Yukon Gold Corporation, Inc. - Marg Drilling starts

TORONTO, July 3 /CNW/ - Yukon Gold Corporation, Inc. ("Yukon Gold" or the "Company"), (TSX: YK.TO) (OTCBB: YGDC.OB) (Frankfurt: W8Y) is pleased to announce the start of drilling on the Marg deposit.

Marg Drilling on Schedule

As of July 2, over 430m have been drilled and the drill is on its third metallurgical test hole. The results of the metallurgical testing will be used to supplement the Scoping Study which is currently underway.

An additional 2000 metres of exploratory drilling will target the extension of high grade zones in the Marg Deposit.

In addition work is continuing to develop targets elsewhere on the property in geologic environments similar to the Marg deposit with associated airborne EM conductors, geochemical anomalies and alteration in out crops in select areas. The Jane and Leyla zones in particular have the potential to result in a major resource expansion.

About Yukon Gold

Yukon Gold Corporation, Inc. (Yukon Gold) explores and develops mining properties with a commitment to moving projects towards production. Yukon Gold's 100% owned Marg Deposit is an advanced stage copper/lead/zinc/silver/gold deposit in the Tombstone Belt in Yukon, Canada. Currently there are 28.9M of the Company's common shares outstanding.

The technical information in this Press Release has been reviewed by Gary A. Cohoon, VP Exploration and a qualified person.

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.

Contacts

Yukon Gold Corporation
Inc.
Cletus Ryan
VP Corporate Development
(416) 865-9869 or 1-800-295-0671 x12
Email: cryan@yukongoldcorp.com
Website: www.yukongoldcorp.com
Company Website: www.yukongoldcorp.com