Magino Drilling Update: 149 Metres Grading 1.24 gpt Gold in Central Zone; High Grade in Southwest Extension: 5 Metres Grading 9.42 gpt Gold

Prodigy Gold Incorporated (PDG: TSX.V; 'Prodigy' or 'the company') is
pleased to announce results from 10,724 metres of diamond drilling
completed at the Magino Mine gold project since January, 2012. The
results are from four distinct target areas: 1) Resource definition
drilling in the central portion of the Magino gold deposit, 2) resource
expansion drilling in the Southwest extension of the Magino gold
deposit, 3) exploration drilling in the Lovell Lake area and 4)
condemnation drilling to facilitate identifying specific sites for
future mine infrastructure.

1. Resource Definition Drilling: Prodigy
has completed eleven resource definition drill holes (2,596 metres) in
the central portion of the Magino gold deposit. Highlights include 149.4
metres grading 1.24 gpt gold in drill hole MA12-246 and 121.5 metres
grading 1.05 gpt gold in drill hole MA12-245. Most of these initial
definition holes are shallow and target the margins of deposit in areas
previously modeled as inferred resources (please see technical report
dated November 2, 2011; filed on SEDAR and available on Prodigy's web
site). These eleven holes are reducing the drill hole spacing in
specific parts of the deposit in order to increase drill hole density in
anticipation of updating the gold resource prior to completing a
bankable feasibility study for the project. Results to date are very
encouraging, a complete table of resource definition drilling results
and a drill hole location map are shown below.

2. Southwest Extension Resource Expansion Drilling:
Prodigy completed eleven drill holes (3,505 metres) in the Southwest
portion of the Magino gold deposit, seeking to expand the known gold
resource and more accurately define previously unclassified gold
mineralized zones. This drilling, when combined with previously released
drill results from the Southwest extension, has identified significant
areas of new gold mineralization at depth and along strike within the
gold system. The drilling also continues to identify high grade gold
zones within the broader lower grade gold halo: 5.0 metres grading 9.42
gpt gold in MA12-218 and 6.0 metres grading 6.24 gpt gold in MA12-210.
Expansion of the proposed open pit into the Southwest area could
potentially capture the newly identified low grade gold mineralization
and also allow the mining of the shallow high grade gold zones by open
pit methods. Exploiting the higher grade gold mineralization utilizing
low cost open pit mining vs. high cost underground methods can
positively impact project economics. A complete table of Southwest
extension drill results and a drill hole location map are shown below.

3. Lovell Lake Exploration Drilling:
Prodigy also completed 15 exploration drill holes (2,511 metres) in the
Lovell Lake area, located about 500 metres west of the Magino gold
deposit. Previously announced drill results from the Lovell Lake area
indicated that a low grade gold system was present, hosted by
granodiorite in a geologic setting similar to the main Magino gold
deposit. These fifteen drill holes confirm the presence of widespread
gold mineralization at Lovell Lake, for example: 77.0 metres grading
0.52 gpt gold including 4.0 metres grading 4.73 gpt gold in drill hole
MA12-225. Overall gold grades at Lovell Lake appear to be slightly lower
than at Magino, averaging about 0.7 gpt gold, however the shallow nature
of the gold system, with a low potential strip ratio, suggests the gold
system at Lovell Lake could add to the overall project gold resources at
Magino. A complete table of Lovell Lake drill results and a drill hole
location map are shown below.

The drill results reported herein are part of a previously announced
60,000 metre diamond drilling program at Magino. Prodigy is accelerating
the pace of the drilling program and hopes to have eight rigs operating
on the property shortly. Brian J. Maher, President and CEO of Prodigy
Gold commented: 'The company is very pleased with the latest Magino
drill results. As the Magino gold deposit continues to grow, we will add
additional drill capacity to accelerate the progress of the gold
resource definition and expansion drilling. Prodigy is seeking to
identify the ultimate size and scale of the Magino gold resource in
anticipation of settling on final design criteria to be utilized in the
upcoming bankable feasibility study. Completing this drilling program
will allow us to select the proper process plant capacity and mining
fleet size to optimize project economics.'