Philex Gold Inc.
TSX VENTURE : PGI

Philex Gold Inc.

January 11, 2008 08:00 ET

Philex Gold Announces Results of Infill Drill Holes at the Boyongan and Bayugo Properties

TORONTO, ONTARIO--(Marketwire - Jan. 11, 2008) - Philex Gold Inc. (TSX VENTURE:PGI) is pleased to report that three additional infill drill-holes, JSD-25, JSD-26 and JSD-26A have been completed while four holes, TSD-124, TSD-125, JSD-27 and JSD-28 are currently in progress at the Bayugo Project. In addition, a deep-hole rig is currently drilling hole TSD-123 at the Northwest Hypogene Zone.

With the exception of drilling the Northwest Hypogene Zone at greater depths, drilling has concentrated at the Bayugo deposit after the completion of the resource definition drilling program at the Main Boyongan deposit. Bayugo is a distinct porphyry deposit located approximately 1.3 kilometers northwest of the main Boyongan deposit and peripheral to the Exotic Copper Zone. Bayugo is covered by Exploration Permit 0013-XIII and MPSA 149-99-XIII while the Boyongan deposit is covered by MPSA 149-99-XIII.

We expect that in January 2008, a seventh rig will be mobilized to drill test the occurrence of concealed porphyry copper-gold system in Magpayang Prospect, some 4 kilometers southeast of Boyongan. The Magpayang Prospect is characterized by numerous float samples with anomalous gold values and the boulders may have originated from an eroding porphyry copper gold system concealed beneath Quarternary alluvium cover.

Assay results of hole TSD-122 and partial results of holes TSD-123, TSD-124 and JSD-25 are presented in the following table. All quoted depths are measured in meters (m) downhole, and all assay results have had a cut off of 0.1% copper applied.



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Grades
Length of ---------------------
Hole No. Final Depth Intercept Intercept Copper (%) Gold (g/t)
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TSD-122 1102m 378-1102m 724m 0.29 0.45
411-432m 21m 0.29 1.01
483-696m 213m 0.77 1.03

JSD-25 1037m 387-1037m 650m 0.20 0.22
976-1030m 54m 0.38 0.75

TSD-123 1290m(i) 241-1082m 841m 0.30 0.33
581-1052m 471m 0.40 0.45
954-996m 42m 0.53 0.67
1040-1052m 12m 1.05 1.14

TSD-124 937m(i) 379-701m 322m 0.96 0.91
433-701m 268m 1.11 0.93
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(i)Hole in progress


"Hole TSD-124 confirms the potential of a significant zone of high grade, quartz stockwork hosted copper-gold mineralisation within the Bayugo Porphyry Deposit initially intersected in hole TSD-122. Deep hole TSD-123 has progressed steadily with increasing intensity of alteration, mineralisation and the occurrence mineralised hydrothermal breccia clasts indicating the presence of a deep seated progenitor intrusive possibly topping out at greater than 1100 metres depth. Geologically exciting as these results may be, we caution our stakeholders that discoveries like these are at least a few years away from being declared a mineral resource or an ore reserve, and it may take another three years after that to become a mine. In short, the potential of the area has been upgraded but the discoveries have no immediate positive effect on the pre-feasibility study of Boyongan currently being undertaken by Anglo American," said Walter Brown, CEO and Chairman of Philex Gold.

Detailed geologic information on holes TSD-123 to TSD-125 and JSD-25, JSD-26, JSD-26A, JSD-27 and JSD-28 follows:

TSD-123

The hole was collared at the site of TSD-111 and drilled southwards at -75o to test the "Exotic Copper Zone" and extend to test the deep seated Western Hypogene Zone at depth. The hole intersected unaltered cover from collar to a depth of 246m.

From 246m to the current depth of 1290m weakly to strongly potassic altered and variably argillic overprinted, mineralised diorite porphyry, diorite breccia and localized hydrothermal breccia was intersected. The base of oxidation was noted at 410m and supergene mineralisation comprises cuprite, limonite, chalcocite and native copper. Hypogene sulphide mineralisation consists of chalcopyrite, bornite and pyrite occurring as fracture fillings and within minor quartz-magnetite-sulphide stockworks. The intensity of alteration, mineralisation and quartz veining are increasing significantly with depth.

