Mr. Paul Jones reports

PHOENIX GOLD NOT TO PROCEED WITH REVERSE TAKEOVER OF FOX AUTOMOTIVE

Further to Phoenix Gold Resources Corp.'s initial news release dated April 17, 2019, originally announcing a binding letter of intent with Fox Automotive Switzerland AG dated April 13, 2019, and its subsequent news release dated July 3, 2019, announcing the amendment of the LOI, the company will not be able to proceed with the proposed transaction to acquire all of the issued and outstanding shares of Fox. Considering the current global situation, it is uncertain that the parties will be able to complete the proposed transaction. Since the proposed transaction was not completed in the time allowed under the LOI, the LOI is effectively terminated.

Phoenix will continue to pursue all opportunities in the mining industry and seek the resumption of trading of its common shares on the TSX Venture Exchange. As required under the policies of the exchange, the removal of the halt will be subject to approval of the exchange.

We seek Safe Harbor.