New Guinea Gold Corporation (TSX VENTURE:NGG)(FRANKFURT:NG8) ("NGG" or the
"Company") announces that mining and processing at its Mt Sinivit operation has
temporarily been halted. Representatives of the Wild Dog Mining Area Landowner
Association (WDMALA) and Lulai Nakama Association (the "Landowners") have
occupied the mine-site and thus forced its temporary closure. All staff have
been stood down safely and police presence is being maintained on site.


On 12 December 2011, NGG received a letter from the Landowners lawyers demanding
that outstanding royalties be paid to the Mineral Resources Authority (MRA)
within 48 hours, failing which the Landowners would shut down NGG's mining
operations. NGG has been waiting on a Court settlement between the Landowning
Clans since early 2010 following instructions from the MRA to pay the royalties
to the WDMALA who are not recognised as the Landowners representative in the
Memorandum of Agreement between stakeholders. Despite assurances and
undertakings from NGG that their demand would be met and the funds would be paid
to the MRA, the Landowners, following a meeting with the Mine Management on 21st
December 2011, occupied the mine site on 22 December 2011. NGG ensured the safe
closure of mining and processing operations and removed all staff from site. The
royalties were released to the MRA the same day, but the Landowners remain in
occupation of the site.


NGG has also received a second demand for the payment of compensation for
alleged environmental damage. The mine has always operated within the conditions
of the Mining Lease including its environmental obligations and it has been and
is operated under a zero discharge regime. The current estimate for the complete
rehabilitation of the mine site is less than 1% of the sum demanded and this is
fully provided for in NGG's accounts.


The Company is currently seeking Court Orders for the removal of those persons
occupying the mine site illegally before pursuing a negotiated settlement of
Landowner grievances.


Acting CEO Greg Heaney commented, "This is a very disappointing situation and
the Company was left with little choice but to ensure the safety of its staff
and to cease operations until such times as those illegally occupying its mine
and associated premises are removed by the lawful authorities. We are
progressing matters on all fronts seeking an expeditious conclusion to this
matter."


For further information on this release or on other NGG projects such as the
Sinivit Gold Mine, please contact info@newguineagold.ca, or access our website -
www.newguineagold.ca.


ON BEHALF OF THE BOARD

Greg Heaney, ACTING CEO

Forward Looking Statements - Certain information set forth in this news release
may contain forward-looking statements that involve substantial known and
unknown risks and uncertainties. These forward-looking statements are subject to
numerous risks and uncertainties, certain of which are beyond the control of
NGG, including, but not limited to the impact of general economic conditions,
industry conditions, volatility of commodity prices, risks associated with the
uncertainty of resource and reserve estimates, currency fluctuations, dependence
upon regulatory approvals, the availability of future financing and exploration
risk. Readers are cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be placed on
forward-looking statements.


A copy of the 43-101 compliant Technical Report by Mining Associates Pty Limited
("MA") was filed on SEDAR today. MA is an Australian based Mineral Resources
Consultancy which is independent of New Guinea Gold as defined in National
Instrument 43-101. Ian Taylor BSc (Hons), MAIG, MAusIMM(CP), who has over 17
years experience in the minerals industry served as the Independent Qualified
Person responsible for the preparation of the independent report in accordance
with NI 43-101.


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