The hole intersected several dark grey, matrix supported hydrothermal breccias from 851m to 940m and from 1020m to 1052m depth. Clasts are dominantly cream-brown highly silicified and intensely potassic altered diorite with abundant magnetite and host quartz-bornite-magnetite-chalcopyrite veinlets. The matrix is highly silicified, biotite-rich, containing abundant magnetite and minor bornite and chalcopyrite. The source of the mineralised hydrothermal breccia clasts and the hydrothermal matrix is presumed to be a blind progenitor intrusive possibly topping out at greater than 1100m depth. Drilling is in progress and the hole is designed to reach a depth of +1600m in testing the geological target.

TSD-124

The hole was collared 115m northeast of TSD-77 and drilled westwards at -70 degrees to test the high grade mineralisation within the eastern portion of the Bayugo previously intercepted in TSD-122. The hole intersected unaltered cover from collar to a depth of 378m.

From 378m to the current depth of 937m moderately to strongly potassic altered and variably argillic overprinted, mineralised diorite porphyry was intersected. Intense quartz stockworks are developed from 415m to a depth of 815m within a progenitor, diorite porphyry. The base of oxidation was noted at 493m depth and supergene mineralisation comprises hematite, cuprite, azurite, malachite, chalcocite and native copper. Hypogene sulphide mineralisation consists of chalcopyrite, bornite and pyrite occurring as disseminations and within quartz-magnetite-sulphide stockworks. Drilling is in progress.

TSD-125

The hole was collared approximately 130m north of TSD-73 and drilled northwards at -65 degrees to test the northern extension of the high grade zone within the eastern portion of the Bayugo Porphyry. The hole intersected unaltered cover from collar to the current depth of 140m. Drilling is in progress.

JSD-25

The hole was collared approximately 200m south of TSD-122 and drilled northwards at -70 degrees to test the southern extension of the high grade zone within the Bayugo porphyry located in hole TSD-122. The hole intersected unaltered cover from collar to a depth of 387m.

From 387m to the final depth of 1037m weakly to strongly potassic altered and variably argillic overprinted, mineralised diorite porphyry, diorite breccia, basalt breccia and basalt was intersected. The base of oxidation was noted at 408m and supergene mineralisation comprises hematite, limonite and chalcocite. Hypogene sulphide mineralisation consists of chalcopyrite, bornite, molybdenite and pyrite occurring as disseminations and within fractures. Localised epidote-garnet-magnetite-chlorite-pyrite-chalcopyrite skarn lenses were intersected from 525m to 673m depth. Increasingly intense potassic alteration is developed at depth.

JSD-26

The hole was collared approximately 140m southeast of JSD-23 and drilled westwards at -75 degrees to test the southern extension of the high grade mineralisation within the Bayugo porphyry discovered in hole JSD-23. The hole intersected unaltered cover from collar to the final depth of 223m. The hole was abandoned in deep cover due to technical reasons.

JSD-26A

The hole was collared adjacent to JSD-26 and drilled westwards at -75 degrees to test the southern extension of the high grade mineralisation within the Bayugo porphyry located in hole JSD-23. The hole intersected unaltered cover from collar to the final depth of 100m. The hole was abandoned in cover due to technical reasons.

JSD-27

The hole was collared approximately 200m south of JSD-23 and drilled northwards at -70 degrees to test the southern extension of the high grade zone within the Bayugo porphyry discovered in hole JSD-23. The hole intersected unaltered cover from collar to the current depth of 406m. Drilling is in progress

JSD-28

The hole was collared approximately 150m east of JSD-27 and drilled northwards at -65 degrees to test the southern extension of the high grade zone within the Bayugo porphyry discovered in hole JSD-23. The hole intersected unaltered cover from collar to the current depth of 94m. Drilling is in progress.

All assays were conducted on intervals of split core, on average 3m in length, by Intertek Testing Services at their laboratory in Jakarta, under the supervision of Anglo American. Quality control was monitored by incorporation of assay standards and duplicates.

The assay data provided above was communicated to the Company by Anglo American Exploration (Philippines), Inc. which, under the terms of the joint venture, is responsible for conducting exploration on the Surigao Properties. Philex Gold has not independently verified this information.

Copper equivalents on the attached Drill Hole Location Map have been calculated on the following basis: % Copper equivalent equals Copper % + (Gold grams/tonne x 0.60) with copper at $1.15 per pound and gold at $475 per ounce.

To view a map of Boyongan - Bayugo Geologic Map and Drill Hole Location, please visit the following link: http://www.ccnmatthews.com/docs/boyonganmap.pdf

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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