FENIX RESOURCES LTD — Investor Presentation 2021

Jul 12, 2021

==> picture [960 x 69] intentionally omitted <==

FENIX RESOURCES LIMITED

A H I G H - G R A D E , H I G H M A R G I N A U S T R A L I A N I R O N O R E M I N E R Corporate Presentation

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 )

Important Disclosure

==> picture [150 x 69] intentionally omitted <==

This Presentation has been approved by the Board of Fenix Resources Limited

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 presentation 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 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). 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 presentation 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 presentation 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.

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 )

2

==> picture [960 x 69] intentionally omitted <==

Company Overview

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 )

Why invest in Fenix

A New High-Grade Iron Ore Miner Hitting its Targets

• 687,400 tonnes of ore mined by the end of the June quarter

• 500,600 tonnes of premium Iron Ore sold by the end of the June quarter

• Average grade of product sold is 62.5% Fe, project to date. This is ahead of expectations

• Exploration targeting incremental growth will commence this Quarter

• Operating cash flow of ~$66m from the first 4.5 months of product sales

• Net cash of $69.0m at 30 June 2021

• Strong balance sheet with capital management being considered

==> picture [150 x 69] intentionally omitted <==

==> picture [75 x 82] intentionally omitted <==

==> picture [76 x 82] intentionally omitted <==

High-Grade 64.2% Iron Ore Resource

World Class WA Mining Jurisdiction

==> picture [78 x 82] intentionally omitted <==

==> picture [77 x 82] intentionally omitted <==

Buoyant A$ Iron Ore Price

Generating Strong Cashflow Results

==> picture [78 x 82] intentionally omitted <==

Highly Experienced Board & Management Team

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 )

4

Corporate Overview

Capital Structure & Pricing	Capital Structure & Pricing
Ordinary shares on issue	470.2m
Vendor Performance Shares1	97.5m
Unlisted Options2	2.0m
Share Price (12th July 2021)	$0.42
Market capitalisation (undiluted)	$197.5m
Cash3	$69.0m
Debt	Nil
Enterprise Value (undiluted)	$128.5m

1. Hurdles aligned with key production milestones

2. Unlisted options exercise price of 8 cents and expiry date of 21 Nov 2021

3. Cash as at 30 June 2021

Board & Management	Board & Management
Warwick Davies	Interim Chairman
Rob Brierley	Managing Director
Richard Nicholls-Maltman	Non Executive Director
Garry Plowright	Non Executive Director
Chris Tuckwell	General Manager - Operations

==> picture [150 x 69] intentionally omitted <==

Share Price History

==> picture [497 x 383] 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

Performance Overview

==> picture [150 x 69] intentionally omitted <==

	Performance at a Glance
	Item	Unit	JuneQ FY21	MarchQ FY21
	Lump product sales	kwmt	129	113
	Fines product sales	kwmt	151	107
	Total Ore Sales	kwmt	281	220
	Platts 62% Fe CFRprice, average	US$/dmt	200.0	166.9
	Average Realised FOB price	US$/dmt	185.2	156.1
	Average Freightcost	US$/dmt	30.4	21.3

	Production Summary
	Production Summary (kwmt)	June Q FY21	March Q FY21	Dec Q FY21	Project to Date
	Ore Mined	369.6	298.4	19.4	687.4
	Lump Ore Produced	196.4	117.0	9.0	322.4
	Fine Ore Produced	161.3	122.2	7.8	291.3
	Lump Ore Hauled	154.1	105.3	7.9	267.3
	Fine Ore Hauled	154.1	114.1	1.7	269.9
	Lump Ore Shipped	129.3	112.7	0	242.0
	Fine Ore Shipped	151.4	107.2	0	258.6
	C1 Cost (A$/wmt Shipped FOB)	85.3	93.2	N/A	88.8

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

==> picture [960 x 69] intentionally omitted <==

~~Tight Controllable Costs~~

Cash Costs and Operating Margins per wet metric tonne

==> picture [810 x 305] intentionally omitted <==

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

250.00
200.00
150.00
100.00
50.00
0.00
Feasibility Study - Year 1 June 2021 Quarter Project to Date
C1 Cash Costs (A$/wmt) Royalties (A$/wmt) Marketing Fees (A$/wmt) FOB Cash Margin per tonne (A$/wmt)
----- End of picture text -----

7

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 [960 x 69] intentionally omitted <==

Iron Ridge Project

==> picture [93 x 42] intentionally omitted <==

==> picture [358 x 10] intentionally omitted <==

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

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 )
----- End of picture text -----

Iron Ridge Project

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.

• Mineral Resource Estimate[1] of 10.5 Mt @ 64.2% Fe , iron ore

• which represents some of the highest grade in Western Australia

• Maiden Ore Reserves[2] of 7.8Mt @ 63.9% Fe

• Project development commenced September 2020

• Announced first production in December 2020

• 322kwmt of Lump and 291kwmt of Fines crushed and screened by the end of the June quarter

• 242.0kwmt of Lump and 258.6kwmt of Fines shipped by the end of the June quarter

==> picture [150 x 69] intentionally omitted <==

==> picture [458 x 346] intentionally omitted <==

1 Refer ASX release from Fenix Resources Ltd (FEX) dated 21 August 2019.

2 Refer ASX release from Fenix Resources Ltd (FEX) dated 4 November 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).

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

Established Infrastructure Path to Export Markets

==> picture [150 x 69] intentionally omitted <==

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

Good Roads

Sealed roads all the way to the Mine site entrance. 485km (by road) to Geraldton Port

Trucking Joint Venture Fenix is a 50% owner of the road transport contractor, Fenix Newhaul Pty Ltd. The alliance provides trucking services to the Project, introduced road haulage capability and facilitated the purchase of new, productive haulage sets

Port Capacity

Storage shed secured at Geraldton and Port Lease agreements in place thereby securing a port export allocation for up to 8 years

==> picture [636 x 420] 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 )

10

Execution of Incremental Growth Plans

==> picture [150 x 69] intentionally omitted <==

• Scorpion JV exploration field work commencing in the September 2021 Quarter

• RC drilling due to start in on

• September/October geophysical targets identified at Iron Ridge Extended and Ulysses

• Additional RC drilling program at Iron Ridge targeting small strike length extensions due to commence in the September 2021 Quarter

==> picture [547 x 398] 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 )

11

Fenix Resources

==> picture [150 x 69] intentionally omitted <==

Australian High-Grade Iron Ore Miner

Fenix Resources Rapidly Developed its High-Grade Iron Ridge Project and is now in Cash Harvest Mode

==> picture [121 x 121] intentionally omitted <==

==> picture [121 x 121] intentionally omitted <==

==> picture [121 x 121] intentionally omitted <==

High-Grade Ore Reserve, currently performing ahead of expectations and attracting market premiums

Producing at steady state, generating operating margins of A$127/t

World Class WA Mining Jurisdiction

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 )

12

==> picture [960 x 69] intentionally omitted <==

FENIX RESOURCES LIMITED

Contact: Rob Brierley Managing Director Rob@fenixresources.com.au

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 )