======================================================================= News Release - February 8, 2012 Prodigy Provides Update on Permitting, Environmental Baseline Studies and Project Timeline for Magino ======================================================================= Vancouver, British Columbia, February 8, 2012 � Prodigy Gold Incorporated (PDG: TSX.V; "Prodigy") is pleased to provide the following update on the permitting process, environmental baseline work and the overall timeline for the Magino mine gold project in northern Ontario.�Four separate elements form the core of the mine development process at Magino:�The completion of a mine feasibility study, formal consultations with the First Nation community, finishing all required environmental baseline studies and completing the formal project description for submission to the Ontario Ministry of Northern Development, Mines, and Forestry (MNDMF or "the Ministry") and other participating ministries.�All of these activities are progressing concurrently, allowing Prodigy to expand the scope of the feasibility study to include additional drilling without delaying the overall project timeline.

Prodigy plans to submit formal permitting documents to the Ministry early in 2013, therefore the feasibility study, First Nations consultations and environmental work are planned to be completed before the end of 2012.�The company hopes to begin construction at Magino in 2014 and is targeting 2015 for the resumption of mining operations. In the fall of 2011 EBA, a consulting engineering and sciences company in the Tetra Tech group, was contracted by Prodigy Gold to develop a permitting program for Magino.�EBAs mandate includes completing environmental baseline studies,�identifying�and planning for the key milestones in the permitting process, and coordinating a socio-economic program which would accommodate local and First Nations communities interest in the permitting process to insure all stakeholders have the opportunity to become involved in the project and help guide Magino mine development.�Significant milestones achieved to date include: Water quality, fisheries, aquatics: Major water bodies in the project area have been sampled and a baseline data set established.

Sampling will be repeated on a regular basis in 2012.�Biologic studies have also been initiated with to characterize aquatic flora and fauna. Climate and air quality: A weather station has been established on site and monitoring areas designated. Hydrology:�Seven automated monitoring stations have been installed to measure surface water movement and flow. Initial testing has been completed for mineralogical definition and possible acid rock drainage and metal leaching characteristics. Preliminary identification of required permits, political jurisdiction, and regulatory agencies that may be involved in the permitting process. Initial meetings have been held with local First Nations communities to provide an outline of Prodigys intended program and establish direct and open lines of communication.
Prodigy is on schedule to complete its full feasibility study in late 2012 for Magino.�Prodigy has been drilling at Magino since mid-January will soon have six diamond drill rigs operating at the project.�The additional drilling equipment will allow Prodigy to complete its previously announced 60,000 metres resource definition, resource expansion and condemnation drilling program by summer, 2012.�When drilling is completed, the company will update its gold resource estimate for Magino and integrate the results of the feasibility study into the overall project description for submission to the Ministry.

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) shows a pre-tax NPV of $939 million and an IRR of 36% using a 5% discount rate for the project (available on SEDAR or Prodigys web site).�The proposed operation would have total gold production of 2,614,000 ounces and an average annual gold output of 249,300 ounces a year during an eleven year project life.�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 late 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: Todays Discovery, Tomorrows 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.�
On behalf of the Board of Directors Brian J.

Maher President and Chief Executive Officer FOR FURTHER INFORMATION, PLEASE CONTACT: Prodigy Gold Incorporated Email:� 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 Companys 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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