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WAVERLEY/TANGIER PROPERTY

Silver Phoenix Resources Inc. has completed a Joint Venture with Armadillo Resources Ltd. ARO on the Waverley Tangier Property.

Acquisition of 60-per-cent interest in the Waverly Tangier property

The first option (60 per cent)

The TSX Venture Exchange has accepted for filing an option and royalty agreement dated Jan. 8, 2009, as amended Feb. 25, 2009, between the company and Silver Phoenix Resources Inc. under which Armadillo has been granted an option to earn a 60-per-cent interest in a block of contiguous mineral claims having a total area of approximately 4,446 hectares located approximately 50 kilometres north of Revelstoke, B.C., known as the Waverly Tangier property.

To exercise the first option the company must:

• Make total cash payments of $350,000;
• Issue a total of 625,000 shares;
• Incur a total of $3-million in exploration expenditures on the property;
• Pay 100 per cent of all of the costs required to have a feasibility study done with respect to the property and have the feasibility report prepared and delivered to the joint venture not later than Dec. 31, 2015.

The second option (10 per cent) and net smelter royalty

Under the agreement Armadillo also has the option to acquire a further 10-per-cent interest in the property if it exercises the first option and gives a notice to that effect within 30 days after completion of the exercise of the first option. For further information please read the filing statement.

The property is an exploration stage mineral resource property with silver being the principally targeted natural resource.

Any interests that the company earns through the exercise of the options will be subject to Silver Phoenix's right to receive a 3-per-cent net smelter return royalty.

There is no finder's fee payable in connection with the acquisition of the property.