FenixOro Gold Corp. announce the acquisition of the Escondida Mine, a fully permitted operating gold mine located in the northeast Department of Antioquia 150 kilometers north of Medellin. The mine is located in the Municipality of Caceres within a region well known for high grade gold production.

According to mine records the Escondida Mine currently produces around 1000 oz of gold annually with an average head grade of 10 g/t gold. Current artisanal mining methods are rudimentary and limited to a single mine face, utilize little-to-no grade control which leads to excessive dilution, and have little-to-no long term mine planning based on resource calculations. No exploration drilling has been conducted on the property and there is no historical or 43-101 compliant resource.

FenixOro has taken more than 230 samples in underground workings and on surface extensions of the known veins, as well as a bulk metallurgical sample from multiple mine faces. Vein samples average 22.9 g/t gold with individual values up to 178 g/t gold. At present FenixOro has identified existing mine blocks that will allow for significant expansion of the mining plan and provide mill feed ore for the next several years.

Additionally, management believes that the Escondida area has potential to outline a significant gold resource. FenixOro has completed significant mine and geological analysis through extensive mapping and sampling. Management has developed a plan to introduce technology and engineering to exploit multiple faces, increase head grade through improved mining precision, and incorporate forward mine planning by developing resource blocks through exploration drilling.

The plan involves development of a new, modern, larger scale mine while simultaneously mining and expanding the existing small scale operation. The current plant will receive upgraded milling capacity and new gravity and cyanide recovery circuits. FenixOro expects that this will result in a significant improvement in mining operations in terms of tonnes of ore mined, improved grades, and an increase in ounces of gold recovered and produced.

Mapping and sampling indicate potential for a minimum five kilometers of strike on four principal veins. A longitudinal section along the Playa Media structure which has been historically mined along 220 meters of strike to a depth of 120 meters. Underground sampling results have been analyzed geostatistically and the results are plotted in terms of gram-meters (Au g/t multiplied by sample width in meters).

Multiple areas which are potentially accessible for mining in the short term fall into the +25 gram-meter range. Some of the areas in the section have been historically mined but the vein is open at high grades in both strike directions and at depth. Under the terms of the purchase agreement the Company has made an initial payment of USD 150,000 and will make additional payments from mining operations over the next three years totaling USD 2,850,000.

The Company has the option of terminating the purchase agreement and any remaining payments from the time of termination.