Vancouver, BC - October 9, 2007 --
Yukon-Nevada Gold Corp. (Toronto Stock Exchange:
YNG; Frankfurt Xetra Exchange: NG6). Mr.
Graham C. Dickson, the President of Yukon-Nevada Gold Corp. ("YNG") and Mr. Sun
Feng, the Director General of Northwest Geological Exploration and Mining
Bureau for Non-Ferrous Metals of the People's Republic of China ("NWME") are
pleased to announce the completion of an agreement between YNG and Northwest
Non-Ferrous International Investment Company Limited ("NWI"), a Chinese
investment company 100% owned by NWME, to form a new Canadian company which
will explore for and develop mineral resources in the Yukon Territory, Canada.
The new company will, subject to
governmental approvals, be named "Yukon-Shaanxi Gold Company Inc."
("Yukon-Shaanxi"), and will initially be owned by YNG and NWI, each as to a 50%
shareholding.The initial Board of
Directors of Yukon-Shaanxi will comprise of six Directors, with equal
representation from each of YNG and NWI.
Yukon-Shaanxi proposes to
acquire, explore and develop mineral resources in the Yukon,
and to conduct a public offering of its securities in Canada and to seek a listing of its
shares on a Canadian stock exchange.YNG
proposes to distribute some of its shares in Yukon-Shaanxi to the shareholders
of YNG, but will retain at least a 20% shareholding in Yukon-Shaanxi.
The business alliance between YNG
and NWME has been facilitated by the Government of the Yukon, Economic Development.
NWME was founded in
1957 as a subordinate to the Ministry of Metallurgy, Peoples
Republic of China. Now wholly owned by the SNG
Group, its main business is to prospect and develop mineral resources in the Shaanxi province and
overseas. In China NWME is one of the top five exploration and mining
Bureaus amongst around 100 provincial Bureaus in terms of revenue and technical
capacity. Employing more than 6000 employees including 800 geologists,
technologists and engineers, NWME was the first Bureau in China to conduct exploration
projects in partnership with companies from Western countries (including the
Canadian companies Teck Cominco and Placer Dome). In recent years, NWME has
been actively involved in overseas investment; it has exploration projects in a
number of countries including Mongolia,
Argentina, Indonesia and Guinea.
Yukon-Nevada Gold Corp. is a North American gold
producer in the business of discovering, developing and operating gold ore
deposits. Continued growth will occur by increasing or initiating production from
its existing properties and by further acquisitions. The Company holds a
diverse portfolio of gold, silver, zinc and copper properties in the Yukon Territory and British Columbia
in Canada and in Arizona and Nevada in
the United States.
This agreement is subject to the receipt of all
necessary governmental approvals.