Mr. Lorne Warner reports

PNG GOLD CORPORATION ANNOUNCES DIAMOND DRILL HOLE RESULTS: 112 G/TONNE GOLD OVER 6.0 METRES

PNG Gold Corp. has released assay results from its 2011 exploration program at the Imwauna gold project, located on Normanby Island, Milne Bay province, eastern Papua New Guinea.

Highlights are shown in the attached table.

                                                                                                                                           
                                                       Core            
Hole No.                       From          To      length        Gold
                                 (m)         (m)         (m)       (g/t)

IMH253                        134.9       139.9         3.0       21.70
                              147.9       153.9         6.0         112
Including                     147.9       151.9         4.0         162
Including                     149.9       150.9         1.0         327

Points of interest:

• Geological mapping of the Imwauna vein system has extended the system over two kilometres along strike and remains open.
• Drilling has extended the zone to over 150 metres in depth and remains open.
• The geological setting is an epithermal, low-sulphidation quartz vein system.
• 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 per cent fine pyrite. Vein margins are often brecciated and resealed with silica.
• Many vein systems on Imwauna including Kela's remain untested.
• Based on results to date and the vein system's potential, PNG Gold is planning an aggressive drill program.

A summary of the gold-mineralized zones from the four drill holes is presented in the attached table. As with previous results, only minor amounts of sulphides are present and no visible gold has been reported even from the very high-grade samples.

     IMWAUNA ASSAY RESULTS -- IMH 237, 248, 249 AND 253                
                                                                            
                                    Core
Hole ID         From        To    length*       Au        Ag
                  (m)       (m)       (m)     (g/t)     (g/t)

IMH237         145.2     165.4      20.2(i)  28.72      71.8
IMH248         243.3     244.8       7.5      1.83   Pending
IMH249         108.7     108.7       0.7      2.22   Pending
IMH253         134.9     137.9       3.0     21.69      44.5
and            147.9     153.9       6.0       112   Pending
including     147.90    151.90       4.0       162
including     149.90    150.90       1.0       327

*   Core lengths are not true thicknesses, which have 
    yet to be determined.                                                                                
(i) Hole IMH237's sample interval from 149.6 metres to 
    150.40 metres has no assay result and is given a 
    value of zero.                                                   

The highlight from these holes is a very high-grade section of 112 grams per tonne gold over six metres in hole IMH 253 which includes four metres zone grading 162 grams per tonne gold and a one-metre zone grading 327 grams per tonne gold. This section confirms the high grades returned from IMH 237 which averaged 28.72 grams per tonne gold over a 20.2-metre-wide zone with multiple quartz veins.

The three additional holes on Section 10200 were drilled to produce better samples from this part of the deposit and to delineate the continuity of the high-grade material indicated by the initial results from IMH 237. It was felt these results needed to be repeated due to the broken, rubbly nature of the core and poor recoveries throughout the zone of veining.

IMH 248 was designed to undercut the veins intersected in IMH 237 while IMH 249 and IMH 253 were drilled to twin the IMH 237 section. IMH 248 intersected a 7.5-metre-wide zone of quartz veining, silicification and altered wall rocks but did not repeat the high values encountered in IMH 237. Drill hole IMH 249, drilled 6.5 metres away in an initial attempt to reproduce the grades intersected in IMH237, also returned very modest values, indicating that the zone is characterized by high local variation in grade and typical pinch-and-swell characteristics. Nevertheless, the second twin hole, IMH 253, confirmed and enhanced the high-grade results seen in IMH 237, with zones of three metres grading 21.69 grams per tonne gold and, 10 metres farther down the hole, a second zone of six metres grading 112 grams per tonne gold.

Further closely spaced drilling will be required to fully delineate the orientation of any high-grade zones within the deposit and assess the potential for extensions or repetitions either along strike or at depth.

The attached table lists assay results recently received of resampled one-quarter split samples from previously published diamond drill holes. The program was undertaken to check results published in the company's Feb. 9, 2012, and Feb. 29, 2012, news releases.

                               SAMPLE REANALYSIS

                                            Core               Original gold
Hole No.                  From      To    length      Gold            result
                            (m)     (m)       (m)     (g/t)             (g/t)

IMH218                    56.2    60.2       4.0     49.86             12.55
Including                 57.8    58.8       1.0       183              20.5
IMH238                    66.4    67.9       1.5      8.32              9.54
IMH239                   126.0   127.5       1.5      1.71              3.31
IMH240                   179.1   179.9       0.8      1.90              2.30
IMH242                   232.2   234.0       1.8      34.2              15.8
IMH245                    55.2    56.1       0.9      7.92              16.9

Core 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 (RQDs), hardness and photographic logging are performed systematically prior to sampling and assaying. The core is logged, and samples are selected by PNG Gold geologists then systematically sawn in half at the site. The one-half core sample is numbered, 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 Minerals in Townsville, Queensland. The other core half is retained on the site.

Core samples are dried, crushed and pulverized to 85 per cent passing through a 75-micron mesh. The pulps are assayed for gold and silver using a 50-gram split, fire assay (FA) and AA finish. Samples grading over 100 parts per million gold are subjected to a fire assay with gravimetric finish. Analyses were also carried out for the trace elements arsenic and lead. Results are available on the company's website. Rejects and pulps are stored at the lab for future reference.

Quality assurance/quality control (QA/QC)

The ALS Minerals 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 with original assays for reproducibility and lab bias.

Qualified person

Colin McKenzie, PGeo, chief operating officer of PNG Gold, 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 licence, EL 1091, is located on the north side of Normanby Island, approximately 80 kilometres northeast of Alotau, the provincial capital of Milne Bay province, eastern 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.

Historic exploration drilling has outlined gold mineralization over a strike length of at least 900 metres to an average vertical depth of about 100 metres. Widths range from 0.5 metre to six metres in the main vein. Recent drilling had confirmed the extension of the Imwauna vein system to depths of 150 metres, with high-grade intercepts evident at this depth. Drilling is continuing, and is designed to extend the deposit to depth and along strike.