New Guinea Gold Corporation
TSX VENTURE : NGG
FRANKFURT : NG8

New Guinea Gold Corporation

August 02, 2011 14:00 ET

New Guinea Gold Provides Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 2, 2011) - New Guinea Gold Corporation ("NGG" or "the Company") (TSX VENTURE:NGG)(FRANKFURT:NG8) reports that a recent site visit to the Sinivit Gold Project was completed in late July by Greg Heaney, the recently appointed Acting CEO. NGG has commenced a search for an engineering firm to partner in progressing the feasibility study recommended by the report from Mining Associates Pty Limited (a Brisbane geological consulting company) in April 2011. As of July 31, the Company was down to a shortlist of two potential partners.

The Company also reports that production at Sinivit has been good for the month of July with improved gold recoveries returning the mining operation to a cashflow positive result for the month. The Company is very excited with the progress at Sinivit and the modifications that have been made to the ore processing cycle.

The Company notes that one of its significant equity positions, PNG Gold Corp. recently announced (see press release dated July 28, 2011, PNG Gold Corp.: TSX) completion of a thirty-eight million dollar capital raising to fund exploration and development work on the Imwauna and Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea and for general working capital.

The Company currently retains equity holdings in the following listed securities:

Shares Value 07.31.11
PNG Gold Corporation 15,682,269* $14,114,042*
Coppermoly Ltd 20,973,684 $2,025,093
Vangold Resources Ltd 6,219,455 $684,140
Gold Anomaly 31,250,000** $1,279,078**
Vanoil Energy Ltd 61,110 $53,776
IBC Advanced Alloys Corp 146,068 $24,831
TOTAL $18,180,960

*14,898,156 PNG Gold Corporation shares at a value of $13,408,340 are subject to a period of escrow.

**Finalizing Government Approvals – these share are being issued in exchange for NGG's 10% free carried interest of Bankable Feasibility Study in the Crater Mt Project. They will be issued once all PNG Government approvals have been received.

The value as of July 31, 2011 of the securities retained by the Company amount to $18,180,960 with unrealized gains on options of an additional, $401,682 giving a total value of $18,582,642.

About New Guinea Gold Corporation

NGG is a premier junior explorer and miner in Papua New Guinea, with direct and indirect interests in eight gold and two porphyry copper-gold-molybdenum properties. With 90,000 + meters of drilling completed, gold or copper-gold-molybdenum mineralization has been discovered on all of the properties. The Company's premier property, the Sinivit Mine, has been producing gold since August 2007 and the Company is focused on expanding the exploration program, increasing production from the mine and developing the gold, copper and tellurium resources. In addition, NGG also retains considerable equity positions in four advanced stage exploration companies.

For further information on this release or on other NGG projects such as the Sinivit Gold Mine, contact info@newguineagold.ca, or access our website – www.newguineagold.ca.

ON BEHALF OF THE BOARD

Greg Heaney, Acting CEO

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of NGG, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

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.

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