New Guinea Gold Corporation Production, Development and Exploration Update

VANCOUVER, BRITISH COLUMBIA, Mar 24 (MARKET WIRE) --
Significant progress is being made, or planned for all key New Guinea
Gold Corporation (NGG) (TSX VENTURE: NGG)(FRANKFURT: NG8) and Pacific
Kanon Gold Corp. (PKG - 50% owned by NGG) projects. Drilling is underway
at three projects now and will commence at a further two projects in
April. NGG is not losing focus on its principal projects. However,
drilling must be completed on these other projects to meet Government
requirements to keep the exploration licences in good standing.

Sinivit Project (92% NGG)

The Sinivit Mine is moving steadily ahead although various problems,
relating to weather and the mine's remote location, continue to be
encountered. As at March 19th a total of 72,500 tonnes in vats containing
an estimated 11,000 ozs of leachable gold were on line and being
processed (see below for discussion re leaching at Vat 2) In addition,
the crushed ore stockpile awaiting placement in vats was a further 26,000
tonnes containing an estimated 4,700 ozs of leachable gold (also see
below for explanation). Two further vats are under construction and will
be completed over the next four weeks.

Difficulties with high solution volumes in vats and supply chain problems
due to remote location, resulted in lower than anticipated gold
production in January and February, but March should yield significantly
higher output. At this time it is apparent we will not meet forecast of
4,500 ozs for the first quarter of 2009, but it is not yet possible to
quantify the variance. Production figures for the first quarter should be
available by mid April. Production figures are not final until "dore" is
sold and final analyses of dore received.

As is normal industry practice, in future, production figures will only
be released after the end of each quarter. Since upgrades to mining rate
and crushing/screening capacity are not yet complete, the quarterly
production guidance given earlier this year is withdrawn and, until
production reaches a steady state, further quarterly production guidance
will not be given.

VAT INFORMATION:

----------------------------------------------------------------------------
Leachable Percent Leachable
Vat Tonnes in Grade leached at gold Status
Vat (g/t gold) March 10, remaining
2009 (ozs)
----------------------------------------------------------------------------
1 7,000 4.26 77.2 - Vat 4 now built over
Vat 1. Vat 1
decommissioned
----------------------------------------------------------------------------
2 21,500 3.90 60.6 1,000 On line but leaching
very slowly.
De-commissioning
likely to commence soon
to allow Vats 5,6 & 7
to be built over Vats
2 & 3
----------------------------------------------------------------------------
3 24,500 2.76 53.6 - De-commissioning in
progress to allow Vats
5,6 & 7 to be built
----------------------------------------------------------------------------
4 14,000 6.97 60.2 1,300 On line
----------------------------------------------------------------------------
A 18,900 2.60 66.3 500 Off line at present
----------------------------------------------------------------------------
B 10,000 8.73 21.0 2,200 On line
----------------------------------------------------------------------------
C 9,100 6.03 17.1 1,800 On line
----------------------------------------------------------------------------
D 10,700 7.45 0.0 2,600 On line from 10/3/09
----------------------------------------------------------------------------
H 7,900 6.27 0.0 1,600 On line from 19/3/09
----------------------------------------------------------------------------

The totals from the main on-line vats 4, B, C, D & H at March 19th
2009 are: tonnes - 51,700 (92,100 including Vat's 2 and A), leachable
gold remaining - 9,500 ozs (11,000 ozs with Vat 2 and A). In addition a
further 4,700 ozs of leachable gold are in crushed ore stockpiles.

With Vats D and H both containing relatively high gold values, and coming
on line in mid March, gold production should increase significantly for
the second half of March and April. The stockpiles, which are also
relatively high grade, should allow continued, relatively consistent,
production throughout the rest of the second quarter 2009.

Vat 2 is still "on line" but de-commissioning is likely to commence
within 4 weeks to allow, together with Vat 3, for Vats 5, 6 and 7 to be
built above Vats 2 and 3.

Because of high solution levels in January and February, caused by
excessive rainfall and absence of canvas to cover vats, we were unable to
process some vats or processing was reduced as cyanide levels in leachate
solution was allowed to decrease as a safety measure. The high solution
levels have been remedied by the arrival on site of additional canvas
with which to cover vats; by using Vat L as an emergency sump; and
preparing a second emergency sump below Vat 3 (called Vat 3 containment).
Solution can be pumped into these sumps and neutralised or stored and
reused as appropriate.

Vat construction and vats being brought on line, were also delayed in
January and February as a consignment of HDPE plastic for lining new vats
and canvas for covering vats (and preventing rain water egress) was not
supplied in a timely manner as it "missed" the monthly ship from Brisbane
to Rabaul (site). This consignment arrived one month late.

Leachable grade quoted above is the gold which can be leached from the
crushed material using cyanide leach, "bottle roll" tests. The leachable
grade is less than the total gold content but is a measure of the
extractable gold in the mineralisation. Thus leachable gold remaining, as
indicated in the table above, is the theoretical total gold which can be
obtained from the current processing but in practise we would expect a
recovery of approx. 80% of that figure.

We are continually investigating and implementing procedures to increase
the recoveries. The low recoveries for Vat 2 and Vat 3 after six months
of leaching were caused by three factors - lower gold grades; early mined
surface gold material contained greater amounts of fine material which
reduced permeability in vats; and Vat 2 and Vat 3 were large, deep vats
which also resulted in lower permeability. Although Vat 3 has only 54%
recovery, further recovery was slow and this vat is being de-commissioned
to allow further vats to be built above it.

