Phoenix Gold Resources Intersects 47.79 M of 0.85% Copper at the York Harbour Property in Newfoundland

Highlights intersections from initial assay results:

• - YH21-04 with 9.51 m of 1.69% copper, 125.14 gpt cobalt, 0.13% zinc, and 1.43 gpt silver

(including 1.54 m of 5.2% copper, 287.12 gpt cobalt, 0.07% zinc, and 2.57 gpt silver)

• - YH21-06 with 47.79 m of 0.85% copper, 91.82 gpt cobalt, 0.57% zinc and 1.53 gpt silver

(including 1.60 m of 9.39% copper, 645.44 gpt cobalt, 0.18% zinc, and 6.9 gpt silver)

(including 5.80 m of 3.52% copper, 283.03 gpt cobalt, 0.09% zinc, and 2.80 gpt silver)

• - YH21-08 with 6.6 m of 0.62% copper, 66.92 gpt cobalt, 0.65% zinc and 3.37 gpt silver

  - YH21-09 with 9.54 m of 1.69% copper, 238.73 gpt cobalt, 0.11% zinc and 2.83 gpt silver

The drilling program was successful in validating historical drilling results with 6 of the 9 drill holes intersecting massive sulphide mineralization and suggesting even further mineralization extending beyond the historical 'A', 'G' and 'H' zones. Two diamond drill holes encountered a wide fault zone, and a third hole intersected a section of the 400 Level adit and was not completed to its intended depth.

Drill hole YH21-09 is especially significant since this drill hole was collared to intersect the 'A' zone at depth, but immediately intersected massive sulphide mineralization at the bedrock surface. This intercept indicates that there is significant exploration potential for discovering additional massive sulphide mineralization both along strike and beneath the upper mined portion of the 'A' zone.

The following table summarizes the intervals and weighted average grades for the 100 samples that were selected for their identified massive sulphide mineralization within the 4 drill holes. Results for the remaining 200 drill core samples that include further visual sulphide mineralization are anticipated in the next few weeks.

 ---------------------------------------------------------------------------------------
 |DDH      |From   |To    |Interval   |Copper   |Cobalt     |Zinc  
|Silver     |Target|
 |         |       |      |           |         |           |       | 
         |Zone  |
 |-------------------------------------------------------------------------------------|
 |No.      |(m)    |(m)   |(m)        |(%)      |(gpt)      |(%)   
|(gpt)      |      |
 |-------------------------------------------------------------------------------------|
 |         |       |      |           |         |           |  
    |           |      |
 |-------------------------------------------------------------------------------------|
 |YH21-04  |180.03 |189.54|9.51       |1.69     |125.14     |0.13  
|1.43       |H Zone|
 |-------------------------------------------------------------------------------------|
 |including|180.03 |182.00|1.97       |3.68     |257.80     |0.08  
|3.59       |      |
 |-------------------------------------------------------------------------------------|
 |including|188.00 |189.54|1.54       |5.20     |287.12     |0.07  
|2.57       |      |
 |-------------------------------------------------------------------------------------|
 |and      |196.38 |198.12|1.74       |0.49     |57.26      |1.63  
|0.84       |      |
 |-------------------------------------------------------------------------------------|
 |DDH(No.) |From(m)|To(m)
|Interval(m)|Copper(%)|Cobalt(gpt)|Zinc(%)|Silver(gpt)|Target|
 |         |       |      |           |         |           |       | 
         |Zone  |
 |-------------------------------------------------------------------------------------|
 |YH21-06  |146.26 |194.05|47.79      |0.85     |91.82      |0.57  
|1.53       |H Zone|
 |-------------------------------------------------------------------------------------|
 |including|146.26 |148.06|1.80       |1.19     |67.00      |5.09  
|13.47      |      |
 |-------------------------------------------------------------------------------------|
 |including|152.53 |154.85|2.32       |0.46     |48.29      |5.06  
|2.65       |      |
 |-------------------------------------------------------------------------------------|
 |including|178.35 |179.95|1.60       |9.39     |645.44     |0.18  
|6.90       |      |
 |-------------------------------------------------------------------------------------|
 |including|178.35 |184.15|5.80       |3.52     |283.03     |0.09  
|2.80       |      |
 |-------------------------------------------------------------------------------------|
 |including|179.95 |193.20|13.25      |1.30     |127.01     |0.06  
|1.19       |      |
 |-------------------------------------------------------------------------------------|
 |         |       |      |           |         |           |  
    |           |      |
 |-------------------------------------------------------------------------------------|
 |YH21-08  |122.30 |128.90|6.60       |0.62     |66.92      |0.65  
|3.37       |G Zone|
 |-------------------------------------------------------------------------------------|
 |including|122.30 |125.25|2.95       |0.81     |103.12     |0.50  
|3.34       |      |
 |-------------------------------------------------------------------------------------|
 |including|127.25 |128.90|1.65       |0.61     |36.34      |1.20  
|4.95       |      |
 |-------------------------------------------------------------------------------------|
 |         |       |      |           |         |           |  
    |           |      |
 |-------------------------------------------------------------------------------------|
 |YH21-09  |5.00   |14.54 |9.54       |1.69     |238.73     |0.11  
|2.83       |A Zone|
 ---------------------------------------------------------------------------------------

