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PNG Gold Corporation ("PNG Gold" or the "Company") (TSX VENTURE:PGK) provides
exploration and project development updates for the Imwauna Gold Project and
nearby Sehulea property, both located on Normanby Island, Milne Bay Province,
eastern Papua New Guinea with highlights as follows:




--  Renewal of exploration licenses EL 1091 and EL 1069 anticipated in
    normal course of business 
--  Drill hole assay results from Imwauna drill program expected by February
    2012 
--  Drill program on previously undrilled Kela's prospect to commence in Q1
    2012 
--  Design and fabrication contract awarded for on-site operations offices
    and staff quarters and site construction underway 
--  NI 43-101 complaint mineral resource estimate on track for Q2 2012 
--  Open pit mining potential in conjunction with U/G mining now 
--  Being reviewed and re-assessed as part of the preliminary feasibility
    study  



EXPLORATION PROGRAM UPDATE:

Exploration Licenses:

PNG Gold owns 100% of the 68 km2 Exploration License (EL) 1091, which
encompasses the Imwauna Project as well as the nearby 30 km2 Sehulea property,
Exploration License (EL) 1069 (see PNG Gold news release, October 31, 2011). The
Company has submitted an application to the Mineral Resource Authority, the
government agency responsible for mineral rights and mining in Papua New Guinea,
to have the full ownership of the licenses transferred to PNG Gold's local
operating subsidiary, Normanby Mining PNG Ltd. Requisite renewal applications
have also been submitted to extend the exploration licences on both properties
for a further two years. The Company anticipates that both licences will be
renewed in the ordinary course of such applications. 


Exploration Update - Imwauna Gold Project:

During the 2011 calendar year, the Company completed 12,089 m in 71 drill holes.
The holes were designed to provide additional information in shallow depths of
the mineralized zone and to explore the extension of the vein system at depths
below 100 m from surface. Assays have previously been released for 38 drill
holes (see PNG Gold news releases, October 13, 2011 and November 17, 2011) and
another 33 drill holes totalling 6,531 m (Table 1) have been sampled. Samples
cut from holes IMH217 to IMH237 (21 holes) are currently at ALS-Chemex in
Townsville, Queensland, awaiting sample prep and analysis. The lab experienced a
larger than expected influx of samples at year end but expects to have the
backlog processed by the end of January. The remaining samples, cut from holes
IMH238 to IMH251 (12 holes), are currently en route to ALS Chemex. 


In addition to further drilling on the Imwauna deposit, approximately 5000 m of
drilling is planned for the first phase of drilling on the Kela's vein system
commencing in Q1 2012. The Kela's vein system is sub-parallel to and
approximately 650 m west of the Imwauna deposit and no previous drilling has
been done on the prospect. Prior to PNG Gold's acquisition of the property,
Kela's was explored by New Guinea Gold primarily using soil and rock
geochemistry and surface trenching. Previous results demonstrated the presence
of gold mineralized veins in float and bedrock in the trenches all within an
extensive gold-in-soil anomaly. Trench assays can be viewed at:
http://www.pnggold.com/i/maps/imwauna_trench_results.jpg.  The Kela's veins
occur over a strike length of at least 1 km and appear to trace an arcuate
outcrop pattern which joins the southern extension of the Imwauna vein system. 


Exploration Update - Sehulea Property:

The Company also completed 3 holes of a planned 4-hole program on the Sehulea
property (EL) 1069, approximately 10 km northeast of Imwauna. The holes were
targeted on strong IP anomalies on Lataona Hill and adjacent the previously
drilled Weioko gold prospect. Sampling completed has been sent for analysis.
Once the 4-hole drill program has concluded, the drill will be returned to the
Imwauna property to continue drilling on the Imwauna and Kela's prospects.


Exploration Update - Site Construction:

In December 2011, the Company executed a contract with PNG Forest Products Ltd.
to supply pre-fabricated accommodations and kitchen/dining buildings for the
Imwauna project. The buildings will provide improved dwelling and support
facilities for project personnel and visitors. All design and fabrication of the
structures will be carried out in the supplier's manufacturing facility in
Bulolo, Papua New Guinea. This is in line with the Company's desire to
significantly enhance the on-site facilities in preparation for future
underground exploration and mine development activities. 


