TORONTO, ONTARIO--(Marketwire - Feb. 27, 2012) - Carpathian Gold Inc. (News - Market indicators) (the "Corporation" or "Carpathian") is pleased to provide further results and an update from its 2011-2012 Diamond drill program at the Corporation's 100% owned Rovina Valley Project ("RVP") in west-central Romania. The RVP includes three proximal Au-Cu porphyries discovered by the Corporation. The objective of the 2011-2012 drilling program is to delineate the size and tenor of the gold-rich Ciresata porphyry deposit and upgrade its current 100% inferred resource to the measured plus indicated resource categories, and through in-fill drilling at the Colnic and Rovina porphyry deposits to upgrade the inferred resource portions to the measured plus indicated categories. The results from the 2011- 2012 drill program will be utilized to provide an update resource estimate for the RVP, which will be incorporated in the pre-feasibility study currently underway. 

Drilling re-started on January 17, 2012 following the year-end holiday and a drill-rig maintenance period. Four Diamond drill rigs are currently active with three rigs completing the in-fill drilling at the Rovina porphyry deposit (approximately 6,800 m remaining) and one rig is drilling geotechnical holes at the proposed Tailings management facility.

Resource estimation modeling is in-progress for the Ciresata and Colnic porphyry deposits and will include the Rovina deposit when this drilling is completed. The severe winter conditions recently experienced in Eastern Europe have hampered the drilling progress on the Rovina deposit with the updated resource estimate now expected to be completed in the 2^nd quarter of 2012.

In addition to the resource update and pre-feasibility study, a further minimum of 11,000 metres of exploration drilling is planned to start in March with a focus on further testing of the Ciresata porphyry deposit at depth and nearby porphyry targets as well as other porphyry targets on the project.

The following provides drill results from the balance of the 2011 drill program at the Ciresata porphyry, step-out drilling surrounding the Ciresata porphyry and in-fill drilling on the Colnic porphyry.

Recent Drill Hole Intersections at the Ciresata Porphyry Deposit

The resource delineation and definition drilling at the Ciresata deposit has now been completed with assay results through drill hole RGD-55 previously reported (see last News Release dated November 29, 2011). The remaining assay results from an additional 5 drill holes in the resource area have been received and include core holes RGD-56, 57, 60, 61, and 62 and are reported herein. The drill hole intersections reported are all from the margins of the deposit with exception of RGD-61, which is an in-fill hole in the deposit core. 

The following are highlight intersections from these drill holes with complete intersections listed in the table further on in the press release along with brief descriptions.

• 678 metres at 0.84 g/t Au and 0.17% Cu (1.19 g/t Au-eq*) in drill hole RGD-61
  • Inclusive of 424 metres at 1.04 g/t Au and 0.19% Cu (1.43 g/t Au-eq*)
  • Inclusive of 113 metres at 1.61 g/t Au and 0.24% Cu (2.10 g/t Au-eq*)

• 298 metres at 0.70 g/t Au and 0.10% Cu (0.91 g/t Au-eq*) in drill hole RGD-57
  • Inclusive of 74 metres at 1.04 g/t Au and 0.12% Cu (1.29 g/t Au-eq*)

The immediate Ciresata deposit area is now considered to have been drill tested for purposes of modeling the current resource estimate update with drill hole RGD-63 as the data cut-off hole. An additional 5 drill holes were completed in late 2011 (RGD-58, 59, 63, 65, and 66) positioned as large step-outs of 150 to 200 metres from the resource drill pattern and intended to test for any possible large-scale mineralization extension and as condemnation holes. Assay results from these holes returned no significant gold and copper mineralization and provide sterilized areas for consideration of the underground mine design currently underway for the pre-feasibility study.

