Review of Carpathian's 2008 Exploration and Corporate Activity

TORONTO, ONTARIO -- Jan. 22, 2009 - Carpathian Gold Inc. (CPN :TSX) (the "Corporation" or "Carpathian") is pleased to provide a review of the results, progress and achievements for 2008 and provide an outlook for 2009.

Despite the global market volatility during 2008 and the uncertainties it presented during the year for all companies, Carpathian accomplished all of its 2008 exploration and corporate goals and, as a result, achieved several major milestones. These milestones center on the advancement of its gold-copper porphyry discoveries on its 100% owned Rovina Valley Project in Romania and the acquisition of the advanced stage Riacho dos Machados exploration/development gold project in Brazil. This acquisition provides a second 100% owned exploration/development project, which management is proceeding to evaluate as to the feasibility of commencing development of an open-pit mining operation. The near-term potential production profile of Riacho dos Machados will elevate Carpathian to a mid-tier gold producing company while it continues to advance and develop the Rovina Valley Project in Romania.

Highlights

Romania

• Discovery of third gold-copper porphyry, the Ciresata deposit, that is located 4 km south of the Colnic and Rovina porphyry deposits.
  
  
• Release of an updated NI 43-101 compliant resource estimate on the Rovina Valley Project, resulting in a total Measured + Indicated Resource of 5.09 Moz gold equivalent ("Au eq.") and a total Inferred Resource of 5.66 Moz Au eq. (see press release dated November 17, 2008). This mineral resource represented an increase of 180% in the total Measured + Indicated Au eq. ounces and a 54% increase in the total Inferred Au eq. ounces as compared to the previous 2007 mineral resource estimate announced on May 29, 2007 (total Indicated Resource of 1.82 Moz Au eq. and a total Inferred Resource of 3.69 Moz Au eq.). Further details of the 2008 mineral resource estimate are outlined below.
  
  
• The 2008 resource estimate includes enough contained gold-only ounces (3.07 M ounces in the Measured + Indicated category and 3.89 M ounces in the Inferred Category) to place the Corporation within the top tier of advanced-exploration companies (top 20) hosting resources that have not yet been developed.
  
  
• Drilling indicated that the total resource size of this project has not yet been fully defined and further immediate potential exists to expand the 2008 resource estimate.
  
  
• Each deposit has a higher-grade core of gold + copper mineralization which may provide enhanced start-up economics and possible production-scale trade-off options. A Preliminary Economic Assessment to evaluate the economic potential of the project commenced in the fourth quarter of 2008 and is currently in progress.

Brazil

• Acquisition of a 100% interest in the Riacho Dos Machados gold project located in the state of Minas Gerais, Brazil. It is comprised of exploration licenses and a Mining Concession that hosts a well maintained past producing open-pit gold operation that is currently in a suspension mode and can be re-activated quickly. This brown field project provides the potential for near-term gold production.
  
  
• Results indicate that the gold mineralized zone is in the order of 2.0 km in length and extends from surface to a depth of greater than 550 m. This gold mineralized zone is larger in size than previously indicated and provides the potential to expand on the 'Historical Resource Estimate' by Vale (non-43-101 compliant) which contained 560,000 ounces of gold at an average grade of 4.61 g/t gold (see press release dated October 31st, 2008 and d NI 43-101 Technical Report on RDM dated February 29th, 2008 filed on SEDAR).
  
  
• Assay results from confirmation and extension drilling programs are confirming the historical gold grades of the project that are in the order of 4.5 g/t Au. The results also indicate that project is amenable to the expansion and deepening of the open-pit with targeted average grades in the order of 1.5 to 2.2 g/t gold.
  
  
• Based on the positive results received to date, management's plan is to commence open-pit mining within twenty four months to be followed up at a later date with an underground mining scenario of the higher gold grades that are in the order of 4.5 g/t Au. A NI 43-101 compliant Mineral Resource Estimate is currently being prepared to be followed by a Preliminary Economic Assessment.

