JERRITT CANYON MINE

Yukon-Nevada Gold announced that it has recommenced processing ore and gold production at its Jerritt Canyon facility 50 miles from Elko, Nevada, USA. Jerritt Canyon is owned and operated by Queenstake Resources U.S.A. Ltd., a wholly owned subsidiary of Yukon-Nevada Gold Corp. The Consent Decree was entered into the Elko District Court, October 15, 2009, thus setting its effective date and allowing for the restart of the milling facility.

Yukon-Nevada Gold has come to an agreement with the Nevada Division of Environmental Protection ("NDEP") in the form of a Consent Decree to resume production at the Jerritt Canyon milling facility located approximately 50 miles from Elko, Nevada. Jerritt Canyon is owned and operated by Queenstake Resources U.S.A. Ltd. a wholly owned subsidiary of Yukon-Nevada Gold Corp. Queenstake has been working in cooperation with the NDEP throughout this process. Following the official court approval of the decree, the Jerritt Canyon Mine may resume operations. The court issue date is the effective date for commencement of the agreement. The company will begin operations, including warming the mill roasters on the effective date with a view to commence processing ore within 3-5 days of the effective date. The time to load the circuit with gold is estimated to be approximately two weeks. Thereafter the company is expecting to see increasing production amounts of gold resulting in higher positive cash flows shortly thereafter.

Yukon-Nevada Gold Corp. released results for the three and six months ended June 30, 2009. For the three and six months ended June 30, 2009, the company reported a net loss of US$7.7 million and US$12.9 million, respectively, due to the limited number of operating days during the period and operational issues with the mill operator in place during that time. Although the company resumed operations on March 25, 2009 with the approval of the Nevada Division of Environmental Protection (NDEP), the company shutdown again at the end of May as delays in the construction and delivery of key components for the mercury emissions control system resulted in missing the May 30 deadline set with the NDEP for having the system installed. The company is continuing to work with the NDEP and the State Attorney General to receive approval to return to full operations.