PNG Gold Corporation Announces High Grade Gold Results from Imwauna Project, Papua New Guinea

- 3.1 Metres of 24.60 Grams/Tonne Au Reported
- Sehulea Property IP Anomaly to be Drill Tested

VANCOUVER, Nov. 17, 2011 - PNG Gold Corporation (“PNG Gold“ or the “Company“) (TSX VENTURE: PGK) announces assay results from 31 recently completed diamond drill holes on its Imwauna Project, Normanby Island, Milne Bay Province, eastern Papua New Guinea. The drilling was designed to provide additional information in the northern and central part of the deposit at shallow depths where there were gaps in the historic drilling and at depth, between 100 m and 150 m below surface, to verify the continuation of the mineralized vein system. The holes tested a 600 m strike length of the deposit and a vertical range of 50 m to 150 m below surface. Imwauna exploration drill hole locations can be viewed at: http://www.pnggold.com/i/pdf/Imwauna_EL1091.pdf

The results re-affirm the high grade nature of the deposit. The mineralized zone graded 3.0 g/t or more in 65% of the holes while eleven holes (35%) intersected zones assaying greater than 10.0 g/t Au. There is no strong correlation observed between grade and thickness, although the thickest zones (i.e. those greater than 4 m wide) all grade between 5 and 15 g/t Au. The following highlights table illustrates the high grade nature of these results:
Table 1: Highlights of Results (for complete results see Table 2 appended to this release)

Hole Core length (m)* Au (g/t) Ag (g/t)
IMH 204
Incl: 7.4
3.1 13.11
24.60 14.42
24.93
IMH 215 6.3 8.16 32.93
IMH 209 4.3 6.67 11.11
IMH 194 5.1 5.38 9.17
IMH 193 1.4 15.60 10.60
IMH 210
Incl: 1.1
0.4 16.66
42.50 23.85
43.00

* core lengths are not true thicknesses which have yet to be determined

Drilling confirmed the continuity of the vein system within the deposit envelope and its extension below the level of previous drilling. The main vein is now interpreted to dip near vertical suggesting that some of the historic drill holes and some of the earlier holes in the current program did not drill deep enough to cut the vein. Selected holes will be deepened to test this interpretation. The current program also confirms that the mineralized zone is variable in thickness, ranging from 0.3m wide in a single vein to 7.4 m wide across zones of multiple veining and silicification.

Dick Whittington, President and CEO of PNG Gold, stated, “These results significantly enlarge our knowledge of the Imwauna vein system both in terms of grade and geological interpretation. We continue to be excited about the property and are looking forward to the results of our ongoing drilling with great interest as we look to put out a 43-101 resource in the second quarter of next year.“


Ongoing Drilling Programme – Imwauna and Kela's Vein Systems and Sehulea IP Anomaly

Drilling continues on the Imwauna deposit primarily to expand the known deposit at depth. Two drills are presently working on the Imwauna Project and will drill test the promising Kela's vein system later this year or early in 2012, while a third rig has been deployed to the Sehulea property (EL 1069), 10 km to the northeast of Imwauna. A minimum of four holes totalling 1000 m are planned to evaluate a very strong, 1.2 km long, chargeability anomaly outlined by a 3D IP survey completed in August of this year. The program will also fulfill the company's commitments to the Sehulea exploration license (EL 1069).


Logging, sampling and assaying procedures

All holes drilled by PNG Gold are collared using HQ triple tube drill tools. A few holes have been reduced to NQ size at depth in the hole in order to continue the hole. Geotechnical measurements such as core recovery, fracturing and veining, rock quality designations (RQD's), hardness and photographic logging are performed systematically prior to sampling and assaying. The core is logged, samples selected by PNG Gold geologists then systematically sawn in half at the site. The one half core sample is numbered, sealed in a bag and delivered by PNG Gold to its base in Alotau where the samples are palletized and placed in a container for shipment to ALS Chemex in Townsville, Australia. The other core half is retained on the site.

Core samples are dried, crushed and pulverized to 85% passing through a 75 micron mesh. The pulps are assayed for gold and silver using a 50 g split, fire assay (FA) and AA finish.