Below is a drill hole intersection table for the balance of the 2011 Diamond drill holes completed at the Ciresata porphyry deposit (Note drill-hole RGD-64 was abandoned after 35 metres and RGD-65 was completed from a nearby location):

Core hole RGD-61, the last of the in-fill drill holes in the core of the Ciresata deposit, confirms the high-grade tenor of the deposit intersecting 678 metres at 0.84 g/t Au and 0.17% Cu and includes 424 metres of 1.04 g/t Au and 0.19% Cu. This hole intersected higher grades than the immediate surrounding drill holes.

Core hole RGD-56, 57, 60, and 62 are located on the north, west and south margins of the deposit and have intersected mineralization intervals that should exceed the cut-off grade be used in the on-going pre-feasibility study. Examples include RGD-57 which intersected 298 metres of 0.70 g/t Au and 0.10% Cu including 74 metres of 1.04 g/t Au and 0.12% Cu that extends the mineralization previously intersected in core hole RGD-29 (249 metres of 1.04 g/t Au and 0.16% Cu (see News Release dated July 11, 2011)) 75 metres to the southwest; and RGD-62 intersected 62 metres of 0.64 g/t Au and 0.15% Cu which extends the mineralization previously intersected in RGD-52 (84 metres of 0.60 g/t Au and 0.15% Cu (see News Release dated November 29, 2011)) 60 metres to the west.

Exploration Drilling - Ciresata Area

Core holes RGD, 58, 59, 63, 65, and 66 are large step-out drill holes intended to test for mineralization extensions and/or provide lateral limits to the deposit for placement consideration for development of the underground mine design as part of the pre-feasibility study. While some of these holes intersected anomalous mineralization, (i.e. RGD-63 with 46 metres of 0.37 g/t Au and 0.10% Cu 150 metres southwest of the deposit) they are considered barren for purposes of the mine design work.

The planned exploration program for 2012 will test deep targets at the Ciresata deposit to evaluate a deeper level of mineralization associated with an interpreted deep-porphyry as well as test other porphyry targets in the Ciresata area. The deep drilling program is scheduled to commence in March with two drill rigs.

Colnic In-fill and Delineation Drill Program 2011 Intersection Results

During late 2011, the Corporation completed a Diamond drill program at the Colnic porphyry deposit comprised of 18 drill holes totaling 4,695 metres. The objective of the program was to convert isolated zones of inferred resources from the 2008 Resource Estimate to measured plus indicated categories for use in the updated resource estimate and the on-going pre-feasibility study. In addition, lateral marginal zones were locally tested to close off the mineralization. 

Results of this drill program were consistent with and support the previous geologic and open-pit resource model and are now being utilized in the resource estimate update. Where drill holes targeted isolated inferred zones in the core of the deposit the expected mineralization was intercepted with the following examples.

• 191 metres at 0.72 g/t Au and 0.11% Cu (0.95 g/t Au-eq*) in drill hole RCD-99
  • Inclusive of 26 metres at 1.28 g/t Au and 0.12% Cu (1.53 g/t Au-eq*)

• 175 metres at 0.53 g/t Au and 0.13% Cu (0.80 g/t Au-eq*) in drill hole RCD-101
  • Inclusive of 19 metres at 0.99 g/t Au and 0.13% Cu (1.26 g/t Au-eq*)

• 283 metres at 0.66 g/t Au and 0.13% Cu (0.93 g/t Au-eq*) in drill hole RCD-102
  • Inclusive of 91 metres at 0.83 g/t Au and 0.18% Cu (1.20 g/t Au-eq*)

• 216 metres at 0.75 g/t Au and 0.15% Cu (1.06 g/t Au-eq*) in drill hole RCD-103
  • Inclusive of 23 metres at 1.04 g/t Au and 0.16% Cu (1.37 g/t Au-eq*)

