Mr. Richard Moritz reports

YUKON-NEVADA'S JERRITT CANYON MILL ON SAFETY WATCH-LIST

On Wednesday, Nov. 30, 2011, Yukon-Nevada Gold Corp.'s wholly owned gold production property Jerritt Canyon mill in Nevada was notified by letter from the Federal Mine Safety and Health Administration (MSHA) that MSHA had conducted a pattern of violation screening pursuant to Section 104(e) of the Federal Mine Safety and Health Act of 1977. The letter stated that MSHA has initially concluded that a potential pattern of violations exists at Jerritt Canyon and set out a process by which Jerritt Canyon may work with MSHA to avoid any further sanctions pursuant to that program. Jerritt Canyon is located 50 miles north of Elko, Nev., and is operated by Queenstake Resources USA Ltd., a wholly owned subsidiary of Yukon-Nevada.

MSHA's pattern-of-violations program provides that mine operators may be subject to closure orders for certain areas of the mine affected by certain specific types of violations until the mine receives a clean MSHA inspection. In most cases, such closures would affect areas of the mine that are not critical to production or would be corrected within a very short time.

MSHA's initial finding is based mostly on alleged violations that have been contested by Jerritt Canyon as invalid. Most of the alleged violations have not yet been reviewed and adjudicated and therefore are not final. Yukon-Nevada is confident that it will prevail in the great majority of those challenges and, for that and other reasons, it should be removed from the watch list without the penalties of Section 104(e) being invoked.

President and chief executive officer Robert Baldock commented: "Yukon-Nevada received a letter from MSHA notifying that Jerritt Canyon is subject to a potential pattern of violations. Although we disagree with MSHA's assessment, we intend to work with MSHA to reach a full and efficient resolution of this matter. Yukon-Nevada is committed to the safety of its work force and will take all measures to ensure the continued safe and productive operations at Jerritt Canyon."

We seek Safe Harbor.