Carpathian Gold Inc.

Carpathian Gold Inc.

May 21, 2010 06:00 ET

Carpathian Announces Closing of US$30 Million Gold Sale Agreement With Macquarie Bank

TORONTO, ONTARIO--(Marketwire - May 21, 2010) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to announce that it has closed its previously announced (May 5, 2010) gold sale agreement with Macquarie Bank Limited ("Macquarie Bank") in the amount of US$30 Million for its RDM gold project (the "Project") in Brazil. The US$30 Million will be disbursed by Macquarie Bank in three tranches, with the first such tranche of US$7.5 Million being disbursed today.

"The closing of this transaction will now allow us to significantly advance the Project despite the fact that we have not yet completed the final feasibility study. We are very pleased with the confidence that Macquarie Bank has clearly demonstrated in our Project" said Dino Titaro, Carpathian's CEO.

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 feasibility study stage, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania. The RDM Gold Project, based on the PEA is expected to be a +100,000 ounce per year gold producer at a relatively low cash cost. The Project is currently in the Feasibility Study stage with this study expected to be completed by the end of the second quarter of 2010. As previously announced on April 14, 2010, the initial license to begin civil works on the Project has been granted.

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.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

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