For personal use only 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 )
Important Disclosure Disclaimer mer For personal use only 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. Competen Co tent Person’s Statemen atement 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 ) 2
For personal use only 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 )
Corporate Strategy Ideal ally ly placed aced to o generate enerate va value ue from from a high h qua uali lity ty project oject For personal use only Plan to commercialise Aim to supply premium- Iron Ridge and build a grade products to the steel industry trusted customer base Focused management and Board of Directors with industry specific and corporate experience Iron Ridge is our foundation asset, Target acquisitions it hosts a high-grade Mineral leveraging synergies with Resource of 9.2Mt 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 ) 4
Corporate Overview Sha hare e Price History ory For personal use only Capital Structure & Pricing Ordinary shares on issue 249.7m Volume (m) ClosePrice 12 300 Vendor Performance Shares 1 112.5m Employee Performance Rights 1 20.8m Unlisted Options 2 59.0m 10 250 Share Price (28 May 2019) $0.088 Market capitalisation (undiluted) $22.0m Daily Volume (Shares Traded) Daily Closing Price(cps) 8 200 Cash 3 $3.9m Debt Nil Enterprise Value (undiluted) $18.1m 6 150 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+ $1.75m April Placement 4 100 Board & Management 2 50 Bevan Tarratt Non Executive Chairman Rob Brierley Executive Director Garry Plowright Executive Director - 0 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Petar Tomasevic Non Executive Director F E N I X R E S O U R C E S L I M I T E D ( A S X : F E X ) 5
For personal use only Iron Ore Market Dynamics F E N I X R E S O U R C E S L I M I T E D ( A S X : F E X )
Buoyancy in Iron Ore Pricing Prem Premiu ium m Iron n Ore Ore Pr Prices ces have ve been st strong ng as C s Chine inese Ir se Iron O on Ore St Stock ckpiles piles trend downwar wnwards ds For personal use only Iron Ore Price (CFR Qingdao) Total Chinese Iron Ore Port Inventory (Mt) 62% CFR Qingdao Equivalent (US$/dmt) 65% CFR Qingdao Equivalent (US$/dmt) $120 150 $110 145 140 $100 Port Inventory (Mt) $US / dmt 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 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 ) 7
̶ Structural Change Favours High Grade Ore • Premium Iron Ore Market is applicable For personal use only • 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 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 ) 8
For personal use only Iron Ridge Project 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 Project Hi High Gr Grade H Hema matite Iron n Ore Ore Proje Project ct in the Mi Midwest dwest For personal use only • 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 @ 6 64.1% 1% Fe, 3.36% SiO 2 , 2.66% Al 2 O 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. • Granted Mining Lease with historical mining of 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, micaceous iron oxide 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 ) 10
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