Phoenix Gold : Addintional Information On Updated Ore Reserve For Castle Hill Stage 1

`

Dated: 9th January 2014

ADDITIONAL INFORMATION ON UPDATED ORE RESERVE FOR CASTLE HILL STAGE 1

ASX: PXG, PXGOA

Overview

Phoenix Gold Limited (ASX: PXG) ("Phoenix" or the "Company") is pleased to provide the following additional information on the updated Ore Reserve that was announced on 27 December 2013.
In accordance with ASX Listing Rule 5.9.1 the Company provides the following information on environmental, government and infrastructure requirements that were used in the preparation of the new Ore Reserve at Castle Hill Stage 1.

Environment / Government

The following environmental work has been completed in support of the proposed mining operation at
Castle Hill Stage 1:

 Flora and Fauna surveys (inclusive of studies for micro-fauna)

 Surface water assessment

 Heritage surveys

 Waste rock characterisation

 Ground water assessment

There have been no significant matters identified as a result of the environmental studies that would impede the mining operations at Castle Hill Stage 1. Management strategies have been developed to address clearing of vegetation, wildlife interaction and rehabilitation of waste rock dumps. Waste rock characterisation studies have identified the main waste material to be non-acid forming. A suitable area has been identified within the bounds of the Phoenix tenure for the waste rock landform.
Clearing permits have been granted over the Castle Hill Stage 1 area by the Department of Environmental Regulation. Mining Proposals (including Mine Closure Plans) for the project have been compiled and these will be submitted three months prior to commencement of the mining operation. Miscellaneous Licences have been pegged over a nearby borefield and water licencing applications have been submitted to the Department of Water. De-watering licences will be submitted to the Department of Environmental Regulation.
As part of the Mine Closure Planning process, discussions with stakeholders (local community, pastoralists) have been undertaken. Discussions with the pastoralist regarding post mining land use are still in progress.
The Castle Hill Stage 1 Ore Reserve is situated on granted Mining Leases which have a grant life of 21 years and are renewable for a further 21 years. Applications for conversion of three surrounding prospecting licences have been submitted to the Department of Mines and Petroleum.
Miscellaneous Licences have been pegged which connect all of the satellite operations to Castle Hill Stage 1. These licenses have either been granted or are in the process of being granted. Mining Proposals relating to road construction on these licences will be submitted on an as needs basis. Environmental works will also be conducted on the satellite deposits on an as needs basis.

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]

Infrastructure

The proposed infrastructure utilised to generate cost estimates or required to support the operation in relation to the generation of Ore Reserves are as follows:

 A 2M tonne per annum CIL (Carbon in Leach) gold processing plant located at Castle Hill Stage 1, with operating costs based on the plant design calculated via consumption rates generated via the metallurgical test work.

 A Heap Leach facility with the design completed for Castle Hill Stage 1.

 An Integrated Waste Landform incorporating the Tailings Storage Facility which has been designed to incorporate tailings in five lifts for a period of 10 years.

 Support infrastructure including an administration building, workshop, store facility, reagents and fuel storage areas and water storage facilities.

ENDS

About Phoenix

Phoenix Gold Ltd is an emerging Australian exploration and development company with an extensive land holding on the Zuleika and Kunanalling shear zones northwest of Kalgoorlie in Western Australia, home to some of Australia's richest gold deposits.
Kalgoorlie-based Phoenix is aiming to significantly grow its JORC-classified resources, complete a definitive feasibility study on core projects and to self- fund aggressive exploration through the development of advanced mining projects that can deliver cash flow in the short term.
The 100% owned Castle Hill gold project is emerging as a flagship asset with the potential to become a multi-million ounce gold mine with excellent metallurgy and close to all major infrastructure. Castle Hill is one of many well-endowed gold systems within Phoenix's portfolio.
With a balanced mix of exploration (new discoveries and extensions) and development of a sustainable production profile, Phoenix aims to grow a significant gold company for the benefit of all stakeholders.
Visit us at www.phoenixgold.com.au

For further information please contact

Investors Media

Jon Price, Managing Director Fiona Meiklejohn
(08) 90 212 704 FTI Consulting [e-mail][phone] or 0415 660 076

Page 2 of 2

9th January 2014