Vancouver, British Columbia – TheNewswire - September 7th, 2021 – Phoenix Gold Resources Corp. (the "Company") (TSXV:PXA) (OTC:PGRCF) reports that it has completed the Phase 1 diamond drilling program at the York Harbour Copper-Zinc-Silver Project approximately 27 kilometers west of Cornerbrook, Newfoundland.

The Company completed nine drill holes, totalling 1,222 meters. Three holes were abandoned when they encountered a wide fault zone and a section of the 400-level adit. The other 6 drill holes all intersected sulphide mineralization. Drill core samples from drill holes YH21-04, -06, -08, and -09, have been split and sent to Activation Laboratories Ltd. (“Actlabs”) in Ancaster, Ontario for rush assays. All other samples will be sent to Actlabs for normal processing, with early results expected around mid-September.

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The Phase 1 drilling program was designed to confirm historical drilling results and reported grades for known lens of massive and semi-massive sulphide mineralization, primarily within the ’A’ and ’D’ zones. A Phase 2 Exploration Program is currently being planned and designed with a continued diamond drilling program of 3,000 to 4,500 meters. Phase 2 will also focus on gaining access to the 400-level adit, and possibly testing a new massive sulphide target at the No 4 Brook showing.  New drill permits are not required for the planned Phase 2 drilling program. The Company expects to engage a drilling company in the coming week and mobilization for Phase 2 drilling is expected to commence by late September.

Andrew Lee, CEO, commented: “Our team did a great job on a successful Phase 1 program, and we are very excited about what we are seeing so far. Visually, we can see mineralization where we expected but what is interesting will be the assay results from YH21-09 which is a new area that was never previously drilled.”

The Company would also like to announce it has granted incentive stock options to certain directors, officers, employees, and consultants of the Company to acquire an aggregate of 3,000,000 common shares in the capital of the Company at an exercise price of $0.55 (the "Options") in accordance with the Company's 10% rolling incentive stock option plan. The Options are exercisable for a two-year term expiring September 6, 2023.  As a result of this stock option grant, the Company has 3,000,000 stock options issued, representing 7.61% of its issued and outstanding share capital.

J.D. Blanchflower, P. Geo. is a qualified person in accordance with National Instrument 43-101 who has reviewed and accepted the technical material contained in this news release.

For further information:

Andrew Lee CEO, President and Director

Telephone: 778-302-2257 | Email: andrew@phoenixgoldresources.ca

Website: www.phoenixgoldresources.ca

1518 – 800 Pender Street W, Vancouver, BC, Canada  V6C 2V6

Cautionary Statement Regarding Forward-Looking Information

This news release may contain “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. Forward-looking statements herein include but are not limited to statements relating to the expected completion of the Private Placement, and are necessarily based upon a number of assumptions that, while considered reasonable by management, are inherently subject to business, market and economic risks, uncertainties and contingencies that may cause actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements. Readers are cautioned not to put undue reliance on these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.