Prodigy Expands Magino Indicated Gold Resource to 2,176,000 Ounces and Inferred Gold Resource to 1,721,000 Ounces

Prodigy Gold Incorporated is pleased to announce the release of an
updated NI 43-101 compliant mineral resource estimate for its flagship
Magino mine gold project in northern Ontario. During 2011, Prodigy Gold
has more than doubled the gold resource at Magino. Using a 0.35 gpt gold
cutoff, the Magino deposit contains Indicated gold resources of
2,176,000 ounces grading 1.00 gpt gold (67.6M tonnes) and 1,721,000
ounces of Inferred gold resources grading 0.99 gpt gold (54.2M tonnes).
The resource estimate was completed by Snowden Mining Industry
Consultants Inc. ('Snowden') of Vancouver, British Columbia and is
constrained by geologic domains and a conceptual pit shell. The updated
mineral resource estimate includes the results from almost 38,000 metres
of core drilling completed at the project since January, 2011, in
addition to 155,800 metres of previous core drilling. A complete
Technical Report will be filed on SEDAR within 45 days. The resource
estimate is set out in the table below and reported at a series of cut
off grades (Note: Minor inconsistencies are due to rounding).

Prodigy Magino Project Resource Estimation November, 2011

Prodigy believes that the revised Magino resource estimate is
significant for several reasons:

• 
  Using a slightly higher cut off grade of 0.50 gpt gold generates an
  Indicated resource of 1,941,00 ounces grading 1.21 gpt gold (50.1M
  tonnes) and an Inferred resource of 1,535,000 ounces grading 1.18 gpt
  gold (40.5M tonnes). The grade-tonnage distribution suggests that
  optimizing the grade of the proposed open pit may produce a higher
  grade operation with a larger production profile than that envisioned
  in the previous PEA.
  
• 
  The new resource estimate will be incorporated into an update to the
  Magino mine gold project Preliminary Economic Assessment (PEA)
  expected later this year. The increase in gold resources will enable
  Prodigy to evaluate an expansion of the proposed open-pit mining
  project modeled in the previous PEA. An expected increase in gold
  production may have an important positive impact on the project's
  economics.
  
• 
  A detailed statistical analysis and comparison between pre-2011 drill
  hole data and new data from the 2011 drilling program shows that older
  drill hole data is statistically valid and can be used in the resource
  estimate (except for short (<50 metre) underground drill holes, which
  were eliminated from the estimate).
  
• 
  Inspection of the Magino gold resource block model identified multiple
  areas where additional drilling may further increase the Magino gold
  resource: Under the north-central portion of the conceptual open pit,
  along the southeast contact of the Webb Lake granodiorite stock, and a
  southwest extension of gold mineralization where potentially
  significant gold resources lie under the southwest high wall of the
  conceptual pit.
  
• 
  Drilling in the Lovell Lake area, 400 metres west of the Magino gold
  deposit, intercepted a zone of gold mineralization similar in grade
  and geologic setting to the main Magino gold deposit. Although not
  included in the current Magino gold resource estimate, Prodigy
  believes further exploration in this area can augment the Magino gold
  deposit and potentially become a source for additional minable
  resources for the project.
  
• 
  The block model will be utilized by Prodigy to design a drilling
  program with the goal of converting mineral resource to minable
  reserves as part of the planned full feasibility study.
  

Mineral Resource Estimate:

Information in this News Release that relates to Mineral Resource
Estimate has been reviewed and approved by Andrew F. Ross PGeo, FAusIMM,
CPGeo, who is a Qualified Person under the definitions established by
National Instrument 43-101. He is independent of Prodigy Gold and an
Associate of Snowden Mining Industry Consultants Inc., Vancouver,
British Columbia.

As previously reported, Prodigy Gold has focused its geological program
on assessment of the wide zones of quartz-pyrite-sericite altered
granodiorite that host the former underground mine workings at Magino.
During 2010, Prodigy relogged existing core, collected samples of
previously intact core to provide fuller coverage of sampling throughout
the alteration zones, and updated the drill hole and sample database
accordingly to ensure consistency. The latest drilling commenced by
Prodigy in 2011 has been included in the current mineral resource
estimate.

The area of interest covers 1,350 metres of the 075 degree trending Webb
Lake granodiorite stock and alteration zones that aggregate up to 300
metres in width, and dip steeply to depths of at least 600 metres. At
Magino the Webb Lake stock is covered by up to 30 metres of
fluvio-glacial material. The felsic and mafic volcanic country rock
surrounding the stock contain areas of low grade gold mineralization
encountered by drilling, however the main focus remains the broad
low-grade alteration zones hosted by granodiorite. A late stage diabase
dyke transects the Webb Lake stock.

