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PENINSULAR GOLD LIMITED 

("Peninsular" or the "Company")

AIM: PGL

Convertible Loan Agreements

The Company is pleased to announce that it has entered into convertible loan agreements ("Loan Agreements") to provide the Company with new funding of US$1.5 million (the "Loans").  Funds from the Loans will be used to provide the Company with working capital and satisfy  repayment of existing debts. 

The general terms of the Loans are summarised as follows:

• the Loans are  to be made available within 7 days of the execution of the Loan Agreements;

• interest is to be paid at 10% per annum (and in default interest at 20% per annum);

• the Loans are   repayable in one amount on the date falling 3 months after the date of drawdown of the Loans;  

• corporate guarantees are  to be provided by the Company's wholly-owned subsidiary, S.E.R.E.M Malaysia Sdn Bhd; and

• the Loans can be converted in whole or in part into ordinary shares in the Company ('Ordinary Shares') at a conversion price of 50p per Ordinary Share.

On 25 February 2009, Peninsular repurchased convertible loan notes with a value of US$20 million ("Notes") for an initial cash payment of US$15 million together with two deferred  consideration payments of US$1 million each ("Deferred Consideration"). The Company today  announces that it has come to an agreement with the seller of the Notes to make full payment  of the outstanding principal balance of the Deferred Consideration of approximately US$1.75 million by 28th January 2010, subject to terms and conditions in relation to early repayment and the accrual of interest.

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

Richard Greenfield

Ambrian Partners Limited

Tel: +44 20 7634 4710

Jerry Keen

Astaire Securities plc.

Tel: +44 2074484 492

Ed Portman

Conduit PR Ltd.

Tel: +44 (0) 20 7429 6607

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