PNG Gold Provides Update on Previously Announced $35 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2011) -

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PNG Gold Corporation's (the 'Company' or 'PGK') (TSX VENTURE:PGK) announces that it has established terms for the previously announced private placement of 46,666,666 common shares at a price of $0.75 per common share for gross proceeds of $35,000,000. Common shares issued under this offering are subject to a hold period of four months from the closing date which is expected to be on or around July 26, 2011, subject to acceptance by the TSX Venture Exchange and receipt of any required regulatory approvals. Proceeds from the placement will be used to fund the exploration and development work on the Company's Imwauna property on Normanby Island, Milne Bay Province, Papua New Guinea. The offering was lead by Canaccord Genuity Corp. and Paradigm Capital lnc. as Agents.

Dick Whittington, President and CEO, commented, "We are very pleased to have arranged this financing under the current difficult market conditions. These funds will allow us to move quickly to increase our exploration and development activities at the Imwauna property with the objective of putting out a 43-101 compliant resource on the property by the second quarter of 2012. Over the balance of 2011 we will update the market with exploration data as drilling occurs."

About PNG Gold Corporation

PNG Gold Corporation holds a 50% interest in the Imwauna and Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea, and an option to acquire the remaining 50%. With the closing of the current financing the Company anticipates fulfilling the remaining option in the next few months. PNG Gold 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.

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.