Hungary

The Corporation entered into a Joint Venture Agreement with Caracal Gold LLC ("Caracal"), an indirect wholly-owned subsidiary of Electrum Ltd., a private company based in Denver, Colorado (see press release dated August 12, 2008). Caracal has the option to earn up to an 80% joint venture interest in HUMEX Kft ("HUMEX"), a Hungarian corporation which is wholly-owned by Carpathian Gold Limited ("CGL"), a subsidiary of the Corporation. HUMEX owns the Fuzerradvany Concession and Kanszavar Exploration License covering mineral properties in Hungary (the "Properties"). Caracal shall be the initial operator of the Properties. To earn the 80% interest in HUMEX, Caracal must make a combination of option payments to CGL and cash contributions to HUMEX in the aggregate amount of US$1.25 million on or before the 36-month anniversary of the signing of the Option Agreement. Once Caracal has earned its interest in HUMEX, CGL and Caracal are required to fund their respective percentage interests of future exploration/development budgets for the Properties through HUMEX, subject to having their respective interests diluted if they do not provide their share of funding. During the fourth quarter of 2008 Caracal completed a drilling program on the Fuzerradvany Concession, which was comprised of 7 Diamond holes for a total of 2,417 m. Assay results from this program are pending.

The following summarizes in further detail the exploration activity and results for Romania and Brazil.

2008 Exploration Activities and Results

The principal exploration activities in 2008 were centered on drilling, geologic modeling for resource estimation, and project evaluations. A total of 26,000 m of Diamond drilling (95 drill holes) was completed in 2008, roughly split between the two 100% owned exploration/development projects:

1. The Rovina Valley Project comprised of three gold-copper porphyry systems discovered by the Corporation on its Rovina Exploration License in Central Romania.
   
   
2. The Riacho Dos Machados ("RDM") gold project, located in Minas Gerais, Brazil, was acquired in 2008 and includes an ex-Vale heap-leach gold mine closed in 1997 with an historical (non-43 101 compliant) gold resource estimate.

Rovina Valley Project, Romania

• The discovery of the Ciresata Au-rich copper porphyry, which represents the third potentially economic porphyry system on the project.
  
  
• 14,727 m of drilling (31 Diamond drill holes) completed during 2008.
  
  
• Since 2006, 181 Diamond drill holes for 71,375 m have been completed on the project.
  
  
• PEG Mining Consultants Inc. ("PEG") was commissioned to complete a NI 43-101 resource estimate with results announced on November 17, 2008. This Resource Estimate is based on the drilling results from each of the Colnic, Rovina and Ciresata porphyry deposits, utilizing Diamond drill hole data from the 2006, 2007 and 2008 drilling campaigns. The Mineral Resource Estimate reported used different base case cut-off grades for each respective deposit that were determined by giving consideration to the characteristics of each deposit, envisioned mining methods, approximate mining and milling costs derived from internal studies as well as comparable porphyry-type deposits, results from early metallurgical test work and the reasonable potential for them to be economic. Both the Rovina and Colnic porphyries are amenable to bulk open-pit mining. The cut-off grade used to report the current mineral resource at the Rovina Porphyry was based on a 0.30% Cu eq. This depos it contains gold and copper mineralization at essentially a 1:1 ratio (g/t Au: % Cu). At the Colnic Porphyry, which is a gold-rich copper porphyry, a 0.45 g/t Au eq. cut-off was used. The Ciresata Porphyry, which is also a gold-rich copper porphyry is more amenable to an underground bulk mining scenario and, consequently, a 0.70 g/t Au eq. cut-off was used for the estimation of this resource. The gold and copper equivalent grades for the cut-off values were calculated using a gold price of US$675/oz and a copper price of US$1.80/lb.

The following tables summarize the total Mineral Resources for the project at the base-case cut-off grades.

