially reduce the cost of road transport

• Port storage and handling fees

• Mining costs will be a function of strip ratio, which will be determined from detailed mine design which is being finalised at the moment

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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Newsflow Progression
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– ❖ Drill results released 17 January, 23 January and 5 February 2019

– ❖ Mineral Resource update (reported in accordance with the JORC code) released 19 March 2019 ❖ Trucking JV company established between FEX and Craig Mitchell – released 7 May 2019

– ❖ Metallurgical testwork results including lump to fines ratio, crushing indexes, etc released 24 May 2019 – ❖ Joint Cooperation Agreement signed with Mid West Port Authority released 29 May 2019 – ❖ Product offtake negotiation initial discussions Ongoing

• ❖ Commencement of Statutory Permitting Process Ongoing

• ❖ Preliminary agreements on road ore haulage and port storage & handling services June/July 2019 –

• ❖ Completion of feasibility studies October 2019

• ❖ Product offtake agreement(s) and potential financing

• ❖ Commencement of production and potential first shipment

• ❖ Additional project acquisition(s)

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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 )