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Yukon-Nevada Gold Corp. Announces Third Quarter Results for 2011

November 7, 2011

VANCOUVER, Nov. 7, 2011 /PRNewswire/ – Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) (the “Company”) today announced its financial and operational results
for the third quarter ended September 30, 2011. This information should
be read in conjunction with the Company’s condensed consolidated
interim financial statements, including the notes thereto, and
Management’s Discussion and Analysis. All dollar amounts are expressed
in United States Dollars unless otherwise specified.

The interim condensed consolidated financial statements have been
prepared using accounting policies consistent with International
Financial Reporting Standards (IFRS) and in accordance with
International Accounting Standard 34 (“IAS 34″) – Interim Financial
Reporting. The Company previously prepared its interim and annual
consolidated financial statements in accordance with Canadian generally
accepted accounting principles (Canadian GAAP). A reconciliation of the
previously disclosed comparative periods’ financial statements prepared
in accordance with Canadian GAAP to IFRS is set out in Note 21 to these
interim condensed consolidated financial statements. The Company’s 2010
comparatives in this MD&A have been presented in accordance with IFRS.
As the date of transition was January 1, 2010, the 2009 quarterly
comparative information has not been restated to be in accordance with
IFRS.

Highlights for the three-month period ended September 30, 2011 include:

        --  During the quarter the Company took delivery of all the mining
            equipment necessary to commence mining the SSX-Steer mine,
            completed upgrades to the CIL circuit, took delivery of new
            refinery components (furnace, retort, electro winning circuit),
            completed the foundation and structure for the new ore dryer,
            and completed the earth works for both the second tailings
            facility and the two new water storage reservoirs.

        --  Jerritt Canyon shipped 21,296 ounces of gold during the quarter
            from purchased ore, stockpiles and mining operations, compared
            with 17,202 ounces of gold in 2010.  Production results for the
            quarter, while an improvement over 2010, were hampered by
            rolling shutdowns that took place during the quarter as the
            Company carried out both scheduled and unscheduled work.

        --  The Company closed a $120 million Forward Gold Purchase
            Agreement ("Gold Purchase Agreement") with Deutsche Bank AG
            ("Deutsche Bank") for the delivery of 173,880 ounces over a
            four year period, commencing September 30, 2011.  The proceeds
            of the Gold Purchase Agreement are primarily being used for
            capital expenditures at the Jerritt Canyon property, including
            the winterization of the processing facility, construction of
            the second tailings storage facility and development of the
            existing underground and open pit mines in addition to further
            improvements to the gold production processes to enhance
            throughput at the mill.  The proceeds were also used to repay
            the senior secured notes issued to note holders led by Sprott
            Asset Management LP in August 2010.

        --  The Company purchased 90,911 wet tons of ore from Newmont USA
            Limited ("Newmont"), containing 9,835 ounces, at an average
            cost per wet ton of $115.

        --  Small Mine Development, LLC ("SMD") delivered 87,330 tons to
            the mill containing 14,893 ounces from the Smith mine during
            the quarter, at an average cost of $111 per ton or $645 per
            ounce.  Production rates were higher than the previous quarter
            as SMD ramped up production for the quarter.

        --  The Company recorded net loss of $18.0 million in the third
            quarter of 2011 compared to a net loss of $103.8 million (under
            International Financial Reporting Standards) in the third
            quarter of 2010.  The loss was primarily a result of a loss
            incurred from operations of $11.2 million, $3.7 million in
            finance and transactions costs, and an $11.4 million loss on
            derivatives partially offset by a $8.5 million gain in the fair
            value of warrants which are recorded as derivative liabilities.