           Rovina Valley Project: Total Mineral Resource Estimate
(as of September 30, 2008)

• (i)Au eq. determined by using a gold price of US$675 per ounce and a
  copper price of US$1.80/lb as defined by PEG. Metallurgical recoveries
  are not taken into account.
• Base case cut-offs used in the table are 0.45 g/t Au eq. for the Colnic
  deposit, 0.70 g/t Au eq. for the Ciresata deposit and for 0.30% Cu. eq.
  for the Rovina deposit.
• Rounding of tonnes as required by reporting guidelines may result in
  apparent differences between tonnes, grade and contained metal content.
  
  
• The Ciresata Deposit hosted a significant number of tonnes above the cut-off grade of 0.70 g/t Au eq that were not incorporated into the resource estimate due to low drill hole density as they lay on the edges of the resource estimate mineralization and at depth where the mineralization is still open. Essentially every drill hole in Ciresata bottomed in mineralization. In addition, results from a soil-geochemistry in-fill program highlighted a coincident gold + copper anomaly extending 300 metres west from the present drill hole pattern with greater than 10 ppb gold and greater than 20 ppm copper. This anomaly is a high priority drill target for extending the Ciresata mineralization laterally.
  
  
• A Preliminary Economic Assessment study commenced in the fourth quarter of 2008, evaluating primarily the extraction of the higher-grade gold and copper mineralization for each deposit. At both the Colnic and Rovina Deposits this mineralization comes to surface, whereas the Ciresata Deposit has continuous zones of higher-grade gold and copper mineralization that persist at depth which is favourable for an underground bulk mining scenario.
  
  
• Bench scale metallurgical test work, completed by SGS-Lakefield in 2007, on each of the Colnic and Rovina deposits, indicates the utilization of a standard cyanide-free, flotation process producing a saleable copper-gold concentrate containing a high gold content. Depending on sample grade, copper concentrate grades range from 20.3% Cu to 26.8% Cu containing gold grades ranging from 28.4 g Au/t to 97.6 g Au/t. Metallurgical test work is underway on the Ciresata deposit and early results also indicate that this deposit is amenable to the utilization of a standard cyanide-free, flotation process producing a saleable copper-gold concentrate with gold recoveries in the order of +70% and copper recoveries in the order + 90%.
  
  
• Work for incorporation into an EIA and SIA compliant study continued throughout the year as well as the implementation of long-lead studies as typically required for permitting of similar projects.
  
  
• Continuation and further development of community and social responsibility programs were advanced during the course of the year.

Riacho Dos Machados Project, Brazil

• The 100% acquisition of this 22,000 ha project was completed on October 30, 2008. The property hosts a past producing mine that was operated by Companhia Vale do Rio Doce ("Vale") as an open-pit heap-leach gold mine until 1997, with maximum pit depths of approximately 60 m. Drilling by Vale defined sulfide-bearing gold-mineralization below the present pit and localized oxide gold mineralization along strike. The gold mineralization occurs within a shear-zone hosted by Precambrian metasediments and metavolcanics.
  
  
• An operations office was established in the regional capital city of Belo Horizonte.
  
  
• Necessary technical personnel were retained to advance the project to the resource definition stage to be followed by an open-pit mine development plan.

Project evaluation work at RDM included:

• Computerization of historical Diamond and reverse circulation drilling data (364 drill holes for 33,500 cumulative metres) and underground channel sampling.
  
  
• In-house reviews of resource potential and mineability.
  
  
• Third party review of Environmental compliance status and permitting pathways for re-starting mining.
  
  
• The Corporation completed a Diamond drill program comprised of 64 drill holes for 11,277 m. This drilling targeted deepening of the open-pit and immediate strike extensions. In addition, re-sampling of drill core from 22 drill holes completed by Vale was completed incorporating complete QA-QC protocols.
  
