Prodigy Signs Option Agreement on West Porcupine Property and Closes on First Portion of the Acquisition of Highland Project

Vancouver, British Columbia CANADA, May 16, 2012 /FSC/ - Prodigy Gold Inc. (PDG - TSX Venture, KX3 - FWB), ("Prodigy") is pleased to announce that it has signed an option agreement with Trillium North Minerals Ltd. ("Trillium") that allows Prodigy to earn up to a 70% interest in the 29.6 km2 West Porcupine property (the "Property") located 50 kilometres south-west of Timmins, Ontario. The property encompasses a westerly extension of the Porcupine-Destor fault zone in a geologic setting similar to the prolific Timmins gold mining district located east of the project. Previous exploration of the property has identified several prospective targets for gold mineralization that Prodigy intends to explore in the months ahead.

The principal terms of the option agreement, which is subject to acceptance by the TSX Venture Exchange, are as follows:

* Prodigy will pay Trillium $20,000;

* Prodigy can earn a 51% interest in the Property within five years by paying Trillium an additional $170,000, issuing Trillium 250,000 common shares of Prodigy and incurring expenditures of $5,000,000 on the Property;

* Prodigy can earn a 70% interest in the Property by incurring additional expenditures of $3,000,000 ($8,000,000 in aggregate) within three years after the above issuance, payment and expenditure have been made;

* The Property is subject to royalties amounting to 2.5% of net smelter returns, in aggregate, which may be acquired for $1,750,000.

Prodigy also announces that it and its wholly-owned subsidiary, Golden Goose Resources Inc., have completed the first of two closings related to the previously announced acquisition of properties comprising the Highland Gold Project from Pele Mountain Resources Inc. and its wholly-owned subsidiary. See Prodigy's news release of April 17, 2012 which sets forth the terms of the acquisition.

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 (see Press Release dated December 22, 2011 and technical report available on SEDAR or Prodigy's 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 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 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 Actlabs, 33 Iroquois Road, Timmins, ON, P4N 7C5, 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


Prodigy Gold Inc. was recognized as a TSX Venture 50(r) company in 2012.
TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.