Production Update On Jerritt Canyon Operations

VANCOUVER - Veris Gold Corp. reported a production update for the fourth quarter of 2012 for its wholly-owned Jerritt Canyon gold mine and processing facility in Elko County, Nevada. Jerritt Canyon is operated by Queenstake Resources USA Ltd., a wholly-owned subsidiary of Veris Gold Corp..

In the fourth quarter of 2012 the operation recovered 35,042 ounces of gold and shipped 31,754 ounces of gold from processing of underground and stockpile ore at Jerritt Canyon. Randy Reichert, Co-CEO and COO, commented, "The gold production achieved in the fourth quarter, while slightly lower than the third quarter due to challenges faced with the winter weather, continues to demonstrate that the Jerritt Canyon operation is running well, producing close to targeted rates and is continuing to operate at steady state levels. Looking ahead, we will continue to ramp up to a run rate production of 16,000 ounces per month by the end of December 2013."

Production for the quarter was hampered by delays in acquiring parts and equipment, primarily a result of low working capital during the quarter, resolved through the $15m financing announced on December 18, 2012. In addition, high amounts of snowfall negatively affected haulage from SSX-Steer mine to the mill in the last half of December, reducing the overall grade of the tons processed at the mill. With the purchase of additional snow clearing equipment early in the first quarter of 2013 the Company has been able to resume regular deliveries of higher grade ore from the SSX-Steer mine, as well as bring down the ore stockpiled in the fourth quarter of 2012.

Development of the underground mine at Starvation Canyon commenced in the fourth quarter with 740 feet of development completed to-date. Development is currently 30 feet away from the ore body and development of a vent raise and a secondary escapeway will commence in February 2013 with completion targeted for the following month.  This will allow for production to start as planned in March 2013 with full ramp up to 600 tons per day in the second quarter of 2013.

The Company has just completed planning for 2013 and gold production from Jerritt Canyon operations is expected to be between 175,000 and 185,000 ounces depending on the timing of commencement of toll milling of third party ores or concentrates and the amount of stockpiled ore the Company processes in the interim.

For toll milling opportunities in 2013 and beyond, the Company is currently testing two sources of ore and one source of concentrate. After the testing is complete, the Company intends to pursue final negotiations with the respective parties on a mid-to-long term contract.