Yukon Gold and District Gold Sign Letter of Intent to Buy Nevada Claims

Yukon Gold Corporation, Inc. (OTCBB: YGDC) has announced it has entered into a non-binding Letter of Intent with District Gold Inc., a private Ontario, Canada corporation.

The LOI contemplates, among other things described herein, the acquisition of two groups of mining claims (the "Nevada Claims") in the State of Nevada, one of which was a former producer.

Other matters provided for in the LOI are:

1. Re-domiciliation of the Company to the State of Nevada from the State of Delaware by way of a merger into a wholly-owned Nevada subsidiary with the same name (the "Nevada Subsidiary").
2. The Nevada Subsidiary will be authorized to issue 500,000,000 common shares.
3. Following effectiveness of the re-domiciliation, the Nevada Subsidiary will issue one (1) common share to the shareholders of the Company for each five (5) shares they hold of the Delaware corporation prior to the merger and re-domiciliation.
4. The purchase price of the Nevada Claims will be 70,000,000 common shares of the Company, valued at US$0.03 per share, prior to the re-domiciliation, or 14,000,000 shares of the Nevada Subsidiary, valued at US $0.15 per share, post re-domiciliation.
5. Possible increase in the number of shares available under the 2006 Stock Option Plan.

The Company will seek shareholder approval for the re-domiciliation in Nevada and any increase in shares available under the 2006 Stock Option Plan.

The LOI is conditional upon execution of a definitive agreement by February 1, 2011 and the completion of a $2,000,000 financing by March 31, 2011.

Source: Yukon Gold Corporation, Inc.