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Phoenix Gold Limited ASX: PXG, PXGOA Phoenix Gold Ltd ABN 55 140 269 316 73 Dugan Street PO Box 100 Kalgoorlie WA 6430 Phone +61 8 9021 2704 Fax +61 8 9021 3393 www.phoenixgold.com.au [email protected]

3 APRIL 2012

SUCCESSFUL

DRILLING

PROGRAMME

AT

CASTLE

HILL

EXTENDS

MINERALISATION

Highlights

 DRILLING EXTENDS SIGNIFICANT GOLD MINERALISATION AT CASTLE HILL

 SIGNIFICANT DRILL RESULTS INCLUDE:

o 33 metres at 1.18g/tAu from 81 metres o 3 metres at 7.93g/tAu from 76 metres o 8 metres at 2.72g/t Au from 99 metres o 4 metres at 4.93g/t Au from 51 metres o 3 metres at 5.69g/tAu from 25 metres o 3 metres at 5.56g/tAu from 97 metres o 3 metre at 2.84g/t Au from 87 metres

 NEW ZONE OF MINERALISATION IDENTIFIED TO THE WEST OF CURRENT RESOURCE

ENVELOPE

 CASTLE HILL AND TOTAL RESOURCE UPGRADE EXPECTED IN THE JUNE QUARTER 2012

 DRILLING CONTINUES AT CASTLE HILL AND BROADS DAM PROJECTS

Figure 1: Cross section - Castle Hill Project (PXG prefix holes denote recent drilling)

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Overview

Phoenix Gold Limited (ASX: PXG, “Phoenix”) is pleased to announce the results of its recent drill programme at the Castle Hill Project in the Goldfields region of Western Australia.

During February and March, a total of 13 reverse circulation (“RC”) drill holes totalling 1,510 metres were completed to the west and east of the current Castle Hill Resource envelope (Figure 2). The aim of the programme was to:

 Identify continuity of a North West trending structure immediately to the west of Castle Hill near old underground workings from the early 1900s (London).

 Continue testing the higher grade shear hosted mineralisation within the basalt to the east of the Mick Adam Tonalite which contains a large proportion of the Resource.

Figure 2. Drilling locations and Resource extension targets at Castle Hill

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The first of several drilling campaigns planned this year at Castle Hill has been successful in identifying a new zone of mineralisation immediately west of the current Resource envelope and intersecting significant higher grade mineralisation in the basalt abutting the tonalite. The deeper drilling also confirmed improved grades and continuity of mineralisation at depth.

Drilling completed to the west of the current Resource envelope (London trend) intersected high grade gold mineralisation of similar width and tenor as intersected in previous drilling. Previous interpretation of the broad spaced drilling in the London area had inferred that high grade intercepts had short spatial continuity (<20 metres).

The drilling completed (Figure 3) indicates that the high grade mineralisation does in fact have greater continuity and that high grade mineralisation previously associated with Mick Adam correlates with this higher grade structure (London Shear). This mineralisation remains open to the north-east.

Drilling completed to the east of the current resource envelope intersected several narrow zones of gold mineralisation associated with quartz shears (Figure 1) within basalt similar in style to the Outridge mineralisation.

This mineralisation has relatively high grade variability though is inferred as being continuous down dip. Due to a lack of drilling in this area it had previously been assumed to be un-mineralised, however the intercepts from this programme indicates the potential for significant mineralisation.

Figure 3. Cross section – new mineralised zone immediately west of Castle Hill

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The drilling forms part of the current 50,000 metre drilling campaign for 2012 focussed initially on increasing the resource base at the flagship Castle Hill and Broads Dam Projects with a combination of deeper RC and diamond drilling. In parallel, early stage exploration targets will be tested focussed on identifying new discoveries principally within the Ora Banda – Grants Patch and Kunanalling gold projects.

