AMEX RESOURCES LIMITED

The Manager Company Announcements Office Australian Securities Exchange Exchange Centre th 4 Floor, 20 Bridge Street Sydney NSW 2000 Dear Sir,

COMPANY ANNOUNCEMENT
5 July 2011

POSITIVE PRE-FEASIBILITY STUDY - MBA DELTA IRONSANDS PROJECT

ANNOUNCEMENT TO AUSTRALIAN SECURITIES EXCHANGE Financially robust project with low Capital Cost of less than US$60 million, Estimated Operating Cost of US$28.06/t of product, Estimated Net Present Value of US$454 million (Pre-Tax), 20 year mine life based on 220 million tonne Indicated Resource, Simple processing to produce 750,000tpa of 58% Fe product (base case), Mining by dredge, extraction by magnetic separation, concentrate haulage by selfpropelled barge to nearby port (no rail or road transport infrastructure required), Washing, Stockpiling and Shiploading at Fijis major bulk commodity port at Lautoka Port Area secured under long term lease of up to 45 years, Marketing of product well advanced - expressions of intent received, Preparation of BFS to start immediately - Detailed design, engineering, procurement and construction scheduled to start Q4 2011 - Production planned to start Q4 2012.

Company Announcement 5 July 2011

INTRODUCTION
Amex Resources Ltd (Amex) is pleased to announce the successful completion of the Pre-Feasibility Study (PFS) for its Mba Delta Ironsands project (the Project), in Fiji. The PFS was conducted by ProMet Engineers (Perth), an international consulting group with specialist iron ore and magnetite expertise. In summary, the PFS confirms the Project to be technically and financially viable, with an NPV of US$454 million (before tax), low capital and operating costs, with the advantage of secured infrastructure and port. The Project is located in the northwest of Fijis main island, Viti Levu, within a tenement covering more than 2 132 km , and is held 100% by Amex. The ironsand deposit occurs as a simple flat lying blanket of fine to coarse vanadiferous titanomagnetite-bearing sand approximately 15 kilometres long by up to 4 kilometres wide, located in a shallow lagoon at the mouth of the Ba River.

Mining and extraction of the ore, and the transporting and washing of the concentrate, are achieved with equipment and methods in common usage. The ore is amenable to conventional treatment by simple magnetic separation, without the need for crushing, grinding or any chemicals. Thus the Project will consist of a dredging operation adjacent to the mouth of the Ba River, a floating concentration plant, barging of the ironsand concentrate to Lautoka Port, washing of the concentrate at the port to remove sea salt and export of the product in Handymax vessels. Ironsand concentrate produced from the Mba Delta resource has similar chemical and physical specifications to those from New Zealand deposits; the worlds major producer of ironsands.

PROJECT SCOPE
The scope of works includes the engineering, procurement, construction and commissioning of facilities to support the following main activities: Dredging of the ore body at a rate of 11 million tonnes per annum by two bucket wheel dredges, Processing on a floating concentrating plant, including; pre-screening, two-stage magnetic separation, desliming and dewatering, to produce 750,000 tonnes per annum of product, Loading of self-propelled barges and haulage 30km to Lautoka Port, Barge unloading and materials handling at the Port, Washing to remove salt and dewatering to reduce moisture for shipping, Stockpiling, reclaiming and shiploading for transport to market via Handymax vessels, Power supply, water supply and supporting infrastructure.

Company Announcement 5 July 2011

COST ESTIMATES
Capital and operating costs for the Project are based on a combination of estimates and written and verbal quotes from both Fijian and international sources. Local costs have been converted to US currency with an assumed exchange rate of US$1.00 to FJ$1.70. Estimated capital cost includes dredging equipment, design and construction of the floating concentration plant, transport barges, and construction of the port facilities. Estimation has been completed to an accuracy of -10%/+20%. Capital Cost Item Major Equipment Processing Plant Port Infrastructure Contingency Total
(includes dredges, barges, shiploader) (includes generators, screens, LIMs, conveyors, pumps) (includes berth, stockpile shed, logistics base)

$US Million 18.35 12.57 9.72 11.86 6.95 59.45

Port Handling Plant (includes barge unloading, filtration, conveyors)

(13.3% overall, varies by area)

The capital cost total includes direct costs of $43.38 million, indirect costs of $9.12 million and a contingency of $6.95 million. The operating cost estimate is inclusive of costs directly associated with owner mining and processing of ore to concentrate production, as well as associated infrastructure, transport, loading and maintenance. All operations will be located in Fiji, employing and training predominantly a Fijian work force of more than 300 personnel. The operating cost estimate has an accuracy of -10%/+20%, and utilised local quotes wherever possible. Operating Cost Summary Cost Per Tonne of Product $US/tonne 28.06

