Prodigy Drills 104 metres Grading 1.01 gpt Gold Including 36 metres Grading 2.33 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. Drilling during the last
month has focused on three areas: The northeastern higher grade portion
of the Magino deposit and two lower grade areas in the central and
southwest parts of the deposit. In the northeast target area, drilling
intercepted thick intervals of gold mineralization including substantial
thicknesses of higher grade gold mineralization: 104 metres grading 1.01
gpt gold including 36 metres grading 2.33 gpt gold in drill hole
MA11-056, 168 metres grading 1.00 gpt gold and a deeper zone grading
3.88 gpt gold over 8 metres in drill hole MA11-083, and 182 metres
grading 0.82 gpt gold including 20 metres grading 2.66 gpt gold in drill
hole MA11-081. These results, when combined with previous drill results
in the area, indicate that the Magino gold resource can be expanded in
this important higher grade portion of the deposit (please see drill
hole location map associated with this release at the following link: http://www.usetdas.com/maps/prodigy/prodigy08042011002.jpg).

Brian J. Maher, President and CEO of Prodigy Gold comments: 'The
continuing success of our 45,000 metre in-fill drilling program confirms
our expectations: identifying areas for gold resource expansion and
defining the extents of this large gold deposit. We are on schedule for
releasing an updated resource estimate for Magino in late September and
a revised PEA in October, paving the way for a full feasibility study in
early 2012. With the recent addition of Fred Mason as our VP Operations,
we now have the complete technical team in place to lead the company
through the development process at Magino. Detailed metallurgical test
work is underway, geotechnical drilling is largely completed and we will
soon transition from in-fill drilling to exploratory drilling at Magino,
seeking to identify the ultimate size of this robust gold system. With
this rapid progress, the next several months promise to be exciting
times for our company.'

Drilling in the central (e.g. drill holes MA11-070, 071, 075 etc.) and
southwest portions (e.g. drill holes MA11-046 through MA11-049) of the
Magino gold deposit was designed to identify the margins of the system
and to complete the drill hole database in areas not previously drilled.
This program has been a success and will allow the completion of a
revised resource estimate for this portion of the deposit. Given the
average grade of the Magino deposit documented in the NI43-101 technical
report, the results to date are as expected, bracketing the average
grade of the deposit and identifying areas for significant resource
expansion.

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 $351 million 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,1-604-688-9006

Fax:
1-604-688-9029

ir@prodigygold.com

www.prodigygold.com