Prodigy Closes First Tranche of Financing and Exercise of Over Allotment by Casimir Capital L.P., National Bank Financial Inc., Paradigm Capital Ltd., Byron Capital Markets Ltd. and Macquarie Capital Markets Canada Ltd. to Raise $24.3M
6/9/2011 3:20 PM - FND

Vancouver, British Columbia CANADA, Jun 09, 2011 (Filing Services Canada via COMTEX News Network) --

Prodigy Gold Inc. (PDG - TSX Venture)(KX3 - FWB), is pleased to announce that it has closed the first tranche of the previously announced private placement to raise $24.3 million, including $4.3 million on the exercise of an over-allotment option.Casimir Capital L.P., National Bank Financial Inc., Paradigm Capital Ltd., Byron Capital Markets Ltd. and Macquarie Capital Markets Canada Ltd. (the "Agents") have placed 28,170,000 common shares at a price of $0.65 per share plus 8,000,000 flow-through common shares at a price of $0.75 per flow-through common share.

As consideration for their services, the Agents were paid a cash commission of $1,458,630, equal to 6% of the gross proceeds of the financing and were issued Agent's warrants exercisable to purchase 1,085,102 common shares.The Agent's warrants have a strike price of $0.70 and are exercisable for a period of 24 months from Closing.

All securities issued in conjunction with the private placement are subject to a four month hold period.

Prodigy expects to close the second tranche of the financing shortly.

The proceeds from the private placement will be used to fund the Company's ongoing exploration and development at the Magino mine project and general corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, or unless an exemption from such registration is available.

About Prodigy Gold:Prodigy Gold Inc. is currently evaluating the development of the Magino mine gold project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade production. The Magino project contains Indicated gold resources of 1,924,200 ounces grading 1.16 gpt gold (51.6 million tonnes), and 587,100 ounces of Inferred gold resources grading 1.04 gpt gold (17.5 million tonnes).A Preliminary Economic Assessment (PEA) of the project shows a pre-tax NPV of $351 million and an IRR of 49% using a 5% discount rate (available on SEDAR or Prodigy's web site).The proposed operation would have an average annual gold output of over 166,666 ounces a year during a nine year project life.Total gold production is estimated to be 1.50 million ounces at cash costs of approximately US$496 (Cdn$521) per ounce.Please note: mineral resources that are not mineral reserves do not have demonstrated economic viability.

A full feasibility study for the proposed open pit mining project at Magino is scheduled for early 2012.Bringing the Magino mine project through the feasibility process and towards production, coupled with the exploration potential of our Beardmore-Geraldton exploration properties, are the catalysts to growing Prodigy and building substantial value for Prodigy shareholders: Today's Discovery, Tomorrow's Future.

All scientific and technical information for the Magino project has been reviewed and approved by Tom Pollock, P.Geo., Prodigy's Vice President - Exploration, who is a qualified person under the definitions established by National Instrument 43-101.Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the Prodigy logging and sample preparation facilities by Prodigy personnel.The core is then split down the centre using a typical table fed circular rock saw normally at one metre intervals.One half of the core is sent for assay to ALS Chemex, 2090 Riverside Dr., Timmins, ON, P4R 0A2, while the other half is returned to the core box and stored at Prodigy's sampling facility in a secure, fenced off, area.Prodigy QA/QC procedures include the regular use of blanks, standards and duplicate samples in addition to sending 10% of the samples off to a second lab for check assays.Samples assaying >3.0 gpt gold are automatically re-assayed by the metallic screen method.Gold assays greater than 40 gpt are capped at 40 gpt when calculating composite intervals in drill holes.Drill holes are directed as much as possible perpendicular to the strike and dip of the mineralization at Magino.As a rough estimate the true thickness of the above intercepts is approximately 76%.

On behalf of the Board of Directors

Brian J. Maher

President and Chief Executive Officer

FOR FURTHER INFORMATION, PLEASE CONTACT:

Prodigy Gold Incorporated

Email: ir@prodigygold.com

Website:www.prodigygold.com

tel.: 1-604-688-9006 Fax: 1-604-688-9029

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Magino mine property and other future plans, objectives or expectations of Prodigy Gold Incorporated (the "Company") are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com

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