Drilling completed at Castle Hill in 2011 successfully targeted extensions to known mineralisation and grew the resource to 10.99 million tonnes at 1.6 g/t Au for 559,000 ounces (Table 1). The updated Resource model for Castle Hill will be completed in the June Quarter with a full resource update for the Company expected at the same time.

“We have commenced our 2012 drilling programme and are very excited to see such consistent widths and grades as we test Castle Hill’s potential laterally and at depth,” Managing Director Jon Price said.

“Castle Hill continues to demonstrate its potential as a very large shallow low cost open cut gold mine and feasibility work has commenced on stage 1 and will be a significant part of our 5-7 year mine plan scheduled for completion in December this year,” Mr Price said.

For further information please contact

Investors Media

Jon Price, Managing Director - PXG Michael Vaughan or Fiona Meiklejohn

(08) 90 212 704 FTI Consulting

[email protected] (02) 8298 6100 or (08) 9386 6100

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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 and to self- fund aggressive exploration through the development of advanced mining projects that can deliver cash flow in the short term.

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.

Table 1: Phoenix Gold – Summary of Mineral Resources

Notes:

1. Stockpiles report material mined from historical mining operations at Lady Jane, Broads Dam, Premier, Catherwood, Bluebell, Mick Adam and Shamrock.

2. The information in this report that relates to Exploration results and Mineral Resources is based on information compiled by Mr Ian Copeland. Mr Copeland, who is a member of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Geoscientists, is a full time employee of Phoenix Gold. Mr Copeland has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Copeland has given his consent to the inclusion in the report of matters based on the information in the form and context in which it appears.

3. Information that relates to exploration and production targets refers to targets that are conceptual in nature, where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

4. The information on exploration targets is based on a conceptual range of targets as follows: Tonnage range: 2 million to 20 million tonnes, grade range: 1.5 g/t Au to 5 g/t Au

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www.phoenixgold.com.au

Mt Au (g/t) Au Oz Mt Au(g/t) Au oz Mt Au (g/t) Au oz Mt Au (g/t) Au oz Castle Hill 0.18 3.4 20,000 5.46 1.6 273,000 5.35 1.5 266,000 10.99 1.6 559,000 Broads Dam 1.32 2.0 84,000 3.79 1.9 236,000 5.11 2.0 321,000 Kunanalling 0.49 2.4 38,000 0.78 1.6 40,000 2.91 1.8 166,000 4.18 1.8 245,000 Ora Banda/ Grants Patch 1.52 2.0 97,000 5.12 1.8 300,000 6.64 1.9 397,000 Carbine 1.40 1.7 78,000 1.40 1.7 78,000 Zuleika North 0.51 2.5 41,000 0.27 2.5 22,000 0.78 2.5 63,000 Stockpiles 0.50 1.2 19,000 0.50 1.2 19,000 Total 0.67 2.7 58,000 10.08 1.7 555,000 18.84 1.8 1,069,000 29.59 1.8 1,682,000 Project Measured Mineral Resource Indicated Mineral Resource Inferred Mineral

Resource Total Mineral Resource

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Appendix 1

Table 2 – Castle Hill Project – Significant RC drilling Results (see Note 2 above)

Note to Table 2: Analysis by 30g Fire assay. Results compiled using a 0.5g/t Au lower cut-off. Maximum of 2m down hole dilution included

