Phoenix Gold Resources Corp. (TSX-V: PXA) is pleased to announce that it has completed its non-brokered private placement offering raising gross proceeds of $1,000,000 through the sale of 2,500,000 units of the Company at a price of $0.40 per Unit. Each Unit is comprised of one common share and one common share purchase warrant of the Company, each Warrant entitling the holder to purchase an additional common share of the Company at a price of $0.60 per Common Share until 24 months from the date of issuance.

Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 2,500,000 Units at $0.40 each for consideration of approximately $1,000,000, pursuant to the private placement. As a result, Mr. Sprott beneficially owns and controls 2,500,000 Common Shares of the Company and 2,500,000 Warrants, representing approximately 6.5% of the issued and outstanding Common Shares on a non-diluted basis and approximately 12.2% of the issued and outstanding Common Shares on a partially diluted basis assuming exercise of the Warrants acquired hereunder forming part of the Units. Prior to the current acquisition, Mr. Sprott did not beneficially own or control any securities of the Company.

The Units were acquired by Mr. Sprott through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire or sell additional securities of the Company, including on the open market or through private transactions, in the future depending on market conditions, reformulation of plans and/or other relevant factors.

A copy of Mr. Sprott’s early warning report with respect to the foregoing will appear on the company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR“) at www.sedar.com and may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (2176423 Ontario Ltd., 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

The Company intends to use the net proceeds of the Private Placement for working capital and general corporate purposes. No finders fees were paid in respect of the Private Placement.

The Company has received conditional approval for the Private Placement from the TSX Venture Exchange. All Common Shares issued pursuant to the Private Placement will be subject to a four month hold period from the date of issue.

About Phoenix Gold Resources Corp.

Phoenix Gold Resources Corp. is a mineral exploration and development company, focused on exploration, development and acquisition of mineral properties. The Company’s Phoenix Gold Project consists of the Plumas Property and Eldorado, covering approximately 24 hectares, and is located in the Battle Mountain Mining District, Nevada, which is host to a series of gold mines. The York Harbour Property is 3,900 hectares in area that includes the mine site of past production of copper and zinc at the York Harbour Mine located in the Bay Islands region of Newfoundland.