Mr. Richard Moritz reports

YUKON-NEVADA GOLD CORP. SPECIAL GENERAL MEETING RESULTS

Further to the Stockwatch news release of Feb. 4, 2011, at a special general meeting held on March 8, 2011, Yukon-Nevada Gold Corp.'s shareholders overwhelmingly approved a resolution to reduce, for a limited time, the exercise price of the company's unlisted share purchase warrants. The resolution at the meeting was approved by approximately 86 per cent of the votes of the disinterested shareholders. Shareholders of the company who hold warrants were not permitted to vote on the resolution.

To raise additional working capital in the short term, all eligible warrantholders will now be entitled, for a period of 30 days, to exercise their warrants at an 18-per-cent discount to the original exercise price as set out in the information circular dated Jan. 25, 2011. The 30-day period will commence on March 14, 2011, and end on April 13, 2011. If the warrants are not exercised during such a 30-day period, the exercise price will revert to the original exercise price. If all of the warrants are exercised at their reduced prices, the company will have raised approximately $59-million. The company will provide written notice to all warrantholders advising them of the reduction of the exercise prices.

The discount to the exercise price will compensate warrantholders for loss of leverage in their investment, cost of financing the transaction and/or opportunity cost if other investments are liquidated to finance the transaction, as well as any resulting tax consequences.

The purpose of providing this incentive is to provide the company with required working capital to finance its current business plan. Primary use of proceeds will be toward (but not limited to):

• Construction of a new lined-tailings storage facility, as well as a secondary water storage facility to be completed before winter 2011/2012;

• Upgrade to digital control facility monitoring system to improve plant-operating efficiencies by replacing the current pneumatic system;

• Installation of additional quench tank and related items during the two-week scheduled annual maintenance shutdown in May, 2011;

• Complete winterization of the plant, including construction and installation of new ore-drying equipment that should be protected from climatic extremes;

• Completion of remaining environmental obligations as outlined in the consent decree with the Nevada division of environmental protection to keep the company's current compliance in good standing;

• Obtain underground equipment necessary to commence operations at the SSX/Steer underground gold mine and continue development of the Starvation Canyon mine.

The Toronto Stock Exchange has conditionally accepted notice of the transaction.

We seek Safe Harbor.