PNG Gold Corporation Intersects 32.1 g/t Au over 1.4 m and 20.2 g/t Au over 2.4 m at Imwauna Gold Project, Papua New Guinea and Confirms the Potential for High Grade Gold Extensions at Depth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2012) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

PNG Gold Corporation ("PNG Gold" or the "Company") (TSX VENTURE:PGK) announces the assay results for a further 21 holes from its Imwauna gold project on Normanby Island, Milne Bay Province, eastern Papua New Guinea with highlights as follows: 32.1 g/t Au over 1.4 m (IMH 217, section 10100N), approximately 150 vertical metres below surface and 20.2 g/t Au over 2.4 m (IMH 218, section 10200N), approximately 45 vertical metres below surface.

The IMH 217 intersection is the deepest mineralized intercept to date at the southern end of the deposit and confirms the depth extension potential of the Imwauna main vein system. The high grades also highlight the potential to expand the southern high grade zone along strike within the main Imwauna vein system (see illustration of section 10200N in the Company's Investor Presentation and in PNG Gold's website). The high grade vein intercept in IMH 218 appears to mark the discovery of a new vein that has not been encountered in any previous drill holes and which flanks the main vein. The discovery of this new vein is an indication that there is potential for adjacent veins to be discovered that could enhance the size of the Imwauna deposit. Drill plan can be viewed at: http://www.pnggold.com/i/pdf/Imwauna_EL1091_Feb2012.pdf.

Table 1 illustrates the high grade nature of these new drill results; complete results are given in Table 2 appended to this release.

Table 1: Highlights of Results

Hole	Section	Core length (m)*	Au (g/t)	Ag (g/t)
IMH 217	10100N	1.4	32.1	38.6
IMH 218	10200N	2.4	20.2	23.3
IMH 219	10475N	1.0	31.3	49.9
IMH 221	10550N	0.9	11.2	14.6
and		1.0	12.1	10.5
and		0.9	11.8	39.4
IMH 229	10450N	0.6	10.0	9.1

*core lengths are not true thicknesses which have yet to be determined

Of the 19 holes sampled for assaying purposes and reported in this release, five contain intercepts that exceed 10 g/t Au. There was no visible gold noted in the logging of any of the holes reported, and, as a result, we have confidence that assay results are reproducible. Mineralized veins have typical epithermal vein textures and may carry minor, finely disseminated pyrite, particularly in the deeper intersections. Geochemical analyses of As and Pb with this group of samples generally showed low levels of these metals and did not exhibit a correlation of either element with elevated gold values. Holes IMH 220 and IMH 222 were drilled for geotechnical purposes and were designed to evaluate the stability of the host rock within the mine adit area for mine design purposes. IMH 220 did cut the Imwauna vein and sample results will be reported in a subsequent release; IMH 222 did not penetrate to the veins and was not sampled.

Assays for the remaining 12 holes of the 2011 exploration program are in transit to the assay lab in Australia and will be reported in due course.

Dick Whittington, President and CEO, advises, "We are very encouraged by the extension of the southern high grade zone at depth within the main Imwauna vein system, and even more encouraged that results from IMH 218 indicate that we have potentially discovered an adjacent, high grade vein with new exploration potential. And, as with drilling results nearer to surface, low sulphidation is still occurring - even at these depths. As we have yet to drill the promising Kela's prospect, our excitement for the exploration potential of the Imwauna property continues."

Ongoing Drilling Programme - Imwauna and Kela's Vein Systems

Drilling continues on the Imwauna deposit primarily to explore the continuation of the mineralized veins at depth. Two drills are presently working on the Imwauna project, and, immediately upon completion of a water project in the Kela's watershed (west draining), one rig will be deployed to Kela's prospect to commence a planned 5000 m drill program. The Kela's vein system is sub-parallel to, and approximately 650 m west of, the Imwauna deposit and no previous drilling has been done on the prospect. Kela's exploration to date has been confined to mapping of the vein system and by numerous trenches along its 1.2 km strike length. Previous results demonstrated the presence of gold mineralized veins in float and bedrock in the trenches all within an extensive gold-in-soil anomaly. The Company intends to fully evaluate the potential of this exciting vein system. Trench assays can be viewed at: http://www.pnggold.com/i/maps/imwauna_trench_results.jpg.

Logging, Sampling and Assaying Procedures

All holes drilled by PNG Gold are collared using HQ triple tube drill tools. A few holes have been reduced to NQ size at depth in the hole in order to continue the hole. Geotechnical measurements such as core recovery, fracturing and veining, rock quality designations (RQD's), hardness and photographic logging are performed systematically prior to sampling and assaying. The core is logged, samples selected by PNG Gold geologists then systematically sawn in half at the site. The one half core sample is numbered then sealed in a bag and delivered by PNG Gold to its base in Alotau where the samples are palletized and placed in secure storage prior shipment to ALS Chemex in Townsville, Australia. The other core half is retained on the site.

Core samples are dried, crushed and pulverized to 85% passing through a 75 micron mesh. The pulps are assayed for gold and silver using a 50 g split, Fire Assay (FA) and AA finish. Analyses were also carried out for the trace elements As and Pb. Rejects and pulps are stored at the lab for future reference.

Quality Assurance / Quality control (QA/QC)

The ALS Chemex lab is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Duplicates, certified standards and blanks are systematically used as part of PNG Gold's QA/QC program. The company also inserts blind standards with each sample batch at the rate of about 1:10. Periodically duplicate pulps are assayed at a second independent certified assay lab. The duplicate assays are compared to original assays for reproducibility and lab bias.

