Mr. Mike O'Brien reports

CARPATHIAN CLOSES $20 MILLION STRATEGIC PLACEMENT BY BARRICK GOLD CORPORATION

Carpathian Gold Inc. has closed its previously disclosed agreement with Barrick Gold Corp. for a non-brokered $20-million private placement to purchase 38,461,538 common shares of the corporation at a price of 52 cents per share. The common shares will be subject to a four-month hold period.

As previously announced on July 18, 2011, the proceeds from the private placement will be exclusively applied to the corporation's continuing exploration and development work on its wholly owned Rovina Valley project (RVP) situated in west-central Romania.

RVP background

RVP comprises three gold-copper porphyry systems (Rovina, Colnic and Ciresata) which were discovered by the corporation. From 2006 to 2008, 181 diamond drill holes totalling 71,375 metres were completed on the project prior to the present drilling program. In late 2008, PEG Mining Consultants Inc. completed a National Instrument 43-101 resource estimate.

A detailed NI 43-101-compliant preliminary economic assessment (PEA) was released on March 23, 2010. The PEA was completed by PEG, which led a consortium of specialists assembled for the study. The PEA used conventional open pit mining for the Colnic and Rovina deposits, with the Ciresata deposit mined by bulk-underground methods. Ore processing will use the industry-standard crush-grind and flotation process at a rate of 40,000 tonnes per day to produce a gold-rich saleable copper concentrate. This process does not require the use of cyanide. The study considered a 19-year mine life over which a total of 6.22 million ounces of gold equivalent would be produced. At metal prices of $1,250 (U.S.) per ounce of gold and $3 (U.S.) per pound of copper, the study arrived at a pretax net present value of $870-million (U.S.) based on a 10-per-cent discount rate. Further details of the study are presented in previous news releases of the corporation.

According to the cautionary statement required by NI 43-101, it should be noted that this PEA is preliminary in nature as it includes inferred mineral resources that cannot be categorized as reserves at this time; as such, there is no certainty that the PEA and economics will be realized. The full study of the PEA is available on SEDAR.

We seek Safe Harbor.