Hole_ID North East ADHRL End of Hole

Depth mFrom mTo

Interval Width Grade g/t Intercept Description PXGC0239 6608842.226 311384.514 430 100 23 24 1 0.88 1m @ 0.88 ppm PXGC0239 60 63 3 0.66 3m @ 0.66 ppm PXGC0239 74 75 1 1.08 1m @ 1.08 ppm PXGC0240 6608861.377 311400.584 430 90 29 30 1 1.40 1m @ 1.40 ppm PXGC0240 62 64 2 1.00 2m @ 1.00 ppm PXGC0241 6608880.528 311416.654 430 100 0 1 1 0.58 1m @ 0.58 ppm PXGC0241 13 14 1 1.40 1m @ 1.40 ppm PXGC0241 25 28 3 5.69 3m @ 5.69 ppm PXGC0241 34 35 1 1.94 1m @ 1.94 ppm PXGC0241 51 55 4 4.93 4m @ 4.93 ppm PXGC0241 92 94 2 0.87 2m @ 0.87 ppm PXGC0241 99 100 1 1.48 1m @ 1.48 ppm PXGC0242B 6608807.041 311451.691 430.447 140 11 12 1 1.69 1m @ 1.69 ppm PXGC0242B 96 102 6 0.93 6m @ 0.93 ppm PXGC0242B 111 114 3 0.74 3m @ 0.74 ppm PXGC0242B 117 119 2 2.15 2m @ 2.15 ppm PXGC0243 6608826.82 311468.4 430.3 120 39 41 2 0.87 2m @ 0.87 ppm PXGC0243 51 58 7 0.82 7m @ 0.82 ppm PXGC0243 61 62 1 0.79 1m @ 0.79 ppm PXGC0243 66 67 1 0.93 1m @ 0.93 ppm PXGC0243 81 114 33 1.18 33m @ 1.18 ppm PXGC0244 6608894.4 311525.5 428.59 120 7 9 2 0.88 2m @ 0.88 ppm PXGC0244 22 30 8 0.77 8m @ 0.77 ppm PXGC0244 36 37 1 0.73 1m @ 0.73 ppm PXGC0244 46 47 1 2.58 1m @ 2.58 ppm PXGC0244 61 63 2 0.81 2m @ 0.81 ppm PXGC0244 66 67 1 0.77 1m @ 0.77 ppm PXGC0244 76 79 3 7.93 3m @ 7.93 ppm PXGC0244 84 85 1 0.61 1m @ 0.61 ppm PXGC0244 90 91 1 1.85 1m @ 1.85 ppm PXGC0244 94 95 1 1.19 1m @ 1.19 ppm PXGC0244 99 107 8 2.72 8m @ 2.72 ppm PXGC0244 110 111 1 0.78 1m @ 0.78 ppm PXGC0244 118 120 2 2.02 2m @ 2.02 ppm PXGC0245 6608908.951 311540.664 427.874 120 0 2 2 1.48 2m @ 1.48 ppm PXGC0245 66 68 2 0.97 2m @ 0.97 ppm PXGC0245 87 90 3 2.84 3m @ 2.84 ppm PXGC0245 100 102 2 1.58 2m @ 1.58 ppm PXGC0245 115 116 1 1.09 1m @ 1.09 ppm PXGC0246 6608926.251 311558.692 427.024 120 36 37 1 1.93 1m @ 1.93 ppm PXGC0246 53 54 1 1.84 1m @ 1.84 ppm PXGC0247 6608943.55 311576.719 426.173 120 65 66 1 0.85 1m @ 0.85 ppm PXGC0247 94 97 3 0.93 3m @ 0.93 ppm PXGC0248 6608960.85 311594.747 425.322 120 PXGC0249 6608980.001 311610.817 425.322 120 83 84 1 0.50 1m @ 0.50 ppm PXGC0249 97 100 3 5.56 3m @ 5.56 ppm PXGC0250 6608999.152 311626.887 425.322 120 63 64 1 0.88 1m @ 0.88 ppm PXGC0250 92 93 1 1.28 1m @ 1.28 ppm PXGC0250 105 106 1 0.51 1m @ 0.51 ppm PXGC0251 6609018.303 311642.956 425.322 120 36 37 1 0.72 1m @ 0.72 ppm PXGC0251 60 61 1 1.36 1m @ 1.36 ppm PXGC0251 72 73 1 1.40 1m @ 1.40 ppm PXGC0251 89 90 1 0.79 1m @ 0.79 ppm

Collar Location (MGA94_51)

No Significant Intercept