Philex Gold Reports Boyongan Inferred Resource.

Business Editors

TORONTO--(BUSINESS WIRE)--June 14, 2004

Philex Gold Inc. (TSX Venture:PGI) reports it has received an independent confirmation of a 3-dimensional computer model of copper and gold grades for its 50% owned Boyongan copper-gold porphyry deposit in the southern Philippines. Boyongan was discovered in 2000 by the North Project joint venture, a 50:50 partnership between Philex Gold and Anglo American Exploration (Philippines) B.V., the operator. Anglo American constructed the 3-dimensional computer model. The data used to construct the model and the model itself were checked by AMEC Americas Limited. The model was found to be of good quality and a Mineral Resource was tabulated.

AMEC estimates the Boyongan deposit contains Inferred Mineral Resources of 219 million tonnes of combined sulphide and oxide material with an average grade of 0.81% copper equivalent or 0.51% copper and 0.74 grams of gold per tonne. Oxide material accounts for 99 million tonnes grading 1.09% copper equivalent and sulphide material accounts for 120 million tonnes grading 0.58% copper equivalent (see table below). The resources are classified according to the CIM Standards on Mineral Resources and Reserves.

     Inferred Mineral Resources at Boyongan (June 10, 2004)

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Type          Tonnes      Copper       Copper       Copper     Gold
                          Equivalent   Equivalent
                          Cut-off
             (tonnes)       (%)          (%)          (%)     (gms/t)
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Sulphide    120,000,000     0.40         0.58         0.39     0.51
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Oxide        99,000,000     0.60         1.09         0.65     1.02
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Combined    219,000,000                  0.81         0.51     0.74
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1. Copper equivalent cut-off for sulphide material equals 0.40%; copper equivalent cut-off for oxide material equals 0.60%, reflecting potentially higher processing costs associated with oxide material.

2. Copper equivalent formula: % copper equivalent equals copper grade + (gold grade x gold recovery x gold price / 22.0462 x copper recovery x copper price x 31.1035)

3. Based on prices of US$388 per ounce for gold and US$1.14 per pound for copper; and recoveries as follows: oxide copper 75%, oxide gold 65%, sulphide copper 85%, sulphide gold 65%.

4. Resources are classified according to the CIM Standards for Mineral Resources and Reserves

5. These Mineral Resources do not have demonstrated economic viability.

6. Harry Parker, of AMEC Americas Limited, is the Qualified Person as defined by NI 43-101 who is responsible for the resource estimate.

7. The estimate has been prepared from a 3-dimensional computer block model of copper and gold grades made by Anglo American; this model and data used to construct it have been checked by AMEC.

The Boyongan deposit is a porphyry-hosted copper-gold occurrence located in an island-arc setting. The deposit is buried beneath 50-300 metres of volcaniclastic rocks. A zone of oxidation extends to an unusual depth of approximately 500 metres. Two coarse grained  diorite porphyries form the focus for the copper and gold mineralization, with gold tending to be concentrated closer to the intrusions while the copper can be found slightly "outboard" of the gold as well as being coincident with it.

The model created to estimate the resources was constructed using geological domains, a method typically used in the modeling of porphyry copper-gold deposits, particularly where data are limited. The main objective of domaining is to control the influence of sampling data to areas which they are expected to represent and to limit the undue projection of low grades into higher grade areas and vice versa.

Drilling over the Boyongan deposit to date has been completed to an approximate 100 by 100 metres grid. A total of 38,421 metres of drilling in 72 holes has been completed. AMEC concluded that the drill spacing is adequate to broadly outline the mineralization and the geological domains. "There can be considerable differences in grade between holes. Therefore the mineral resources are classified as Inferred Mineral Resources according to the CIM Standards referred to in National Instrument 43-101."

To assess the "reasonable prospects for economic extraction" provisions in the CIM Standards, AMEC developed generalized costs for oxide and sulphide ore types, and used them to create an open-pit shell, which contains approximately 30% of the Inferred Resources. Global reductions in the base costs, of 10% and 20%, result in increases of 50% and 80% respectively of the mineralized material within the generated pit shell.

The AMEC report notes that the resource grade is typical of other island-arc copper-gold porphyry deposits such as Batu Hijau and Grasberg, although tonnage is substantially less, and processing will be complicated by the need to extract both gold and copper from oxides, compared to more conventional treatment that could likely be used for sulphides.

"In an attempt to discover other mineralized porphyry systems near Boyongan, the joint venture shifted its focus from resource definition drilling to accelerated scout drilling in 2003," said Philex Chairman and Chief Executive Officer, Walter W. Brown. "We are following up several prospects and have met with success with the discovery of the deep-seated Bayugo porphyry copper-gold system approximately 1,200 metres northwest of Boyongan."

Drilling to date on the Bayugo prospect indicates that it may continue west within the joint venture's exploration permit area, and north beyond the joint venture's boundary. Discussions with adjoining landholders are continuing, with work expected to resume when these negotiations reach a satisfactory conclusion.

Results from holes drilled at Bayugo in 2003, which have not been previously issued in a press release, are given in the following table.

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                                   Length of           Grades
                                               ----------------------
Hole No.   Final Depth  Intercept  Intercept   Copper (%)  Gold (g/t)
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TSD-78        705m      421-570m     149m         0.11       0.13
                        570-696m     126m         0.39       0.82
                        638-696m      58m         0.43       1.08

JSD-24        593m      376-559m     183m         0.81       0.48
                        376-462m      86m         0.94       0.51
                        486-525m      39m         1.28       0.83
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1. Quoted depths are in metres downhole and all assay results have had a cut-off of 0.1% copper and 0.1 grams per tonne gold applied.

2. All assays were conducted on intervals of split core, on average 3m in length, by Intertek Testing Services at its laboratory in Jakarta, under the supervision of Anglo American. Quality control was monitored by incorporation of assay standards and duplicates.

3. Assay data provided above were communicated to Philex Gold by Anglo American Exploration (Philippines), Inc. which, under the terms of the North Project joint venture, is responsible for conducting exploration. Philex Gold has not independently verified this information.

On its own behalf, Philex is reviewing the geological and geophysical information available for its Lascogon property, located approximately seven kilometres north of Boyongan, with the objective of developing a target for drilling later in 2004. The property contains sedimentary-hosted gold mineralization discovered by Anglo American in 1999 and subsequently re-assigned to Philex Gold in 2003. The company is also planning a modest exploration program to investigate the potential for copper-gold mineralization on its Sibutad property in western Mindanao Island. As a result of the higher gold price, some preliminary interest has been expressed by other companies in the former Bulawan mine which ceased production in 2002.

Philex Gold Inc. is a Canadian mineral exploration company active in the Philippines.

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