RE: Philippine Gold Announces NewAppointments.

TORONTO--(BUSINESS WIRE)--March 20, 1997--The Directors of Philippine Gold Plc. today announced the election of Mr. David A. Knight as a Director of the Company and the appointment of Mr. Frank van de Water as Senior Vice President - Finance and Chief Financial Officer.

Mr. Knight

is a partner in the law firm of Lang Michener, Toronto, one of Canada's largest law firms, and specializes in corporate and securities law. He has extensive experience acting as legal counsel to numerous Canadian and international companies and in dealing with the Toronto Stock Exchange and Ontario Securities Commission.

Mr. van de Water joins the executive staff in Toronto and brings to the senior management team a strong financial background as a senior officer in international mining and metal processing operations in Canada, Europe and Africa, including two years as the Finance Director of a major London Metal Exchange member. He was most recently the Chief Financial Officer of Eden Roc Mineral Corp., a Toronto Stock Exchange listed company with gold mining operations in West Africa.

Philippine Gold is a British public company, which currently controls a number of advanced and developed gold mining assets in the Philippines with 4.6 million ounces of mineable reserves (USGS standards) within a larger 8 million-ounce resource. Four mines are currently under development, with the first two, Masara and Paracale, to commence production in 1997. The total planned annual rate of production is 400,000 ounces by the year 2000.

A bankable feasibility study for the Masbate operation will be completed in June 1997, with a planned mid 1998 start up. Masbate is a former one million-ounce producer and is expected to produce 75000 ounces of gold per year through the existing 3500 ton per day mill. Four drills have recently been brought onto the property to add to the existing one million-ounce reserve and have encountered new undrilled mineral bearing structures in the initial holes. Assays are currently pending.

CONTACT: Philippine Gold Plc. - Toronto Executive Office

Frank van de Water, 416/777-0363

416/ 777-9014 (FAX)