New Guinea Gold Corp announces closing of property/share purchase agreement
with Vangold Resources Ltd. (Vangold) and filing of Early Warning Report

VANCOUVER , Feb. 1 /CNW/ - New Guinea Gold Corporation (NGG) is pleased to announce that the TSX-V has accepted for filing an agreement, dated August 19, 2009 as Amended August 27th, 2009 and January 20th, 2010 , pursuant to which Vangold Resources Ltd has purchased the Company's shares in Pacific Kanon Gold Ltd and associated interests in certain mineral properties. Pacific Kanon Gold's subsidiary, Kanon Resources Ltd, holds title or rights to four projects in Papua New Guinea - Mt Penck, Allemata, Fergusson and Feni gold projects.

In consideration for the acquisition, Vangold paid Cdn$500,000 and issued 6,046,122 common shares to NGG. Vangold has also agreed to provide NGG a 5% carried interest in the Mt. Penck, Allemata and Fergusson properties, and a 10% carried interest in the Feni Island property, in each case until completion of a "bankable feasibility study" at which time NGG will contribute its share of costs for the property or be diluted in accordance with normal industry standards. The common shares are subject to a hold period expiring May 30, 2010 .

The Company also reported that as a result of the acquisition of the Vangold shares, the Company now holds 6,226,122 common shares representing 17.09% (approx.) of the common shares of Vangold currently issued and outstanding. The shares of Vangold held by the Company, will be held by the Company for investment purposes. The Company may increase its ownership of Vangold in the future, depending on market conditions.

The Company also announces that it has filed the requisite Early Warning Report on Sedar as a result of its acquisition of 6,046,122 shares of Vangold.

Bob McNeil CEO and Chairman commented: "This transaction completes the second phase of NGG's project re-organisation. NGG is now a substantial shareholder of Vangold (approximately 17.09% pre-financing) and retains significant carried interests in each property. The first phase of the Company's re-organisation was the listing of Coppermoly Ltd. on the Australian Securities exchange in January 2008 . Coppermoly has an attractive joint venture with Barrick Gold on its two major porphyry copper/gold/molybdenum systems in West New Britain, PNG. Barrick is preparing to commence a major drill program in the near future. NGG retains a 23% interest in Coppermoly (approximately 30m shares, all free trading).

I believe Vangold is planning a major exploration program for the acquired properties in 2010/2011. We would expect this program to significantly enhance the value of the properties and thus NGG's interest in Vangold and retained interests in the properties".

For further information on these properties see www.newguineagold.ca and a Vangold News Release dated February 1, 2010 .

NGG is focused on improving gold production at its Sinivit Mine in PNG as well as the Sinivit Mine's resource base for gold, copper and tellurium.

Full details of the Sinivit Mine are described in an Independent N1 43-101 report dated January 2006 which is available at www.newguineagold.ca and in its recent Press Releases.

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

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of NGG, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements

    
    ON BEHALF OF THE BOARD

    "R.D.McNeil"
    CHAIRMAN & CEO
    

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

For further information: on this release or on other NGG projects such as the Sinivit Gold Mine, contact Forbes West toll free at [phone], email [email protected] or Judith O'Quinn at [phone], email [email protected] or access our website - www.newguineagold.ca