PGI Philex Gold

Philex Gold Inc. (the "Company") (TSX VENTURE: PGI) reports that the Board of Directors of its parent company, Philex Mining Corporation ("PMC"), has approved yesterday the acquisition of a 50% interest over the Boyongan copper-gold porphyry property from Anglo American Exploration (Philippines) BV ("Anglo") for $55 million. This acquisition will give the Philex group effectively full control over the property together with the Company's wholly-owned subsidiary, Philex Gold Philippines, Inc., which currently owns the other 50% interest in the mine.

The acquisition will be completed by way of the purchase by PMC of the shares currently owned by Anglo in the joint venture companies, Silangan Mindanao Mining Company, Inc. and Silangan Mindanao Exploration Company, Inc., which own four mining tenements, including Mineral Production Sharing Agreement No. 149-99-XIII that covers five parcels, among which is the Boyongan deposit, in Surigao, Southern Philippines.

The acquisition by PMC will resolve the Company's prior claim that Anglo should return the Boyongan property to the Company. The Company has agreed to abandon such prior claim in the light of the sale. The Company has received assurances from PMC that it will assist the Company to meet its obligations until the end of 2010.

The purchase by PMC of the shares of Anglo in the Boyongan deposit joint venture companies is subject to the execution of definitive agreements for the transaction.

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

Contacts: Philex Gold Inc. Rogelio G. Laraya (632) 746-8756 (632) 634-4441 (FAX) Email: rglaraya@yahoo.com.ph