NGG

New Guinea Gold Corporation (TSX VENTURE:NGG)(FRANKFURT:NG8) ("New Guinea Gold"
or the "Company") provides the following updates to key elements of its current
business: 


Cash Position - As a result of the recent occupation of the mine by the local
landowners the mine was unable to produce for a period of two months. Whilst the
mine is now back in production the ramp up of gold production has been slower
than anticipated and gold production remains well below those being achieved
prior to the suspension of operations. As a consequence of the lost production
the company is facing a critical and immediate cash shortfall ahead of its
previous forecasts. The Board has been assessing options for the funding of the
business moving forwards and is close to finalizing arrangements which will not
compromise the negotiations with PNG Gold Corporation for a potential business
combination; however, there can be no assurance that such arrangements will be
finalized in time, in which case, the Company will have to commence selling its
share holdings in its Investment portfolio.


Phase One of Mining coming to an end - Consistent with the recently published
43-101 Technical Report and the associated Phase One mine plan it is currently
forecast that Ore mining operations at Sinivit will cease mining in Q2 2012 and
that Leaching Operations will wind down over the following months. Operations on
site will scale down in two phases following the cessation of Mining and
Processing respectively. The mine and equipment will be placed on care and
maintenance pending the outcome of the DFS. The Company's equipment on site is
suitable for building the supporting infrastructure for a CIL or CIP plant and
will be used for such if the DFS results in a positive economic outlook.


Definitive Feasibility Study (DFS) - as previously announced the company has
engaged GR Engineering Services Limited to conduct a DFS into the economic
viability of retreating the partially leached crushed Ore remaining on site, the
in-situ high-gold high-copper Ore remaining on site and the extraction of
Tellurium. The DFS is continuing on track with materials currently being subject
to metallurgical test-work. The Company believes that if the DFS returns a
positive economic result it will extend the life of the existing mine at
Sinivit. 


Potential Business Combination with PNG Gold Corporation (PNG) - discussions
continue in a positive manner with PNG regarding the potential business
combination; however, there can be no assurance that the transaction will be
consummated in a timely manner, or at all.


Exploration Drilling Update - Kavursuki - The Company has received assay results
from diamond drill holes 11KVD041 and 11KVD042 in the Kavursuki zone, which is
on strike with the Sinivit Mine and 1.5 to 2.0 km to the north. 




Assay Results Kavursuki Diamond Drill Holes                                 
----------------------------------------------------------------------------
                   From           To      Length        Gold    Cutoff grade
Hole No.             (m)         (m)         (m)       (g/t)      (gold g/t)
----------------------------------------------------------------------------
11KVD 041   no assays greater than 1g/t Gold                                
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
11KVD 042            6.2        10.3         4.1        1.66               1
----------------------------------------------------------------------------
inc                  8.2         9.2         1.0        3.25               3
----------------------------------------------------------------------------
                    11.9        14.0         2.1        1.21               1
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
11KVD 043   no assays greater than 1g/t Gold                                
----------------------------------------------------------------------------
                                                                            
Kavursuki Hole Location Data                                                
----------------------------------------------------------------------------
               Collar Co-Ordinates                                          
            ------------------------                                        
                 Easting    Northing     Azimuth     Inclination       Depth
Hole No.             (m)         (m)   (degrees)       (degrees)         (m)
----------------------------------------------------------------------------
11KVD 041         395082     9490642       101.5          -55.00       52.50
----------------------------------------------------------------------------
11KVD 042         394925     9490378       101.5          -60.00       25.50
----------------------------------------------------------------------------
11KVD 043         395233     9490378       101.5          -50.00       51.00
----------------------------------------------------------------------------



Drill core is logged and split (all by saw) on site with crushed half core being
dispatched to, and assayed by accredited laboratory ALS in Townsville,
Australia. 


The technical information in this release was prepared under the direction of
Denis M. O'Neill a Member of the Australasian Institute of Mining and Metallurgy
and a "qualified person" as defined by National Instrument 43-101. Mr O'Neill
has read and approves the information contained herein.


About New Guinea Gold Corporation 

New Guinea Gold is a premier junior explorer and miner in Papua New Guinea, with
direct and indirect interests in eight gold and two porphyry
copper-gold-molybdenum properties. With 90,000 + meters of drilling completed,
gold or copper-gold-molybdenum mineralization has been discovered on all of the
properties. The Company's premier property, the Sinivit Mine, has been producing
gold since August 2007 and the Company is focused on expanding the exploration
program, increasing production from the mine and developing the gold, copper and
tellurium resources.


For further information on this release or 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

Ces Iewago, Chairman

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.

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