Vancouver, British Columbia, October 4, 2011 – Prodigy Gold Incorporated (PDG: TSX.V) is pleased to announce that it has signed an agreement with Wardrop, a Tetra Tech Company (Tetra Tech), to provide engineering, evaluation and design services leading to an update to the Magino mine gold project Preliminary Economic Analysis (PEA) and ultimately, a National Instrument 43-101 compliant Definitive Feasibility Study. The Magino mine project, located in northern Ontario, is being evaluated as an open-pit gold mining project. The update to the PEA will examine the impact of a potential increase in gold resources, updated and detailed metallurgical studies, pit design geotechnical studies, the potential for expanding the proposed mill processing rate, and the changing gold price environment on the project's cash flow model. Tetra Tech's scope of work will consist of three primary phases:

• An update to the PEA, expected in November 2011,
• A Gap Analysis involving a number of trade-off studies to optimize the project flow sheet and proposed operation, and
• A Definitive Feasibility Study for the proposed mining operation, expected in mid 2012.

Mr. Brian J. Maher, President and CEO of Prodigy Gold commented: "The selection of Tetra Tech to provide engineering services for the Magino mine gold project Definitive Feasibility Study and PEA update is yet another milestone for Prodigy Gold. Tetra Tech is world renown in mine design and engineering; keeping the entire permitting and engineering team under one umbrella should yield significant efficiencies and cost savings as we rapidly advance the Magino project. With a healthy treasury, Prodigy is well situated to advance Magino through the feasibility process ".

About Tetra Tech: Tetra Tech is a leading provider of consulting, engineering, program management, construction, and technical services. The Company supports government and commercial clients by providing innovative solutions to complex problems focused on water, environment, energy, infrastructure, and natural resources. With more than 13,000 employees worldwide, Tetra Tech's capabilities span the entire project life cycle.

About Prodigy Gold: Prodigy Gold Inc. (PDG: TSX.V) 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 gold 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 $351million 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 166,000 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. The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will be realized.

A full feasibility study for the proposed open pit mining project at Magino is scheduled for completion in mid 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 Gold 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 Gold’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 Gold 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