PRODIGY GOLD NL — Capital/Financing Update 2019

Sep 15, 2019

ASX ANNOUNCEMENT / MEDIA RELEASE ASX: PRX

16th September 2019

Bluebush Project Update: RC drilling underway at Capstan North and Hat Prospects to test large-scale gold anomalies

HIGHLIGHTS

• RC drilling underway targeting deposits analogous to the 14.2Moz Callie Gold Mine
• Current drilling program to include 12 RC holes planned for a total 2,000m across both Capstan North and the Hat Prospects:
  • 11 holes at Capstan North designed to test 1,000m of strike
  • a single hole at the Hat Prospect to follow-up maiden RC program
• Primary aim of this drilling is to follow-up previous encouraging results including:
  • Capstan North Target
    • 4m @ 6.1g/t Au (BLRC001)
    • 9m @ 1.3g/t Au (BLRC021)
  • Hat Target
    • 4m @ 1.2g/t Au (BLRC019A)
• Completion of the Apertawonga infill aircore drilling has been delayed by rig equipment failure and is now due for completion early Q4 2019
• Multiple exploration programs currently underway across Prodigy Gold's Joint Venture and 100%-owned portfolio including drilling at the Lake Mackay and Euro JV projects

Prodigy Gold NL (ASX: PRX) ('Prodigy Gold' or the 'Company') is pleased to advise that Reverse Circulation ('RC') drilling has commenced at the Company's 100% owned Bluebush Project in the Tanami Region of the Northern Territory.

A key aim of the current RC program is to follow-up aircore drilling at Capstan which defined a new large-scale bedrock gold anomaly (Figure 5) over an area 8km long (ASX 2 August 2018). This gold anomalism occurs in the Dead Bullock Formation, the same rock type that hosts the Callie Deposit. A total of 12 holes have been planned with 11 holes at Capstan North and 1 hole at the Hat Prospect.

Management Commentary

Prodigy Gold Managing Director, Matt Briggs, said; "This is an important follow-up program designed to infill between some of the previous encouraging intersections reported at Capstan North, which will provide our team with a much-improved understanding of this large-scale gold anomaly."

"Similarly, at the Hat Prospect, we are eager to further test the extent of the structure intersected during our maiden drill program completed late last year. We expect to have this latest round of drilling completed this month with first assays to be reported next month."

"As previously reported, the Company has an aggressive exploration strategy mapped out across both its Joint Venture and 100%-owned projects and I look forward to providing further updates as these respective campaigns advance."

Figure 1 - RC Drilling at Capstan North, September 2019

100% Owned Bluebush Project Overview

The Tanami is host to multiple 1Moz+ gold deposits. The Company has successfully used broad spaced RAB and aircore drilling to screen for the alteration and geochemical footprint associated with largescale deposits. Drilling is prioritised on targets with the same rocks as the known gold deposits, occurring in similar structural settings as the 14.2Moz Callie Gold Mine. This approach has successfully defined large-scale gold anomalism spanning several kilometres at Capstan, which is located within the broader Bluebush Project.

Capstan North RC Drilling

Capstan is a 22km x 8km sub-area of the Bluebush Project, falling within the Trans-Tanami Fault Zone and located 50km northwest of the world-class Callie Gold Mine (Figure 2). Aircore drilling at Capstan has defined a large-scale bedrock gold anomaly (Figure 5) over an area 8km long with results up to 4g/t Au in aircore (ASX 2 August 2018). This gold anomalism occursin the Dead Bullock Formation, the same rock type that hosts the Callie Deposit.

The current RC drilling program includes 11 holes on 5 lines of drilling (Figure 3). These holes are designed to confirm the interpreted orientation of mineralisation and will infill between previous results including 4m @ 6.1g/t Au (RC), 9m @ 1.3g/t Au (RC) (ASX 18 December 2018); 9m @ 1.4g/t Au (AC) and 3m @ 0.6g/t Au (AC) (ASX 2 August 2018).

Hat RC Drilling

The Hat Prospect is located 4km to the south of Capstan North (Figure 5). Aircore drilling has defined a corridor of gold mineralisation 4.5km long. Two lines of 320m spaced RC drilling completed in late 2018 were the first RC holes drilled at Hat. Results of AC and RC programs to date include intersections of 9m @ 1.2g/t Au from 54m (BL0316) (ASX 12 June 2018); 4m @ 1.2g/t Au from 111m (BLRC019A) and 1m @ 2.0g/t Au from 102m (BLRC004) (ASX 18 December 2018). These intersections were associated with quartz veining within a steeply west dipping structure in the Killi Killi Formation.

Given the encouraging results from the maiden program, Prodigy Gold has determined that a followup hole is warranted (Figure 4) to confirm an easterly dip to mineralisation indicated from the previous drilling program.

Figure 2 - 100% owned tenements and Tanami deposits

Figure 3 - Planned RC drillhole collars at the Capstan North Target with 2018 drill results

Figure 4 - Planned RC drillhole collar at the Hat Target

Figure 5 - Capstan Prospect 2019 Target Locations

Matt Briggs Managing Director

Follow @ProdigyGoldAu on Twitter Follow Prodigy Gold on LinkedIn

About Prodigy Gold

Prodigy Gold has a unique greenfields and brownfields exploration portfolio in the proven multimillion-ounce Tanami Gold district. An aggressive program for 2019 will continue to build on 2018 successes by:

• drilling targets at the Bluebush Project, including the Capstan 8km long bedrock gold anomaly
• drilling of extensions to the shallow gold Resources at Suplejack
• systematic evaluation of high potential early stage targets
• joint ventures to expedite discovery on other targets

Competent Person's Statement

The information in this announcement relating to exploration targets and exploration results are based on information reviewed and checked by Mr Matt Briggs who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Briggs is a full time employee of Prodigy Gold NL and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves". Mr Briggs consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.