Yukon-Nevada Gold Corp. Reports Second Quarter Results

    VANCOUVER, Aug. 21 /EMWNews/ - Yukon-Nevada Gold Corp.

(Toronto Stock Exchange: YNG; Frankfurt Xetra Exchange: NG6) has released

results for the three and six months ended June 30, 2008. All amounts in

this news release are in United States dollars, unless otherwise stated.



    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 (Newmont) 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.



    Details of the Company's financial results are described in the

unaudited consolidated financial statements, and management's discussion

and analysis, which will be available on the Company's website,

http://www.yukon-nevadagold.com and on SEDAR, http://www.sedar.com.



    We are pleased to announce Shaun Heinrichs, CA, has accepted the

Interim Chief Financial Office position.



    We seek Safe Harbor.



    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

Arizona and 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.



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    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.