Mr. Robert Baldock reports

YUKON-NEVADA GOLD CORP. CLOSES US$25,000,000 SECURED NOTE FINANCING

Yukon-Nevada Gold Corp. has closed a senior secured note financing, issuing $25-million (U.S.) principal amount senior secured notes and 25 million common share purchase warrants raising gross proceeds of $25-million (U.S.). Each warrant entitles the holder thereof to purchase one common share of the company at a price of 40 cents per share for a period of three years following closing.

The notes have a maturity date of Dec. 31, 2012, and are secured by a charge over all the assets of the company's wholly owned subsidiaries, Queenstake Resources Ltd. and Queenstake Resources U.S.A. Inc., as well as a share pledge over all shares in Queenstake Resources and Queenstake US. The notes will be repaid through monthly cash instalments based on a notional amount of approximately 284,114 shares of SPDR GLD gold shares (an exchange listed fund trading on the NYSE and other global exchanges) beginning September, 2010. The company has guaranteed a minimum rate of return of 5 per cent per annum on the aggregate principal amount over the term of the notes.

The notes and warrants are transferable, subject to compliance with Canadian securities laws and neither the notes nor the warrants have not been, nor will be, registered under the United States Securities Act of 1933, as amended. The notes and warrants are subject to a hold period expiring Dec. 14, 2010.

In connection with the closing, a finder's fee in the amount of 4 per cent of the gross proceeds raised is payable in shares of the company.

The proceeds from the sale of the notes will be used to assist with the development of the Jerritt Canyon Gold project and for working capital purposes. This will include restocking the warehouse with spare parts to assist sustainable plant operation and acquiring plant and equipment toward the reopening of the SSX-Steer underground mine complex.