Mr. Brian Maher reports

PRODIGY PROVIDES UPDATE ON PERMITTING, ENVIRONMENTAL BASELINE STUDIES AND PROJECT TIMELINE FOR MAGINO

Prodigy Gold Inc. has provided the following update on the permitting process, environmental baseline work and the overall timeline for the Magino mine gold project in Northern Ontario. Four separate elements form the core of the mine development process at Magino: The completion of a mine feasibility study, formal consultations with the first nation community, finishing all required environmental baseline studies, and completing the formal project description for submission to the Ontario Ministry of Northern Development, Mines and Forestry (MNDMF), and other participating ministries. All of these activities are progressing concurrently, allowing Prodigy to expand the scope of the feasibility study to include additional drilling without delaying the overall project timeline. Prodigy plans to submit formal permitting documents to the MNDMF early in 2013, therefore the feasibility study, first nations consultations and environmental work are planned to be completed before the end of 2012. The company hopes to begin construction at Magino in 2014 and is targeting 2015 for the resumption of mining operations.

In the fall of 2011, EBA, a consulting engineering and sciences company in the Tetra Tech group, was contracted by Prodigy Gold to develop a permitting program for Magino. EBA's mandate includes completing environmental baseline studies, identifying and planning for the key milestones in the permitting process, and co-ordinating a socio-economic program which would accommodate local and first nations communities interest in the permitting process to ensure all stakeholders have the opportunity to become involved in the project and help guide Magino mine development. Significant milestones achieved to date include:

• Water quality, fisheries, aquatics: Major water bodies in the project area have been sampled and a baseline data set established. Sampling will be repeated on a regular basis in 2012. Biologic studies have also been initiated with to characterize aquatic flora and fauna.

• Climate and air quality: A weather station has been established on site and monitoring areas designated.

• Hydrology: Seven automated monitoring stations have been installed to measure surface water movement and flow.

• Initial testing has been completed for mineralogical definition and possible acid rock drainage and metal leaching characteristics.

• Preliminary identification of required permits, political jurisdiction and regulatory agencies that may be involved in the permitting process.

• Initial meetings have been held with local first nations communities to provide an outline of Prodigy's intended program and establish direct and open lines of communication.

Prodigy is on schedule to complete its full feasibility study in late 2012 for Magino. Prodigy has been drilling at Magino since mid-January and will soon have six diamond drill rigs operating at the project. The additional drilling equipment will allow Prodigy to complete its previously announced 60,000-metre resource definition, resource expansion and condemnation drilling program by summer 2012. When drilling is completed, the company will update its gold resource estimate for Magino and integrate the results of the feasibility study into the overall project description for submission to the ministry.

All scientific and technical information for the Magino project has been reviewed and approved by Tom Pollock, PGeo, Prodigy Gold's vice-president exploration, who is a qualified person under the definitions established by National Instrument 43-101.

We seek Safe Harbor.