TORONTO, ONTARIO--(Marketwire - Aug. 12, 2009) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to announce the results of the Preliminary Economic Assessment Study ("PEA" or the "Study") on its 100% owned Riacho dos Machodos Gold Project ("RDM" or the "Project) located in Minas Gerais State, Brazil. The PEA was compiled by a consortium of engineering companies led by NCL Brasil Ltda ("NCL") of Belo Horizonte, Brazil. The Study is based solely on the open pit mineralization outlined in the NI 43-101 Mineral Resource Estimate released on May 18, 2009, which defined 15.16 Mt at 1.56 g/t Au for 762,700 oz Au in the Inferred Resource and 4.55 Mt at 1.84 g/t Au for 268,800 oz Au in the Measured plus Indicated Resource category. This resource was defined within an open pit shell utilizing the pit-optimizer software (Whittle) with appropriate mining costs, US$800 per ounce gold price, and a 0.30 g/t Au cut-off grade. The open pit mine design and production schedule for the PEA was based on a $704 per ounce gold price to obtain a pit shell as a strategy for lowering the risk of the Project. Highlights of the Study include: - Average annual production of 102,000 ounces of gold per annum over an initial 7.1 year mine life. - Total operating cash cost of US$428 per gold ounce. - Project after tax net present value ("NPV") of US$123.3 million based on a 5% discount rate and a gold price of US$900 per ounce. - Project after tax internal rate of return ("IRR") of 32.0%, with a 2.9 year payback on Project capital expenditures, at a gold price of US$900 per ounce. According to the cautionary statement required by NI 43-101, it should be noted that this assessment 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 will be available at the Company's website www.carpathiangold.com and on SEDAR www.SEDAR.com within 45 days. "We are pleased with the robust nature of the results from the PEA" said Dino Titaro, President and CEO. "We are currently drilling the open pit resource area to upgrade the inferred resource to the measured plus indicated category and early results, which will be reported shortly, indicate that there should be no difficulty in upgrading the resource category and maintaining or improving the grades and tonnages. Additionally, the drilling program is also designed to expand the current open pit resource used in the Study. The objective of the PEA was to define a profitable open pit operation that would allow rapid recovery of all of the initial capital costs while generating good margins and free cash flow for future development. Results of the Study confirm the viability of the economic potential of the Project to become on average a +100,000 ounce per year gold producer and give a firm basis to proceed quickly to feasibility and production. We also take comfort from the Study being conducted with greater costing detail than standard PEA studies" The following table presents a list of the Project parameters and assumptions derived from the PEA and cash flow model. While the cost assumptions and mining plan are considered to be at a very high confidence level, the Study contains inferred resources as part of the assessment and as such is classified as a PEA study.

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