On January 16, 2012, the Civil Aviation Authority of Papua New Guinea completed
an inspection of the Sehulea Aerodrome, located on Normanby Island, and declared
it be in satisfactory condition for aircraft operations. Availability of the
Sehulea airstrip will now increase the transportation options open to PNG Gold
and improve logistical efficiency of the transport of both personnel and
supplies to and from the Imwauna Gold Project and Sehulea property. 


PROJECT DEVELOPMENT UPDATE:

Project Development Update - Imwauna Gold Project:

PNG Gold's revised project development timeline is attached (Table 2). While the
timeline outlines specific dates and activities that may change over time, it
does provide target dates that management is working towards. The first key date
is for the release of a NI 43-101 compliant mineral resource in Q2. The Company
is on track to meet that target. 


Preliminary engineering analysis by PNG Gold's engineering consultant has
highlighted the potential for an open pit along the strike of the Imwauna vein
system in conjunction with or preceding underground development. In order to
better understand the development trade-offs, the Company is deferring its plans
to immediately develop underground workings pending the results of the NI 43-101
mineral resource work.


Given the potential economic benefits of an open pit versus commencing
operations underground, the Company wishes to fully evaluate the size, scope and
location of an open pit relative to any underground workings and to do so prior
to initiating any underground development work. This will be reassessed as part
of the preliminary feasibility study which will incorporate the NI 43-101
mineral resource estimate expected in Q2. 


Conference:

PNG Gold will host a booth at the Vancouver Cambridge Investment Conference,
January 22 and 23, 2012. All shareholders and investors are cordially invited to
visit the Company's booth and to meet with management and our Investor Relations
Manager.


Qualified Person:

Mr. Colin McKenzie, P.Geo and COO of PNG Gold, is a qualified person in
accordance with National Instrument 43-101 and has reviewed and approved the
technical information contained in this news release.


About the Imwauna Gold Project

The Imwauna exploration license covers an area located on the north side of
Normanby Island approximately 80 km northeast of Alotau, the provincial capital
of Milne Bay Province, Papua New Guinea. Alotau is serviced by daily flights
from Port Moresby, the national capital, and scheduled coastal freighters. PNG
Gold maintains a logistics base in Alotau to supply the Normanby Island site. 


The Imwauna prospect is an epithermal, low sulphidation quartz vein system
comprising two principal veins, the thicker, more continuous Main vein and the
East vein. The mineralized veins consist of finely crystalline quartz, white to
grey in colour and display typical epithermal textures such as vugs, dog tooth
crystals and fine, chalcedonic layering. Sulphides are rare to absent although
some deeper intersections contain a few percent of fine pyrite. Vein margins are
often brecciated and re-sealed with silica.


Historic exploration drilling in 178 drill holes (see PNG Gold Corp Technical
Report, November 30, 2010 on Sedar) has outlined a narrow zone of gold
mineralization over a strike length of at least 900 m to an average vertical
depth of about 100 m. Widths are usually 1 to 3 m in the Main vein but less in
the East vein. The drilling program is designed to extend the deposit to depth
and obtain sufficient information to support an initial NI 43-101 compliant
mineral resource estimate, now scheduled for the second quarter 2012.


About PNG Gold Corporation

PNG Gold Corporation is an exploration company with an advanced stage drilling
program in Papua New Guinea. PNG Gold holds a 100% interest in the Imwauna and
Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea, and
trades on the TSX Venture Exchange under the symbol PGK. PNG Gold's mission is
to become the premier exploration and development company in Papua New Guinea.


For further details, please visit the Company's website at www.pnggold.com.

ON BEHALF OF THE BOARD OF DIRECTORS

J.R.H. (Dick) Whittington, President & CEO 

No regulatory authority has approved or disapproved the information contained in
this news release.


Forward-Looking Statements

Certain information set forth in this news release contains forward-looking
statements that involve substantial known and unknown risks and uncertainties.
These forward-looking statements relate to matters such as results of
exploration and development of the Normanby Property and completion of financing
and are subject to numerous risks and uncertainties, certain of which are beyond
the control of PNG Gold, including, but not limited to, the impact of general
economic conditions, industry conditions, financial market conditions,
dependence upon regulatory and shareholder approvals, and the uncertainty of
completing intended financing and obtaining additional financing. Exploration of
mineral properties is subject to the inherent risk that it may not result in
commercial discovery. Readers are cautioned that the assumptions used in the
preparation of forward-looking statements, although considered reasonable at the
time of preparation, may prove to be incorrect and, as such, undue reliance
should not be placed on forward-looking statements. PNG Gold expressly disclaims
any obligation to update forward-looking statements contained herein except as
required by applicable law.


