PNG Gold Corporation Announces Further High Grade Drill Hole Results: 15.8 g/t Au over 1.8 m at 190 metres-Deepest Intersection to Date-and 16.9 g/t Au over 0.9 m at 40 metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 29, 2012) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

PNG Gold Corporation ("PNG Gold" or the "Company") (TSX VENTURE:PGK) has received the assay results from the final 12 diamond drill holes completed during its 2011 exploration program at the Imwauna gold project, located on Normanby Island, Milne Bay Province, eastern Papua New Guinea. Highlights from these most recent results include 15.8 g/t Au over 1.8 m in hole IMH 242 at a vertical depth of 190 metres, the deepest intersection on the property to date, while hole IMH 245 intersected 16.9 g/t Au over 0.9 m at a shallow depth of 40 metres. Significantly, both holes are in the High Grade zone at the northern end of the Imwauna vein system.

A summary of the best intersections in this group of drill holes is presented in Table 1. The drill hole location plan can be viewed at http://www.pnggold.com/i/maps/Imwauna-Exploration-Locations_27-02.pdf. As with previous results, only minor amounts of sulphides are present, even in the deep intersection in IMH 242.

Table 1: Highlights of Results

Hole	Section	Core length (m)*	Au (g/t)	Ag (g/t)
IMH238	10175N	3.9	4.64	16.9
including		1.5	9.54	24.8
IMH 242	10700N	3.8	7.86	5.2
including		1.8	15.8	9.0
IMH 245	10800N	0.9	16.9	17.0

* Core lengths are not true thicknesses which have yet to be determined

From the initiation of the program early in 2011, a total of 12,089 metres have been drilled in 71 drill holes. Drilling continues with two drills being operated on the property - one of which will be moved to the promising, un-drill tested, Kela's vein system as soon as possible, while the other will remain on the Imwauna vein system to further test the deposit's depth and strike extension potential.

Dick Whittington, President and CEO of PNG Gold Corporation, stated: "These results open up the Imwauna vein system to new depths. To have grades of 15 grams per tonne at 190 metres vertical depth, along with only minor amounts of sulphides, is further evidence of the potential of the Imwauna vein system as a whole. At the same time, these results highlight the potential for high grades at depth in the high grade zone in the northern section of the deposit. Following on from the results announced previously on February 9^thoutlining a 32 gram per tonne intercept at 160 metres depth in the Southern zone, these results confirm that the Imwauna vein system has the potential for high grades at depth along its strike length."

Core logging, sampling and assaying procedures

All holes drilled by PNG Gold are collared using HQ triple tube drill tools. A few holes have been reduced to NQ size at depth in the hole in order to continue the hole. Geotechnical measurements such as core recovery, fracturing and veining, rock quality designations (RQD's), hardness and photographic logging are performed systematically prior to sampling and assaying. The core is logged, samples selected by PNG Gold geologists then systematically sawn in half at the site. The one half core sample is numbered, sealed in a bag and delivered by PNG Gold to its base in Alotau where the samples are palletized and placed in secure storage prior shipment to ALS Minerals in Townsville, QLD. The other core half is retained on the site.

Core samples are dried, crushed and pulverized to 85% passing through a 75 micron mesh. The pulps are assayed for gold and silver using a 50 g split, Fire Assay (FA) and AA finish. Analyses were also carried out for the trace elements As and Pb. Results are available on the company's website. Rejects and pulps are stored at the lab for future reference.

Quality Assurance / Quality control (QA/QC)

The ALS Minerals lab is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Duplicates, certified standards and blanks are systematically used as part of PNG Gold's QA/QC program. The company also inserts blind standards with each sample batch at the rate of about 1:10. Periodically duplicate pulps are assayed at a second independent certified assay lab. The duplicate assays are compared to original assays for reproducibility and lab bias.

Qualified Person

Mr. Colin McKenzie, P.Geo and COO of PNG Gold Corporation 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 Deposit

The Imwauna exploration license - EL 1091 - is located on the north side of Normanby Island approximately 80 km northeast of Alotau, the provincial capital of Milne Bay Province, eastern 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 per cent of fine pyrite. Vein margins are often brecciated and re-sealed with silica.

Historic exploration drilling in 178 drill holes (see PNG Gold Corporation 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 between 0.5 m to 6 m in the Main vein but less in the East vein. Prior to this News Release, recent drilling had confirmed the extension of the Imwauna vein system to depths of 150 metres with high grade intercepts evident at this depth - see News Release dated February 9^th, 2012 reporting 32 g/t over 1.4 m at a depth of 150 metres. Drilling is ongoing and is designed to extend the deposit to depth and obtain sufficient information to support a 43-101 resource estimate, now scheduled for the second quarter 2012.

Metallurgical recovery indications on Imwauna are promising with recoveries of 95% Au being indicated from recent test-work with low reagent consumption and the potential for improvements to these numbers with optimization of leach times and more controlled crushing and grinding - see New Release dated February 22^nd, 2012. Metallurgical testwork is continuing as part of a Preliminary Feasibility Study planned once the 43-101 resource referred to above is complete.

The Kela's Prospect

Two drills are presently working on the Imwauna project; however, immediately upon completion of a water project in the Kela's watershed (west draining), one rig will be deployed to the Kela's prospect to commence a planned 5000 m drill program. 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. Kela's exploration to date has been confined to mapping of the vein system and by numerous trenches along its 1.2 km strike length. Historic results demonstrated the presence of gold mineralized veins in float and bedrock in the trenches all within an extensive gold-in-soil anomaly. The Company intends to fully evaluate the potential of this exciting vein system. Trench assays can be viewed at: http://www.pnggold.com/i/maps/imwauna_trench_results.jpg.

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.

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 2: Imwauna Assay Results - IMH 238 to IMH 247, IMH 250 and IMH 251

Hole ID	Easting	Northing	Elev (m)	Dip	Azimuth	From (m)	To (m)	Vein Length (m)*	Au (g/t)	Ag (g/t)
IMH238	0288911	8886618	547.0	-70	100	64.0	67.9	3.9	4.64	16.9
including						66.4	67.9	1.5	9.54	24.8
IMH239	0289282	8887088	397.0	-40	280	126.0	127.5	1.5	3.31	6.9
IMH240	0289341	8887186	418.0	-52	280	179.1	179.9	0.8	2.30	2.0
IMH 241	0289080	8886881	572.0	-70	100				nsv
IMH 242	0289272	8887032	431.0	-55	280	230.2	234.0	3.8	7.86	5.2
including						232.2	234.0	1.8	15.8	9.0
IMH 243	0289253	8887167	426.0	-60	280	80.7	81.1	0.4	5.14	5.8
and						126.8	129.4	2.6	1.23	6.0
IMH 244	0289080	8886881	572.0	-70	280				nsv
IMH 245	0289253	8887167	419.0	-20	280	55.2	56.1	0.9	16.9	17.0
IMH246	0289246	8886963	483.0	-45	280	185.4	186.2	0.8	1.79	2.1
and						190.6	191.1	0.5	4.46	2.7
and						206.0	207.3	1.3	2.27	8.7
IMH247	0288859	8886475	537.0	-50	280	nsv
IMH248						Not yet drilled
IMH249						Not yet drilled
IMH250	0289265	8886984	455.0	-46	280	nsv
IMH 251	0289274	8887041	443.0	-40	280	nsv

* Vein lengths are core lengths and are not true thicknesses

** Holes 248 and 249 are intended re-drill holes for hole 237, which was highlighted in the news release dated February 9th as having poor core recovery, coupled with broken and rubbly core condition.

nsv - no significant values