NGG

The Board of Directors of New Guinea Gold Corporation (TSX
VENTURE:NGG)(FRANKFURT:NG8) ("New Guinea Gold" or the "Company") provides the
following important message to its shareholders:


On April 12, 2012, New Guinea Gold Shareholders are faced with a critical
decision impacting their investment in the Company.


The Board of Directors of New Guinea Gold reiterates its unanimous
recommendation that New Guinea Gold Shareholders vote their New Guinea Gold
shares in favour of the Plan of Arrangement with PNG Gold Corporation outlined
in New Guinea Gold's Management Information Circular dated March 9, 2012.


Shareholders will recall that the Board advised in the summer of 2011 that the
existing operations of the Company were not sustainable and that significant
investment in exploration was required to unlock the value of Sinivit. This has
been highlighted by the recent difficulties experienced at Sinivit operations
which have forced the Company to obtain debt financing to continue operations.


The Plan of Arrangement was announced on November 4, 2011. At that time the
exchange ratio was negotiated based on market conditions and external
professional valuation of the Company. The Board of Directors of New Guinea Gold
considered numerous alternatives and determined that a combination with
relatively cash rich PNG Gold was the most advantageous for New Guinea Gold
Shareholders. 


Subsequent events include the occupation of the Sinivit Mine site by a local
landowner group that occurred in December 2011 and forced the shutdown of
operations for approximately 2 months. This resulted in a major loss of gold
production and significant consumption of the Company's cash. The restart of
operations has been slower than anticipated due to damage, equipment failures,
and re-staffing of operations. Sinivit became a cash drain on the already
depleted reserve of New Guinea Gold. 


We continue to believe that Sinivit has excellent exploration potential and
could become an important gold producer. Unfortunately, the Company does not
have access to sufficient funds to carry out a large systematic exploration
program required to discover sufficient additional resources to reopen Sinivit.


The re-processing of the Vat and heap material is being studied, but this has
not been shown to be economically feasible and there is no certainty that it
will. Similarly, even if the re-processing is shown to be feasible, the
likelihood of the Company raising the required capital under current market
conditions is low. 


The current political and tenure risk associated with the Sinivit Mine have
reduced the market value of the Company. Further to the valuation of Sinivit,
our Shareholders should appreciate that the Sinivit option granted to PNG Gold
under the Credit Agreement is in no way indicative of present value but rather a
compromise reached in respect of a security interest for the PNG loan that the
Company was reluctant to provide. 


In voting on the Plan of Arrangement the NGG Shareholders should also consider
that NGG has extremely limited options at this time. The bulk of its PNG Gold
shares are in escrow and cannot be liquidated (sold), and the Company's assets
are pledged as collateral under the operating loan provided by PNG Gold. The
Sinivit Mine in its current form is depleted and requires closing. The other
shareholdings held by the Company are relatively illiquid and the market for
junior mining stocks is such that they cannot be easily sold to realize their
"current market value". 


The Board of Directors of New Guinea Gold has considered what it believes to be
all potential options available to the Company to fund on-going operations and
preserve its interest in the Sinivit Mine and associated exploration prospects.
The Plan of Arrangement, including the Credit Agreement with PNG Gold,
represents the only viable source of funding available to the Company and the
best opportunity for New Guinea Gold Shareholders to realize future economic
benefits associated with continued gold exploration, mine development, and
restart of operations in Papau New Guinea.


Management of PNG Gold share the Company's view that Sinivit represents a highly
prospective exploration property and is willing to invest in exploration as well
as redesign and recapitalization of Sinivit to unlock the value of this
property.


If New Guinea Gold Shareholders fail to approve the Plan of Arrangement, PNG
Gold has the immediate right to demand repayment of monies advanced under the
Credit Agreement which may result in the disposition of the Company's Sinivit
property, including existing mining operations, at a significantly lower price
than that implied in the exchange ratio contained in the Arrangement Agreement
with PNG Gold.


ON BEHALF OF THE BOARD

Bryan Nethery, Director

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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