SOURCE: PHI Gold Corporation

February 03, 2011 11:54 ET

PHI Gold Corporation Subsidiary Cooperates With AXN Group LLC (AXNG) in Asian Mining Projects

LOS ANGELES, CA and FRANKFURT, GERMANY--(Marketwire - February 3, 2011) - PHI Gold Corporation (PINKSHEETS: PHIG) (FRANKFURT: RPBA), a majority owned subsidiary of PHI Group, Inc. (OTCBB: PHIE) (FRANKFURT: PR7) (XETRA: PR7), announced today that its wholly owned subsidiary Indochina Resources, Inc. has signed an agreement with AXN Group, LLC (AXNG), a Delaware corporation, to cooperate in assembling and operating a portfolio of industrial minerals and natural resources in the wider Indochina region including Vietnam, Laos, Cambodia, Myanmar, Thailand and the Malaysian Peninsula.

According to the agreement, AXNG and Indochina Resources will jointly organize, arrange, acquire, contribute and operate a portfolio of industrial minerals and other natural resources originated from the wider Indochina region for mutual benefits of both companies. Under the agreement, AXN Group will own 11,200,000 shares, equivalent to 50%, of Indochina Resources stock. In addition, PHI Gold Corporation will distribute 3,000,000 shares of Indochina Resources stock to its shareholders of record as of February 28, 2011. Indochina Resources will register with the Securities and Exchange Commission to become a separate publicly traded company focused on industrial minerals and natural resources. 

Allen Wu, Managing Member of AXNG, said, "We look forward to working closely with PHIE and its subsidiaries in expedited implementation of Indochina mining assets via organic growth as well as mergers and acquisitions."

Henry Fahman, Chairman of PHI Group, Inc., said, "Since AXNG has already made significant progress in identifying and securing a number of properties in industrial minerals and natural resources in the wider region of Indochina, we are confident that our joint cooperation will create tremendous synergy and unlock substantial value for shareholders of both companies and our related subsidiaries in the near future."

About PHI Gold Corporation
PHI Gold Corporation is focused on acquiring and developing gold ore properties. The company has acquired Maisy Mae Mining Inc., a New Brunswick corporation, with mining operation in the Yukon Territory, Canada.

About AXN Group
AXN Group LLC (AXNG), founded in 1997, has been a global investor in natural resources sector, encompassing oil & gas, forestry/timber, and mining. In the mining area, AXNG focuses on gold, coal, iron ore/Iron sand, nickel and copper, with significant projects across the Americas, Africa and Association of South East Asian Nations (ASEAN, including Philippines, Myanmar, Laos, Cambodia, Vietnam, Malaysia, Thailand, Brunei, Indonesia and Singapore). For further information, inquire at info@axngroup.com

About PHI Group
PHIGroup (OTCBB: PHIE) provides M&A advisory and consulting services, develops real estate and natural resources and invests in special situations. PHIGroup, which specializes in raising capital and helping take companies public, is developing PHILand Ranch, (FRANKFURT: 1P8) one of the largest master planned communities in Vietnam. This project includes Pointe91, a luxury resort and premium residential community in Quang Nam province in central Vietnam (www.PHILandranch.com). PHIGroup is also engaged in mining activities through its majority-owned subsidiary PHI Gold Corporation (PINKSHEETS: PHIG). Website: www.phiglobal.com.

Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

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