LOS ANGELES, CA and HO CHI MINH, VIETNAM--(Marketwire - Dec 8, 2011) - PHI Group, Inc., (PINKSHEETS: [ PHIE ]) (OTCQB: [ PHIE ]), a company focused on energy and natural resources, announced today that it has signed a Memorandum of Understanding for Comprehensive Strategic Cooperation with Sao Nam Group, a Vietnamese company engaged in energy, mining, real estate, and infrastructure, to build a 2,400 to 3,600 MW coal-fired power plant in Hai Khe Commune, Hai Lang District, Southeast Quang Tri Economic Zone, Vietnam.

The power plant is part of a comprehensive strategic cooperation agreement encompassing My Thuy Seaport in Quang Tri Province, Van Phong International Transshipment Port and the Van Phong Thermo-Electric Plant in Khanh Hoa Province, Vietnam currently being developed by Sao Nam Group.

PHI Group has the capability to supply coal to power plants on a long-term offtake basis through its relationships in Southeast Asia and will provide advanced technologies in coal combustion that significantly reduce operation costs and emissions.

PHI Group also has a cooperation agreement with a U.S. company to provide its patent-pending coal-combustion-to-steam-energy system that requires 50% less coal to produce the same energy as presently combusted in traditional coal-fired power plants.

This process removes NOx, SOx and other emission impurities by an estimated 99% -- well below the United States Environmental Protection Agency (EPA) standards. The system can be installed at approximately 70% of the cost of today's coal combustion plants based on a comparative system in the particular country. It can be installed with existing steam turbines and does not require the installation of large, expensive, and comparatively ineffective gas emission scrubbers as presently required on coal-fired power plants. The ease and relatively inexpensive installation of such a system will make coal the clear energy source of choice for cleanliness, availability, and cost.

Henry Fahman, Chairman of PHI Group, said, "As we focus on coal and other natural resource assets in Southeast Asia, we are delighted to partner with Sao Nam Group through this significant comprehensive strategic cooperation agreement."

Dr. Chu Quang Thu, Chairman of Sao Nam Group, stated, "We look forward to working with PHI Group to develop and implement our strategic business initiatives and are confident that our cooperation will bring about significant benefits for the shareholders of both companies."

About Sao Nam Group

Saonam Group is a Vietnamese Joint Stock Company specializing in investing, developing, constructing, trading, and exploring infrastructure such as: transportation system; deep marine ports, complex ports, specialized ports, river port; investing and constructing Power Plants, Industrial Zones; investing in power production and trading; Logistics services, etc. Website: [ saonamgroup.com.vn ]

About PHI Group

PHI Group (PINKSHEETS: [ PHIE ]) (OTCQB: [ PHIE ]) focuses on energy and natural resources in Southeast Asia and engages in real estate development and M&A advisory and consulting services. The company is developing Pointe91, a luxury resort and premium residential community in Chu Lai, Quang Nam Province, and other real estate projects in Vietnam through PHILand Ranch Ltd. [ (www.philandranch.com ]) (FRANKFURT: 1P8). It also assists companies to go public and access the capital markets in the U.S. and Europe. 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.