YS Mining Announces an All-Cash Offer for Tagish Lake Gold Corp. at $0.12 per
Share

VANCOUVER, Aug. 31 /CNW/ - YS Mining Company Inc. ("YSM") announces that it intends to make an all-cash offer ("Offer") for all of the outstanding common shares of Tagish Lake Gold Corp. ("Tagish Lake": TSXV-TLG-V) at a price of $0.12 per share.

The Offer represents a 9.1 percent premium to the closing price of the Tagish Lake common shares on the TSX Venture Exchange on August 31, 2010, the last trading day immediately prior to announcement of the Offer, and a premium of 39.5 percent to the 20-day volume weighted average price as at the same date.  Full details of the Offer will be included in the formal offer and take-over bid circular to be filed with securities regulatory authorities and mailed to Tagish Lake shareholders.

The Offer will be open for acceptance for at least 35 days following commencement of the Offer and will be subject to certain conditions, including receipt of all necessary regulatory clearances, the absence of any material adverse change in Tagish Lake and acceptance of the Offer by Tagish Lake shareholders owning not less than 50.1 percent of the Tagish Lake common shares on a fully-diluted basis.  Following completion of the Offer, YSM intends but is not required to take steps to acquire any Tagish Lake common shares that remain outstanding.

YSM will formally request a Tagish Lake shareholder list today and intends to file and mail the take-over bid documents as soon as possible following receipt of the shareholder list. 

In connection with the Offer, YSM has entered into a lock-up agreement with certain shareholders owning 8,719,356 Tagish Lake common shares, or 6.05 percent of the Tagish Lake issued and outstanding common shares, under which such shareholders have agreed to tender their common shares to the Offer.  YS Mining already owns 15,304,000 Tagish Lake common shares, or 10.6 percent of the issued and outstanding common shares.

YS Mining is concurrently offering to purchase for cash the approximately $7.4 million in secured and unsecured debt on the books of Tagish Lake.  Secured creditors of Tagish Lake (the "Secured Creditors") are being offered 100% of their proven and accepted claim amounts with no conditions, and unsecured creditors (the "Unsecured Creditors") will be offered 100% of their proven and accepted claim amounts subject to the fulfillment of certain conditions under the take -over bid.

This press release does not constitute an offer to buy or the solicitation of an offer to sell any of the securities of Tagish Lake.  Such an offer may only be made pursuant to an offer and take-over bid circular filed with the securities regulatory authorities in Canada.  YS Mining anticipates that such circular will be filed before September 15, 2010.

Forward looking information

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains forward-looking information. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, and believe or other similar words. Capital and operating cost estimates are forward-looking statements, and are based on assumptions that we believe to be reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our respective business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements.

About YS Mining

YSM is non-reporting corporation organized under the laws of British Columbia.  Approximately 41% of the issued and outstanding shares of YSM are owned by Yukon-Nevada Gold Corp., a reporting issuer in the provinces of British Columbia, Alberta and Ontario, which trades on the Toronto Stock Exchange under the symbol "YNG".  Approximately 59% of the issued shares of YSM are owned by Northwest Nonferrous International Investment Company Limited ("NWN"), of China.  Currently, YS Mining holds (a) 10.72% of the issued and outstanding Tagish Lake Shares and (b) approximately $3.2 million of secured and unsecured Tagish Lake Debt, making it Tagish Lake's largest shareholder and largest creditor.

YS Mining has retained Laurel Hill Advisory Group to act as their Information Agent for the offer. Questions regarding the Offer should be directed to Laurel Hill Advisory Group toll free at, 1-877-304-0211, or collect at 416-304-0211 or via email at cr="true" href="mailto:assistance@laurelhill.com">assistance@laurelhill.com

By Order of the Board of Directors.

YS Mining Company Inc.

SOURCE TAGISH LAKE GOLD CORP.

For further information: For further information:

Laurel Hill Advisory Group toll free at, 1-877-304-0211, or collect at 416-304-0211 or via email at assistance@laurelhill.com

Organization Profile

TAGISH LAKE GOLD CORP.

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YS MINING COMPANY INC.

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