Quality assurance / Quality control (QA/QC)

The ALS Chemex lab is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Duplicates, certified blanks and standards are systematically used as part of PNG Gold's QA/QC program. The company also inserts blind standards with each sample batch at the rate of about 1:10. Rejects and pulps are stored at the lab for future reference.


Qualified Person

Mr. Colin McKenzie, P.Geo and COO of PNG Gold is a qualified person in accordance with National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.


About the Imwauna Gold Project

The Imwauna exploration license covers an area located on the north side of Normanby Island approximately 80 km northeast of Alotau, the provincial capital of Milne Bay Province, Papua New Guinea. Alotau is serviced by daily flights from Port Moresby the national capital and scheduled coastal freighters. PNG Gold maintains a logistics base in Alotau to supply the Normanby Island site.

The Imwauna prospect is an epithermal, low sulphidation quartz vein system comprising two principal veins, the thicker, more continuous Main vein and the East vein. The mineralized veins consist of finely crystalline quartz, white to grey in colour and display typical epithermal textures such as vugs, dog tooth crystals and fine, chalcedonic layering. Sulphides are rare to absent although some deeper intersections contain a few per cent of fine pyrite. Vein margins are often brecciated and re-sealed with silica.

Historic exploration drilling in 178 drill holes (see PNG Gold Corp Technical Report, November 30, 2010 on Sedar) has outlined a narrow zone of gold mineralization over a strike length of at least 900 m to an average vertical depth of about 100 m. Widths are usually 1 to 3 m in the Main vein but less in the East vein. The drilling program is designed to extend the deposit to depth and obtain sufficient information to support a new resource estimate, now scheduled for the second quarter 2012.


About PNG Gold Corporation

PNG Gold Corporation is an exploration company with an advanced stage drilling program in Papua New Guinea. PNG Gold holds a 50% interest in the Imwauna and Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea, and has earned its option to acquire the remaining 50%. The Company expects the transfer of the remaining 50% interest will be completed expeditiously, after which it will be the sole owner of both properties. PNG Gold trades on the TSX Venture Exchange under the symbol PGK. PNG Gold's mission is to become the premier exploration and development company in Papua New Guinea.


ON BEHALF OF THE BOARD OF DIRECTORS

J.R.H. (Dick) Whittington
President & CEO



No regulatory authority has approved or disapproved the information contained in this news release.


Forward-Looking Statements

Certain information set forth in this news release contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements relate to matters such as results of exploration and development of the Normanby Property and completion of financing and are subject to numerous risks and uncertainties, certain of which are beyond the control of PNG Gold, including, but not limited to, the impact of general economic conditions, industry conditions, financial market conditions, dependence upon regulatory and shareholder approvals, and the uncertainty of completing intended financing and obtaining additional financing. Exploration of mineral properties is subject to the inherent risk that it may not result in commercial discovery. Readers are cautioned that the assumptions used in the preparation of forward-looking statements, although considered reasonable at the time of preparation, may prove to be incorrect and, as such, undue reliance should not be placed on forward-looking statements. PNG Gold expressly disclaims any obligation to update forward-looking statements contained herein except as required by applicable law.


