Yukon-Nevada Suspends Underground Operations

VANCOUVER, BC - Yukon-Nevada Gold Corp. reported that for the three and six months ended June 30, 2008, the Company reported a net loss of $5.7 million and $14.6 million, respectively, due to the shutdown which extended over both quarters and ongoing challenges in profitably mining the Jerritt Canyon properties. These factors resulted in reduced production for the quarter from the Company's own ore and from the purchased ore, which fell to 9,094 ounces, compared with 14,291 ounces in the first quarter.
As a result of continuing cost pressures the Company made the decision subsequent to the end of the second quarter to suspend the underground mining operations at Jerritt Canyon effective August 8, 2008 in order to focus on developing a profitable mine plan that will enable Jerritt Canyon to return to profitability. The Company has also been forced to shutdown the mill in order to perform repair work on a critical part that malfunctioned in the drying circuit, resulting in the lay-off of the remaining workforce. A professional engineering firm has been contracted to provide essential on-site activities including ongoing environmental monitoring.
The Company has also had certain assets encumbered under the terms of the Security Agreement with Newmont USA Limited until certain disputes in the agreement can be settled. The Company is currently in discussions with Newmont to resolve this matter however it is currently not yet determinable when or if these restrictions will be removed.
In the second quarter at Ketza River in the Yukon Territory, the Company focused on completing the geotechnical work required for mine planning, metallurgical test work and on completing its highly successful exploration program. The expansion of deposits within the projected open pits will add value to the expected Pre-feasibility Study. The project group efforts will now be on the completion of that study.
The company's address is 490 - 688 West Hastings St., Vancouver, BC V6B 1P1, 604.688.9427, fax: 604.688.9426.