PHOENIX GOLD RESOURCES CORP. announced the commencement of its Phase 3 diamond drilling program on the York Harbour Property (the "Property") in Newfoundland. The third phase of exploration drilling on the Property commenced on January 19, 2022 and is expected to be completed in March, with further follow-up drilling expected contingent on further favourable results.

The current proposed program includes 22 drill holes, totalling 4,000 metres of NQ-size diamond drilling. To date, the Company has drilled 38 NQ-size drill holes, totalling 5,784 m resulting in 1,219 drill core samples comprising disseminated to massive sulfide mineralization. The third phase drilling program will continue to explore the main historical mine area focusing on expanding the existing zones of volcanic- hosted massive sulfide ("VHMS") copper-zinc- silver-cobalt mineralization along the known 450-metre strike length.

In addition to defining mineralization along strike, this drilling will also test up and down dip extensions of the known mineralization, such as the 24.3m intersection in YH21-18. Figure 2 is a plan view of the proposed Phase 3 drill sites. A 3D Borehole EM (`BHEM') geophysical survey program is being carried out concurrently with the drilling to aid in identifying mineralization that might be adjacent to a completed drill hole.

The Phase 1 diamond drilling program validated historical results within the `A', `G' and `H' zones and beyond. It also confirmed the accessibility of mineralization from both the surface and from the existing underground workings. Nine diamond drill holes were competed in Phase 1 and 29 additional drill holes were completed in Phase 2 totalling 4,562m.

Of the 38 holes drilled to date, 29 contain significant semi-massive or massive VHMS mineralization over drilling lengths of less than a metre to 26 m in drill hole YH21-18. Additional analytical results are still pending from the 2021 Phase 2 drilling and are expected in First Quarter 2022.