Prodigy Announces $37.5 Million Bought-Deal Public Offering

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

Vancouver, British Columbia CANADA, February 10, 2012 /FSC/ - Prodigy Gold Inc. (PDG - TSX Venture),("Prodigy") is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Casimir Capital Ltd. and Paradigm Capital Inc. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a "bought deal" basis, 37,500,000 common shares in the capital of Prodigy ("Common Shares") and 7,894,736 Common Shares to be issued on a "flow-through" basis under the Income Tax Act (Canada) ("Flow-through Shares") at a price of $0.80 per Common Share and $0.95 per Flow-through Share for aggregate gross proceeds of approximately $37,500,000, pursuant to a short form prospectus (the "Offering"). The Common Shares issuable under the Offering may also be concurrently offered in United States on a private placement basis pursuant to applicable exemptions from registration requirements. Under the Offering, Prodigy has agreed to grant the Underwriters an option (the "Over-allotment Option") to purchase an additional 15% of the number of Common Shares issuable under the Offering to cover over-allotments, if any. The Over-Allotment Option is exercisable in whole or in part at any time, and from time to time, until 30 days after the closing of the Offering.

The net proceeds from the issuance of Common Shares under the Offering will be used by Prodigy to fund the exploration and development activities and for general corporate purposes. Proceeds from the issuance of Flow-through Shares under the Offering will be used by Prodigy to incur Canadian exploration expenses (the "Qualifying Expenditures") on Prodigy's Magino project on or before December 31, 2013. Prodigy will renounce the Qualifying Expenditures to subscribers of the Flow-through Shares for the fiscal year ended December 31, 2012.

The Offering is scheduled to close on or about March 5, 2012 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

Under the terms of the agreement, Prodigy is required to file a preliminary short form prospectus and obtain a receipt therefor from securities regulatory authorities in Canada other than Quebec on or before February 16, 2012, or such later date as may be agreed upon by Prodigy and the Underwriters.

This news release does not constitute an offer to sell, or the solicitation of an offer to buy, Common Shares or Flow-through Shares in any jurisdiction, including the United States, or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption therefrom, nor shall there be any sale of Common Shares or Flow-through Shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The Common Shares and Flow-through Shares being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person, absent U.S. registration or an applicable exemption therefrom.


On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Prodigy Gold Incorporated
Email: ir@prodigygold.com
Website:  www.prodigygold.com
tel.: 1-604-688-9006 Fax: 1-604-688-9029


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements regarding the business and operations of Prodigy. In particular, statements regarding use of proceeds, the closing of the Offering and the renunciation of Qualifying Expenditures are forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from Prodigy's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by Prodigy with securities regulators.  Prodigy expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.


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Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com
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