RVP Background Information

RVP is comprised of three Au-Cu porphyry systems (Rovina, Colnic and Ciresata) that were discovered by the Corporation. From 2006 to 2008, 181 Diamond drill holes totaling 71,375 m have been completed on the project prior to the present drilling program. In late 2008, PEG Mining Consultants Inc. ("PEG") completed a NI 43-101 resource estimate ("2008 Resource") which comprised a measured plus indicated resource of 3.07 million ounces of Au (at 0.49 g/t Au) and 759.1 million pounds of Cu (at 0.18% Cu) and an inferred resource of 3.09 million ounces of Au (at 0.68 g/t Au) and 663.1 million pounds of Cu (at 0.17% Cu). To date the Corporation has drilled 264 drill holes for 122,300 meters on the RVP. The 2008 Resource Estimate is being updated with the additional drill hole information obtained from 2010 to 2012 and is expected to be released in the second quarter of 2012.

A detailed NI 43-101 compliant Preliminary Economic Assessment ("PEA") was released on March 23, 2010. The PEA was completed by PEG, which led a consortium of specialists assembled for the study. The PEA, utilized conventional open-pit mining for the Colnic and Rovina deposits with the Ciresata deposit mined by a bulk-underground method. Processing of the copper and gold mineralization will utilize industry-standard crush-grind and flotation process at a proposed rate of 40,000 tonnes per day to produce a gold-rich saleable copper concentrate. This process does not require the use of cyanide. The study considered a 19-year mine-life over which a total of 6.22 million Au-eq ounces would be produced. At metal prices of US$1,450/oz gold and US$3.00/lb copper the study arrived at a pre-tax NPV of US $1.13 billion based on a 10% discount rate. According to the cautionary statement required by NI 43-101, it should be noted that this PEA is preliminary in nature as it includes inferred mineral resources that cannot be categorized as reserves at this time and as such there is no certainty that the preliminary assessment and economics will be realized. The full Study of the PEA is available on www.SEDAR.com.

Sample Protocol

All samples collected from any program in Romania are prepared and analyzed at the independent ALS Romania SRL Laboratory in Gura Rosiei, Romania, owned and operated by ISO Certified ALS-Chemex Laboratory, using industry standard fire assay techniques for gold on 50-gram sample charges with AAS finish. Copper is analyzed using the industry-standard method of aqua-regia digest on a 0.40-gram sub sample with an AAS finish. Coarse blanks, pulp blanks, pulp duplicates and certified gold and copper standards are inserted on a routine basis. They consist of 15 per cent of submitted samples. In addition, coarse rejects from 3% of the samples are periodically re-submitted for analysis. For the current drill program a minimum of 3% of sample pulps are analyzed at the ISO Certified OMAC Laboratory in Ireland, for check assays. The drill assays reported in this press release are from split HQ and NQ size Diamond core with the remaining half retained for reference. All holes at the Ciresata deposit are sampled at one metre intervals through the mineralized zone and two-metre intervals in the upper barren zone.

Mr. Titaro is the qualified person (as defined in National Instrument 43-101) overseeing the design and implementation of the present exploration programs. He is responsible for preparing the technical information contained in this news release.

About Carpathian

The Corporation is an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados ("RDM") Gold Project in Brazil, which is currently focusing on activities surrounding permitting and construction, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania. 

On a company wide basis, the Corporation currently hosts NI 43-101 proven plus probable reserves of 830,200 ounces of gold (at 1.24 g/t Au) and NI 43-101 mineral resources (inclusive of reserves) of 4.0 million ounces of gold (at 0.58 g/t Au) in the measured plus indicated categories and 4.5 million ounces of gold (at 0.74 g/t Au) in the inferred category, as well as 759.1 million pounds of copper (at 0.18% Cu) in the measured plus indicated category and 663.1 million pounds of copper (at 0.17% Cu) in the inferred category.

The RDM Gold Project is targeted to produce in the order of +/-100,000 ounces of gold per annum with an anticipated goal for the commencement of production by mid 2013. The Rovina Valley Project will enhance the Corporations growth profile as a mid-tier gold producer.

Forward-Looking Statements: This press release includes certain statements that may be deemed "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. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.