FENIX RESOURCES LTD — Board/Management Information 2021

Nov 15, 2021

16 November 2021

FENIX RESOURCES LTD Office 10, Emerald House 1202 Hay St, West Perth WA 6005

T: +61 (0)8 9226 2011 E: info@fenixresources.com.au ABN 68 125 323 622

ASX Announcement

Fenix Board Appointment

Mr John Welborn to be appointed Chairman

HIGHLIGHTS:

• Highly regarded mining company director Mr John Welborn to be appointed Non-Executive Chairman of Fenix

• Mr Welborn has subscribed for up to 10 million shares at an issue price of $0.23 per share for a total investment valued at $2.3 million (Placement) demonstrating strong commitment

• The Placement to Mr Welborn will be facilitated by a new Director Share Loan Plan with both the Placement and the Share Loan Plan subject to shareholder approval

• Mr Warwick Davies has resigned as Interim Non-Executive Chairman and both Mr Davies and Mr Richard Nicholls-Maltman have resigned as Directors of the Company

• Fenix to commence a comprehensive business review to confirm and optimise current operational strategy and evaluate synergistic growth opportunities

Fenix Resources Limited (ASX:FEX, “ Fenix” or “ Company ”) is pleased to advise that Mr John Welborn will be appointed Non-Executive Chairman of Fenix effective at the close of today’s annual general meeting ( AGM ) scheduled for 10:00am (WST) today at Grant Thornton, Level 43 Central Park, 152-158 St Georges Terrace, Perth.

Mr Welborn is a highly accomplished and internationally respected mining company director and senior executive with a successful track record of leading strategic growth strategies and generating exceptional returns for shareholders. A Fellow of the Institute of Chartered Accountants in Australia, a Fellow of the Australian Institute of Management, and a member of the Australian Institute of Mining and Metallurgy, Mr Welborn is a former investment banker who has operated in the resources sector for more than twenty years.

Mr Welborn was Managing Director and CEO of Resolute Mining Limited over a five-year period which saw the company’s market capitalisation grow from less than $200 million to more than $1 billion corresponding with the Company joining the ASX200 and an increase in the share price during his tenure as CEO of more than 300%. Under Mr Welborn’s leadership, Resolute was transformed through the development, acquisition, and operation of new mining operations which resulted in production of more than 1.7 million ounces of gold. Additional achievements included the successful execution of value creative corporate transactions, comprehensive refinancing and investment activities, and the admission of the company’s shares for trading on the main board of the London Stock Exchange.

In addition to his experience at Resolute, Mr Welborn has been responsible for an increase in share price of more than 300% in his role as Chairman of Orbital Corporation Limited and has previous iron ore experience as a Director of Equatorial Resources Limited. Mr Welborn is Director of Apollo Minerals Limited and is a former Director of the World Gold Council, the Australia-Africa Minerals and Energy Group, and a former Commissioner of Tourism Western Australia. Mr Welborn is a champion for responsible and sustainable mining development and was named by MiningMx as one of the 100 Most Influential People in Africa’s Mining Industry.

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Mr Welborn’s appointment as Non-Executive Chairman will formally commence after the AGM today, 16 November 2021. Subject to necessary approvals, Mr Welborn has subscribed for 10 million new Fenix shares at the current market price of $0.23 each for a total investment in the Company of $2,300,000. The Placement to Mr Welborn is subject to shareholder approval and will be facilitated by a new Director Share Loan Plan the terms of which will include standard incentive arrangements whereby the Company will provide a loan to participants to acquire shares in the Company. The placement and the new Director Share Loan Plan will be subject to shareholder approval at an Extraordinary General Meeting expected to be held in January 2022.

Fenix is pleased to have secured an executive of Mr Welborn’s experience and market standing as NonExecutive Director and Chairman of the Board. Managing Director Rob Brierley said “We are pleased to have secured John Welborn as our new Chairman. John has relevant experience in iron ore and in building successful mining companies. I look forward to working with John in building on Fenix’s success to date and in capitalising on further opportunities to add value”.

Interim Non-Executive Chairman Mr Warwick Davies and Mr Richard Nicholls-Maltman have both resigned as Non-Executive Directors of the Company. Managing Director Rob Brierley said “Both Warwick and Richard have been fantastic contributors during Fenix’s transition to iron ore producer status. I thank them for their sage advice, strong support and the value they have created for all shareholders”.

The current iron ore price and market conditions provides both challenges and opportunities for Fenix. Following Mr Welborn’s appointment, the Board will commence a business review designed to confirm and optimise current operational strategy and evaluate synergistic growth opportunities.

This announcement is authorised by the Board of Directors of Fenix Resources Limited.

For further information contact:

Rob Brierley Managing Director Fenix Resources Limited rob@fenixresources.com.au

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About Fenix Resources

Fenix Resources is an ASX-listed, WA-based iron ore miner.

The Company’s 100% owned, flagship Iron Ridge Iron Ore Project is a premium DSO deposit which hosts a JORC 2012 compliant resource located around 486km by road from Geraldton port. Production commenced in December 2020 and first sales were generated in February 2021.

High grade iron ore attracts a premium price on the seaborne market as Chinese steel works increasingly demand more pure inputs with lower emissions due to increasingly strict government regulations.

Only requiring crushing and screening, approximately 1.25 million tonnes of ore per annum is trucked to the port by a JV company, Fenix Newhaul Pty Ltd.

Export capacity has been secured through binding agreements with the Mid West Ports Authority for the use of its Geraldton Port facilities. Product sales are conducted 50% through an offtake arrangement with Sinosteel International Holding Company Limited and 50% through an exclusive marketing agreement with Atlas Iron Pty Ltd.

The project has generated some 160 full time equivalent jobs and the Company is focussed on promoting opportunities for local businesses and the community.

The Project’s Mineral Resource, announced on 21 August 2019 and updated on 15 September 2021, is categorised into Indicated and Inferred Mineral Resources as shown in Table A.

Classification	Tonnes Mt	Fe %	Al2O3	LOI %	P %	SiO2 %	TiO2 %
Indicated	9.4	64.5	2.45	1.85	0.05	3.11	0.09
Inferred	0.4	62.1	2.74	3.70	0.05	4.52	0.11
Total	9.8	64.4	2.46	1.92	0.05	3.16	0.09

Table A: Iron Ridge Mineral Resource Estimate reported above a 58% Fe cut-off grade.

The Project’s Ore Reserves as announced on 4 November 2019 and updated on 15 September 2021 are categorised is shown in Table B.

Classification	Tonnes Mt	Fe %	Al2O3	LOI %	P %	SiO2 %	TiO2 %
Probable	7.10	64.09	2.67	1.96	0.05	3.35	0.09
Total Ore	7.10	64.09	2.67	1.96	0.05	3.35	0.09
Reserves

Table B: Iron Ridge Ore Reserves

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Competent Person Statements

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 a former employee of 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). The Company confirms it is not aware of any new information or data that materially affects the information included in the relevant market announcement and all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

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 Mr Damian Connelly who is a Fellow of the Australasian Institute of Mining and Metallurgy and a full time employee of METS Engineering Group. Mr 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’. The Company confirms it is not aware of any new information or data that materially affects the information included in the relevant market announcement and all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

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). The Company confirms it is not aware of any new information or data that materially affects the information included in the relevant market announcement and all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. In relation to the production target and forecast financial information referred to in the report, the Company confirms that all material assumptions underpinning the production target and the forecast financial information derived from the production target continue to apply and have not materially changed since the announcement of the feasibility study on 4 November 2019.

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