New vats constructed since Vat 3 are rectangular and 5m to 6m deep - not
20m as for Vat 2. It is possible that further gold could be extracted
from Vats 2 and Vat 3 over time, but these vats are being (or will be)
decommissioned to allow new vats to be built above them (as Vat 4 is
built above Vat 1).

Crushing availability has improved in first quarter 2009 but we are still
investigating increasing our mining rate and crushing/screening
capability. We are at present in discussion for the purchase of an
additional drill and blast rig, cone crusher and screens. We anticipate
finalizing this purchase in April 2009, so that it contributes to mine
production beginning in May 2009.

Drill definition, using an RC rig and diamond core rig (both owned by
NGG), of both oxide gold mineralisation and sulphide
(copper/gold/tellurium) mineralisation recently recommenced after a two
month stand down. Drilling continues to favourably expand our knowledge
of both styles of mineralisation and results will be released at the end
of each program.

Imwauna Project (Normanby Property - 100% NGG)

The Imwauna Project is on Normanby Island in Milne Bay Province, Papua
New Guinea. Diamond core drilling, using an NGG owned and operated drill
rig, resumed at Imwauna in February using one diamond core rig. A further
drill rig will be added to the program at the completion of the Weioko
drill program in May and a third in June on the completion of the
Allemata drilling program (both owned and operated by NGG).

A Preliminary Assessment/Feasibility Study is underway to determine
economic and other parameters for possible commencement of mining in
2011. The present Inferred Resource is 1.8Mt at 12.2g/t gold and 20g/t
silver for 706,000 ozs gold and 1,160,000 ozs silver. The mineralisation
is "free milling", not refractory, and commences at surface.

The present drilling will target upgrading the Resource to
Indicated/Measured status (since inferred resources cannot be used in a
Feasibility Study), and to provide metallurgical samples for
metallurgical testing. Approximately 7,000m of drilling is planned and
should be completed by October/November 2009. Step out, deeper and
reconnaissance drilling will commence later in 2009. An updated NI 43-101
Report is expected to be completed by the end of the first quarter 2010.

Weioko Project (Sehulea Property - 100% NGG)

The Weioko Project is on Normanby Island, 10 km NE from the Imwauna
Project. In accordance with our exploration permit, approximately 15
drill holes totalling 1,200m are planned to test higher grade gold in
trench intersections and geophysical targets which may represent
extensions of the Weioko gold mineralisation. Five holes have been
drilled and the program should be completed by May 2009. Assay results
will become available in approximately 4 to 6 weeks. The above drill
holes are in addition to 40 earlier holes and should provide additional
data to allow estimation of a resource later this year in compliance with
the guidelines of NI 43-101. Any development of this project would likely
occur in conjunction with development of the Imwauna Project.

A more detailed release on the potential of this property is in
preparation for release in April.

The drill rig used is owned and operated by NGG and will return to
Imwauna on completion of this program.

Mt Penck Project (PKG 80%, NGG 20% - effective 60% NGG)

The Mt Penck Project is in West New Britain Province, about 60 kms by
road from the provincial capital of Kimbe.

In accordance with our exploration permit, drilling is scheduled to
commence on this project, using two drills owned by PKG, early in April
2009. Approximately 25 holes totalling 3,000m are planned in the first
phase, targeting further definition of the Kavola East mineralisation,
testing of high grade trench results (such as 3m at 180g/t gold,
previously announced) and other targets within the licence area.

At the conclusion of this program there should be sufficient data to
estimate a resource in compliance with guidelines of NI 43-101.

A more detailed description of the project including locations of holes
to be drilled will be released in April 2009. Assay results should start
to be released in late May 2009.

Allemata Project (PKG - 100%, effective 50% NGG)

The Allemata Project encompasses the old Milne Bay Goldfield which is SE
of Alotau, Provincial capital of Milne Bay Province, PNG. It has good
road access to Alotau.

In accordance with our exploration permit, a 15 hole, approximately
1,000m drill program, using a NGG diamond core drill rig, on hire to PKG,
is expected to commence in April.

A more detailed description of this project will be released in April,
with details of holes planned.

First drill assay results should become available in late May 2009.

Full details of the Sinivit Project are described in an Independent N1
43-101 report dated January 2006 which is available at
www.newguineagold.ca.

For further information on this release or on other NGG projects contact
Forbes West toll free at 888 655 5532, email forbes@sherbournegroup.ca or
Judith O'Quinn at 604 662 3598, email ngg@telus.net or access our website
- www.newguineagold.ca

The information in this release was prepared under the direction of
Robert D. McNeil a Fellow of the Australian Institute of Mining &
Metallurgy and a "qualified person" as defined by National Instrument
43-101. Mr McNeil has read and approved the information contained herein.

ON BEHALF OF THE BOARD

R.D. McNeil, CHAIRMAN & CEO

The statements made in this News Release may contain certain
forward-looking statements. Actual events or results may differ from the
Company's expectations. Certain risk factors may also affect the actual
results achieved by the Company.

The TSX Venture Exchange has not
reviewed and does not accept the responsibility of the adequacy of this
release.

Contacts:
New Guinea Gold Corporation
Forbes West
Toll Free: 1-888-655-5532
forbes@sherbournegroup.ca

New Guinea Gold Corporation
Judith O'Quinn
(604) 662-3598
(604) 669-6257 (FAX)
ngg@telus.net
www.newguineagold.ca

Copyright 2009, Market Wire, All rights reserved.

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