New Underground Gold Mine to be made ready for production at Jerritt Canyon

Yukon-Nevada Gold is pleased to announce that the Board of Directors has approved a resolution to initiate mining at Starvation Canyon locgold plant jaw crusherated in the southern end ofits wholly-owned gold production Jerritt Canyon property in Nevada, USA. It is anticipated that the daily production at Starvation Canyon will be 300 tons per day initially ramping up to 600 tons per day during the first six months of production. Jerritt Canyon is operated by Queenstake Resources USA Ltd., ("Queenstake") a wholly owned subsidiary of Yukon-Nevada Gold Corp. ("YNG" or the "Company").

Starvation Canyon will be an underground operation similar to the other operating underground mines at the Company’s Jerritt Canyon operations. All environmental approvals have been received for the commencement of mine construction. Portal work is scheduled to begin in April 2012 and development is scheduled to begin in July 2012 with ore production scheduled to begin in January 2013. Ore from Starvation Canyon will be hauled approximately 30 miles, mostly on State highways, to the Jerritt Canyon roaster and processing facility.

Proven and Probable ore reserves for Starvation Canyon are currently 125,000 tons grading 0.262 oz/t gold and 237,900 tons grading 0.265 oz/t gold respectively totaling 363,000 tons with a grade of 0.264 oz/t gold.

Measured and Indicated resources for Starvation Canyon are currently 5,500 tons at 0.365 oz/t gold and 496,900 tons at 0.284 oz/t gold respectively.

A surface drilling program is planned for 2011 that will include both geotechnical core drilling and deposit infill drilling to convert inferred resources to measured or indicated resources.