Prodigy Gold Begins 20,000 Metre Magino Resource Expansion Drilling Program

   Prodigy Gold Incorporated (TSX VENTURE: PDG) is pleased to announce that is has begun a 20,000 metre diamond drilling program at its 100% owned Magino Mine project located in Ontario. The drilling program is intended to in-fill and expand the known gold resource at Magino. Initial drilling will concentrate on the area around recently announced diamond drill holes 06-10 (169.3 metres grading 1.02 gpt gold), 06-15 (114.0 metres grading 1.84 gpt gold) and drill hole 06-14 (53.4 metres grading 2.43 gpt gold) (please see Prodigy Gold press releases dated January 5, 2011 and December 16, 2010). Currently there are two drill rigs operating at the Magino mine site, with a third drill rig to be added later this month.

As previously announced, Prodigy Gold is in the process of producing an updated National Instrument 42-101 compliant resource estimate and Preliminary Economic Assessment (PEA) for the Magino Mine project. The current drilling program will provide important metallurgical and engineering data as the project moves through the PEA phase. The drilling program, which will last several months, is expected to expand and upgrade the gold resources on the property, in anticipation of heading toward a full Feasibility study later in 2011.

About Prodigy Gold: Prodigy Gold Incorporated (PDG: TSX.V) was created by unifying the assets of two Canadian Junior exploration companies: Kodiak Exploration Limited and Golden Goose Resources Inc. Prodigy is currently evaluating the Magino Mine project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade gold production The company is producing a new N.I. 43-101 compliant resource estimate for Magino that will serve as the basis for a Preliminary Economic Analysis (PEA), establishing the economic parameters of an open pit mining operation. The PEA is expected to lead to a full feasibility study, expected in 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, building substantial value for Prodigy shareholders: Today's Discovery, Tomorrow's Future.

The geological information for the Magino project has been reviewed and approved by Quentin J. Browne, Prodigy Gold's Magino Project Manager, who is a qualified person under the definitions established by National Instrument 43-101. Prodigy Gold QA/QC procedures are as follows: Prodigy Gold channel samples are 5 cm wide cut perpendicular to the strike of the vein and/or shear zone from mapped alteration in the footwall continuously through the vein and/or shear zone and into mapped alteration in the hanging wall. Channels are cut with a motorized circular saw to a depth of 10 cm and removed with a hammer. Channel sample spacing is nominally every 20m along strike, dependent on outcrop size and geometry. Sample intervals are selected according to geologic contacts and visible mineralization, placed into a sample bag, and shipped to the assay lab for quantitative analysis of select elements. Prodigy Gold drill cores are split down the center with a typical table feed circular rock saw or are split with a hydraulic slitting device. Sample intervals are selected according to geologic contacts, visible mineralization, and alteration, placed into sample bags and shipped to the assay lab where they are quantitatively analyzed for select elements. Drill cores are boxed, covered, and sealed at the drill rig and moved to the Prodigy Gold logging and sample preparation facilities by Prodigy Gold personnel. Prodigy Gold angle core holes are directed perpendicular to the mapped dip of the vein therefore reported drill hole intercepts approximate true thickness of the vein. All Prodigy Goild samples are currently being assayed by Chemex ALS, 2090 Riverside Dr,Timmins, ON P4R 0A2. Blank and standard samples are routinely submitted with all sample batches sent to the lab for assay. Samples are routinely sent to other labs for additional checks.

On behalf of the Board of Directors

Brian J. Maher, President and Chief Executive Officer

This release may contain forward-looking statements or statements that relate to programs that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

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.

Contacts: Prodigy Gold Incorporated Brian J. Maher President and Chief Executive Officer 1-604-688-9006 1-604-688-9029 (FAX) [e-mail] www.prodigygold.com