Mr. Greg Clarkes reports

PNG GOLD CORPORATION ANNOUNCES DRILL ASSAYS AT THE IMWAUNA MAIN STRUCTURE

PNG Gold Corp. has released gold and silver assay results from 11 diamond drill holes from the Imwauna Main structure in the Henry zone area.

The relevant table highlights the assay results of hole IMH-275, which contains highly prospective gold grades that are typical of low-sulphidation epithermal deposits and are known to occur along the Imwauna Main structure based on previous drilling programs. Drilling is continuing along two of five known areas along the Imwauna Main structure that host similar grades. Since November, 2012, the company has drilled 48 diamond drill holes for a total of 11,394 metres at the Imwauna Main structure. Only partial assay results have been received for several of the holes as noted in the relevant table.

               HIGHLIGHTED HOLE

Hole ID   From     To Length   Gold       Silver
           (m)    (m)    (m)  (g/t)        (g/t)

IMH275  185.50 190.70   5.20  29.35       +41.27
incl.   185.50 187.70   2.20  66.97       +71.45
and     185.50 186.00   0.50 140.00 Greater than
                                             100

Silver assays are still pending for this hole.

Imwauna Main structure key points:

• Hosts low-sulphidation epithermal gold/silver mineralization;
• Highly prospective gold/silver mineralization contained in hydraulically brecciated quartz veins;
• Drilling has now tested the Imwauna Main structure below 250 metres from surface;
• Continuity of the Imwauna structure remains strong;
• Mineralization appears to be plunging moderate to steeply south shoots as predicted;
• Drilling to date has only tested two of several known highly prospective shoots;
• Two diamond drills continue to drill test along the structure and to depth;
• Assay results pending on approximately 30 drill holes.

Drill hole orientation and PIMA surveys of the alteration and mineralization of the Imwauna structure assist in determining each zone's orientation and theoretical level of the epithermal mineralization. There are indications that the Imwauna structure's mineralization may also be exploiting low-angle structures closely related to bedding orientation.

Assay results received are shown in the relevant table.

                         DRILL RESULTS

Hole ID      From       To   Length     Gold   Silver               Comments
              (m)      (m)      (m)    (g/t)    (g/t)                       

IMH263      43.00    43.80     0.80     0.09     4.00                       
IMH264      60.00    63.00     3.00     3.60   +32.20  Silver assays pending
incl.       62.00    62.50     0.50     9.22  Greater  Silver assays pending
                                             than 100                       
IMH265      72.00    80.00     8.00     1.40     8.38                       
incl.       72.00    75.14     3.14     2.14    10.10                       
and         72.00    73.00     1.00     4.37     8.00                       
IMH266     186.30   188.50     2.20     1.59     2.00                       
IMH267     135.55   136.05     0.50     0.08    14.00                       
and        144.80   145.60     0.80     1.39     5.00                       
IMH268     149.30   154.05     4.75     4.46    10.68                       
incl.      150.00   151.30     1.30    11.90    16.00                       
IMH269     211.00   212.50     1.50     2.18     2.00                       
IMH270     172.50   174.35     1.85     2.83     5.68                       
incl.      172.50   173.00     0.50     8.34    14.00                       
IMH271     226.90   229.00     2.10     6.56     5.62                       
IMH272     194.50   195.00     0.50   187.00  Greater   Assays still pending
                                             than 100   for most of the zone
IMH275     185.50   190.70     5.20    29.35   +41.27  Silver assays pending
incl.      185.50   187.70     2.20    66.97   +71.45  Silver assays pending
and        185.50   186.00     0.50   140.00  Greater  Silver assays pending
                                             than 100                       

Composite widths are core lengths. The Imwauna structure dips generally steeply west.

Qualified person

Lorne Warner, 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.

All core samples are cut in half on site and sent to the company's Alotau office for direct shipment to the Intertek (ITS (PNG) Ltd.) laboratory in Lae, Papua New Guinea, an ISO/LEC 17025-certified laboratory. Gold analysis is completed by a 50-gram charge and fire assay/atomic absorption spectrometry, and for silver a 50-gram charge using two-acid AAS. The company inserts a standard blank and requests a duplicate sample be run in every batch of 20 samples. In addition, the lab inserts in-house blanks, standards and duplicates with each shipment. Data that fall outside the control limits are checked and repeated as necessary.

EL 1091 Normanby-Imwauna flagship project

The Normanby 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. The project consists of the main prospect, Imwauna, and includes Kelas and numerous untested prospects. The flagship Imwauna gold deposit is a high-grade, near-surface, low-sulphidation, epithermal vein gold system. Gold mineralization ranges from 0.5 metre to six metres in the Imwauna Main structure. The Imwauna prospect remains open in the north and south at strike and at depth.

We seek Safe Harbor.