Refurbished Milling Facility Commissioning At Jerritt Canyon 

VANCOUVER, BC - Yukon-Nevada Gold Corp has completed construction work on a new ore dryer and fine-crushing conveying system as well as maintenance upgrades to the roasting facility at its wholly-owned Jerritt Canyon gold operation in Nevada. Commissioning of the milling facility is currently underway, which includes trial operation of new and refurbished equipment, as well as testing, calibration and optimization of new monitoring systems. Jerritt Canyon is operated by Queenstake Resources USA Ltd.

The shutdown was initiated on January 6, 2012 in order to complete a winterization and refurbishment program which included constructing a new drying facility and reconfiguring the conveying system in fine crushing. During the shutdown, the old dryer was replaced with a new ore dryer closer to the front end of the circuit. In addition, a new Distributed Control System ("DCS") was installed for the entire plant. Commissioning of the new ore dryer, fine-crushing conveying, and the DCS commenced on January 23, 2012 .

During the shutdown significant maintenance was completed on the rest of the roasting facility. A new quench tank was installed for the East Roaster which is one of the final requirements for compliance with the Consent Decree. Other maintenance items were also completed.