It is an underwriting agreement.FEBRUARY 2012 OPTIONS...

It is an underwriting agreement.

FEBRUARY 2012 OPTIONS UNDERWRITTEN
Phoenix Gold Limited (ASX: PXG, “Phoenix”) is pleased to announce, in accordance with listing
rule 3.11.3, that it has entered into an Underwriting Agreement with Patersons Securities Limited
to underwrite the exercise of the remaining Company Options which expire on 28 February 2012
for an underwriting fee of 5% of the funds raised pursuant to the underwriting.
This will, subject to the terms of the Underwriting Agreement, guarantee that Phoenix Gold
receives A$7.16 million had all the options been exercised. This ensures Phoenix is well funded to
aggressively pursue the next exciting phase of Resource growth, development of a 5-plus year
mine plan, further stockpile treatment and development of the Catherwood and Blue Funnel gold
mines in 2012. The significant cash generated from the mines and stockpiled ore treatment will
fund further Resource growth at Castle Hill and Broads Dam and Greenfields exploration at Ora
Banda.
Managing Director Mr Jon Price commented, “the underwriting agreement received
overwhelming support from institutional investors. Now the seven million dollars from exercise
of these Options is guaranteed the Company can focus on another successful year in 2012”.
Phoenix is not aware of any reason why the ASX would not allow trading to recommence
immediately.