Mr. Richard Moritz reports

YUKON-NEVADA GOLD CORP. COMMENTS ON UNUSUAL TRADING ACTIVITY

According to Yukon-Nevada Gold Corp., there have been no material changes to its operations or its business affairs, and the company is not aware of any undisclosed developments that would account for the unusual trading activity of its shares on May 3, 2011.

The company is actively pursuing various forms of financing to finance the capital budget requirements for Jerritt Canyon property, its gold-producing property in Nevada, and is in an advanced stage of negotiations with financial institutions. The company anticipates being in a position to disclose the results of these negotiations in the near future.

We seek Safe Harbor.