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

Yukon Gold Corporation, Inc.

December 29, 2006 16:55 ET

Yukon Gold Corporation, Inc. Closes Special Warrant Offering

TORONTO, ONTARIO--(CCNMatthews - Dec. 29, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Yukon Gold Corporation, Inc. (the "Company") (TSX:YK)(OTCBB:YGDC) is pleased to announce that it has completed a previously announced private placement of 2,823,049 flow-through special warrants (which will qualify as flow-through shares for the purposes of the Income Tax Act (Canada)) at a price of CDN $1.05 per warrant and 334,218 unit special warrants at a price of CDN $0.90 per warrant for aggregate gross proceeds to the Company of CDN $3,264,996.

Each flow-through special warrant entitles the holder to acquire, for no additional consideration, one common share of the Company. Each unit special warrant entitles the holder to acquire, for no additional consideration, one common share and one common share purchase warrant of the Company. Each common share purchase warrant entitles the holder to acquire one common share of the Company at a price of CDN $1.05 for a period of 24 months from the closing date. The special warrants and the securities issuable upon the exercise thereof are subject to resale restrictions under applicable securities legislation.

The Company has agreed to file a prospectus and a registration statement qualifying the issuance of the common shares and warrants issuable upon the exercise of the special warrants as well as those common shares issuable on exercise of the common share purchase warrants. In the event the Company fails to obtain receipts for the final prospectus or clear the registration statement within 60 days from the closing date, each flow-through special warrant will entitle the holder to acquire 1.1 common shares on exercise thereof and each unit special warrant will entitle the holder to acquire 1.1 common shares and 1.1 common share purchase warrants on exercise thereof.

The flow-through and unit special warrants will be automatically exercised on the earlier of (i) the third business day after the issuance of a receipt for the final prospectus and the clearance of the registration statement, or (ii) the four month anniversary of the closing date of the private placement.

On closing, Northern Securities Inc., the lead agent received a cash commission of CDN $198,550 as well as 169,042 flow-through compensation options and 23,395 unit compensation options. In addition, as part of the private placement, Limited Market Dealer Inc. received a cash commission of CDN $30,000 as well as 28,571 flow-through compensation options and Novadan Capital Ltd. received a cash payment of CDN $32,900 as well as 32,900 unit compensation options.

Each flow-through compensation option entitles the holder to acquire, for no additional consideration, one flow-through compensation warrant, each exercisable into one common share of the Company at a price permitted by Toronto Stock Exchange policies for a period of 24 months from the closing date. Each unit compensation option entitles the holder to acquire, for no additional consideration, one unit compensation warrant, each exercisable into one common share and one common share purchase warrant of the Company at a price permitted by Toronto Stock Exchange policies for a period of 24 months from the closing date. In the event the Company fails to obtain receipts for the final prospectus or clear the registration statement within 60 days from the closing date, each flow-through compensation option will entitle the holder to acquire 1.1 flow-through compensation warrants on exercise thereof and each unit compensation option will entitle the holder to acquire 1.1 unit compensation warrants on exercise thereof.

The Company will use the gross proceeds from the sale of flow-through special warrants for the exploration and development of its properties, located in the Mayo Mining District of the Yukon Territory. The Company will use the net proceeds from the sale of unit special warrants for general working capital purposes.

The securities referred to in this press release have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of such securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.

About Yukon Gold

Yukon Gold Corporation, Inc. is an active and progressive public exploration and development company. The Company's main focus is developing its Zinc-Copper-Lead deposit (Marg Property) and exploring its Mount Hinton gold and silver project 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. The Company recently listed its shares on the Toronto Stock Exchange and raised sufficient capital to carry out its 2006 property work programs. Currently, there are approximately 20.17 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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