Yukon Gold Corporation, Inc.
TSX : YK
OTC Bulletin Board : YGDC

Yukon Gold Corporation, Inc.

November 23, 2006 13:03 ET

Yukon Gold Corporation, Inc. Arranges $6 Million Special Warrant Offering

TORONTO, ONTARIO--(CCNMatthews - Nov. 23, 2006) -

Not to be distributed or disseminated in the U.S.

Yukon Gold Corporation, Inc. (Yukon Gold), (TSX:YK)(OTCBB:YGDC) is pleased to announce it has entered into an agreement with Northern Securities Inc. to act as agent in a best efforts private placement offering of up to $6 million of securities through the sale of special warrants convertible into flow-through common shares (Flow-Through Special Warrants) and special warrants convertible into units consisting of one common share and one-half of common share purchase warrant (Unit Special Warrants), subject to a minimum issuance of $1 million of Unit Special Warrants. The Flow-Through Warrants and Unit Special Warrants are hereinafter collectively referred to as Special Warrants.

Yukon Gold's CEO Paul Gorman commented "this financing will enable Yukon Gold to take a great step forward in confirming the great potential of both The Marg and Mt. Hinton Properties for investors". The proceeds of the Offering will be used in 2007 for the exploration, and development of Yukon Gold's two Yukon Territory based properties and for working capital.

Under the terms of the offering, Yukon Gold has agreed to sell up to 6,315,789 Special Warrants (assuming the offering is comprised entirely of Unit Special Warrants), on a private placement basis, at a price of $0.95 per Unit Special Warrant and $1.20 per Flow Through Special Warrant. In addition, Northern will have an over-allotment option to increase the offering by $2 million of Special Warrants, subject to the minimum issuance of $1 million Unit Special Warrants.

Each Unit Special Warrant will be exercisable, for no additional consideration, into one Unit. Each Unit is comprised of one common share and one-half common share purchase warrant. Each common share purchase warrant will entitle the holder to purchase one common share at a price of $1.20 per common share for 24 months from the closing date. Each Flow-Through Warrant will be exercisable for no additional consideration into one flow-through common share.

Yukon Gold will pay Northern a commission equal to 7% of the aggregate gross proceeds of the offering and issue 7% Broker warrants based on the aggregate number of Special Warrants purchased through this offering.

Closing is expected to occur in December, 2006. The private placement is subject to acceptance for filing with the Toronto Stock Exchange and all other necessary shareholder and regulatory approvals. The securities issued in connection with the private placement will be subject to a four month hold period under Canadian securities laws, unless receipts have been issued for the prospectus qualifying the distribution of the flow-through common shares, common shares and common share purchase warrants issuable upon the exercise of the Special Warrants prior to the expiry of the four month and one day period.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Yukon Gold

Yukon Gold Corporation, Inc. is an active and progressive public exploration and development company. The Company's main focus is its recently acquired VMS deposit (Marg Property), which has a 43-101 compliant resource of approximately 560 million lbs of Zinc and 940 million lbs of Zinc equivalent, and its Mount Hinton gold and silver exploration project, both located in the Central Yukon Territory of Canada. These properties lie within the Tombstone Gold Belt, world renowned for the discovery of major gold and base metal deposits. Currently, there are approximately 18.8 million of the Company's common shares outstanding.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes 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. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company 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.

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