PNG Gold Corporation Announces Diamond Drill Hole Results: 112 g/tonne Gold over 6.0 Metres

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/13/12 -- PNG Gold Corporation ("PNG Gold" or the "Company") (TSX VENTURE: PGK) is pleased to report assay results from its 2011 exploration program at the Imwauna gold project, located on Normanby Island, Milne Bay province, eastern Papua New Guinea.


Highlights:

                                                       Core
Hole Number                    From          To      Length        Gold
                                (m)         (m)         (m)     g/tonne
IMH253                        134.9       139.9         3.0       21.70
                              147.9       153.9         6.0         112
  including                   147.9       151.9         4.0         162
  including                   149.9       150.9         1.0         327

Points of Interest:

--  Geological mapping of the Imwauna vein system has extended the system
    over 2.0 kilometres along strike and remains open.
--  Drilling has extended the zone to over 150 metres in depth and remains
    open.
--  Geological setting is an epithermal, low-sulphidation quartz vein
    system.
--  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 percent fine pyrite. Vein margins are often brecciated and
    resealed with silica.
--  Many vein systems on Imwauna including Kela's remain untested.
--  Based on results to date and the vein system's potential, PNG Gold is
    planning an aggressive drill program.

A summary of the gold mineralized zones from the four drill holes is presented in Table 1. As with previous results, only minor amounts of sulphides are present and no visible gold has been reported even from the very high grade samples.


Table 1: Imwauna Assay Results - IMH 237, 248, 249 and 253

----------------------------------------------------------------------------
                                                          Core
                           Elev      Azi-  From     To  Length    Au      Ag
Hole ID Easting  Northing   (m) Dip  muth   (m)    (m)  (m)(i) (g/t)   (g/t)
----------------------------------------------------------------------------
IMH237   288905   8886657 560.0 -70   100 145.2  165.4 20.2(i) 28.72    71.8
----------------------------------------------------------------------------
IMH248   289162   8886768   546 280   -60 243.3  244.8     7.5  1.83 Pending
----------------------------------------------------------------------------
IMH249   289003   8886820   541 103   -70 108.7  108.7     0.7  2.22 Pending
----------------------------------------------------------------------------
IMH253   289006   8886822   537 103   -70 134.9  137.9     3.0 21.69    44.5
----------------------------------------------------------------------------
and                                       147.9  153.9     6.0   112 Pending
----------------------------------------------------------------------------
including                                147.90 151.90     4.0   162
----------------------------------------------------------------------------
including                                149.90 150.90     1.0   327
----------------------------------------------------------------------------
Core lengths are not true thicknesses, which have yet to be determined.

(i) Hole IMH237 sample interval 149.6-150.40 metre has no assay result and
is given a value of zero.

The highlight from these holes is a very high grade section of 112 g/tonne Au over 6.0 metres in hole IMH 253 which includes 4.0 metres zone grading 162 g/tonne Au and a 1.0 metre zone grading 327 g/tonne Au. This section confirms the high grades returned from IMH 237 which averaged 28.72 g/tonne Au over a 20.2 metre wide zone with multiple quartz veins.

The three additional holes on Section 10200 were drilled to produce better samples from this part of the deposit and to delineate the continuity of the high grade material indicated by the initial results from IMH 237. It was felt these results needed to be repeated due to the broken, rubbly nature of the core and poor recoveries throughout the zone of veining.

IMH 248 was designed to undercut the veins intersected in IMH 237 while IMH 249 and IMH 253 were drilled to twin the IMH 237 section. IMH 248 intersected a 7.5 metre wide zone of quartz veining, silicification and altered wallrocks but did not repeat the high values encountered in IMH 237. Drill hole IMH 249, drilled 6.5 metres away in an initial attempt to reproduce the grades intersected in IMH237, also returned very modest values indicating that the zone is characterized by high local variation in grade and typical pinch and swell characteristics. Nevertheless, the second twin hole, IMH 253, confirmed and enhanced the high grade results seen in IMH 237 with zones of 3.0 metre grading 21.69 g/tonne Au and 10 metre farther down the hole a second zone of 6.0 metre grading 112 g/tonne Au.

Further closely-spaced drilling will be required to fully delineate the orientation of any high grade zones within the deposit and assess the potential for extensions or repetitions either along strike or at depth.

Table 2 lists assay results recently received of resampled 1/4 split samples from previously published diamond drill holes. The program was undertaken to check results published in the company's February 09 and February 29, 2012 news releases.


Table 2: Sample Re-analysis

----------------------------------------------------------------------------
                                            Core              Gold: original
Hole Number               From      To    Length      Gold            result
----------------------------------------------------------------------------
                           (m)     (m)       (m)   g/tonne           g/tonne
----------------------------------------------------------------------------
IMH218                    56.2    60.2       4.0     49.86             12.55
----------------------------------------------------------------------------
  including               57.8    58.8       1.0       183              20.5
----------------------------------------------------------------------------
IMH238                    66.4    67.9       1.5      8.32              9.54
----------------------------------------------------------------------------
IMH239                   126.0   127.5       1.5      1.71              3.31
----------------------------------------------------------------------------
IMH240                   179.1   179.9       0.8      1.90              2.30
----------------------------------------------------------------------------
IMH242                   232.2   234.0       1.8      34.2              15.8
----------------------------------------------------------------------------
IMH245                    55.2    56.1       0.9      7.92              16.9
----------------------------------------------------------------------------

Core 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 secure storage prior shipment to ALS Minerals in Townsville, QLD. 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. Samples grading over 100 ppm Au are subjected to a fire assay with gravimetric finish. Analyses were also carried out for the trace elements As and Pb. Results are available on the company's website. Rejects and pulps are stored at the lab for future reference.


Quality Assurance / Quality control (QA/QC)

The ALS Minerals lab is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Duplicates, certified standards and blanks 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. Periodically duplicate pulps are assayed at a second independent certified assay lab. The duplicate assays are compared to original assays for reproducibility and lab bias.


Qualified Person

Mr. Colin McKenzie, P.Geo and COO of PNG Gold Corporation 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 deposit

The Imwauna exploration licence -- EL 1091 -- is located on the north side of Normanby Island, approximately 80 kilometres northeast of Alotau, the provincial capital of Milne Bay province, eastern 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.

Historic exploration drilling has outlined gold mineralization over a strike length of at least 900 metres to an average vertical depth of about 100 metres. Widths range from 0.5 metre to 6.0 metres in the Main Vein. Recent drilling had confirmed the extension of the Imwauna vein system to depths of 150 metres, with high-grade intercepts evident at this depth. Drilling is continuing, and is designed to extend the deposit to depth and along strike.


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 100% interest in the Imwauna and Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea, and 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 PNG GOLD

Lorne M. Warner
Interim President and CEO



PNG Gold Corporation

The securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration thereunder or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities in the United States.

Neither the TSX Venture Exchange or 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.



Contacts:

PNG Gold Corporation
Lorne M. Warner
Interim President and CEO
(604) 669 4899
(604) 685 2345 (FAX)
www.pnggold.com