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Magino Resource Expansion Drilling Continues: 161 metres grading 1.35 gpt Gold and 36 metres Grading 2.64 gpt Gold

Vancouver, BC August 30, 2011
FSC / Press Release
Magino Resource Expansion Drilling Continues: 161 metres grading 1.35 gpt Gold and 36 metres Grading 2.64 gpt Gold
Vancouver, British Columbia CANADA, August 30, 2011 /FSC/ - Prodigy Gold Inc. (TSX - VX: PDG, FWB: KX3), is pleased to announce additional results from its in-fill and resource expansion drilling program at its 100% owned Magino mine gold project in Ontario. The drill results reported here come from two portions of the Magino gold deposit: the southwest corner of the proposed open pit and the central area. Drill hole MA11-105 intercepted a thick zone of good grade gold mineralization in the southwest area: 161.1 metres grading 1.35 gpt gold. In the central area, drill hole MA11-102 cut 36.3 metres of higher grade gold: 2.64 gpt. Drill hole MA11-098, located northeast of hole -102, intercepted 129.0 metres grading 1.01 gpt gold. These drill results, combined with previously announced results from the in-fill drilling program, are fulfilling the objective for the program: Expand gold resources and reduce the strip ratio within the proposed open pit. These data will be utilized in the upcoming update to the Magino gold resource estimate expected in late September. Brian J. Maher, President and CEO of Prodigy Gold comments: "The results to date from our in-fill drilling program continue to be very encouraging. We are on track to release an updated resource estimate in late September followed by a revised PEA. The nearly completed in-fill drilling program, combined with additional metallurgical studies and the recently reported geotechnical data allowing for steeper pit walls should significantly improve project economics." A drill hole location map and complete table of drill results are shown below.
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Drill From To Length Azimuth Dip Est. From To Grade
Hole (m) (m) (m) (360 (angle True (Depth (Depth (gpt
deg) below Thick Below Below gold)
surface) ness Surface Surface
(m)) (m)) (m))
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MA11-086 11.0 61.0 50.0 164 -48 38.0 8.4 46.7 0.43
MA11-087 nsv * * * * * * * nsv
MA11-088 145.0 217.0 72.0 167 -51 0.0 0.0 166.2 1.30
MA11-089 136.0 199.0 63.0 165 -48 54.7 126.9 152.4 1.02
MA11-090 37.0 59.0 22.0 166 -50 16.7 28.3 45.2 0.75
MA11-091 62.0 349.0 287.0 165 -49 218.1 47.5 267.3 0.64
MA11-093 239.0 282.0 43.0 169 -50 32.7 183.1 216.0 1.15
MA11-094 72.0 105.0 33.0 159 -49 25.1 55.2 80.4 0.97
MA11-095 44.0 137.0 93.0 160 -51 70.7 33.7 104.9 0.71
MA11-095A 45.0 256.0 211.0 160 -50 160.4 34.5 196.1 0.40
also 265.0 449.0 184.0 * * 139.8 203.0 343.9 0.59
MA11-096 142.0 311.0 169.0 167 -55 128.4 108.8 238.2 0.35
MA11-097 79.0 118.4 39.4 165 -49 29.9 60.5 90.7 1.15
MA11-098 94.0 223.0 129.0 167 -50 98.0 72.0 170.8 1.01
MA11-099 83.0 142.0 59.0 166 -49 44.8 63.6 108.8 0.47
MA11-100 93.0 119.0 26.0 162 -52 19.8 71.2 91.2 1.23
MA11-101 2.3 57.0 54.7 167 -52 41.6 1.8 43.7 0.40
MA11-102 74.0 110.3 36.3 162 -50 27.6 56.7 84.5 2.64
MA11-103 42.0 137.0 95.0 164 -53 72.2 32.2 104.9 0.59
MA11-104 172.0 278.0 106.0 166 -48 80.6 131.8 212.9 0.56
MA11-105 15.9 177.0 161.1 165 -51 122.4 12.2 135.6 1.35
MA11-107 283.0 431.0 148.0 165 -48 112.5 216.8 330.1 0.67
MA11-108 20.2 100.0 79.8 162 -49 60.6 15.5 76.6 0.50
also 125.0 134.0 9.0 * * 6.8 95.8 102.6 1.59
MA11-109 nsv * * * * * * * nsv
MA11-110 68.0 95.0 27.0 166 -49 20.5 52.1 72.8 0.56
MA11-111 nsv * * * * * * * nsv
MA11-112 211.0 267.0 56.0 162 -51 42.6 161.6 204.5 1.08
MA11-113 4.2 73.0 68.8 165 -49 52.3 3.2 55.9 0.41
MA11-115 0.2 86.0 85.8 165 -50 65.2 0.2 65.9 0.87
MA11-116 nsv * * * * * * * nsv
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Note: NSV = no significant values. All assays are capped at 40 gpt gold.
To view the map associated with this release, please click on the following link:
https://www.usetdas.com/pr/prodigymap08302011.jpg
Additional in-fill drilling will continue at Magino for several weeks. When completed, the drill rigs will then concentrate on exploration targets near the Magino deposit and on higher grade, deeper extensions to the Magino gold system.
About Prodigy Gold: Prodigy Gold Inc. (PDG: TSX.V) is currently evaluating the development of the Magino mine gold project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade gold production. The Magino project contains Indicated gold resources of 1,924,200 ounces grading 1.16 gpt gold (51.6 million tonnes), and 587,100 ounces of Inferred gold resources grading 1.04 gpt gold (17.5 million tonnes). A Preliminary Economic Assessment (PEA) of the project shows a pre-tax NPV of $351million and an IRR of 49% using a 5% discount rate (available on SEDAR or Prodigy's web site). The proposed operation would have an average annual gold output of over 166,000 ounces a year during a nine year project life. Total gold production is estimated to be 1.50 million ounces at cash costs of approximately US$496 (Cdn$521) per ounce. Please note: mineral resources that are not mineral reserves do not have demonstrated economic viability.
A full feasibility study for the proposed open pit mining project at Magino is scheduled for early 2012. Bringing the Magino mine project through the feasibility process and towards production, coupled with the exploration potential of our Beardmore-Geraldton exploration properties, are the catalysts to growing Prodigy Gold and building substantial value for Prodigy shareholders: Today's Discovery, Tomorrow's Future.
All scientific and technical information for the Magino project has been reviewed and approved by Tom Pollock, P.Geo., Prodigy Gold's Vice President - Exploration, who is a qualified person under the definitions established by National Instrument 43-101. Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the Prodigy logging and sample preparation facilities by Prodigy Gold personnel. The core is then split down the centre using a typical table fed circular rock saw normally at one metre intervals. One half of the core is sent for assay to ALS Chemex, 2090 Riverside Dr., Timmins, ON, P4R 0A2, while the other half is returned to the core box and stored at Prodigy's sampling facility in a secure, fenced off, area. Prodigy QA/QC procedures include the regular use of blanks, standards and duplicate samples in addition to sending 10% of the samples off to a second lab for check assays. Samples assaying > 3.0 gpt gold are automatically re-assayed by the metallic screen method. Gold assays greater than 40 gpt are capped at 40 gpt when calculating composite intervals in drill holes. Drill holes are directed as much as possible perpendicular to the strike and dip of the mineralization at Magino. As a rough estimate the true thickness of the above intercepts is approximately 76%.
On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Prodigy Gold Incorporated
Email: [e-mail]
Website: www.prodigygold.com
tel.: [phone]
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