  
• Of the assay results reported to date, some highlight intersections include (see press release dated November 4, 2008 and January 12, 2009):
           10.9 m of 2.10 g/t Au
           8.0 m of 6.95 g/t Au; including 5.6 m of 9.21 g/t Au
           7.8 m of 4.75 g/t Au including 6.1 m of 5.99 g/t Au
           14.9 m of 2.23 g/t Au
           20.9 m of 1.67 g/t Au
           13.0 m of 1.4 g /t Au; includes 4.0 m of 3.12 g/t Au
           30.0 m at 2.01 g/t Au including 4.3 m of 7.68 g/t Au
           13.9 m at 3.66 g/t Au including 4.6 m at 9.25 g/t Au
           23.5 m at 1.23 g/t Au incl uding 9.4 m at 2.53 g/t Au
           16.0 m at 3.96 g/t Au including 2.8 m of 18.45 g/t Au
           10.2 m at 3.75 g/t Au including 3.7 m of 5.64 g/t Au

         Notes: Widths are approximate true thicknesses.
         An update on further assay results from the 2008 drilling program will be provided in the first quarter of 2009.
 

• Metallurgical test work utilizing CIL gold recovery methods is in progress to verify historical results from Vale.
  
  Resource modeling and a NI 43-101 compliant resource estimate are currently in progress. It is anticipated that this will be completed in the first quarter of 2009 in conjunction with a Preliminary Economic Assessment.
  
  
• EIA and SIA Studies have been commissioned to start in early 2009.

2009 Outlook

The Corporation's priorities are to continue to advance both the Rovina and the RDM gold projects. Given the weak equity markets that have quickly developed as a result of the global economic crisis, and the uncertainties that face all companies, the Corporation is pursuing a cost saving strategy to ensure that the assets of the Corporation are protected and shareholder value is maintained. To this end, the Corporation has temporarily suspended all high cost field activities, including drill programs on both the Rovina and RDM projects and will continue to review and implement other cost savings. While cutting back on higher cost activities in the short term, the Corporation will, however, continue with the work necessary to achieve its objective of delivering a NI 43-101 mineral resource estimate on the RDM project and, completing Preliminary Economic Assessment studies for each of the Rovina and RDM projects to continue to enhance their value. Once all of t he results from these studies have been completed and received, the Corporation will assess what further work would be required for each of the projects in the light of then market conditions for future funding. In the meantime, all environmental base line work and social programs will also continue on each of the Rovina and RDM projects.

Appointment of New Director

The Corporation is also pleased to announce the appointment of Mr. Julio L. Carvalho to the Board of Directors effective January 19, 2009. Mr. Carvalho is currently an executive director of Santa Elina Group in Brazil and the Chairman and CEO of Rio Novo Holdings S/A, which owns two developing gold projects in Brazil. Mr. Carvalho's previous experience, over 35 years in the Brazilian mineral resource sector, included being the CEO and President of Peak Gold Limited and the Executive Vice President of South and Central America for Goldcorp Inc., and senior executive positions with Canico Resources Inc. and Rio Tinto Brazil, where he worked for more than 33 years.

Further details on the Corporation and the individual projects can be found on the Corporations website at www.carpathiangold.com.

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.

The Corporation is a mineral exploration company focused on gold exploration primarily on its property in Romania as well as gold exploration and development on its development-stage property in Brazil. The Corporation has 207,278,454 shares outstanding.

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 materi ally from those in forward-looking statements include market prices, exploitation and exploration successes, and 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. The reader is cautioned not to place undue reliance on forward-looking statements.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

CONTACT INFORMATION:

Carpathian Gold Inc.
Dino Titaro
President & CEO
(416) 368-7744
Fax: (416) 260-2243

or

Carpathian Gold Inc.
Mike O'Brien
Manager, Investor Relations
(416) 368-7744
Fax: (416) 260-2243
Email: info@carpathiangold.com
Website: www.carpathiangold.com

or

Eric Leboeuf
Investor Relations, Montreal
(514) 341-0408 or 0408 or 1-866-460-0408
Fax: (514) 341-1527
Email: ericleboeuf@paradox-pr.ca

or

Toni Vallen
Seton Services, UK
+44 207 229 3177
Email: toni@setonservices.com

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