Yukon Gold Corporation, Inc. announces $25 million gold linked note financing

OTCBB: YGDC

PARIS , ON, Oct. 29 /CNW/ - Yukon Gold Corporation, Inc. ("Yukon Gold" or the "Company") is pleased to announce that it has entered into an engagement letter ("Engagement Letter") with Max Capital Markets Ltd. (the "Agent"), to complete an offering of gold linked notes by way of private placement (the "Offering"). The Agent has been engaged on a best efforts basis, to raise gross proceeds of up to $25 million , at an issue price to be determined in the context of the market.

About Max Capital Markets Ltd.

Max Capital is a Toronto based investment banking firm that provides capital raising and advisory services to late stage private firms and publicly traded companies. Max Capital acts as agent in raising equity capital for companies through the utilization of a strong network of financial, strategic and crossover investors. Its mandate is to provide intelligent capital to their clients in an efficient and effective manner. In addition to their capital raising capabilities, Max Capital provides advisory and merchant banking services to assist clients in achieving their strategic growth initiatives and to enhance their exposure to value maximizing opportunities.

About Yukon Gold Corporation, Inc.

Yukon Gold Corporation, Inc. is committed to finding gold and silver projects with near-term production potential and securing the financing to bring them on line. The Company has recently signed a Memorandum of Understanding with Bellhaven Copper and Gold, Inc. to acquire a 75% interest in the Cerro Quema gold project located in Tonosi, Province of Los Santos, Republic of Panama . Cerro Quema is 100% owned by Minera Cerro Quema S.A., a private company organized under the laws of Panama as a wholly owned subsidiary of Bellhaven.

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.

Cautionary Note to US Investors - The United States Securities and Exchange Commission (SEC) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. The reader is cautioned that the terms "resource," "indicated" and "inferred" are not terms recognized by SEC guidelines for disclosure of mineral properties. Generally, "indicated" and "inferred" estimates do not rise to the level of certainty required by SEC guidelines. The mineralized material described above is not considered a "reserve" as that term is used in the mining industry and in SEC disclosure guidelines. The Company must undertake a feasibility study before it can estimate the value of the Marg Deposit. U.S. investors are urged to consider closely the disclosure in our Form 10-KSB, File No. 000-51068. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.

%SEDAR: 00023805E

For further information: Max Capital Markets Ltd. can be reached at [phone]