Philex Gold Inc. Reports Fourth Quarter and Year-End Financial Results.

Business Editors

TORONTO, Ontario--(BUSINESS WIRE)--March 12, 2002

(All financial figures are unaudited and stated in U.S.

dollars; gold production and costs per ounce are stated in

equivalent ounces where appropriate)

PHILEX GOLD INC. (CDNX:PGI) recorded a net loss for the 12 months ended December 31, 2001 of $48.2 million or $1.19 per share, which included a provision for write-down of the Bulawan mine assets and deferred exploration costs of $41.6 million as a result of a decision during the fourth quarter to terminate all development work at the operation. This compares to a net loss of $11.3 million or $0.28 per share in the prior year, which included a translation loss of $4.0 million due to the change in the translation rate applied to materials and supplies inventory. In fiscal 2001, operating revenues amounted to $15.9 million while the cash flow from operations was $4.1 million or $0.10 per share. The comparable figures for the prior year were revenues of $14.3 million and a negative cash flow of $2.1 million or $0.05 per share. The realized price of gold for 2001 of $274 per ounce was lower than the prior year's $283 per ounce.

For the fourth quarter of 2001, revenues were $3.7 million and a net profit of $146,000 or $0.01 per share was incurred prior to the aforementioned write-down. Cash flow from operations was $1.2 million or $0.03 per share. For the comparable period of the prior year, revenues and net profit amounted to $6.7 million and $659,000 or $0.02 per share, respectively, prior to the foreign exchange translation loss. Cash flow from operations was $1.2 million or $0.03 per share. The realized price of gold for the quarter was $284 per ounce compared to $272 per ounce in the comparable quarter of the prior year.

                           Philex Gold Inc.
                           Financial Summary
              (unaudited; in thousands of U.S. dollars,
           except per share data which is in U.S. dollars)
===============================================================
                        Quarter Ended   Year Ended   Year Ended
                           Dec. 31,       Dec. 31,     Dec. 31,
                             2001           2001         2000
===============================================================
Income Statement

 Bullion revenue                3,711       15,894       14,302
 Net income (loss)
  - excluding write-down          146      (6,581)
  - including write-down     (41,427)     (48,154)     (11,339)
 Income (loss) per share
  - excluding write-down         0.01       (0.16)
  - including write-down       (1.02)       (1.19)       (0.28)
Balance Sheet
 Cash                                          747        1,347
 Total assets                                17,23      868,994
 Total liabilities                          62,716       66,318
 Bank loans                                 13,669       16,550
 Due to associated company                  44,243       44,328
Statement of Cash Flow
 Operating cash flow            1,178        4,067      (2,146)
 Operating cash flow per share   0.03         0.10       (0.05)
===============================================================

As mentioned in an earlier release on November 23, 2001, a re-evaluation of the economic feasibility of continuing development of the remainder of the Central Block at the Bulawan mine indicated that in light of the expensive ground support system required due to poor ground conditions coupled with a low gold price, the financial returns would be marginal. In view of these findings and the financial condition of the Company, a decision was made to terminate all development work at the mine. The operation now continues at a reduced manpower level with the objective of extracting the remaining broken ore reserves above the developed draw points as long as positive cash flows are generated. It has been projected that the operation will continue through the first quarter of 2002.

                           Philex Gold Inc.
                         Key Operating Summary

===============================================================
                                              Actual     Actual
                                               2001       2000
===============================================================
Underground
 Central Block:      tonnes mined(a)         793,701    473,573
                     ore grade - g/t            2.38       2.70
 South Block:        tonnes mined             41,122    354,568
                     ore grade - g/t            1.80       1.54
 Total tonnes mined                          834,823    828,141
 Ave. ore grade - g/t                           2.35       2.20
CIL Production
 Tonnes milled                               840,521    788,953
 Ore grade - g/t                                2.35       2.26
 Recovery - %                                     90         89
 Gold - ozs.                                  56,858     50,901
 Silver - ozs.                               110,325     90,757
 Equivalent gold - ozs.                       58,591     52,416
===============================================================
(a) Includes development ore

In order for the Company to repay its bank debts of $13.7 million and other liabilities in view of the impending closure of the Bulawan mine, as announced on December 18, 2001, an agreement was signed with Anglo American Exploration (Philippines) B. V. ("Anglo"), the Company's joint venture partner on the Boyongan project, to sell a 10% equity interest in the project and surrounding tenements for $20 million. Additional payments of up to $5 million may be received on the basis of an increase in the metal content of the deposit or from any other discovery within the surrounding tenements on the basis of feasibility studies. The implementing documentation relating to the sale has been executed and payment is expected on or before March 19th. The funds will be used to pay down the bank debt in full and other liabilities.

As a result of the sale, the Company's equity in the project has been reduced to 50%. Should Anglo at its sole expense bring the project through a bankable feasibility study, Anglo would be entitled to an additional 30% equity either directly or through a joint venture with a qualified entity, and will conduct the operations if the project proceeds to development. In such a situation, Philex Gold will be required to raise its pro-rata share of the project funding while Anglo would provide 100% of the completion guarantees that may be required by third party lenders.

With respect to exploration, the drilling program at the Boyongan copper-gold deposit resumed in January 2002 after a brief year-end shut down period. The latest results of the drilling were released on March 8, 2002 and showed excellent intercepts for holes TSD-35 and 36. Scout drilling at the Magpayang block, about 4 kilometres south of Boyongan, also commenced early in the year. The exploration permit, covering ground between Boyongan and Magpayang, has been approved and scout drilling will commence shortly. Three large capacity drill rigs, with a fourth to be added later in March, are performing resource definition drilling at the Boyongan deposit where 15,000 metres of drilling is planned in 2002. Two rigs are currently being utilized for scout drilling primarily to the south of the deposit, with a target meterage of 3,000 metres in 2002.

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