Try reading ReadMe.txt. The problem could be the game.ini file. Try doing the following steps:
1. Open game.ini
2. Delete everything
3. Copy and paste:
Search = .\Mods;./main.pak;./ita.pak
Search Base = .
Home = .
Locale = en
Right Panel = 0
Test in game = Panzers_Phase_2.exe
Test ini = game.ini
Debug Level = 0
4. Create a directory PANZERS Folder\Run\Mods and put your mods in there.
If nothing helps, I'd suggest you to buy the Platinum version featuring both Phase 1 & Phase 2. The price is only around $10.