The above intervals are drilling lengths, not true widths, because the true orientation of the mineralization has not yet been established.

It is interesting to also note that there are significantly elevated cobalt values, ranging from less than 100 to 918 ppm, commonly associated with the higher copper grades. More studies will be carried on this valuable accessory element once the balance of the Phase 1 analytical results have been received.

Andrew Lee, President and CEO commented "As we hoped, the preliminary assay results from our Phase 1 drilling program have successfully demonstrated the copper potential at York Harbour and validated near-surface mineralization. The results from the remaining 200 drill core samples which are expected shortly, will further enhance our knowledge and understanding of the project as we enter Phase 2 drilling."

QA / QC Comments

Three hundred Phase 1 diamond drill core samples of sawn core have been collected from core lengths usually varying from 0.3 to 1.50 m depending upon geological and mineralogical constraints. Of this total, one hundred core samples were initially delivered to Activation Laboratories ("ActLabs") in Ancaster, Ontario, an ISO/IEC-accredited laboratory. There they were crushed to a nominal minus 2 mm, split into representative sub-samples and then pulverized to at least 95% minus 105 microns before collecting sub-sample pulps from each of the core samples.

All sub-sample pulps were initially analyzed for 36 elements using ICP QC procedures which included fusing with Na2O2. The fused samples were then dissolved in purified water and acidified with concentrated nitric and hydrochloric acids. The solutions were then measured by an ICP. Samples are analyzed with a minimum of 10 certified reference materials, and every 10th sample was prepared and analyzed in duplicate plus a blank is prepared every 30 samples and analyzed. In addition, a 5 g sub-sample pulp for each core sample was analyzed for gold using fire assay fusion techniques with an atomic absorption finish ('FA/AA'). On each tray of 42 samples there is two blanks, three sample duplicates and 2 certified reference materials, one high and one low (QC 7 out of 42 samples).

Based upon the initial ICP results, any element returning predetermined over-limit values, specifically for copper, zinc, silver and gold, were automatically assayed using conventional assay procedures. There were no over limit gold values but there were several copper, zinc and silver over- limit ICP results. For each of these samples a 5 g sub-sample was split and assayed using conventional fire assay procedures with an atomic absorption finish ('FA/AA'). The laboratory QA/QC procedures for these samples were the same as for the previous gold FA/AA analyses.

J.D. Blanchflower, P. Geo. is a qualified person in accordance with National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release.

For further information contact:

Andrew Lee CEO, President and Director

Telephone: 778-302-2257 | Email: andrew@phoenixgoldresources.ca

Website: www.phoenixgoldresources.ca

1518 - 800 Pender Street W, Vancouver, BC, Canada V6C 2V6

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