Yukon-Nevada Gold Corp. - Ketza River Manto Zone

Projects Overview Jerritt Canyon Ketza River Manto Zone

Resource Technical Report

Ketza Shamrock Silver Valley Property Wolf Property Money Property

Yukon-Nevada Gold Corp.
490-688 West Hastings Street
Vancouver BC V6B 1P1
Canada

Tel: 604.688.9427
Fax: 604.688.9426
Email: nicole@yngc.ca

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Gold mineralization at Ketza River occurs in manto replacement deposits along permissive horizons within Lower Cambrian limestone in the Cache Creek valley. Auriferous massive sulphide deposits of pyrrhotite, pyrite and arsenopyrite have been oxidized and the gold values enriched within structural zones or panels where normal faulting cross cuts the stratigraphy. In general, the mantos have tube - like geometry and consequently close - spaced drilling is required to establish reserves. The important manto deposits occur on the southern flank of the Ketza Uplift (Figure 3).

YNG focussed on manto exploration during 1994 - 96. Drilling on manto targets has totalled 7,477 metres in 86 holes. This drilling has resulted in the discovery of additional oxide mineralization and also in the reinterpretation of geological controls on the gold mineralization. In addition, the majority of the 476 holes drilled by Canamax between 1984 and 1990, have been relogged as a result of the new geological interpretation. This activity has contributed to a better understanding of the property geology and helped define diamond drill targets. Three limestone beds are now recognized to preferentially host auriferous mantos within the massive Lower Cambrian limestone Unit 1d. Structural deformation has produced repetition of the favourable stratigraphic beds and thickening along fold axes.

The Fork, McGiver, Hinge, Chimney, Hoodoo, and Tarn zones were drill tested with positive results in the 1994 to 1996 programs. Extensions of the Break and Nuzones were also tested and can be correlated with the Fork, McGiver and B-Mag zones. The zones occur as discontinuous bodies within a broad mineralized horizon that hosts the major manto deposits on the property.

Oxide mineralization at the Fork zone has been intersected in 32 drill holes. Oxides are present across widths of 10 to 30 metres and along 170 metres on a northeast - southwest strike trend.

The Chimney zone, discovered in 1994, is a narrow oxide seam containing high grade gold values near surface (2.0 metres grading 36.44 g/t in ddh # 486) which decrease rapidly at depth (2.9 metres grading 7.39 g/t at a depth of 15 metres in ddh #521). The Chimney zone contains a small high grade source of oxide ore which could be partially mined from a surface cut. Other significant oxide intersections in 1995 - 96 include: 7.1 metres grading 15.42 g/t gold (ddh #549) at the McGiver zone; 2.35 metres grading 15.78 g/t (ddh #547) at the B-Mag zone; and 5.3 metres grading 8.43 g/t (ddh #567) at the Hoodoo zone.

An unmined oxide resource block was defined at the Nuzone (Hodgson 1991). This estimate has not been verified.

Sulphide manto deposits occur in a massive discontinuous blanket west of the Peel/Ridge oxide deposits. The sulphide mineralization occurs throughout an area of 400 metres by 400 metres with thicknesses of 10 25 metres. A 1996 test hole (#561) confirmed the ore grades within the Peel West zone (15.8 g/t over 4.5 metres and 9.3 g/t over 4.75 metres). Drill hole #559 intersected 15.0 metres of massive sulphides grading 7.93 g/t (including 9.0 metres grading 11.3 g/t) in a new zone 200 metres north of the Peel West zone within the same stratigraphic horizon.

Ketza River Diamond Drill Assay Data for 2008

Ketza River Diamond Drill Hole Assay Data for Assays received before June 30th, 2008.