FINANCIAL MODELLING
Initial financial modelling for the PFS was conducted by Southern Mining Consultants, an independent mining expert, incorporating capital and operating costs of the project as reported by ProMet. Results for Net Present Value (NPV) and Internal Rate of Return (IRR) are reported as: Pre-Tax NPV Pre-Tax IRR US$454 million 91%

Assumptions used include; a discount rate of 10%, a royalty payment of 3% on the FOB price, an assumed moisture content of 8% for shipping and equity, rather than debt, funding. Product specifications derived from pilot plant processing are; 58% Fe and 0.65% V2O5, with low silica, sulphur and phosphorus. The pricing mechanism adopted is based on the Platts 58% Fe CFR North China th price of US$148.00 (17 June 2011), with the following adjustments: Deduction for shipping & insurance (to equate to FOB basis), Penalty for additional processing costs relating to TiO2 and Al2O3 content, Credit for vanadium where appropriate

Following detailed evaluation of the market for ironsands and appropriate pricing mechanisms, the Company has, in consultation with ProMet, derived a price for the Mba ironsands of US$133.15 per tonne where vanadium credits can be realised, and US$103.15 per tonne where the ironsands are to be used as a blending material. Product price assumed for the modelling was the mid-point at US$118.15 per tonne.

Company Announcement 5 July 2011

The PFS and financial modeling have been carried out on the Base Case production rate of 750,000 tonnes of concentrate annually, from an Indicated Resource of 220 million tones and a 20 year mine life. There is significant potential to increase this throughput, both in terms of demonstrated market demand and additional resources. Additionally, both the PFS and modeling have assumed the conservative case of an average feed grade over the life of mine. Amex plans to mine the higher grade, thicker areas of the deposit in the first 7-10 years, to accelerate cash returns and further enhance the project NPV.

MARKETING
Trial samples of ironsand concentrate produced from Amexs pilot plant have been well received by steel mills in China, as both a blending material and as a primary (vanadiferous) feed. Amex has received expressions of intent from a number of groups in Asia, and is progressing negotiations with potential off-take customers. The market will be kept fully informed as negotiations are advanced.

MINING LEASE
Under the Fiji Mining Act, successful completion of the PFS allows the Company to submit a Mining Lease application and gain approvals for a planned mining operation. A Mining Lease application will be submitted in the near future.

CONCLUSION
Amex is pleased with the positive outcome of the Pre-Feasibility Study, and looks forward to the timely completion of a Bankable Feasibility Study by the end of October 2011 and being in production by the end of 2012. The Company will continue to update shareholders and investors as development progresses.

Yours faithfully, Matthew Collard

Managing Director

Amex Resources Limited

ACN 089 086 237

Corporate Information
Directors & Management
Mr Dudley J. Kingsnorth Mr Matthew J. Collard Mr Timothy S. Putt Mr Yibo Qiu Mr Gary Dunlop Dr Chris Ure Non-Executive Chairman Managing Director Technical Director Non- Executive Director Company Secretary General Manager

Investor Relations
Enquiries concerning this Report may be directed to: Tim Putt Technical Director or Tel: +61 (0) 8 9480 0455 David Michie Mosaic Reputation Management Tel: +61 (0) 8 9381 4494

Registered and Principal Office

IBM Building, Level 3 1060 Hay Street West Perth Western Australia 6005 Tel: +61 (0) 8 9480 0455 Fax: +61 (0) 8 9321 0320

Shareholder Enquiries
Matters relating to shares held, change of address and tax file numbers should be directed to the share registry at: Security Transfer Registrars Pty Ltd PO Box 535 Applecross Western Australia 6953 Tel: +61 (0) 8 9315 2333 Australian Stock Exchange releases and other information on Amex Resources is available at Amexs website at www.amex.net.au

Issued Capital
At 30 June 2011, Amex had 559 shareholders with issued capital of 63,700,000 fully paid ordinary shares, and 6,500,000 unlisted options.

Competent Persons Statement The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Geoffrey Richards of Lionhart Consulting Services, a Member of The Australian Institute of Geoscientists. Mr Richards has sufficient experience 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 JORC Code. Mr Richards consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Forward-Looking Statements This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Amex Resources Limiteds planned exploration programme and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may, "potential," "should," and similar expressions are forward-looking statements. Although Amex Resources Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.