2014

Yukon-Nevada Gold Corp. Announces Completion of Equity Financing for a Total of $15.9 Million

VANCOUVER, May 17, 2012 /PRNewswire/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) (the "Company") announces that, further to its news release dated May 14, 2012, the Company has completed a non-brokered private placement of 39.1 million units (the "Units") at a price of $0.23 per Unit for total proceeds of $9.0 Million.

Each Unit consists of one common share (a "Share") and one share purchase warrant (the "Warrant").  The Warrant can be exercised to purchase one additional common share (a "Warrant Share") at a price of $0.40 per share within 36 months of closing of the private placement.  If the closing price of the Company's shares is at or above $0.75 per share for 10 consecutive trading days, the Company may accelerate the expiry date of the warrants on giving 30 days' written notice to the Warrant holders.

In accordance with securities legislation currently in effect, the Shares, the Warrants and the Warrant Shares will be subject to a "hold period" of four months plus one day from the date of issuance.

The proceeds of the private placement transaction will be used at Jerritt Canyon Mine for general working capital purposes.

The Company is also pleased to announce that, subject to acceptance by the TSX, it has negotiated the settlement of $6.9 million in current accounts payable by the issuance of 22.8 million shares at a deemed price of $0.30 per share.

Robert Baldock, the President and Chief Executive Officer of the Company, states: "We are pleased to have completed two equity transactions in an aggregate amount of $15.9 million in a very challenging equity market environment. The executive management of the company participated in the private placement in the aggregate amount of $375,000, demonstrating our high level of confidence that Jerritt Canyon is achieving what the Company set out to accomplish."

Yukon-Nevada Gold Corp. is a North American gold producer in the business of discovering, developing and operating gold deposits. The Company holds a diverse portfolio of gold, silver, zinc and copper properties in the Yukon Territory and British Columbia in Canada and in Nevada in the United States. The Company's focus has been on the acquisition and development of late stage development and operating properties with gold as the primary target. Continued growth will occur by increasing or initiating production from the Company's existing properties.

If you would like to receive press releases via email please contact nicole@yngc.ca and specify "Yukon-Nevada Gold Corp. releases" in the subject line.

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.




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