Ketza Manto Property

Resource

Table 1. KETZA RIVER MEASURED & INDICATED RESOURCE
DECEMBER 2007

Deposit/Mine	MEASURED			INDICATED			MEASURED & INDICATED
Deposit/Mine	K Tonne	g/t	K Oz	K Tonne	g/t	K Oz	K Tonne	g/t	K Oz
Pit Resources (1 gpt cutoff)
Peel-Break	303.2	7.17	69.8	1,878.6	5.14	310.6	2,181.8	5.42	380.5
Penguin-Lab-Hoodoo	205.2	7.70	50.8	567.7	3.56	65.0	772.9	4.66	115.8
Shamrock (Gully-QB-3m)	182.5	3.65	21.4	519.6	3.58	59.8	702.1	3.60	81.2
Tarn	-		-	54.6	4.26	7.5	54.6	4.26	7.5
Subtotal	690.9	6.39	142.0	3,020.5	4.56	442.9	3,711.4	4.90	584.9

U/G Resources (3 gpt cutoff)
Peel-Break	2.0	4.34	0.3	98.9	5.73	18.2	100.9	5.70	18.5
Penguin-Lab-Hoodoo	18.5	6.78	4.0	70.7	5.05	11.5	89.2	5.40	15.5
Shamrock (Gully-QB-3m)	0.8	3.78	0.1	175.8	4.74	26.8	176.6	4.74	26.9
Tarn	-		-	3.6	4.92	0.6	3.6	4.92	0.6
Subtotal	21.3	6.43	4.4	349.0	5.09	57.1	370.3	5.17	61.5

Total All Sources	712.2	6.40	146.5	3,369.5	4.61	499.9	4,081.7	4.93	646.4

Table 2. KETZA RIVER INFERRED RESOURCE
DECEMBER 2007

Deposit/Mine	INFERRED
Deposit/Mine	K Tonne	g/t	K Oz
Pit Resources (1 g/t Cutoff)
Peel-Break	298.1	2.79	26.7
Penguin-Lab-Hoodoo	188.1	2.33	14.1
Shamrock (Gully-QB-3m)	229.7	2.83	20.9
Tarn	46.3	2.20	3.3
Subtotal	762.2	2.65	65.0

U/G Resources (3 g/t cutoff)
Peel-Break	27.6	3.72	3.3
Penguin-Lab-Hoodoo	59.9	4.14	8.0
Shamrock (Gully-QB-3m)	225.9	5.03	36.5
Tarn	-	-	-
Subtotal	313.4	4.74	47.8

Total All Sources	1,075.6	3.26	112.8

A cut-off grade of 1.0 gpt has been used for shapes that are believed to be amenable to eventual open-pit mining (see note) while a cut-off of 3.0 gpt has been applied to resource shapes that would have to be mined from underground. In addition, most gold mineralization has been tightly constrained geologically using structural and stratigraphic features established by mining records and 3-dimensional geologic analysis; the nature of these geologic constraints, has to a great extent, been the result of work carried out on the property during 2007.

This resource estimate was prepared by Yukon-Nevada Gold geologic staff and Russ White of SRK under the supervision of the Company's Executive Vice President -- Exploration, Dorian L. (Dusty) Nicol, who is a qualified person under N.I. 43-101. This estimate has been reviewed and approved by Russ White of SRK who is the qualified person. SRK prepared a 43-101 Technical Report incorporating these results completed in April 2008.

Note: In order to establish potential surface mineability, pit shells were created using a Lerchs-Grossmann algorithm at $1,000 USD per ounce gold price and basic cost and recovery criteria as recommended by SRK Consulting (US), Inc. which include $12/tonne process costs, $2.82/tonne mining costs, 85% metallurgical recovery, and 45 degree pit slopes.

Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources

This document uses the terms "measured and indicated resources". The Company advises U.S. investors that while these terms are recognized and required by Canadian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves.

This document also uses the term "inferred resources". The Company advises U.S. investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility or other economic study. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.

Mineral Reserve Terminology: Canadian and U.S. Differences

The Company is organized under the laws of British Columbia, Canada. The mineral reserves and resources described here are estimates and have been prepared in compliance with National Instrument 43-101 of the Canadian Securities Administrators. The definitions of proven and probable reserves used in National Instrument 43-101 differ from the definitions in the United States Securities and Exchange Commission ("SEC") Industry Guide 7.

Ketza River Technical Report

Prepared for Yukon-Nevada Gold Corp. by SRK Consulting (US), Inc.

April 2008

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