The database used by Snowden contains 550 surface diamond drill holes
(total of 104,941 metres; average length 190 metres) and 484 underground
diamond drill holes (total of 48,896 metres; average length 100 metres).
One hundred twenty seven surface drill holes were completed in the
period from January 2011 to September 2011 and comprise HQ and NQ
diameter core. All underground drill holes were completed in the period
1984 to 1991 and are dominated by AQ diameter core with some BQ diameter
core, clearly clustered around the underground workings and, in some
cases subsequently mined out. Since the sample volumes of many of the
underground drill cores are markedly less than the surface drill cores
and because of potential bias contained within some samples, Snowden
elected to use only the assays from the surface drill holes and those
underground drill holes relatively unbiased for the grade estimates.
Geological information from all drill cores was used to develop the
geological interpretation.

A Vulcan block model with cell dimensions of 10 metres (X), 10 metres,
(Y) 5 metres (Z), was coded to reflect the surface topography, base of
overburden, Webb Lake granodiorite contacts, domain solids, and the late
stage diabase dyke. A three dimensional wireframe model of the
underground development, stopes, and unmineralized diabase dyke was
stored as percent volumes in the block model to ensure that the reported
mineral resource estimates are depleted for prior mining and
unmineralized zones are excluded from estimation. The geologists at
Prodigy have interpreted 17 structural domains to identify the zones of
mineralization in the drill cores. These 17 domains within the Webb Lake
granodiorite define the mineralized zones.

Gold grades were estimated from five metre length-weighted un-cut
composites into the interpreted mineralized blocks by ordinary kriging
using parameters established from analysis of the variography within
each domain. The impact of clustered high gold grades was controlled by
using a combination of 'sample per hole? restrictions, octant search and
maximum distance extrapolation restrictions for grades above 22 gpt
gold. Minimum and maximum numbers of composites used for estimation were
set to 3 and 14 per block respectively. Discretisation was set to 2 x 2
x 1. Density factors of 2.72 gm/cc were assigned to mineralized zones
based on approximately 500 measurements of specific gravity performed by
Prodigy.

In order to identify mineralized blocks that can be reported as a
Mineral Resource, a conceptual pit shell was developed using Whittle
software to identify those parts of the block model that have reasonable
prospects for eventual economic extraction. Parameters used were: 52
degree (overall pit slope); $1.25 /tonne mining cost; $1,500 per oz gold
price; 95% process recovery; $7 /tonne process cost. A detailed pit
model using more selective criteria and lower gold price will be used
for the update to the PEA. Mineralized blocks that lie within the
conceptual pit shell have been classified as either Indicated or
Inferred Mineral Resource estimates. Geostatistical parameters from the
kriging system were used to identify regions of better confidence
estimates.

Snowden has applied an Inferred classification to blocks in the mineral
resource that lie within low confidence regions and between a depth from
the surface of 150 metres and within the limit of the conceptual pit
shell.

Above a depth from the surface of 150 metres, resource blocks that have
been estimated by at least 14 samples have been classified as Indicated
resource blocks. Snowden has not classified any Measured blocks after
considering the uncertainty in geological interpretation and extent of
the underground workings, the high nugget environment, short ranges of
gold grade continuity, use of assigned densities and the current drill
spacing. Snowden notes that Prodigy Gold has an ongoing drill program to
in-fill the existing drill pattern.

Mineral resources are not mineral reserves and do not have demonstrated
economic viability. There is no certainty that all or any part of the
mineral resource will be converted into mineral reserves. In the above
mineral resource table there may be inconsistencies due to rounding.
Estimates are rounded since the figures are not precise calculations.

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 2,176,000 ounces grading 1.00 gpt gold (67.6
million tonnes), and 1,721,000 ounces of Inferred gold resources grading
0.99 gpt gold (54.2 million tonnes) at a cut off grade of 0.35 gpt gold.
A Preliminary Economic Assessment (PEA), based on the older February 28,
2011 resource estimate, shows a pre-tax NPV of $351million and an IRR of
49% using a 5% discount rate for the project (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. The PEA will be
updated using the results of the November 2, 2011 resource estimate in
the coming weeks. 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, is a
catalyst 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, except
the section labelled 'Mineral Resource Estimate', 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

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 mineproperty 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. NeitherTSX 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.

Prodigy Gold Incorporated

Brian J. Maher

Email: ir@prodigygold.com

Website:
www.prodigygold.com

tel.:
1-604-688-9006

Fax: 1-604-688-9029