This is a PSE stock exchange announcement by Philex. The stock has
fallen on this announcement. It strikes me as manipulative to make
much an announcement. What if the project was sub-economic, but now it
has more merit. Regardless, the copper equivalent grade of 0.8%Cu
should support a lucrative mining operation at the current high
prices. So buy on weakness.

Content : Philex Gold Inc., a Toronto-listed unit of Philex Mining
Corp., said a pre-feasibility study by its subsidiary's joint-venture
partner showed that developing the Boyongan property in the Surigao
mineral district in Mindanao would not be profitable enough. The unit,
Philex Gold Philippines, has a 50-50 partnership with Anglo-American
Exploration Philippines BV that covers the exploration of the 25,184-
hectare site. With Anglo directing the exploration program, the joint
venture discovered the Boyongan copper-gold porphyry deposit in 2000.
Philex Gold Inc. said it disagreed with Anglo's findings "on a number
of assumptions and conclusions made in the pre-feasibility study." It
said the main finding of the study was that a mining operation based
on these assumptions "would not provide an acceptable rate of return"
on the investment in Boyongan. These factors include currently defined
resources, proposed mining and processing methods, assumed long-term
copper and gold prices, and estimated capital and operating costs, it
said. It said the Anglo study showed that of the current resource
inventory at Boyongan of 218 M tons -- containing 0.51-percent copper
and 0.77 grams of golf per ton -- only 87 M tons at 0.68-percent
copper and 1.06 grams of gold a ton could be publicly reported as a
mineral resource. This means that only 39.9 percent of the current
resource inventory had "reasonable prospects of eventual economic
extraction" and the project would thus have a short mine life, it
said. Philex Gold Inc. said Anglo reported that other mineralized
centers had been discovered in the vicinity and were currently the
subject of intensive exploration and delineation drilling program
which the latter wants to continue throughout 2008. "Anglo also
reported that there is geologic evidence for two additional porphyry
copper-gold targets within two kilometers of Boyongan, which Anglo
plans to test over the next six months," Philex Gold Inc. said. "These
recent discoveries and their impact are not included in the current
pre-feasibility study," it added. Philex Gold Philippines has invoked
the terms of the joint-venture agreement that Anglo return the
Boyongan property to it, Philex Gold Inc. said. It said Anglo had
contested this assertion and that the partners were "continuing
discussions to resolve this issue."

This is a PSE stock exchange announcement by Philex. The stock has
fallen on this announcement. It strikes me as manipulative to make
much an announcement. What if the project was sub-economic, but now it
has more merit. Regardless, the copper equivalent grade of 0.8%Cu
should support a lucrative mining operation at the current high
prices. So buy on weakness.

Content : Philex Gold Inc., a Toronto-listed unit of Philex Mining
Corp., said a pre-feasibility study by its subsidiary's joint-venture
partner showed that developing the Boyongan property in the Surigao
mineral district in Mindanao would not be profitable enough. The unit,
Philex Gold Philippines, has a 50-50 partnership with Anglo-American
Exploration Philippines BV that covers the exploration of the 25,184-
hectare site. With Anglo directing the exploration program, the joint
venture discovered the Boyongan copper-gold porphyry deposit in 2000.
Philex Gold Inc. said it disagreed with Anglo's findings "on a number
of assumptions and conclusions made in the pre-feasibility study." It
said the main finding of the study was that a mining operation based
on these assumptions "would not provide an acceptable rate of return"
on the investment in Boyongan. These factors include currently defined
resources, proposed mining and processing methods, assumed long-term
copper and gold prices, and estimated capital and operating costs, it
said. It said the Anglo study showed that of the current resource
inventory at Boyongan of 218 M tons -- containing 0.51-percent copper
and 0.77 grams of golf per ton -- only 87 M tons at 0.68-percent
copper and 1.06 grams of gold a ton could be publicly reported as a
mineral resource. This means that only 39.9 percent of the current
resource inventory had "reasonable prospects of eventual economic
extraction" and the project would thus have a short mine life, it
said. Philex Gold Inc. said Anglo reported that other mineralized
centers had been discovered in the vicinity and were currently the
subject of intensive exploration and delineation drilling program
which the latter wants to continue throughout 2008. "Anglo also
reported that there is geologic evidence for two additional porphyry
copper-gold targets within two kilometers of Boyongan, which Anglo
plans to test over the next six months," Philex Gold Inc. said. "These
recent discoveries and their impact are not included in the current
pre-feasibility study," it added. Philex Gold Philippines has invoked
the terms of the joint-venture agreement that Anglo return the
Boyongan property to it, Philex Gold Inc. said. It said Anglo had
contested this assertion and that the partners were "continuing
discussions to resolve this issue."