• 30-year exclusive right to mine and export iron ore from Weld Range Project
• 290MT JORC 2012 Mineral Resource Estimate at 56.8% Fe grade
• Expands Fenix's existing operations in the Weld Range region

Fenix Resources Ltd (ASX: FEX) has signed a binding right to mine agreement with Sinosteel Midwest Corporation (SMC), a subsidiary of China Baowu Steel Group, granting Fenix a 30-year exclusive right to mine and export iron ore from SMC's Weld Range Hematite Iron Ore Project (Weld Range Project). The Weld Range Project currently has a global JORC 2012 Measured, Indicated and Inferred Mineral Resource Estimate of 290 million tonnes at a grade of 56.8% Fe. This includes the high-grade Beebyn-W11 deposit which has a previously announced resource of 20.5 million tonnes at 61.3% Fe. The total consideration payable by Fenix includes $60 million cash, a production royalty, and a profit share royalty. Fenix will fund the consideration from existing cash reserves and operational cash flows. The Weld Range RTMA is a logical expansion of Fenix's existing mining operations in the Weld Range and provides an excellent foundation for further production growth with exceptionally long mine life. Fenix has commenced a feasibility study for the Weld Range Project which will focus on expanding the company's existing regional production.

Fenix has a best-endeavours obligation to reach and maintain production of at least 6 million tonnes per annum of hematite iron ore from the Weld Range Project. Fenix and SMC have also agreed to collaborate on targeting the export and sale of 10 million tonnes per annum of hematite iron ore from the Weld Range Project.

The Weld Range RTMA establishes the foundation for a long-term commercial arrangement between Fenix and Baowu and presents opportunities for further regional collaboration including investigation of opportunities to increase production beyond the targeted export volumes contained within the Weld Range RTMA.