SOURCE: PHI GROUP, INC.

PHI Group, Inc.

February 24, 2011 07:30 ET

PHI Group PHI Energy Corp and Garuda Coal to Engage in Coal Mining and Coal Trading in Indonesia

LOS ANGELES, CA and FRANKFURT, GERMANY--(Marketwire - February 24, 2011) - PHI Energy Corporation, a minority owned subsidiary of PHI Group, Inc., (OTCBB: PHIE) (FRANKFURT: PR7), a company engaged in consulting services, real estate development, mining and energy, announced today that it has signed a letter of intent with Garuda Coal Pte Ltd, to establish a joint venture company to pursue coal mining opportunities in Indonesia.

PHI Energy expects to conclude a joint venture agreement with Garuda Coal within 30 days of the signing of the letter of intent. PHI Energy will be the controlling shareholder in the joint venture company, providing off-take contracts and financing to the project while Garuda Coal will be responsible for securing necessary concessions rights and managing local administrative and regulatory affairs.

The contemplated joint venture company will be domiciled in the Republic of Indonesia with key clients from China, India and Korea, aiming to secure sufficient coal resources to support monthly production of one to two million metric tons with 15 to 20 years of life.

Edwin Cussoy Indradewa, Chairman of Garuda Coal, stated, "We look forward to concluding the joint venture agreement, implementing key tasks of the business plan and achieving major milestones that will create tremendous synergies and economic benefits for all parties involved."

Allen Wu, Chairman of PHI Energy Corp, said, "We are delighted to cooperate with Garuda Coal in this important energy initiative and are confident that with a potential large source of supply and foreseeable sizable off-take contracts, the joint venture should be very successful in the near future."

About PHI Energy Corporation
Founded originally in 2005 as Providential Oil & Gas, Inc., PHI Energy Corporation has been engaged in oil and gas joint ventures with various U.S. companies in Texas, and California. The Company has signed an agreement with AXN Group, LLC (AXNG) to engage in coal and other energy-related commodities.

About Garuda Coal Pte Ltd
Garuda Coal Pte Ltd is a subsidiary of Garuda Resources Pte Ltd (GRL), a holding company established in Singapore to focus on investing in natural resources of Indonesia. GRL also has subsidiaries Garuda Gold Pte Ltd, Garuda Nickel Pte Ltd and Garuda Iron Pte Ltd. 

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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