Prodigy Drilling Identifies Areas for Open Pit Expansion at Magino: 128 metres grading 1.37 gpt Gold

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. Drilling in the western
portion of the proposed open pit gold mine (Prodigy Magino PEA, March
31, 2011) has identified specific areas where the proposed open pit can
be redesigned to capture additional newly identified gold
mineralization. Drill hole MA11-042 cut 128 metres grading 1.37 gpt gold
(section 1180SW) including 77 metres grading 1.90 gpt gold, in an area
where the proposed open pit was designed to depths of only 150 metres
(please see cross section below). The new drilling suggests that the
open pit can be deepened and enlarged to exploit additional gold
mineralization. The gold grade in drill hole MA11-042 is up to 35%
higher than that shown in the resource model, demonstrating that in-fill
drilling can locally increase the grade of portions of the known mineral
resource (cross section location is shown on the accompanying drill hole
location map).

To view the drill hole map, click on the link below or paste the link
into your browser:

http://www.usetdas.com/maps/prodigy/pdgjune20002.jpg

Brian J. Maher, President and CEO of Prodigy Gold comments: 'These drill
results validate the premise of our in-fill drilling program: Expand the
gold resource at Magino, increase the scale and scope of the proposed
open pit mining operation and increase the quality and grade of the
Magino gold resource. Results to date are achieving these goals and we
look forward to completing the entire 45,000 metre resource expansion
drilling program this summer'.

Most of the drill results reported here are from shallower portions of
the deposit but nonetheless perform the crucial role of filling in gaps
in the drill database, setting the stage for a resource update latter
this year. A complete table of drill results and a drill hole location
map are shown below:

'*' indicates that metallic screen assays are pending. Assays for drill
hole MA11-023 to 025, MA11-046 to 051 and the remaining holes shown on
the attached map are pending.

To view the drill hole map referred to above, click on the link below or
paste the link into your browser:

http://www.usetdas.com/maps/prodigy/pdgjune20003.jpg

Pagwachuan Lake Property. The Pagwachuan Lake Property consists of 57
claims totaling approximately 11,500 hectares located 45 kilometres east
of Geraldton, Ontario. The property was optioned from 52/86 Northwest
Company Ltd. in an agreement dated 27 May, 2011. The property is located
adjacent to Prodigy's Milestone project and contains numerous gold
showings and potential drill targets. Prodigy has an option to earn a
70%interest in the property by making cash payments totalling $180,000
(on or before the 3^rd anniversary of signing the agreement)
and by incurring expenditures totalling $1,500,000 on or before the 4^th
anniversary of the effective date. Following completion of the 70%
earn-in, a joint venture will be formed with each party contributing its
proportional interest. If either party declines to participate, its
interest will be reduced on a pro-rata basis. Should either party's
interest be reduced to 10% or less, their interest will be reduced to a
5% Net Profits Interest (NPI); at this point the joint venture will
terminate and the other party will become sole owner of the joint
venture's assets subject to the NPI. Either party can withdraw from the
joint venture at any time upon which the withdrawing party′s joint
venture interest will be converted to a 3% Net Smelter Royalty (NSR).
The remaining party assumes 100% of the withdrawing party′s interest in
the joint venture and can buy back 2/3 of the NSR for $1,000,000 per
percentage interest.

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

tel.:
1-604-688-9006

Fax: 1-604-688-9029

Email: ir@prodigygold.com

Website:
www.prodigygold.com