Yukon-Nevada Gold Corp. Announces Second Quarter Results for 2012

VANCOUVER, Aug. 10, 2012 /PRNewswire/ – Yukon-Nevada Gold Corp. (TSX: YNG)(OTCBB: YNGFF)(Frankfurt Xetra
Exchange: NG6) (the “Company”) today announced its financial and operational results
for the second quarter ended June 30, 2012. 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.

Highlights for the three-month period ended June 30, 2012 include:

        --  During the quarter the Jerritt Canyon Mill produced 25,249
            payable ounces of gold from mining operations, compared with
            19,407 ounces of gold produced in the second quarter of 2011.
            Total ounces produced increased from the second quarter of 2011
            as the Company processed higher grade ore from both the Smith
            and SSX mine compared with primarily lower grade stockpile and
            ore purchased from Newmont in the previous year.  With the
            replacement of the chain on the bucket elevator in early May,
            the milling operations were also able to operate consistently
            at 4,000 tons per day and from mid-May to mid-June averaged
            4,112 tons per day.

        --  For the three months ended June 30, 2012 the Company produced
            154,893 tons from mining operations at Jerritt Canyon, a
            significant increase from the 74,534 tons produced in the first
            quarter of 2012.  The majority of this increase was from the
            Smith mine as Small Mine Development ("SMD") ramped up to 1,127
            tons delivered per day and delivered 27,959 tons more than the
            first quarter of 2012.  Operations at SSX-Steer also increased
            significantly during the quarter as the Company completed
            necessary electrical cabling work and took delivery of
            additional underground equipment (second quarter mining
            production was 28,151 tons higher than the first quarter of
            2012).  June production for the Smith mine averaged 1,250 tons
            per day while the SSX-Steer mine averaged 705 tons per day
            (however the latter increased to almost 1,000 tons per day in
            the last half of June with the delivery of additional
            underground trucks).  This trend has continued in the third
            quarter as the Smith mine continues to average over 1,200 tons
            per day and the SSX-Steer mine increased to over 800 tons per
            day in July and August, with many days in excess of 1,000 tons
            per day.

        --  During the months of April and May, the milling operations
            experienced significant downtime, approximately eight days in
            April and ten days in May, in the fine crushing circuit due to
            repeated chain failures with the bucket elevator that was
            installed in the January shutdown.  The Company commenced work
            on replacing the bucket elevator with two conventional belt
            conveyors in mid-June and completed the work on July 11, 2012,
            resulting in significantly increased reliability and
            performance in the fine crushing circuit as well as better
            recoveries as the operations can now optimize the ore grind in
            the crushing circuit.  The crushing circuit is now operating at
            well over 300 tons per hour allowing for consistent operation
            of the roasting and CIL circuits at over 4,000 tons per day.

        --  The Company recorded a loss of $8.3 million in the second
            quarter of 2012 compared to net income of $22.9 million in the
            second quarter of 2011.  The 2011 second quarter net income
            resulted from a $36.6 million gain in the fair value of
            warrants recorded as derivative liabilities, where the amount
            in the second quarter of 2012 was a $1.4 million loss. The
            gross loss in the second quarter of 2012 was $3.1 million
            compared to a loss of $1.9 million in the three months ended
            June 30, 2011.

Jerritt Canyon

SMD delivered 102,583 tons to the mill, containing an estimated 16,397
ounces, from the Smith mine during the three months ended June 30,
2012, higher than the previous quarter of 74,624 tons containing an
estimated 12,652 ounces.  The deliveries in the second quarter of 2012
averaged 1,127 tons a day, 94% of the production target of 1,200 tons
per day.

At the Company operated SSX-Steer mining complex, the Company continued
to ramp up the production rates delivering 52,310 tons containing an
estimated 6,681 ounces during the three months ended June 30, 2012; an
increase from the previous quarter’s delivery of 24,159 tons containing
an estimated 3,895 ounces.

During the quarter the Company took delivery of additional key equipment
including two underground trucks, a drill jumbo, and a bolter. As well,
major work was carried out on the mine electrical system and as a
result of this new electrical infrastructure the Company is seeing
increased productivity from the three drill jumbo’s in place which is
increasing the rate of development at the SSX-Steer.  Subsequent to
quarter-end SSX-Steer received two additional underground trucks to
complete the full complement of mining equipment required to achieve
full production levels. Production is expected to reach the target of
1,200 tons per day during the third quarter.

