Carpathian Advancing the RDM Gold Project, Brazil and Provides an Update on Activities

TORONTO, ONTARIO--(Marketwire - May 12, 2011) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to provide a progress update on its 100% owned Riacho dos Machados gold project ("RDM" or the "Project), located in Minas Gerais State, Brazil. On April 6, 2011, the Corporation announced the results of a positive NI 43-101 compliant Feasibility Study and a construction decision for the Project.

The Project is rapidly advancing with site construction and pre-production phases to begin in the second and third quarters of 2011. The bids for the site works, access road upgrades and fuel supply are being finalized with an expected mobilization date of August 2011. Detailed monthly and yearly production mining plans are currently being prepared and optimized to enhance the mill-feed grade. Additionally, detailed engineering for the construction phase of the Project is progressing on schedule.

With regard to the senior debt financing for the development of the Project, technical and legal due diligence is well underway with a targeted completion time frame in about 60 days.

To manage the Project activities and subsequent operations, the Corporation's wholly owned Brazilian Subsidiary, Mineração Riachos dos Machados Ltda. ("MRDM") has recently hired several key professionals to ensure that the Project is completed within the budget and projected timeline with expected gold production targeted to begin towards the end of 2012. Managers for all key areas of our future mining operations are now in place. They include the General Manger, the Safety Coordinator, the Manager of Finance, Accounting, and Control, the Manager of Technical Services, the Process Plant Manager and the Manager of Environment, Community and Government Relations. MRDM has also interviewed several candidates for the position of Mine Manager and expects to have this position filled soon.

The Corporation is very pleased with the high quality calibre of the Brazilian team that has been assembled to date as they have the necessary experience and know-how to bring the Project into production and ensure that it is profitable in the years ahead. These people are the majority of core people that are required to develop and manage the operations and success of the RDM Gold Project. This team will be directly involved with the development of the Project as well as with the recruitment process to acquire the additional personnel necessary to operate and maintain the facilities in a safety oriented, efficient and cost effective manner and in full compliance with best practice environmental standards.

Exploration Program

The gold mineralization on the Project is situated within a continuous 14.0 kilometre long shear zone hosted in Precambrian metamorphic rocks with a demonstrated gold endowment. This shear zone is fully covered by the Corporation's mining concession and exploration licenses that extend over a continuous strike-length of approximately 40 kilometres. The most intensely explored zone to date has been at the RDM mine site location and only represents approximately 2.0 kilometres of the southern portion of the 14 km long shear zone. There are numerous surface gold targets of similar gold grade that occur along strike of the mine site within this shear zone and to date a total of at least five (5) priority exploration targets have been outlined north of the open-pit area and one to the south. The Corporation expects to embark on a drilling exploration program in June to evaluate these targets as well as other targets with the goal of defining further resources with the potential to provide additional plant feed and mine life.

Background highlights of the recently announced Feasibility Study

• Proven and probable open-pit reserves of 20.9 million tonnes at 1.24 g/t Au for 830,200 ounces of gold (based on a US$950 per ounce gold pit-shell).

• Initial 8-year mine life at a mill throughput of approximately 7,000 tonnes per day utilizing conventional open-pit mining and crushing-grinding with CIL recovery of gold.

• Average annual recoverable gold production of 93,400 ounces (100,000 ounces/year in the first three years of operation).

• Average cash operating cost over the life of mine of US$558 per ounce.

• Pre-tax project net present value ("NPV") of US$150.8 million based on a 5% discount rate using a gold price of US$ 1,150 per ounce resulting in an internal rate of return ("IRR) of 24.9%.

• After-tax project NPV of US$123.8 million based on a 5% discount rate at US$ 1,150 per ounce with an IRR of 21.9%.

• Using a price of US$1,350 per oz for gold, the after-tax NPV based on a 5% discount rate is US$220 million with an IRR of 33.4%.

• Estimated start up capital of US$160 million.

• Global measured plus indicated mineral resource of 936,600 ounces (inclusive of mineral reserves) with another 587,300 ounces in the inferred category.

• Additional opportunities for future conversion of resources to reserves and resource growth, reduction in capital and increased mill feed grade.

Mr. Titaro is the qualified person (as defined in National Instrument 43-101) overseeing the design and implementation of the present exploration programs. He is responsible for preparing the technical information contained in this news release.

About Carpathian

The Corporation is an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados Gold Project in Brazil, which is currently in the construction, permitting and financing stage, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania. On a company wide basis, the Corporation currently hosts NI 43-101 resources of 4.0 million ounces of gold in the measured plus indicated categories and 4.5 million ounces of gold in the inferred category, as well as 759.1 million pounds of copper in the measured plus indicated category and 663.1 million pounds of copper in the inferred category.

The Riacho dos Machados Gold Project is targeted to produce in the order of +/-100,000 ounces of gold per annum, with construction targeted by management to be initiated by mid 2011 with an anticipated goal for the commencement of production in late 2012 or early 2013. The Rovina Valley Project will enhance the Corporations growth profile as a mid-tier gold producer.

Forward-Looking Statements: This press release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "Project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.