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Yukon-Nevada Gold Receives Drilling Results from Ketza River Property

Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) has announced favorable results from its 2010 drilling program at Ketza River. 

The Ketza River property is wholly-owned by Yukon-Nevada Gold Corp., and is a past gold producer located near the town of Ross River in the Yukon Territory, Canada.

The recently received assay results are from manto-style (limestone replacement) targets from the Peel and Penguin zones drilled in 2010. All drill holes referenced in this news release are diamond drill holes completed by one drill rig between June 13, 2010 and September 8, 2010.

Peel Zone

Six drill holes were completed west of the 2008 Peel Zone manto resource. One drill hole, KR-10-1522, was also drilled within the existing resource.

Penguin Zone

The 2010 Penguin Zone drilling tested several magnetic and VLF anomalies in the vicinity of the proposed Penguin pit. The best intercept was from KR-10-1550, which cut 2.38 meters grading 8.09 g/t Au.

None of the recent drill intercepts listed above were included in the data used for the NI 43-101 resource estimate released on April 14, 2008 and therefore could lead to an increase in the resource at the Ketza River project.

Flow Through Private Placement

Robert F. Baldock, President of Yukon-Nevada Gold Corp. (the "Company"), announces that the Company has negotiated a $8,500,000 non-brokered flow-through private placement to sell up to 10,000,000 flow-through common shares ("FT Shares") at $0.85 per FT Share in the capital stock of the Company.

Use of proceeds will be for new resource exploration at Ketza River and Silver Valley. Silver Valley is located approximately 6km east of Ketza River.

The FT Shares will be subject to a "hold period" of four months plus one day from the date of issuance.

The information in this news release including the assay results were compiled by the Chief Geologist for the Ketza River project, Ed Gates (M.Sc., P.Geo). This news release was reviewed and approved by the Todd Johnson (M. Sc.), Vice President of Exploration for Yukon-Nevada Gold Corp. Todd Johnson is the Qualified Person for the purpose of this release.

Source:

Yukon-Nevada Gold Corp.

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