For the second quarter of 2012 the mill processed 282,803 tons through
the roaster containing 30,425 ounces of gold.  This compares to 74,534
tons processed during Q1 2012 containing 8,198 ounces of gold.

The process facility experienced problems during the quarter with the
bucket elevator installed during the January 2012 shut down. This piece
of equipment experienced persistent mechanical failure and as a result
caused numerous shutdowns. The bucket elevator has subsequently been
replaced by two standard conveyors that have been operating
consistently since July 11, 2012 as noted in a news release issued on
August 9, 2012.

During the three months ended June 30, 2012 a total of 359 cubex drill
holes were completed at the Smith and SSX-Steer underground mines. The
goal of the 2012 underground diamond drilling program is to add
resources and reserves that are not included in the current Life of
Mine plan.

Ketza River

Final assays from the 2011 Ketza River drilling program have been
received and will be reviewed over the third quarter.

During the quarter, the Company conducted the following work:

        --  Refined the planned drilling program;
        --  Continued writing the 2011 Land Assessment reports for both
            Silver Valley and Ketza River;
        --  Completed a reclamation plan to review with the Yukon governing
            agencies; and,
        --  Updated the acQuire drill hole database.

Yukon Environmental and Socio-economic Assessment Board

As part of the adequacy review, questions are being addressed regarding
the Yukon Environmental and Socio-economic Assessment Application
(“YESAA”) that was submitted in late September of 2011.  This report
assessed the environmental and socio-economic effects of activities
integrating scientific information, traditional knowledge and other
local knowledge.  The review of this application is expected to take
between 12 and 18 months from the date of the original submission.

Ongoing baseline data activities continue at the site including monthly
water reporting.   A new large capacity arsenic treatment plant became
operational late in the quarter in order to assist in the treatment of
tailings water.

Outlook

In achieving the targeted production rate of 150,000 ounces of gold
under steady state operations, the Company is focusing on ramping up
production from the SSX-Steer mine which will be complete towards the
end of the third quarter with the delivery of the remaining underground
trucks and other equipment now completed.  As well, the Company will
continue to process available stockpiles and receive ore from the Smith
mine.  Longer term the Company is prioritizing negotiations for
profitable third party ore processing opportunities. Revenues from
these arrangements would offset production costs, resulting in a cash
cost advantage. The Company will also consider accretive acquisitions
of strategically located ore, either as an outright acquisition or an
ore purchase. The Company will also continue building the necessary
infrastructure and making equipment purchases in order to open a third
mine on the property, Starvation Canyon, located on the south end of
Jerritt Canyon.

The Company has continued to pass all independent stack tests for
mercury and other emissions and is currently able to operate at 110
tons of ore per hour through each roaster circuit based on current
emissions and will be seeking to increase this in the near future based
on Q2 2012 emissions test results.  As part of the January 2012
shutdown the Company was able to install the second quench tank and the
necessary emissions control equipment (additional bag house to filter
dust, sulfur dioxide scrubber) on the new ore dryer as well as all
other remaining items on the CD except for the cleanup of rock dump
sites from historic mining activity.  The Company has also
substantially completed the second tailings facility and water storage
reservoirs, although lining and commissioning will take place in the
third quarter of 2012.  This investment is not a component of the CD
itself; however this investment will extend the life of the mill and
bring it in line with current standards.

The surface exploration program at Jerritt Canyon in 2011 has identified
a number of areas of interest and proven the viability of the East and
West Mahala resources which lie between the Smith and the SSX-Steer
mine.  Additional survey work in the Starvation area has identified
further areas of interest that will need to be explored in the 2012
drill program as well.  These results have largely been incorporated
into a new reserve up date that the Company released on April 27, 2012.

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.

Yukon-Nevada Gold Corp. is a growing mid-tier North American gold
producer in the business of developing and operating gold mines in
geo-politically stable jurisdictions. The Company’s primary asset is
the permitted and operating Jerritt Canyon gold mine located 50 miles
north of Elko, Nevada, USA. The Company also holds a diverse portfolio
of precious metals properties in British Columbia and the Yukon
Territory, Canada, including the former producing Ketza River mine. The
Company’s focus has been on the re-development of the Jerritt Canyon
mining and milling facility.

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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.