Yukon Nevada Gold Corp T.YNG

RE: Whatever Happens

[POG1200]

“Gentlemen,”

From today’s PR:

"The proceeds of the private placement transaction will be used to pay down the existing liabilities of the company, invest in the facilities at Jerritt Canyon to meet the compliance requirements of the Nevada Division of Environmental Protection, and make further improvements to the gold production processes to enhance throughput at the mill, carry out further exploration activity at the Jerritt Canyon and Ketza River properties and for general working capital purposes.”

There is nothing here that says they need the money to resume production.We know they are not mining, but they have the stockpiled ore to mill.I can only assume they have been processing it since as soon as they could after the consent decree was approved, but I can’t believe the entire board has panned my production questions, and that none of you know off the top of your head anything about what is going on with production at Jerritt.

If YNG is producing 2,000 ounces per week, efforts to raise capital through paper appear absurd, unless someone knows some real reason why they have to. I sure don't accept the reasons stated in the above PR as anything production can't handle, do you?

Last I heard production cost was $450 per ounce. I used $500 to be conservative. I think $300 is way too optimistic. POG is $1,150 at today's close. we're still looking at $1,300,000 profit per week. Why isn't that enough to do everything they want to do?

I have an email into Nicole.She knows me.I’ve been around since the Queenstake days.Let’s see if she responds.I’ll pass on any production news she offers.


Greg