New Guinea Gold : Announces Sale Of PNG Subsidiary

PO Box 10328

Brisbane Adelaide St

Queensland, Australia, 4001

Ph [phone]

Fax: [phone]

Email: [e-mail]
Web: www.newguineagold.ca

Trading Symbols: TSX-V: NGG

Web Site: www.newguineagold.ca

NEW GUINEA GOLD ANNOUNCES SALE OF PNG SUBSIDIARY

May 7, 2014, Vancouver, British Columbia, New Guinea Gold Corporation ("NGG" or the "Company") (TSXV: NGG) is pleased to announce that is has entered into a Memorandum of Understanding (the "MoU") with Kibush Capital Corporation ("KCC") pursuant to which KCC has agreed to purchase all of the issued and outstanding shares in the capital of NGG's PNG subsidiary, New Guinea Gold Limited ("NGGL") .
Under the terms of the MoU, KCC will pay NGG US$5.25 million, net of certain liabilities, to acquire NGGL. KCC will assume responsibility for certain liabilities held by NGGL as at April 30, 2014 and will be granted management rights to the Mt Sinivit goldmine, operated in PNG by NGGL, as at May 15, 2014. KCC will assume responsibilities for all creditors, loans and legal obligations of NGGL from that date.
The transaction is subject to customary provisions, and is conditional upon, among other things, the approval of NGG shareholders and the receipt of any applicable regulatory approvals.
The Board of Directors of NGG has unanimously approved entering into the MoU and will recommend that NGG shareholders approve the transaction at a special meeting of shareholders to be convened and held for the purpose of approving the transaction. Full details of the transaction will be included in a management information circular and related proxy materials (collectively, the "Circular") to be mailed to shareholders in accordance with applicable securities laws. NGG expects to hold a special meeting of shareholders in late July
2014.
The Board of Directors' recommendation follows an extensive process by the Company to secure additional viable financing needed to meet not only current operational requirements, but to fund the next phase of the Mt Sinivit mine. The Board of Directors believe the transaction provides the best outcome not only for the Company, but its shareholders, employees and creditors, and provides a long-term future for the Mt Sinivit mine.

About Kibush Capital Corporation

Kibush Capital identifies companies with proven products that can be sold immediately to produce revenue. It is looking for opportunities that can be scaled up quickly and Kibush Capital will provide the management and financial expertise to move its acquisition to another level.

ON BEHALF OF THE BOARD

Greg Heaney
Director
For further information, please contact [e-mail], or access our website -
www.newguineagold.ca.

Neither the 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.

Forward Looking Statements - Certain information set forth in this news release contains forward-looking statements, including the timing of filing of NGG's Annual Financial Filings. These forward looking statements involve substantial

known and unknown 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.

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