LOS ANGELES, and JAKARTA, Indonesia, May 12, 2011 /PRNewswire/ — PHI Energy Corporation, a minority owned subsidiary of PHI Group, Inc., (OTCQB: PHIE), a company engaged in M&A advisory services, real estate development, mining, energy, and in partnership with AXN Group LLC, (AXNG) announced today that it has signed an asset purchase agreement to acquire additional coal mine assets from PT Dian Anugrah Pratama (DAP), an Indonesian corporation with headquarters in Jakarta.

According to the agreement, PHI Energy will acquire total estimated mineable coal reserves of 33,000,000 metric tons located in West Sumatra, Kampar, and South Kalimantan, Indonesia, from DAP in exchange for $US 3,000,000 in cash and 47 million shares of common stock of PHI Energy Corporation. This new purchase agreement includes the previously announced 10,000,000 metric tons located at Kecamatan Kapur IX, Kabupaten Lima Puluh Kota, Propinsi Sumatera Barat, Indonesia. For reference purposes, the pre-production estimated value of the reserves is approximately $US 85,000,000 whereas current market price of steam coal GCV6300-6100 FOB Indonesia is approximately $US 80 per metric ton.

This transaction is to close on May 31, 2011, at which time PHI Energy will deliver 47 million shares of its common stock and give two promissory notes in the amounts of $2,000,000 and $1,000,000 due and payable to DAP 45 to 150 days after closing. As part of the agreement, PHI Energy will register 12% of its then issued and outstanding common stock with the Securities and Exchange Commission for the benefits of DAP, AXNG, PHI Group and their shareholders.

Herman Koswara, Director of DAP, said, “We are pleased to contribute additional coal assets towards PHI Energy’s growth strategy and believe by working together we will be better positioned to create substantial value for all parties.”

Allen Wu, Chairman of PHI Energy Corp, said, “The addition of the DAP coal assets to PHI Energy’s portfolio is part of our plan to secure sizable sources of coal supply to meet the demand of potential long-term off-take contracts. We are confident that this transaction will bode well for all our shareholders.”

About PHI Energy

Founded originally in 2005 as Providential Oil & Gas, Inc., PHI Energy Corporation has previously been engaged in oil and gas activities in North America. A subsidiary of AXN Group, LLC and PHI Group, PHI Energy is currently focused on coal mining and trading. Website: www.phienergycorp.com.

About DAP

Established in May 2009 by a group of mining experts and geologists who have long working experience in various Indonesian national mining companies, PT. Dian Anugrah Pratama is an Indonesian company focused on coal mining and coal trading. Website: www.dapcoal.com.

About PHI Group

PHIGroup (OTCQB:PHIE) provides M&A advisory and consulting services, develops real estate and natural resources and invests in special situations. PHIGroup takes companies public in the U.S. and Europe through its subsidiaries PHI Capital Holdings Inc. and PHI Vietnam Holdings Ltd, develops Pointe91, a luxury resort and premium residential community in Quang Nam province, and other real estate projects in Vietnam through PHILand Ranch Ltd. (www.PHILandranch.com). (Frankfurt Stock Exchange:1P8), and engages in gold mining through PHI Gold Corporation (Pinksheets:PHIG). Website: www.phiglobal.com.

Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management’s beliefs, as well as assumptions made by, and information currently available to, management pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995.

Contact:

Timmy Phan
+1-714-843-5457
info@phiglobal.com

SOURCE PHI Group, Inc.