Table 2:Imwauna Assay Results – IMH 186 to IMH 216

Hole ID Easting Northing Elev
(m) Dip Azimuth From
(m) To
(m) Vein Length (m)* Au
(g/t) Ag
(g/t)
IMH186 289079.0 8887004.9 482.1 -65 106 45.0 46.0 1.0 1.04 1.10
IMH187 289075.0 8886926.5 485.6 -60 106 31.2 33.0 1.8 4.88 22.80
and 58.3 59.4 1.1 18.30 24.70
IMH188 289075.4 8887018.1 484.9 -70 106 112.9 113.3 0.4 4.37 9.10
IMH189 289061.5 8887117.7 493.4 -70 106 120.4 120.7 0.3 2.96 1.50
IMH190 289044.4 8886953.6 495.4 -70 106 101.4 102.9 1.5 4.50 8.00
and 120.7 121.4 0.7 10.50 14.40
and 93.6 95.0 1.4 2.90 2.20
IMH191 289047.5 8886996.8 492.1 -60 106 111.0 112.0 1.0 1.35 1.50
and 148.0 149.0 1.0 1.61 4.50
IMH192 289064.7 8887073.9 490.4 -70 106 nsv nsv
IMH193 289047.9 8886996.8 492.1 -50 106 89.4 90.8 1.4 15.60 10.60
and 103.1 104.7 1.6 3.14 2.20
and 116.6 117.8 1.2 1.94 2.10
IMH194 289054.3 8886992.6 491.8 -70 106 133.6 138.7 5.1 5.38 9.17
including 134.8 135.4 0.6 17.30 15.00
IMH195 289075.2 8887155.3 491.8 -60 106 nsv nsv
IMH196 288989.4 8886899.1 494.1 -65 106 126.4 127.4 1.0 5.24 9.20
and 179.2 184.0 4.8 3.88 18.71
including 179.2 180.2 1.0 8.50 12.50
and 187.0 188.0 1.0 3.15 1.50
IMH197 289000.6 8886926.9 509.1 -60 106 94.8 95.8 1.0 6.91 12.20
and 120.8 121.8 1.0 6.45 6.50
IMH198 288994.2 8886716.4 533.3 -45 106 nsv nsv
IMH199 289021.1 8886866.3 493.3 -65 106 84.5 85.1 0.6 4.15 6.00
IMH200 289073.3 8887156.0 493.3 -70 106 139.0 140.0 1.0 3.50 2.00
IMH201 288996.9 8886742.1 538.6 -60 106 nsv nsv
IMH202 289008.5 8886817.7 514.2 -50 106 77.0 78.0 1.0 5.02 9.30
IMH203 289008.5 8886817.7 514.2 -65 106 62.5 63.5 1.0 1.73 9.60
and 64.5 65.5 1.0 1.04 9.60
and 81.3 83.5 2.2 4.24 11.76
and 91.4 93.1 1.7 1.98 6.89
IMH204 288963.1 8886812.9 511.2 -70 106 130.0 131.7 1.7 1.51 1.85
and 138.0 145.4 7.4 13.11 14.42
including 139.4 142.5 3.1 24.60 24.93
and 147.0 148.3 1.3 4.16 4.10
IMH205 289083.0 8887205 499.0 -60 101 37.8 38.7 0.9 1.40 2.20
IMH205A 289083.8 8887205.4 499.0 -60 106 220.0 221.3 1.3 10.31 8.65
including 220.0 220.5 0.5 24.70 18.00
IMH206 289083.6 8887205.4 498.4 -70 106 nsv nsv
IMH207A 289150.2 8887245.0 460.7 -60 106 153.7 154.4 0.7 1.00 3.40
IMH208 289149.3 8887245.4 462.5 -70 106 nsv nsv
IMH209 288966.2 8886833.1 540.3 -60 106 141.0 142.0 1.0 12.10 13.00
and 147.2 151.5 4.3 6.67 11.11
and 150.0 151.5 1.5 15.25 14.00
IMH210 289129.7 8887039.6 467.2 -55 106 18.7 19.8 1.1 16.56 23.85
including 18.7 19.1 0.4 42.50 43.00
and 53.9 54.6 0.7 1.34 2.90
IMH211 289087.3 8887028.5 476.5 -75 106 63.4 64.3 0.9 3.64 9.70
and 99.7 100.6 0.9 24.00 327.00
IMH212 288969.6 8886725.4 525.2 -45 106 nsv nsv
IMH213 288981.0 8886747.9 537.1 -55 106 64.6 66.1 1.5 7.49 9.77
including 65.2 65.7 0.5 16.65 22.30
and 68.0 68.9 0.9 1.32 7.50
IMH214 288955.5 8886789.1 535.8 -60 106 48.0 49.0 1.0 1.23 5.10
IMH215 288981.9 8886747.6 537.0 -70 106 73.5 75.1 1.6 10.73 14.80
and 79.4 85.7 6.3 8.16 32.93
including 83.0 84.0 1.0 22.13 63.65
and 84.8 85.7 0.9 17.50 57.00
IMH216 288919.2 8886733.2 528.1 -70 106 nsv nsv
nsv = no significant values

* true thicknesses have yet to be determined


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES



Contact Information

PNG Gold Corporation
Dick Whittington, President and CEO
(604) 669-4899
(604) 685-2345 (FAX)
www.pnggold.com