Yukon-Nevada Gold Corp. - Exciting new joint venture announced

    VANCOUVER, Oct. 9 /CNW/ - 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.

    The agreement is subject to the receipt of all necessary governmental

    If you would like to receive press releases via email please contact
nicole@yngc.ca and specify "Yukon-Nevada Gold Corp. releases" in the subject

    Please visit our website at www.yukon-nevadagold.com. You can visit
NWME's website at www.nwme.com.cn.

    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.

    WARNING: The Company relies upon litigation protection for
"forward-looking" statements.

    This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to "U.S.
Persons" as such term is defined by regulations under the U.S. Securities Act,
unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.

    %SEDAR: 00004098E

For further information:

For further information: Yukon-Nevada Gold Corp., Nicole Sanches,
Manager, Investor Relations, Tel: (604) 688-9427, Email: nicole@yngc.ca,
www.yukon-nevadagold.com; CHF Investor Relations, Jeanny So, Broker Relations
Specialist, Tel: (416) 868-1079 ext. 225, Email: jeanny@chfir.com,

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