Source: Gen III Oil Corporation

PNG Gold Corporation-51.21 g/tonne Gold and 124.50 g/tonne Silver Over 2.50 Metres, Imwauna Main Structure, Papua New Guinea

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 23, 2013) - PNG Gold Corporation ("PNG Gold" or the "Company") (TSX VENTURE:PGK) is pleased to announce gold and silver assay results from 11 diamond drill holes from Imwauna Main Structure. Several holes in Table #2 were previously announced on March 12, 2013 some of which contained only partial gold and silver assay results.

Table #1 highlights the assay results from hole IMH-272 which contain highly prospective gold grades, typical of low sulphidation epithermal deposits and known to occur along the Imwauna Main Structure from previous drilling programs. Since January 2013 the company has drilled 45 diamond drill holes for a total of 14,038.75 metres on the Imwauna Main Structure. Final assay results have been received for all of the holes noted in Table #2.

Table #1 - Highlight Hole
Hole # From To Drill Length Gold Silver
(m) (m) (m) (g/tonne) (g/tonne)
IMH272 194.00 196.50 2.50 51.21 124.20

Key Highlights

  • Two year renewal of licences EL 1069 and EL 1091 completed.
  • First phase of drilling completed on the Imwauna Main Structure.
  • Equipment being mobilized to drill test EL 1069.
  • Personnel reduced during stand-down on EL 1091.
  • More assay results pending on approximately 52 diamond drill holes on EL 1091.

Diamond drilling has now tested the Imwauna Main Structure to over 250 metres below surface and demonstrates good continuity of the structure. Gold mineralization is directly related to epithermal quartz veining which varies in thickness throughout the structure. Higher-grade gold mineralization generally occurred in areas of greater quartz vein concentrations exhibiting multiple pulses of hydraulic brecciation.

The first phase of diamond drilling is now complete at Imwauna and further drilling stopped while the Company awaits receipt of all assays from this program. Upon completing a review of the results and the model, a second stage drilling plan will then be formulated for Imwauna. Also, during this period, one drill rig is being mobilized to test epithermal style gold mineralization on PNG Gold's 100% owned EL 1069. The proposed program will entail 1000-2000 metres of drilling to test known gold mineralization and related induced polarization chargeability and resistivity anomalies.

Assay results received are as follows:

Table # 2 - Henry Zone
Section 1
Hole ID From To Core Length Gold Silver
(m) (m) (m) grams/tonne grams/tonne
IMH263 40.00 41.00 1.00 0.02 318.00
IMH264 60.00 63.00 3.00 3.61 407.17
including 62.00 62.50 0.50 9.22 2,351.00
IMH265 72.00 80.00 8.00 1.40 8.38
IMH267 134.60 136.05 1.45 0.30 132.59
including 134.60 135.55 0.95 0.02 195
IMH268 149.30 154.05 4.75 4.46 10.68
including 150.00 151.30 1.30 11.90 16.00
IMH270 172.50 174.35 1.85 2.83 5.68
including 172.50 173.00 0.50 8.34 14.00
IMH272 194.00 196.50 2.50 51.21 124.20
including 194.50 195.00 0.50 187.00 316.00
Section 2
Hole ID From To Core Length Gold Silver
(m) (m) (m) grams/tonne grams/tonne
IMH266 186.30 188.50 2.20 1.59 2.32
and 193.65 194.20 0.55 1.53 5.00
IMH269 109.40 110.60 1.20 1.30 4.00
and 160.80 162.00 1.20 1.15 2.00
and 167.40 168.40 1.00 1.89 2.00
and 211.00 212.50 1.50 2.18 2.00
and 215.20 216.00 0.80 2.05 2.00
IMH271 172.00 173.00 1.00 1.18 2.00
and 226.90 229.00 2.10 6.56 6.65
and 243.60 244.20 0.60 0.55 3.00
and 247.00 248.00 1.00 <0.005 43.00
IMH273 21.20 23.50 2.30 1.68 132.57
and 240.40 240.90 0.50 2.11 2.00
and 257.80 258.40 0.60 2.95 3.00
and 263.10 263.90 0.80 1.90 1.00

Qualified Person

Mr. Lorne Warner, P.Geo, COO of PNG Gold Corporation is a qualified person in accordance with National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.

