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PENINSULAR GOLD LIMITED

('Peninsular' or the 'Company')

AIM: PGL

Repurchase of US$20 Million Convertible Loan Notes Completed

Raub Plant - Operating and Management Agreement Signed

Peninsular is pleased to announce that the transaction for the repurchase and cancellation of its US$20 million convertible loan notes ('Notes'), as announced on 16 February, 2009, has been concluded and settled.

Following the initial cash payment of US$15 million (plus US$1,070,000 of outstanding interest), as per the Note Purchase Agreement ('Agreement'), the Notes have now been cancelled and all securities given in relation to the Notes have been released.  The Notes had a subscription price of 30 pence per ordinary share ('Share') which could have converted into approximately 32.5 million Shares.  This right has now been extinguished.

As per the Agreement, 10,000,000 warrants to subscribe for 10,000,000 new Shares have been issued at an initial subscription price of 30 pence per Share (subject to adjustment in certain conditions).  The Company has a pre-emptive right to re-purchase the warrants for cancellation.

For further details of the Agreement to repurchase the Notes and terms of the warrants, please see the announcement dated 16 February, 2009.

In addition, the Company also announces that it has signed a two year operating and management agreement (subject to terms and conditions) with Time Mining and Processing (Proprietary) Ltd. of South Africa ('Time Mining') in relation to its new Carbon-In-Leach ('CIL') plant at Raub.  Time Mining also designed and project managed the construction and commissioning of the plant, which commenced production on 18 February 2009. Time Mining have significant experience in operating similar CIL plants and the treatment of tailings, which will form the initial feedstock for the plant. An important part of their role will be to pass on their experience and know-how to local operational staff and management via training and skills transfer programmes.

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Further information:

Dato' Sri Andrew Kam Tai Yeow

Chairman and Chief Executive

Peninsular Gold Limited

Tel: +60 12 3310828

Patrick Watson 

Finance Director

Peninsular Gold Limited

Tel: +44 7799 885 653

David Nabarro / Richard Greenfield

Ambrian Partners Limited

Tel: +44 20 7634 4710

Mark Stephenson

Blue Oar Securities Ltd.

Tel: +44 2074484 471

Ed Portman

Conduit PR Ltd.

Tel: +44 (0) 20 7429 6607

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