Phoenix Gold : Kintore Phase 2 Drilling Results

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Dated: 8th January 2015

DRILLING AT PHOENIX'S KINTORE PROJECT DELIVERS STRONG RESULTS

HIGHLIGHTS

• Phase 2 of infill and extensional drill programme complete

• Significant mineralisation intercepted including:

  • 1m at 53.4g/t Au from 38m

  • 3m @ 10.0g/t Au from 22m (includes 1m @ 22.6g/t Au)

  • 7m at 3.5g/t Au from 97m

  • 3m @ 7.4g/t Au from 117m

  • 1m at 27.4g/t Au from 3m

  • 2m @ 10.3g/t Au from 60m

  • 7m @ 2.9g/t Au from 72m

  • 6m @ 3.4g/t Au from 97m

  • 13m at 1.7g/t Au from 120m

  • 13m @ 1.4g/t Au from 38m

• Drilling extends mineralisation at depth and to the south and east with mineralisation remaining open in all directions

• Resource modelling completed by independent consultants

• Updated Resource expected in coming weeks

Figure 1: Kintore project (Castle Hill Stage 2) cross section 3 (see Figure 3)

ASX: PXG

Phoenix Gold Ltd

ABN 55 140 269 316

73 Dugan Street

PO Box 100

Kalgoorlie WA 6430

Phone [phone]

Fax [phone]

www.phoenixgold.com.au

[e-mail]

Overview

Phoenix Gold Limited (ASX: PXG) ("Phoenix" or the "Company") is pleased to announce results from phase 2 of its infill and strike extension drilling programme at the Kintore project (Castle Hill Stage 2), part of the flagship Castle Hill gold camp (Figure 2). The project is located on the highly prospective Kunanalling shear zone in the heart of the Western Australian Goldfields less than 50 kilometres from the regional mining centre of Kalgoorlie.

Figure 2: Kintore project (Castle Hill Stage 2) location and regional geology

"These latest results from Phase 2 of the Kintore drilling programme continue to demonstrate the potential scale of this very exciting gold camp with mineralisation intercepted in all areas tested to date on this large Tonalite stock work system," Managing Director Jon Price said.

"Phoenix grew the first stage of Castle Hill from 253,000 ounces to 1.88 million ounces using the same exploration approach and we now look forward to releasing the updated Resource for this project area in the coming weeks," Mr Price said.

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8th January 2015

During the September and December Quarters 2014, a total of 102 Reverse Circulation ("RC") holes totalling 11,125 metres were completed at the Kintore Project (Castle Hill Stage 2). The aim of the programme was to test further extensions to the mineralisation to the south, north and east of the deposit, validate historic holes drilled in the 1980s and infill areas for conversion into the Indicated and Inferred categories for estimation of Resources.

Figure 3: Kintore project (Castle Hill Stage 2) - Drilling plan and cross section location

8th January 2015

Figure 4: Kintore project (Castle Hill Stage 2) cross section 2 (see Figure 3)

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Figure 5: Kintore project (Castle Hill Stage 2) cross section 1 (see Figure 3)

Significant mineralisation intercepted from the latest round of drilling includes 1m at 53.4g/t Au from 38m; 3m at 10.0g/t Au from 22m; 7m at 3.5g/t Au from 97m; 3m at 7.4g/t Au from 117m; 1m at 27.4g/t Au from 3m; 2m at 10.3g/t Au from 60m; 7m at 2.9g/t Au from 72m; 6m at 3.4g/t Au from 97m, 13m at 1.7g/t Au from 120m and 13m at 1.4g/t Au from 38m.

The drilling intersected supergene and primary gold mineralisation to the south and east of the currently defined resource estimate. Drilling of the northern contact of the tonalite with surrounding mafic rocks has shown gold mineralisation is constrained to the tonalite. The gold mineralisation remains open to the east and the eastern tonalite contact is yet to be tested with RC drilling. The eastern tonalite contact is known to host gold mineralisation at the Ridgeback, Picante and Wookie deposits 4km south of the currently defined Kintore gold mineralisation.

Kintore Geological Summary

The Kintore project, also known as Castle Hill Stage 2, covers the northern margin of the syn-tectonic granitoid intrusion named the Kintore Tonalite. The northern margin of the tonalite contacts a sequence of tholeiitic and high-magnesian basalts, which have been metamorphosed to hornfels facies adjacent to the contact. The Kintore tonalite is a fine to medium grained massive granitoid of granodioritic composition which is elliptical in plan. The 2km wide tonalite intrudes ultramafic rocks of the Burbanks Formation in the Telegraph syncline to the east, and mafic/ultramafic rocks of the Burbanks and Hampton Formations to the west. In the Kintore project area the tonalite is 1.78km in width. The mineralisation at Kintore delineated to date is predominantly orientated E-W with a southerly dip and is 800m in strike length and has a 400m horizontal width.

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8th January 2015