Prodigy Reports New Assays and Drill Results: 207.4m Grading 1.24 gpt Gold at Magino

Prodigy Gold Incorporated (PDG: TSX.V) 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. Highlights include:

• 
  Assaying of previously unsampled potions of drill hole S-88-007 shows
  a 207 metre intercept grading 1.24 gpt gold. This drill hole, located
  in the northeastern end of the deposit, correlates with previously
  announced drill holes MA11-001, -003 and -004 (up to 261 metres
  grading 1.13 gpt gold), expanding and upgrading this portion of the
  Magino gold deposit.
  
• 
  At the southwest edge of the Magino deposit, drill holes MA11-014 (107
  metres grading 1.04 gpt gold) and MA11-016 (57 metres grading 0.73 gpt
  gold), confirms significant widths of gold mineralization at the
  margins of the Magino deposit and opens up large areas for resource
  expansion southwest of the current proposed open pit (see arrow on map
  below).
  
• 
  Drill holes MA11-007, -008, -009, and -012 cut very thick intervals of
  gold mineralization (up to 417 metres grading 0.71 gpt gold in
  MA11-008) that are vital to the proposed mine plan: These drill holes
  have identified stockpile material that can be blended with higher
  grade gold mineralization, producing a consistent head grade for the
  mill later in the proposed mine life. These drill holes also lower the
  stripping ratio for deposit, decreasing overall mining costs.
  

Drill holes MA11-012, -015, -017 and -021 all start in very shallow gold
mineralization and have successfully intercepted previously undrilled
gold mineralization along the southern margin of the Magino gold
deposit. A complete table of drill results and a drill hole location map
are shown below:

To view the map associated with this release, please click on the
following link:

http://www.usetdas.com/maps/prodigy/prodigymap05182011.pdf

Assays for drill hole MA11-011, MA11-020 and the remaining holes shown
on the attached map are pending.

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

This news release includes certain forward-looking statements or
information.All statements other than statements of historical
fact included in this release, including, without limitation, statements
relating to the potential mineralization and geological merits of the
Magino mineproperty and other future plans, objectives or
expectations of Prodigy Gold Incorporated (the 'Company') are
forward-looking statements that involve various risks and uncertainties.There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements.Important factors that
could cause actual results to differ materially from the Company's plans
or expectations include risks relating to the actual results of current
exploration activities, fluctuating gold prices, possibility of
equipment breakdowns and delays, exploration cost overruns, availability
of capital and financing, general economic, market or business
conditions, regulatory changes, timeliness of government or regulatory
approvals and other risks detailed herein and from time to time in the
filings made by the Company with securities regulators.The
Company expressly disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise except as otherwise required by
applicable securities legislation. 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.

Prodigy Gold Incorporated

Brian J. Maher

Email: ir@prodigygold.com

Website:
www.prodigygold.com

Tel.:
1-604-688-9006

Fax: 1-604-688-9029