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Yukon-Nevada Gold Corp. Jerritt Canyon Operation Provides Production Update

August 9, 2012

VANCOUVER, Aug. 9, 2012 /PRNewswire/ - Yukon-Nevada Gold Corp. (TSX: YNG) (OTCBB: YNGFF) (Frankfurt Xetra
Exchange: NG6)
is pleased to announce that two conveyors have been successfully
installed to replace a problematic bucket elevator at its wholly-owned
Jerritt Canyon gold processing facility in Elko County, Nevada. Jerritt
Canyon is operated by Queenstake Resources USA Ltd. (“Queenstake”), a
wholly-owned subsidiary of Yukon-Nevada Gold Corp. (“YNG” or the
“Company”).

In July, a bucket elevator in the fine crushing unit was replaced with
two conventional belt conveyors. The bucket elevator had been installed
during the January 2012 shutdown, but caused significant plant downtime
and could not reach design specifications due to persistent mechanical
failure. The new conveyors were sourced from equipment inventory
already at the site which significantly reduced costs. The conveyor
installation was completed on July 11, 2012 and they have operated
without a problem since that time. The conveyors have allowed crushing
to operate at substantially over 300 tons per hour (“tph”), well in
excess of the current 220 tph capacity of the ore roasters.

The operation produced and shipped 10,964 ounces of gold in July. This
was achieved despite lower production throughput in the first eleven
days of the month while a bypass screen and crushing plant operated
during the switch-out of the bucket elevator to the new conveyors. The
moderate under-performance of the temporary bypass crusher was due to
equipment over-heating while running a full capacity. The new conveyors
are operating very well and running above required capacity as planned.

Randy Reichert, Co-CEO and COO, commented, “Completion of the conveyor
installation provides a permanent solution to the bottleneck in the
fine crushing unit and represents the removal of the last remaining
restriction to operating the mill at capacity as allowed by the Consent
Decree (currently 5,280 tons per day). Our team at Jerritt Canyon did
an excellent job removing the bucket elevator and installing the new
conveyors in such a short period of time. This has allowed us to remain
on track to meet planned production targets for 2012.”

Mining at the SSX-Steer company-operated underground mine continues to
ramp up production. During July 27,300 tons were mined and the mine is
on track to reach the production target of 1,200 tons per day in the
third quarter of this year.  Smith mining continued to produce at the
planned rate of 1,200 tons per day during the month of July.

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