Qualified Person

Mr. Colin McKenzie, P.Geo and COO of PNG Gold Corporation is a qualified person in accordance with National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.

About the Imwauna Gold Deposit

The Imwauna exploration license is located on the north side of Normanby Island approximately 80 km northeast of Alotau, the provincial capital of Milne Bay Province, Papua New Guinea. Alotau is serviced by daily flights from Port Moresby, the national capital, and scheduled coastal freighters. PNG Gold maintains a logistics base in Alotau to supply the Normanby Island site.

The Imwauna prospect is an epithermal, low sulphidation quartz vein system comprising two principal veins, the thicker, more continuous Main vein and the East vein. The mineralized veins consist of finely crystalline quartz, white to grey in colour and display typical epithermal textures such as vugs, dog tooth crystals and fine, chalcedonic layering. Sulphides are rare to absent although some deeper intersections contain a few percent of fine pyrite. Vein margins are often brecciated and re-sealed with silica.

Historic exploration drilling in 178 drill holes (see PNG Gold Corp Technical Report, November 30, 2010 on SEDAR) has outlined a narrow zone of gold mineralization over a strike length of at least 900 m to an average vertical depth of about 100 m. Widths are usually 1 to 3 m in the Main vein but less in the East vein. The drilling program is designed to extend the deposit to depth and obtain sufficient information to support a new resource estimate, now scheduled for the second quarter 2012.

About PNG Gold Corporation

PNG Gold Corporation is an exploration company with an advanced stage drilling program in Papua New Guinea. PNG Gold holds a 100% interest in the Imwauna and Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea, and trades on the TSX Venture Exchange under the symbol PGK. PNG Gold's mission is to become the premier exploration and development company in Papua New Guinea.

ON BEHALF OF THE BOARD OF DIRECTORS

J.R.H. (Dick) Whittington, President & CEO

No regulatory authority has approved or disapproved the information contained in this news release.

Forward-Looking Statements

Certain information set forth in this news release contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements relate to matters such as results of exploration and development of the Normanby Property and completion of financing and are subject to numerous risks and uncertainties, certain of which are beyond the control of PNG Gold, including, but not limited to, the impact of general economic conditions, industry conditions, financial market conditions, dependence upon regulatory and shareholder approvals, and the uncertainty of completing intended financing and obtaining additional financing. Exploration of mineral properties is subject to the inherent risk that it may not result in commercial discovery. Readers are cautioned that the assumptions used in the preparation of forward-looking statements, although considered reasonable at the time of preparation, may prove to be incorrect and, as such, undue reliance should not be placed on forward-looking statements. PNG Gold expressly disclaims any obligation to update forward-looking statements contained herein except as required by applicable law.

Table 2: Imwauna Assay Results - IMH 217 to IMH 237

Hole ID	Easting	Northing	Elev (m)	Dip	Azimuth	From (m)	To (m)	Vein Length (m)*	Au (g/t)	Ag (g/t)
IMH217	288791.3	8886577.5	566.3	-60	100	187.1	188.5	1.4	32.1	38.6
IMH218	288848.0	8886663.3	537.1	-70	100	57.8	60.2	2.4	20.2	23.3
IMH219	289052.9	8886881.3	498.5	-55	100	60.6	61.6	1.0	31.3	49.9
IMH220	289282.6	8887088.3	396.7	0	260				Geotech hole - Results pending
IMH221	289073.9	8886953.5	482.2	-50	100	29.9	31.5	1.6	8.3	11.2
and						60.6	61.6	1.0	12.05	10.5
and						79.5	81.3	1.8	8.2	22.9
IMH222	289282.6	8887088.3	396.9	-20	260				Geotech hole - no samples
IMH223	289073.0	8886953.9	482.3	-70	100	39.8	40.0	0.2	3.67	4.0
IMH224	289122.9	8887254.9	468.2	-75	100				nsv
IMH225	288912.4	8886772.9	551.0	-70	100	32.5	33.0	0.5	2.63	73.9
IMH226	288936.0	8886765.0	549.1	-60	100	143.0	144.4	1.4	4.30	3.8
IMH227	289049.0	8886759.0	529.0	-70	100	172.3	172.7	0.4	2.95	1.5
IMH228	288931.0	8886759.0	556.0	-50	280				nsv
IMH229	288965.0	8886879.0	523.0	-70	100	176.8	177.4	0.6	9.97	9.1
IMH230	289072.0	8887111.0	527.0	-50	100				nsv
IMH231	288977.0	8886867.0	512.0	-70	100	169.0	170.2	1.2	1.27	3.8
IMH232	289081.0	8887005.0	504.0	-50	100	68.8	69.2	0.4	6.86	5.6
and						73.0	73.7	0.7	5.79	14.4
IMH233	289081.0	8887006.0	504.0	-70	100	65.8	66.8	1.0	4.71	10.3
and						103.65	105.90	1.25	2.79	4.1
IMH234	289063.0	8887120.0	527.0	-70	100				nsv
IMH235	288989.0	8886984.0	503.0	-70	100				nsv
IMH236	0289282	8887088	397.0	-20	280	42.00	42.70	0.70	1.22	19.7
IMH237	0288905	8886657	560.0	-70	100				Results to be repeated1

nsv = no significant values

* true thicknesses have yet to be determined

1. Core recovery within an apparently 20 m zone of multiple quartz veins in IMH 237 was poor and the condition of the core very broken and rubbly prior to sampling. The company intends to re-drill this zone in order to obtain better quality samples for confirmation of the width and grade of the veins.