Phoenix Gold Increases Current Drill Program

TORONTO, ON – Phoenix Gold Resources Corp reported the completion of the third drill hole, and plans to add a number of drill holes to the current drill program because of the increased potential size of the mineralization at its 100% owned Plumas Property, located immediately adjacent to Newmont’s Phoenix Fortitude mine at Battle Mountain, Nevada.

The first drill hole (CPL-1) has been completed to a depth of 447 feet. The second drill hole (CPL-4) was drilled to 588 feet and the third drill hole (CPL-7) was completed to a depth of 945 feet. Drilling has commenced on the fourth hole (CPL-8).

In both Hole CPL-4 and Hole CPL-7, the mineralization encountered in each drill core exceeded the Company’s expectations and the lengths of the individual drill holes were consequently extended by nearly 50% in each case to capture the mineralization that was present.

The Company’s technical management and consultants have determined that the mineralized system that has been intersected by the first 3 drill holes exceeds the dimensions that were was previously expected and have recommended that the number of drill holes be increased by 2 holes (CPL-9 and CPL-10) to 10 holes and that the drill footage be increased by a further 1,200 feet to delineate the extent of the mineralization.

The drill core is currently being assayed by the Chemex ALS Lab in Reno, Nevada. Assay results are pending and accordingly there is no assurance that presence of mineralization in the drill core will result in positive assay results.

The Plumas Property is an outcropping high grade gold-silver mineralized system that has seen limited underground mining historically, but which not been has drill tested until now. It is located adjacent to Newmont’s Phoenix-Fortitude pit to the west. The Plumas Property has two patented claims totaling 40 acres with extra lateral rights and one mill site claim.