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• On August 12, 2009 the Corporation announced the results of the PEA Study for the project which was based solely on the open pit mineralization defined in the NI 43-101 Mineral Resource Estimate described above. The PEA was compiled by a consortium of engineering companies led by NCL Brasil Ltda ("NCL") of Belo Horizonte, Brazil. The open pit mine design for the PEA was constrained, using a US $704 per ounce gold price whittle pit-shell as a strategy for lowering the risk of the project.

Highlights of the PEA 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.

The project will be a conventional open pit mine with down-the-hole drill rigs and blasting, backhoe excavators, and conventional haul trucks. The processing operation will include crushing the ore and processing it in an industry standard carbon in leach and ADR (adsorption, desorption, and recovery) plant followed by a detoxification process prior to placing the tailings in an impoundment area. Based on metallurgical test work, the gold recovery is estimated at 90%. The open pit mining operation will be at a rate of 6,000 tonnes per day with a life-of-mine average plant feed grade of 1.65 g/t gold over a mine life of 7.1 years.

The PEA Study has also demonstrated a good probability of additional higher grade ounces from an underground operation that could substantially add to the overall operation; both in terms of extending the mine life of the project and significantly increasing the annual production rate up to another 50%. The Corporation will be further evaluating and assessing this underground component as it advances the feasibility study.

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.

• On May 23, 2009 the Corporation commenced a Phase II drill program, with the primary objective of infill drilling in the open pit resource area to upgrade the inferred resource to the measured and indicated category.

• In 2009, 153 holes for 21,000 metres were completed along with re-sampling of 43 holes drilled by the previous operator, Vale. To date, Carpathian has drilled a total of 217 holes for 32,000 metres on the property. In addition, Carpathian has re-sampled drill core from 145 drill holes totaling 24,000 m of drilling completed by Vale.

• In addition to the infill drill program the Corporation drill tested two new gold targets located 700 m south and 250 m north of the Phase II infill drilling program area, These initial drill holes intersected the near-surface strike extension (less than 50 m below surface) of the mineralized RDM shear zone at economic gold grades, as shown below.

• FRM-159 with 5.5 m of 1.72 g/t Au located approximately 700 m south of the present open-pit along strike

• FRM-153 with 2.9 m of 3.64 g/t Au located approximately 250 m north of the present open-pit along strike

• Other field oriented work completed during 2009 included the completion of a surface trenching program over the 700 m long south extension zone (south of the existing pit) comprising 15 trenches at nominal 40 metre spacing. Results from this trenching program will be utilized in the new Resource Estimate.

• Late in 2009, the same consortium that completed the PEA study was awarded the contract for the Feasibility Study and work on this study, including a new updated resource and reserve estimate for the open pit mineralization.

• The Corporation advanced various time-line sensitive aspects; for example, baseline flora and fauna field studies have been completed for the Environmental Impact Assessment ("EIA") report as well as the Social Impact Assessment ("SIA"), both of which are required for permitting the development of the project.

• All required documents necessary for obtaining the first permit, the Licenca Previa ("LP"), which is the first of three licenses that are required by the Brazilian environmental agency, SUPRAM, to allow the Corporation to develop, build and operate the RDM Gold Project, were completed and submitted. The final public hearing for obtaining this permit was on December 22^nd and it is expected that the permit will be granted shortly. This permit will allow the Corporation to commence development of the project. Once the LP is awarded, the Corporation will advance to the next step to obtain the Licenca Instalacao ("LI") and the Licenca Operacao ("LO"). The LI will require detailed engineering and design work that will be extracted from the feasibility study work. The receipt of this license will allow construction to begin on the project. It is expected that the LI will be awarded during the second quarter of 2010. The LO will be granted at the end of the construction period.

• Subsequent to the release of the PEA study, the Corporation has been contacted by a number of banks and financial institutions with the view to presenting proposals for the capital funding of the RDM Gold Project. As of late 2009, the Corporation was in advanced discussions on several fronts and is confident that it will be able to secure the necessary funding on suitable terms.

Rovina Valley Project, Romania

The Rovina Valley Project ("RVP") is comprised of three gold-copper porphyry systems discovered by the Corporation on its 100% owned Rovina Exploration License in Central Romania. Since 2006, 181 diamond drill holes for 71,375 m have been completed on the project. In late 2008, PEG Mining Consultants Inc. ("PEG") completed a NI 43-101 resource estimate. This Resource Estimate is based on the drill results from each of the Colnic, Rovina and Ciresata porphyry deposits, utilizing diamond drill hole data from the 2006, 2007 and 2008 drilling campaigns, and is summarized below.

