Phoenix Coal Inc announced that it has entered into a definitive agreement to sell the Gryphon reserve which is comprised of the property leases controlled through the acquisition of Pact Resources, LLC and the Petersburg sublease and certain other associated assets to a major US coal producer. The proceeds from the sale of the Gryphon Assets are USD 23 million in cash.

Upon closing of the Transaction, Phoenix will have divested all of its material coal properties and is expected to have an estimated USD 56.2 million of restricted and unrestricted cash.

Mr David A Wiley president and CEO of Phoenix Coal Inc said that "We have generated a significant amount of cash from the sale of our coal assets. In so doing, we have positioned the Company to redeploy its capital in compelling opportunities in the natural resources and mining sectors. Members of our management team and board of directors have a long track record of consistently creating shareholder value in the mining sector and we are in the process of evaluating potential acquisitions."

The Company plans to provide a detailed update of its near term growth plans on March 26th 2010 when it announces its 2009 financial results.