Emergent Resources Limited (ASX:EMG) Quarterly Report For The Period Ended 31 December 2009

Perth, Feb 4, 2010 AEST (ABN Newswire) - Emergent Resources Limited (ASX:EMG) is pleased to provide a Quarterly Activities Report for the period ended 31 December 2009.

OVERVIEW

Emergent Resources continued to focus on the exploration and development of its flagship Beyondie Iron Project in Western Australia. During the quarter the Company completed its 3rd Phase exploration drilling program resulting in a major resource upgrade at the Project which was announced in November.

The JORC Inferred Mineral Resource at the project was upgraded to 561Mt grading 27.5% Fe. This represented a four-fold increase on the maiden JORC estimate of 127Mt grading 28.15% Fe announced in the previous quarter. The Mineral Resource was calculated from drilling conducted over only a 12 km segment of the drilled-out portion of the Project's (in tenement E52/1806) within the total 60 km strike length covered by Emergent's tenements.

The new Mineral Resource upgrade was calculated from 94 Reverse Circulation holes for 12,526 metres and 14 diamond cores for 2,689 metres.

In addition to the new Mineral Resource statement, the Company's independent geologists also confirmed an Exploration Target of 480-510Mt grading 27.0-28.5% within E52/1806. The potential quantity and grade of the Exploration Target is conceptual in nature; there has been insufficient exploration to classify this material as a Mineral Resource and at this stage it is uncertain if further exploration will enable the conversion of this volume to a Mineral Resource.

A further Exploration Target was also confirmed outside of tenement E52/1806 of 3.7-4.2 Bt. The potential quantity and grade of the Exploration Target is conceptual in nature; there has been insufficient exploration to classify this material as a Mineral Resource and at this stage it is uncertain if further exploration will enable the conversion of this volume to a Mineral Resource. Drilling of this segment is planned for 2010.

In October Emergent announced the acquisition of 100% ownership of the Beyondie Project through the purchase of De Grey Mining Limited's 20% free carried interest.

Under the terms of the Purchase and Sale Agreement Emergent will acquire De Grey's right to a 20% free carried interest in the Beyondie Iron Project, giving Emergent 100% ownership of the project, for an initial payment to De Grey of A$4.5 million plus deferred payments totaling A$2.25 million (plus interest).

The initial A$4.5 million payment to De Grey is due within 30 days of Emergent receiving shareholder approval for the issue of Emergent shares and options to China Metallurgical Investment Co Ltd (CMIC) under Emergent's proposed Development Joint Venture with CMIC for the development of the Beyondie Project, and having CMIC's investment approved by the Australian Foreign Investment Review Board.

Emergent's Farm-in Agreement with De Grey for the Beyondie Iron Project will terminate at completion of the Purchase and Sale Agreement, and it will acquire 100% ownership and title to the Project tenements will pass to Emergent. De Grey will retain the rights to all non-iron ore minerals.

During the quarter the Company also made significant progress on its proposed A$200m Development Joint Venture with Chinese State Owned Enterprise, China Metallurgical Investment Co Ltd (CMIC) for the Beyondie Iron Project. Last quarter Emergent announced a non-binding MOU with CMIC for the development of the Beyondie Project, which included a 50:50 Development JV, A$200m funding for the project, and a A$5m placement to CMIC.

CMIC successfully completed its Due Diligence for the Development JV on 15 October 2009 and on 28 October 2009 Emergent announced that both parties had entered into a binding agreement to proceed with the A$200m 50:50 Development Joint Venture and the placement of shares and options to CMIC to raise approximately A$5m and give CMIC an approximate 15% interest in the Company. Documentation is in the process of final review by legal representatives for both joint venture parties, who have indicated completion of executable documentation within the current Quarter.

Shareholder approval has been granted for the Agreement and it is now subject to Foreign Investment Review Board approval (which is advanced) and the Peoples Republic of China National Development and Reform Commission (NDRC) approval. CMIC have advised the continuation of the process to obtain NDRC approvals is proceeding satisfactorily.

BEYONDIE MAGNETITE PROJECT

E52/1806, ELA52/2215 ELA52/2474, ELA69/2625, ELA69/2669 (100% EMG)

The Company continues its progress towards developing the Beyondie Iron Project in to a world class magnetite iron project with the potential produce a high grade magnetite concentrate product. During the quarter it made significant exploration progress at the Project with the establishment of a new JORC Resource upgrade, a new Exploration Target (in addition to the Resource) in the drilled-out portion of the project, and a further Exploration target at the Project outside the drilled section.

The Beyondie Project now comprises;

- Inferred Mineral Resource - 561 million tonnes grading 27.5% Fe in tenement E52/1806

- Exploration Target - 480 to 510 million tonnes grading 27.0 to 28.5% Fe in E52/1806, and

- Exploration Target - 3.7 to 4.2 billion tonnes grading 27.0 to 28.5% Fe outside of E52/1806

Drilled JORC Inferred Resource in E52/1806

The new JORC-compliant Inferred Mineral Resource of 561 million tonnes, grading 27.5% Fe has low deleterious impurities of phosphorus, sulphur and aluminium, and was confirmed from the results of three completed drill programs at the Beyondie Project which totaled 17,399 metres across 116 holes (110 RC holes for 14,710 metres,14 Diamond-cores for 2,689 metres).