Table 1: Imwauna drill holes with assays pending



-------------------------------------------------------------------------
Hole ID       Easting    Northing      RL   Dip  Azimuth              EOH
-------------------------------------------------------------------------
IMH217       288791.3   8886577.5   566.3   -60      100            220.0
-------------------------------------------------------------------------
IMH218       288848.0   8886663.3   537.1   -70      100            270.4
-------------------------------------------------------------------------
IMH219       289052.9   8886881.3   498.5   -55      100             81.0
-------------------------------------------------------------------------
IMH220       289282.6   8887088.3   396.7     0      260            247.0
-------------------------------------------------------------------------
IMH221       289073.9   8886953.5   482.2   -50      100             84.0
-------------------------------------------------------------------------
IMH222       289282.6   8887088.3   396.9   -20      260            151.3
-------------------------------------------------------------------------
IMH223       289073.0   8886953.9   482.3   -70      100             89.6
-------------------------------------------------------------------------
IMH224       289122.9   8887254.9   468.2   -75      100            299.8
-------------------------------------------------------------------------
IMH225       288912.4   8886772.9   551.0   -70      100            254.3
-------------------------------------------------------------------------
IMH226       288936.0   8886765.0   549.1   -60      100            260.6
-------------------------------------------------------------------------
IMH227       289049.0   8886759.0   529.0   -70      100            200.8
-------------------------------------------------------------------------
IMH228       288931.0   8886759.0   556.0   -50      280            261.0
-------------------------------------------------------------------------
IMH229       288965.0   8886879.0   523.0   -70      100            177.0
-------------------------------------------------------------------------
IMH230       289072.0   8887111.0   527.0   -50      100            196.0
-------------------------------------------------------------------------
IMH231       288977.0   8886867.0   512.0   -70      100            225.0
-------------------------------------------------------------------------
IMH232       289081.0   8887005.0   504.0   -50      100            200.8
-------------------------------------------------------------------------
IMH233       289081.0   8887006.0   504.0   -70      100            181.2
-------------------------------------------------------------------------
IMH234       289063.0   8887120.0   527.0   -70      100            201.4
-------------------------------------------------------------------------
IMH235       288989.0   8886984.0   503.0   -70      100            252.0
-------------------------------------------------------------------------
IMH236        0289282     8887088   397.0   -20      280            200.9
-------------------------------------------------------------------------
IMH237        0288905     8886657   560.0   -70      100            206.6
-------------------------------------------------------------------------
IMH238        0288911     8886618   547.0   -70      100            157.9
-------------------------------------------------------------------------
IMH239        0289282     8887088   397.0   -40      280            210.9
-------------------------------------------------------------------------
IMH240        0289341     8887186   418.0   -52      280            288.8
-------------------------------------------------------------------------
IMH241        0289080     8886881   572.0   -70      100            149.8
-------------------------------------------------------------------------
IMH242        0289272     8887032   431.0   -55      280            287.5
-------------------------------------------------------------------------
IMH243        0289253     8887167   426.0   -60      280            201.0
-------------------------------------------------------------------------
IMH244        0289080     8886881   572.0   -70      280            189.6
-------------------------------------------------------------------------
IMH245        0289253     8887167   419.0   -20      280            115.0
-------------------------------------------------------------------------
IMH246        0289246     8886963   483.0   -45      280            287.4
-------------------------------------------------------------------------
IMH247        0288859     8886475   537.0   -50      280            196.6
-------------------------------------------------------------------------
IMH248                                                    Not yet drilled
-------------------------------------------------------------------------
IMH249                                                    Not yet drilled
-------------------------------------------------------------------------
IMH250        0289265     8886984   455.0   -46      280            296.9
-------------------------------------------------------------------------
IMH251        0289274     8887041   443.0   -40      280            113.6
-------------------------------------------------------------------------



To view Table 2, click on the following link:
http://media3.marketwire.com/docs/p120.pdf

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