All core samples are cut in half on-site and sent to our Alotau office for direct shipment to Intertek (ITS (PNG) Limited) laboratory in Lae, Papua New Guinea an ISO/LEC 17025 certified laboratory. Gold analysis is completed by a 50 gram charge, fire assay/AAS and for silver a 50 gram charge using two acide AAS. The company inserts a standard, blank and requests a duplicate sample be run in every batch of 20 samples. In addition, the lab inserts in-house blanks, standards and duplicates with each shipment. Data that fall outside the control limits are checked and repeated as necessary.

About the Normanby Island Projects

EL 1091 Imwauna

The Imwauna exploration licence -- EL 1091 -- is located on the north side of Normanby Island, approximately 80 kilometres northeast of Alotau, the provincial capital of Milne Bay province, eastern Papua New Guinea. The project consists of two main prospects, Imwauna and Kelas, along with numerous untested prospects. The Imwauna gold deposit is a high grade, near surface, low sulphidation, epithermal vein gold system. Gold mineralization ranges from 0.5 metres to 6.0 metres in the Imwauna Main structure. The Imwauna prospect remains open in the North and South at strike and at depth.

EL 1069 Sehulea

The Sehulea exploration licence - EL 1069 - is located north east of Imwauna on Normanby Island and contains several low sulphidation epithermal gold deposits which require additional drill testing. Previous results indicate the area contains extensive lower grade gold mineralization over intercepts of up to 60 metres core length with grades ranging between 1-2 g/tonne gold. Mineralization is associated with extensive silicification, disseminated, and semi-massive pyrite, with a positive correlation between higher pyrite concentrations and gold.

About PNG Gold Corporation

PNG Gold Corporation is an exploration company with an advanced stage drilling program in Papua New Guinea. PNG Gold holds a 100% interest in the Imwauna and Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea, and trades on the TSX Venture Exchange under the symbol PGK. PNG Gold's mission is to become the premier exploration and development company in Papua New Guinea.


Forward-Looking Statements - This document contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or states that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of PNG Gold Corporation ("PNG" or the "Company") to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information.

Examples of such statements include: statements pertaining to PNG's proposed exploration and development activities and method for funding thereof, timing of development of undeveloped gold resources, gold extraction, processing, recovery and production levels, expectations regarding the ability to raise capital and to continually add to resources through acquisitions/development, treatment under governmental regulatory regimes and tax laws, capital expenditure programs and the timing and method of financing thereof, the development plans and status of assets, future growth and performance.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking information contained in this document. Such forward-looking information is based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability of PNG to obtain necessary financing and adequate insurance; the economy generally; and, current and future stock prices, results of operations and exploitation, exploration and development activities, fluctuations in gold prices and market conditions, the extent of gold resources and future growth and performance, the regulatory and foreign environment, future capital and other expenditures (including the amount, nature and sources of funding thereof), uncertainty of resource estimates, the availability of necessary exploration and development equipment, competitive advantages, fluctuations in foreign currency exchange rates, property title and investments, business prospects and opportunities, transportation and construction delays, possible variations of ore grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes and other risks of the mining industry, political instability, arbitrary changes in law, delays in obtaining governmental approvals and anticipated and unanticipated costs. The factors identified above are not intended to represent a complete list of the factors that could affect PNG. Additional risk factors are noted under the heading "Risk and Uncertainties" in the Company's MD&A for the year ended December 31, 2012 that was filed on SEDAR.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievement may vary materially from those expressed or implied by the forward-looking information contained in this document. These risk factors should be carefully considered and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date of this document. All subsequent forward-looking information attributable to PNG herein is expressly qualified in its entirety by the cautionary statements contained in or referred to herein. PNG does not undertake any obligation to release publicly any revisions to this forward-looking information to reflect events or circumstances that occur after the date of this document or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.


Greg Clarkes, CEO and Director

PNG Gold Corporation

The securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration thereunder or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities in the United States.

Neither the TSX Venture Exchange or 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.

Contact Information:

PNG Gold Corporation
Greg Clarkes
CEO and Director
(604) 669 4899
(604) 685 2345 (FAX)