🕐29.09.11 - 13:54 Uhr

PRODIGY GOLD SIGNS EBA FOR MAGINO PERMITTING



======================================================================= News Release - September 29, 2011 Prodigy Gold Signs EBA for Magino Permitting ======================================================================= Vancouver, British Columbia, September 29, 2011 � Prodigy Gold Incorporated (PDG: TSX.V) is pleased to announce that it has signed an agreement with EBA to provide environmental baseline studies and assist in managing the permitting process for its 100% owned Magino mine gold project in northern Ontario.

EBA, a Tetra Tech Company, will focus on these key aspects of the permitting and environmental analysis of the proposed open pit gold mining project: � A comprehensive and complete baseline environmental program for the Magino mine project, � The advancement of critical consultation and other permitting related activities, � Integration of the environmental and engineering designs for the Magino mine project, � The completion and formal submission of a Project Definition Report (PDR) to Ontario mining regulatory authorities. Mr.

Brian J.

Maher, President and CEO of Prodigy Gold commented: "Prodigy is pleased to have EBA and Tetra Tech join the Prodigy team as we advance the Magino mine gold project through the development process.

Both EBA and Tetra Tech have broad experience in planning and permitting mining operations throughout Canada and we look forward to having that expertise applied to the Magino project." EBA is a consulting engineering and environmental sciences company and part of the Canadian Tetra Tech group of companies.

Tetra Tech is a multi-disciplined engineering and consulting firm that offers a broad range of integrated services and can draw on expertise from more than 12,000 employees located in 330 offices worldwide.

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.

The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.

There is no certainty that the preliminary assessment will be realized. A full feasibility study for the proposed open pit mining project at Magino is scheduled for completion in mid 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 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.
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