The Inferred Mineral Resource was reported without a Fe cut-off grade, however drilling results are remarkably consistent within the wide Beyondie Magnetite Schist (BMS) units and a nominal 20% Fe was used to define the mineralised zones. The JORC Mineral Resource was estimated by Adelaide based independent geological group AMC Consultants Pty Ltd (AMC).

Exploration Target in E52/1806

An additional Exploration Target was delineated in the drilled area in tenement E52/1806. AMC estimated the Exploration Target tonnage to be 480 to 510 million tonnes grading 27.0 to 28.5% Fe.

The interpretations that underpinned the Exploration Target tonnage and grade ranges were derived from drill hole data located on sections along strike from the Inferred Mineral Resource zone. The drilling in the region of the E52/1806 Exploration Target demonstrated the continued presence of the BMS units, and the available drillhole assay data also supported the presence of the BMS mineralisation, however the holes were considered to be too widely spaced between section and of insufficient length on section to provide sufficient confidence in the geological interpretation to classify the mineralisation as a Mineral Resource at this stage. The potential quantity and grade of the Exploration Target is therefore conceptual in nature; there has been insufficient exploration to classify this material as a Mineral Resource and it is uncertain if further exploration will enable the conversion of this volume to a Mineral Resource.

Exploration Target Outside E52/1806

The Exploration Target of 3.7 to 4.2 billion tonnes confirmed outside tenement E52/1806 was interpreted from aeromagnetic data and geological mapping, and the interpreted volumes were modelled and confirmed by AMC. The tenor of the magnetic response suggested that a similar grade may be present throughout the entire tenement areas of the project.

The volume of the Exploration Target magnetite mineralisation was based on assumed depths approximating the depths identified in the drilled areas. The AMC supporting methodology confirmed the volumes for the BM Schist zones.

The potential quantity and grade of the Exploration Target is conceptual in nature; there has been insufficient exploration to classify this material as a Mineral Resource and at this stage it is uncertain if further exploration will enable the conversion of this volume to a Mineral Resource.

The upgraded Mineral Resource and Exploration Targets confirmed the large scale, world class potential of the Beyondie Project, and positioned the project as one of the most significant new magnetite iron projects in Australia.

JOINT VENTURE WITH CMIC TO DEVELOP BEYONDIE PROJECT

On 28 October 2009, the Company announced that a Subscription and Option Agreement (Agreement) had been signed by Emergent and CMIC to proceed with the A$200m 50:50 Beyondie Development Joint Venture and the share and option placement by CMIC in Emergent to achieve the commencement of mining operations with an initial targeted production of 3Mtpa of magnetite concentrate at the Beyondie Project.

CMIC also advised that the Joint Venture would seek additional funding over the initial A$200m investment to achieve a proposed second stage of production of 8Mtpa of magnetite concentrate (following the first stage 3 million tonnes per annum production).

Shareholder approval has been granted for the Agreement and it is now subject to Foreign Investment Review Board approval and the Peoples Republic of China National Development and Reform Commission approval.

BASE METAL PROJECTS

The CSIRO joint project on the Company's Glengarry Base Metal Project, near Wiluna, was finalised towards the end of the quarter. The mineral mapping and alteration study carried out by the CSIRO's Mineral and Environmental Sensing Group and Emergent, has determined a number of priority targets utilising the Company's HyMap data, airborne magnetic, MMI geochemical programs carried out by Emergent.

The resulting mineral maps, which highlight mineralising fluid migration pathways, have been draped over the lithostructural framework (the structures which promote and/or arrest fluid migration) which have been jointly established by Emergent and consulting geophysical firm, Resource Potentials Pty Ltd, and used to prioritize targets. Compilation of the public-domain legacy data, part of which will be merged with the surface MMI (Mobile Metal Ion) sampling completed by Emergent is now progressing to define exploration.

CORPORATE

Subsequent to the end of the quarter the Company announced a A$3 million placement to sophisticated and professional investors. Under the placement 5,000,000 fully paid shares will be issued at A$0.60 each together with a free attaching option for every 2 shares subscribed for in the placement. The Company will apply to the ASX for quotation of the 2,500,000 options being issued under the placement, and will be subject to the same terms as the EMGO options currently quoted on the ASX. The options will be exercisable at 20 cents each on or before 30 September 2010.

For the complete Emergent Resources Quarterly Report for the period ended 31 December 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/62221-ASX-EMG-478756.pdf

Contact

Garry Hemming Managing Director Emergent Resources Mob: +61-419-835-757 Email: ghem@westnet.com.au Website: www.emergentresources.com.au