New Guinea Gold Corporation
TSX VENTURE : NGG

New Guinea Gold Corporation

August 18, 2005 16:55 ET

New Guinea Gold-August Shareholder Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 18, 2005) - New Guinea Gold (TSX VENTURE:NGG) Chairman and CEO, Bob McNeil, has provided the following update for investors:

- Construction of the Sinivit Gold Project (effective 92% NGG) in Papua New Guinea is underway and initial production is expected to begin at the end of the first quarter of 2006. A ground breaking ceremony will be held August 25th, with PNG Government Ministers and officials in attendance. New Guinea Gold is in the process of updating Sinivit technical reports in order to be able to provide a 43-101 compliant resource estimate. Project Geoscience Pty Ltd of Australia has been engaged to provide this independent report in mid-September.

- Exploration on other properties New Guinea Gold's new drill rig, (owned by NGG) will arrive at the Sehulea property in late September and is expected to be drilling at this property and adjacent Normanby property throughout the next twelve months. Fifteen kilometres of trenching have been completed at the Simuku porphyry copper project (90% NGG - see August 8 release) with the results of some 4,000 trench channel samples expected to be available and assessed by late September. On August 9, the Company announced the discovery of the source of some of the alluvial gold at the Yup River Property (50% NGG). Results of the drilling program at the Allemata gold project (50% NGG) are expected mid September.

At the Mt Nakru porphyry copper gold project (75% NGG) a major trenching program is underway, while at the Mt Penck gold project (60% NGG) the Company is preparing drill targets for a program scheduled to start later this fall. This program will use a new drill rig purchased by Kanon Resources (50/50 NGG and Vangold) which should arrive in PNG in late fall. Exploration will shortly be restarting at Bismarck (50% NGG), a Porgera type project with disseminated gold plus high grade gold veins.

- The Web Site (www.newguineagold.ca) has been updated and relaunched. The site now includes a convenient summary of New Guinea Gold's twelve PNG projects, details of each project, news releases, corporate data, plus information on Papua New Guinea.

- Bob McNeil will be returning to Vancouver and Toronto in September to meet and update investors and analysts on New Guinea Gold, prior to further planned meetings in the USA and Europe this fall.

New Guinea Gold (TSX VENTURE:NGG) has five advanced projects in Papua New Guinea which have had substantial testing by both drilling and surface trenching. The initial four projects are gold, and the fifth project is copper with significant other metal credits. The Company also has interests of up to 50% in seven other projects.

ON BEHALF OF THE BOARD

"R.D.McNeil"

CHAIRMAN & CEO

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the company.

The TSX Venture Exchange has not reviewed and does not accept the responsibility of the adequacy or accuracy of this release.

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