🕐25.08.11 - 17:27 Uhr

PRODIGY RECEIVES GEOTECHNICAL REPORT ON MAGINO: STEEPER PIT WALLS POSSIBLE



======================================================================= News Release - August 25, 2011 Prodigy Receives Geotechnical Report on Magino: Steeper Pit Walls Possible ======================================================================= Vancouver, British Columbia, August 25, 2011 � Prodigy Gold Incorporated (PDG: TSX.V) is pleased to announce that it has received a preliminary report from Golder Associates that summarizes their geotechnical analysis of the proposed Magino open pit gold mining project.

The report concludes that the inter-ramp bench angles can be increased to between 48 and 54 degrees from an original 45 degrees used in the project Preliminary Economic Assessment (PEA) released in April 2011.

This steepening of the pit slopes will reduce the waste to ore strip ratio, allowing mineralization from the lower mine sections to be accessed and incorporated into the mine design.

Brian J.

Maher, President and CEO of Prodigy Gold commented: "Prodigy is excited about the results of this study.

The steeper walls should increase the recoverable resource and decrease the strip ratio with attendant mining cost reduction.

These combined factors should positively impact the Net Present Value (NPV) analysis and valuation of the project".

Other work in progress includes in-fill drilling which will be incorporated into a revised resource estimate in late September, followed by a PEA update scheduled for November.

Results from metallurgical test work are also expected within the next few weeks. The proposed open pit in the April, 2011 PEA was designed using a 45 degree overall pit slope as there was no geotechnical assessment available when the PEA was prepared.

Golder Associates was contracted to provide a conceptual pit slope design for the Magino mine using samples of core and a review of information culled from project literature.

The pit slopes are comprised of a top layer of overburden, rock from a slightly weathered zone and massive zones of volcanic, meta-volcanic, granodiorite and felsic type rocks.

Samples of the massive granodiorite and mafic volcanic rocks were sent to Queen�s University labs for strength testing.

RQD analysis was done on the core samples.

The results show that the altered granodiorite that hosts gold mineralization are competent units and capable of standing at angles steeper than 45 degrees.

There are localized zones within crystal tuff and healed shears that have lower RQD and strength characteristics.

After reviewing all the available data and the results of the present studies, the pit walls were divided into four distinct zones, Northwest, Northeast, Southeast and Southwest.

These were analyzed for rock type, planar movement, toppling, wedge failures and influence of weaker rock types.

Additional geotechnical work is planned and will include drilling geotechnical holes into the walls to test for geomechanical and hydrogeological rock mass qualities.

Additional core samples will be tested using uniaxial, triaxial and Brazilian test methods to complement results from the initial program.

Hydrogeological studies on overburden are required as all designs were based on dry conditions.

About Prodigy Gold: Prodigy Gold Inc.

(PDG: TSX.V) is currently evaluating the development of the Magino mine gold project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade gold production.

The Magino project contains Indicated gold resources of 1,924,200 ounces grading 1.16 gpt gold (51.6 million tonnes), and 587,100 ounces of Inferred gold resources grading 1.04 gpt gold (17.5 million tonnes).

A Preliminary Economic Assessment (PEA) of the project shows a pre-tax NPV of $351million and an IRR of 49% using a 5% discount rate (available on SEDAR or Prodigys web site).

The proposed operation would have an average annual gold output of over 166,000 ounces a year during a nine year project life.

Total gold production is estimated to be 1.50 million ounces at cash costs of approximately US$496 (Cdn$521) per ounce.

Please note: mineral resources that are not mineral reserves do not have demonstrated economic viability. A full feasibility study for the proposed open pit mining project at Magino is scheduled for early 2012.

Bringing the Magino mine project through the feasibility process and towards production, coupled with the exploration potential of our Beardmore-Geraldton exploration properties, are the catalysts to growing Prodigy Gold and building substantial value for Prodigy shareholders: Todays Discovery, Tomorrows Future. All scientific and technical information for the Magino project in this press release has been reviewed and approved by Tom Pollock, P.

Geo., Prodigy Gold�s Vice President � Exploration, who is a qualified person under the definitions established by National Instrument 43-101.

Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the Prodigy logging and sample preparation facilities by Prodigy Gold personnel.

The core is then split down the centre using a typical table fed circular rock saw normally at one metre intervals.

One half of the core is sent for assay to ALS Chemex, 2090 Riverside Dr., Timmins, ON, P4R 0A2, while the other half is returned to the core box and stored at Prodigy�s sampling facility in a secure, fenced off, area.

Prodigy QA/QC procedures include the regular use of blanks, standards and duplicate samples in addition to sending 10% of the samples off to a second lab for check assays.

Samples assaying > 3.0 gpt gold are automatically re-assayed by the metallic screen method.

Gold assays greater than 40 gpt are capped at 40 gpt when calculating composite intervals in drill holes.

Drill holes are directed as much as possible perpendicular to the strike and dip of the mineralization at Magino.

As a rough estimate the true thickness of the above intercepts is approximately 76%.

On behalf of the Board of Directors Brian J.

Maher President and Chief Executive Officer FOR FURTHER INFORMATION, PLEASE CONTACT: Prodigy Gold Incorporated Email: Website: www.prodigygold.com tel.: 1-604-688-9006 Fax: 1-604-688-9029 This news release includes certain forward-looking statements or information.

All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Magino mine property and other future plans, objectives or expectations of Prodigy Gold Incorporated (the "Company") are forward-looking statements that involve various risks and uncertainties.

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 the Companys 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 the Company with securities regulators.

The Company 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.

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.======================================================================= Click or copy and paste the link below to unsubscribe from this list http://dissemination.blendermedia.com:81/u?id=3168290N&n=T&l=prodigygold_com =======================================================================



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