Jerritt Canyon Overview

During the third quarter the Company produced 21,296 ounces and sold
18,035 of these ounces at an average gold price of $1,670. In September
2011 another 1,000 ounces were transferred to Deutsche Bank third party
under the terms of the Gold Purchase Agreement. Mill production levels
continued to underperform as the operation was subjected to both
scheduled and unscheduled downtime.  The scheduled shutdowns were used
to carry out required maintenance, including the replacement of liners
on the ball mill and ore dryer and complete upgrades to the CIL
circuit. Unscheduled downtime was primarily the result of a series of
power failures resulting from salt calcifying on the power lines and
transformers in the vicinity of the tailings pond. Downtime was also
caused by the failure and subsequent replacement of the induction fan,
one of the tertiary cone crushers, the bucket elevator in the crushing
circuit, and the thickener pump. Most of the problems were the result
of ageing equipment and have largely been rectified following the
outages.

Mining recommenced at the SSX-Steer mine during the quarter and SMD
ramped up production from the Smith mine to deliver 87,330 tons to the
mill containing 14,893 ounces. The operating margins will significantly
improve once the Company is able to increase the daily production
amounts and begin processing a larger portion of higher grade ore from
the SSX-Steer mine and also from lower cost stockpiles.

In regards to the exploration program at Jerritt Canyon, Reverse
Circulation rigs mobilized to start drilling at West Generator, Saval,
and East Dash. An additional diamond drill mobilized to Starvation
Canyon to start the geotechnical drilling program to support the mine
development. Portal work on the Starvation Canyon underground mine is
targeted for April of 2012, and development is scheduled for the third
quarter of 2012 based on a recent mine design with initial production
slated for January 2013.  In addition the Company continued evaluation
of historic surface drilling for the purpose of evaluating potential
surface mining from historic production areas with a focus on Burns
Basin. Anticipated startup for the Burns Basin open pit mining
operation is in July 2012 with daily production of 2,000 ore tons per
day.

Ketza River Overview

With the successful replacement of the camp facilities, including new
water wells, septic systems, and pipelines along with the necessary
permits at Ketza River, exploration recommenced in early September with
one diamond drill. Other exploration work completed in the third
quarter included sampling of the stockpile located adjacent to the old
mill, re-logging and sampling of 2008 diamond drill holes, and
compiling assays from the last few condemnation drill holes located in
the lower tailings area.

The other primary focus during the quarter was finalization of the Yukon
Environmental and Socio-economic Assessment Application (“YESAA”) that
was submitted in late September.  This report assesses the
environmental and socio-economic effects of activities and will
integrate scientific information, traditional knowledge and other local
knowledge. The time schedule for the YESAA review will be a minimum of
one year from the submission date.

Subsequent Events

On October 18, 2011 the Company and Northwest Nonferrous International
Investment Company Limited, by way of a Corporate Dissolution
Agreement, agreed to dissolve YS Mining Company and distribute the
assets to each joint venture party based on their interests at that
time.  The Company held a 41.7% interest on the date of dissolution and
received proceeds of $2.5 million, including the recovery of $0.4
million in costs incurred on behalf of YSMC.

Details of the Company’s financial results are described in the
unaudited consolidated financial statements, and management’s
discussion and analysis, which will be available on the Company’s
website, www.yukon-nevadagold.com/s/FinancialStatements.asp and SEDAR, www.sedar.com.

This news release was reviewed and approved by the Company’s Chief
Operating Officer, Randy Reichert, M.Sc. P.Eng., the Qualified Person
under NI 43-101 for purposes of this release.

Yukon-Nevada Gold Corp. is a North American gold producer in the
business of discovering, developing and operating gold deposits. The
Company holds a diverse portfolio of gold, silver, zinc and copper
properties in the Yukon Territory and British Columbia in Canada and in
Nevada in the United States. The Company’s focus has been on the
acquisition and development of late stage development and operating
properties with gold as the primary target. Continued growth will occur
by increasing or initiating production from the Company’s existing
properties.

If you would like to receive press releases via email please contact nicole@yngc.ca and specify “Yukon-Nevada Gold Corp. releases” in the subject line.

The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.

WARNING: The Company relies upon litigation protection for
“forward-looking” statements.

This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States.  The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the “U.S. Securities Act”)
or any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.

SOURCE Yukon-Nevada Gold Corp.


Source: PR Newswire