Prodigy Gold Inc : Jan 24, 2012: Magino Drilling Expands Gold Zone in Main Deposit: 203 metres grading 1.27 gpt Au; Confirms Southwest Extension to Deposit Read More...

Vancouver, British Columbia, January 24, 2012 -Prodigy Gold Incorporated (PDG: TSX.V; "Prodigy") is pleased to announce that resource expansion and step out drilling at its Magino mine gold project in Ontario has intercepted significant gold mineralization in multiple areas:

• Within and adjacent to the main Magino gold resource,
• The southwest extension of the Magino deposit, and
• The Lovell Lake area 200 metres west of Magino deposit.

Prodigy completed 54 core drill holes totaling 18,077 metres (including condemnation drilling), augmenting and expanding the Magino gold resource potential.

Magino in-fill and resource expansion drilling:Highlights include 203 metres grading 1.27 gpt gold in drill hole MA11-177 and 164 metres grading 1.09 gpt gold in drill hole MA11-136. These and other drill holes reported below document thick intervals of gold mineralization that were not included in previous Magino gold resource estimates. Drill hole MA11-149 intercepted 19.0 metres grading 3.38 gpt gold starting at a vertical depth of 227.5 metres, contiguous to other high grade intercepts. Deeper, higher grade gold mineralization, documented in resource estimates, continues to be consistent in the Magino gold deposit. All of the drill holes reported herein were completed after the recent Magino gold resource estimate (NI 43-101 Technical Report dated November 2, 2011) and subsequent Preliminary Economic Assessment (PEA) outlined in a press release dated December 22, 2011 and have the potential to increase minable gold resources at Magino. Additional drilling is being planned for these areas. A complete drill hole table for all 28 in-fill and resource expansion drill holes (10,400 metres) is presented below.

Southwest extension of the Magino gold deposit:In late 2011, Prodigy completed an initial test of the southwest extension of the Magino gold deposit (2,054 metres in seven drill holes). The preliminary results confirm widespread gold mineralization southwest of the main Magino gold deposit: 127 metres grading 0.84 gpt gold in drill hole MA11-160. Drilling in this area was preliminary, six drill holes in three fences spaced 100 metres apart. All of these drill holes intercepted gold mineralization, confirming a 300 metre extension to the main Magino gold deposit. Further drilling is planned for this area and farther to the southwest where the gold deposit is unconstrained by drilling. A complete drill hole table and drill hole location map for the southwest extension drilling program is presented below.

Lovell Lake area:Preliminary drilling in the Lovell Lake area, 200 metres west of the main Magino gold deposit, also intercepted encouraging gold mineralization: 29 metres grading 1.01 gpt gold in drill hole MA11-162. Gold mineralized drill holes at Lovell Lake, as well as historic drilling, are clustered in a gold mineralized zone with at least 300 metres of strike length. Additional drilling is being planned in the area, targeting potential expansion of the overall Magino project resources. Highlights of the 3,846 metre, fourteen hole, Lovell Lake drilling program and a drill hole location map are shown below.

Brian J. Maher, President and CEO of Prodigy Gold Inc. commented "Drilling in the main Magino gold deposit continues to demonstrate the potential to increase the total gold resource. These results, including the confirmation of a southwest extension to the Magino deposit, clearly indicate that the ultimate size of the deposit has yet to be determined. While we continue to grow the gold resource at Magino, we will revise pit optimization studies and evaluate possible expansion of the proposed open pit mining operation. Defining the full scale of the mining operation at Magino is a key step in completing a feasibility study for the project during 2012".

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