YUKON-NEVADA GOLD CORP.
Management Discussion and Analysis
For the three and six month period ending June 30, 2010
The following management’s discussion and analysis (‘‘MD&A’’) is intended to supplement the
Company’s interim consolidated financial statements for the three and six month period ending June 30,
2010 which have been prepared in accordance with Canadian generally accepted accounting principles
(‘‘Canadian GAAP’’). Readers are encouraged to consult the Company’s audited consolidated financial
statements and corresponding notes to the financial statements for the year ended December 31, 2009 for
additional details. Readers are cautioned that the MD&A contains forward-looking statements and that
actual events may vary from management’s expectations. All figures are in United States dollars unless
otherwise noted. The MD&A has been prepared as of August 11, 2010.
SECOND QUARTER HIGHLIGHTS
l The Jerritt Canyon Mine produced 18,441 ounces from stockpiles and mining operations in the three
months ended June 30, 2010, the highest production amount achieved in a quarter since the third quarter
of 2008. The production results also reflect the scheduled shutdown which occurred over a two week
period in May.
l Small Mine Developers (“SMD”) delivered 11,121 ounces to the mill from the Smith mine during that
same period, as the mining operations steadily improved into the second quarter.
l Stack tests conducted at Jerritt Canyon continued to improve with the June results showing mercury
emissions at 6% of the levels permitted under the consent decree. The Company expects these results to
continue to improve as the ultimate discharge limits have not yet been realized.
l The Company had a loss of $4.9 million in the second quarter of 2010 compared to $7.7 million in the
second quarter of 2009.
l In May, 2010 the Company closed a private placement for a total of 34.6 million flow-through shares at a
price of C$0.275 per Share for proceeds of $9.2 million. The proceeds will be used on