• Measured + Indicated – 193,100,000 tonnes at 0.49 g/t Au for 3,070,000 ounces Au and 0.18% Cu for 759,100,000 lbs Cu

• Inferred – 177,000,000 tonnes at 0.68 g/t Au for 3,890,000 ounces Au and 0.16% Cu for 663,100,000 lbs Cu

	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..
	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.

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 current resource estimate. It should be noted that 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 higher grade gold and copper 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 >10 ppb gold and >20 ppm copper. This anomaly is a high priority drill target for extending the Ciresata mineralization laterally, which will be followed up in 2010.

During 2009 the following activities were carried out.

• A detailed Preliminary Economic Assessment study was conducted, evaluating primarily the extraction of the higher-grade gold and copper mineralization for each deposit to enhance start-up economics and overall mill head grade higher than the average resource grade. 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.

	New bench scale metallurgical test work is nearing completion for this study, based on lock cycle test work on representative samples for each deposit, with the objective of producing a saleable copper concentrate maximizing gold recoveries without the use of any cyanide upgrading procedure. The Corporation is very encouraged by the high recovery rates of gold and copper obtained from preliminary results and as such additional confirmation work is being conducted by SGS Lakefield, which is expected to be completed within the first quarter of 2010 at which time the results of the PEA will be published.
	The following provides guidance as to what the PEA study is reviewing and should not be relied upon as the final or definitive results:

• mining and processing rate of 40,000 tonnes per day from two open pits and one underground operation;

• maximizing early year head grades in the order of + 0.80 g/t Au and 0.20 % copper;

• producing a saleable copper concentrate in the range of 22-25% Cu with 80 to 100 g/t Au, and;

• approximate +18 year mine life, producing in the order of 90,000 tonnes of copper concentrate per year resulting in approximately 220,000 ounces of gold and 22,000 tonnes of Cu per year.

• Throughout 2009, the corporation continued to work on advancing its community relationship and stakeholder engagement programs. As one example, through the corporation's partnership program with the local city council and European-Funded NGO groups, a children's playground and library were constructed and opened in July 2009. In addition, long-lead baseline data for use in EIA and SIA studies continues to be collected and documented.

• Renewal of exploration license for an additional three-year period.

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 in late 2008, whereby Caracal had 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"). During the period of October 2008 to March 2009 Caracal completed a drilling program on the Fuzerradvany Concession, which was comprised of 11 diamond holes for a total of 2,900 m. Drill hole assay intersection highlights from this program are as follows:

• FR-105 with 91.0 metres* at 2.79 g/t Au and 77 g/t Ag
• FR-111 with 30.5 metres** at 1.27 g/t Au and 64 g/t Ag

	*	true width estimated at approximately 30 metres
		** approximate true width

The option to earn in on a joint venture basis by Caracal was terminated in April and the Corporation is reviewing these holdings and will decide on any further work programs in 2010.

2010 Outlook

The Corporation's priorities are to continue to advance the RDM Gold Project towards a construction decision by mid 2010 as well as continue to advance and expand the resources at the Rovina Valley Project. The following lists the Corporation's major objectives for 2010.

RDM Gold Project, Brazil

• Complete an updated resource and new reserve estimate as well as the feasibility study and obtain the LI by the 2^nd quarter of the year.

• Announce a construction decision during the 2^nd quarter of the year.

• Continue exploration drilling, primarily on-strike following up on the positive results obtained during 2009 to outline additional shallow resources for future growth and extend the mine life of the project.

• Commence detailed studies for the exploitation of deeper resources via an underground operation with the objective of adding approximately 50% more mineable material approximately half way through the open pit mining operation.

Rovina Valley Project, Romania

• Announce the results from the PEA study by late 1^st quarter of the year.

• Utilize the results from the PEA study to convert the current Exploration License to a Mining License.

• Commence a minimum 3,000 m drill program with the primary objective of drilling deeper holes into the Ciresata deposit, to evaluate the increasing grades of gold and copper values and build upon the size of the deposit. Some lateral drilling is also planned to evaluate the deposit size.

• When appropriate, the Corporation also plans to perform infill drilling for the Ciresata deposit to upgrade the inferred resource to the measured+ indicated category as well as evaluate new porphyry target areas that have been identified.

• Continue EIA and SIA programs throughout the year and all long-lead time programs that will be required for permitting of the project.

Further details on the Corporation and the individual projects can be found on the Corporation's 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 an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados Gold Project in Brazil along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania.

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. 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.

Contributing Sources

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