PHI Energy Completes Purchase of Indonesian Coal Assets

LOS ANGELES, CA and JAKARTA, INDONESIA--(Marketwire - May 31, 2011) - PHI Energy Corporation ("PEC"), a minority owned subsidiary of PHI Group, Inc., (PINKSHEETS: PHIE) (OTCQB: PHIE) (FRANKFURT: PR7), 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 closed a coal asset purchase agreement with PT Dian Anugrah Pratama ("DAP"), an Indonesian corporation with headquarters in Jakarta.

PHI Energy issued promissory notes for $3,000,000 and 47 million shares of common stock of the company, valued at $1.00 per share, in exchange for total estimated mineable coal reserves of 33,000,000 metric tons located in West Sumatra, Kampar and South Kalimantan, Indonesia. The pre-production estimated value of the reserves is approximately $85,000,000 whereas current market price of steam coal GCV6300-6100 FOB Indonesia is approximately $US 80 per metric ton.

As part of the agreement, PEC will register 12% of its 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 have closed the asset purchase agreement with PHI Energy Corp and look forward to generating substantial economic benefits for all parties."

Allen Wu, Chairman of PEC, said, "The acquisition of DAP marks a milestone in implementing PEC's vision to own and operate a global basket of coal mines strategically located in Indonesia, Colombia, Canada, South Africa, Philippines and Mongolia. We intend to balance a portfolio with producing mines with proven reserves with greenfield projects."

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 Energy
Founded in 2005, PHI Energy Corporation has been restructured as subsidiary of AXN Group, LLC and PHI Group, currently focused on acquisition of long-term mineable coal assets and coal production, supply and trading. Website: www.phienergycorp.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 and PHI Vietnam Holdings (www.phiholdings.com), 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: 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.