New Guinea Gold to Repay NMC Loan in Shares and Warrants

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/22/10 -- New Guinea Gold Corporation ('NGG' or the 'Company') (TSX VENTURE: NGG)(FRANKFURT: NG8) announced that, following the renewal of EL 1091, (see Press release dated June 24, 2010), the Company elected to repay the outstanding $3 million loan to Normanby Mining Corp ('NMC') by issuing 26,610,723 units, each unit consisting of one common share and one warrant to NMC.

NGG will issue an additional 245,271 units to NMC in respect of interest owed on the loan.

On April 20, 2010, NGG announced that NMC would provide NGG with a CAD$3
million loan (the loan). Terms of the loan are:

--  interest at 8%
--  repayment within 12 months, or earlier if the licenses in respect of
    EL1091 and EL 1069 were renewed
--  Repayment either in cash or, at NGG's option, in NGG share units
    (comprising one common share and one warrant)
--  NGG issued to NMC as a bonus 5,454,545 NGG common shares at a deemed
    price of $0.11 per share in consideration of advancing the loan amount

In accordance with the loan agreement, the price of the shares has been determined by the weighted average share price for the 5 days preceding the repayment ($0.112737). The warrants are for 24 months with a strike price of 100% above the share price ($0.225).

The repayment of the loan to NMC in units, as described above, is subject to the approval of the TSX-Venture Exchange.

NGG Chairman, Bob McNeil commented: 'NGG is pleased to have repaid the $3 million loan transaction to NMC, as a bonus, and now looks forward to the re-starting of exploration and drilling on the important Imwauna project.'

'At this point, NMC owes NGG approximately $1.4 million, payable by August 20, in connection with the Imwauna Joint Venture, which NGG intends to invest in exploration at Sinivit and for other corporate purposes.'

ON BEHALF OF THE BOARD

R.D. McNeil, CHAIRMAN & CEO

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of NGG, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither 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.

Contacts:

New Guinea Gold Corporation

Forbes West

Toll Free: (888) 655-5532
forbes@sherbournegroup.ca, info@newguineagold.ca
www.newguineagold.ca