Phoenix Metals Corporation announced that it has entered into a Binding Letter of Intent (LOI) with Zimtu Capital Corp. and DG Resource Management Ltd. (the Vendors) to acquire a 100% interest in four metallic and industrial minerals permits in northwestern Alberta, totaling approximately 24,363 hectares, collectively known as the Peace River Frac Sand Project. The permits are known to host the Paddy Member non-marine sand of the St.

John Group. Testing will be required to determine if the Paddy Member within the permits contains the quality and quantity of silica sand suitable for hydraulic fracturing and if it that product is economically extractable. The permits surround the claims of the 500,000 tonne per year capacity silica sand mine privately owned the Laprarie Group and operated by Canadian Silica Industries.