TORONTO, ONTARIO--(Marketwire - Feb. 28, 2013) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to provide an update on its wholly owned Riacho dos Machados Gold Project ("RDM" or "Project") located in the state of Minas Gerais, Brazil.

Project Construction and Development

• The Project development remains on track for gold production in the second half of 2013 at an annualized rate of approximately 100,000 ounces for an initial period of +8 years.
  
  
• As of the end of February 2013, the construction and development of the project in order to commence the start of gold production is approximately 70% complete with the work force approaching a peak number of 1,000.
  
  
• The Project will mine 7,000 t/d of ore from an open pit operation and will treat ore utilizing a standard crush, grind and a CIL processing facility.
  
  
• A new reverse circulation drill rig dedicated for ore-control and short-term mine planning has been commissioned and is drilling in the pit.
  
  
• Waste removal and mining is progressing as planned and ore is currently being stockpiled for the start up of the process plant in the second half of this year.
  
  
• The tailing dam and tailing impoundment area construction is progressing with approximately 1/3 of the impoundment area now lined and will be ready to receive water for the operations in early April.
  
  
• All major equipment and ancillary material for the crusher systems and process plant are either on site or being delivered and being erected as per the schedule.
  
  
• The assay laboratory is on site and ready to operate.
  
  
• The upgrade of the power line to the Project is underway and remains on schedule.
  
  

Exploration Update

As previously reported (January 16, 2013) an initial 5,720 metre exploration-drilling program was completed to evaluate on-strike near surface oxide gold mineralization both to the north and south of the open pit. These targets are a short distance from the crushing operations so that any new, economically viable, mineralized zone could easily be trucked to the processing facility that has excess capacity as it is a 9,000 t/d plant. The exploration program included soil geochemistry, rock-float sampling, trenching, auger drilling, and diamond core drilling. Three targets north, and one south of the mine were drill tested while several additional targets were scout drilled.

New assay results have been received for the Northwest Extension of the open pit and the Mata da Roca Target. Highlights are as follows:

• Northwest Extension (Immediately north along strike of the Feasibility open pit)
  
  
  • Diamond drill hole FNW-01 intersected 6 m with 0.70 g/t Au (46 - 52 m hole depth)
    
    
  • Diamond drill hole FNW-03 intersected 4 m with 1.07 g/t Au (1 - 5 m hole depth)
    
    
• Mata da Roca 2 Target (8.4 km south of the pit)
  
  
  • Diamond drill hole FMU-01 intersected 7 m with 2.09 g/t Au (21 - 28 m hole depth)
    
    

Assay results that were previously reported are as follows:

• Cinco Mil Target (less than 1 km north of the pit)
  
  
  • Trench TRCM1 with 11 metres (m) at 3.23 g/t Au
    
    
  • Diamond drill hole FCM-13 intersected 11 m with 4.10 g/t Au (0-11 m hole depth, located below TRCM1)
    
    
• Manguinha Target (2 km north of the pit)
  
  
  • Diamond drill hole FMG-05 intersected 11 m with 1.02 g/t Au (14-25 m hole depth)
    
    
  • Diamond drill hole FMG-07 intersected 8 m with 1.34 g/t Au (31-39 m hole depth)
    
    

Notes: Intersections utilize a 0.10 g/t Au cut-off allowing a maximum 2.0 consecutive m at <0.10 g/t Au and minimum intersection grade of 0.30 g/t Au. All above intersections are in weathered oxide zone. Intersection lengths are reported as down-hole length as true widths are not precisely known at this time. All drill holes are inclined at -50 to -60 degrees drilling azimuth of 270 to 290 degrees with exception of FMG-05 which drilled at -85 degrees and azimuth of 90 degrees. Hole orientations are designed to cut the regional trend of mineralization, which is north striking and east dipping.

The Mata da Roca target is deemed to be high priority target as it falls within a composite 3 km long Au-in-soil anomaly (defined as >10 ppb Au with core zones of >25 ppb Au; background is approximately 5 ppb Au). There still remain at least three targets within 5 km north of the open pit mine area that will require drill testing in 2013.

Further details on the Corporation and video link on the development progress of the RDM construction can also be found on www.carpathiangold.com and www.sedar.com.

BTV Features Carpathian Gold on BNN & PDAC Event Details

BTV-Business Television features Carpathian Gold on BNN Saturday, Mar 2 @ 8:00pm EST & Sunday, Mar 3 at 9:30am EST. http://www.b-tv.com/i/videos/CarpathianGoldMar13.wmv

Please drop by our booth #2341 during the PDAC at the Metro Toronto Convention Centre-South building on March 3-6, 2013.

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.

About Carpathian

Carpathian is an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados ("RDM") Gold Project in Brazil, which is currently focused on construction, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project ("RVP") located in Romania.

On a company wide basis, Carpathian currently hosts NI 43-101 proven plus probable reserves of 830,200 ounces of gold (proven reserves of 2,300 Kt at 1.30 g/t Au and probable reserves of 18,500 Kt at 1.23 g/t Au) and NI 43-101 mineral resources (inclusive of reserves) of approximately 8.1 million ounces of gold in the measured plus indicated categories (RVP: 405.9 million tonnes at 0.55 g/t Au for 7.19 million ounces, RDM: 19.36 million tonnes at 1.50 g/t Au for 0.936 million ounces) and approximately 0.9 million ounces of gold in the inferred category (RVP: 26.8 million tones at 0.38 g/t Au for 0.33 million ounces, RDM; 9.447 million tones at 1.93 g/t Au for 0.587 million ounces), as well as 1.4 billion pounds of copper in the measured plus indicated category (RVP: 405.9 million tones at 0.16% Cu) and 97.0 million pounds of copper in the inferred category (RVP: 405.9 million tonnes at 0.16% Cu) (see press releases dated July 17, 2012 and April 6, 2011 for further details on resources and reserves).

The RDM Gold Project is targeted to produce in the order of +/-100,000 ounces of gold per annum with an anticipated goal for the commencement of production in the second half of 2013. The Rovina Valley Project will enhance Carpathians growth profile as a mid-tier gold producer.

Mr. Titaro is the qualified person (as defined in National Instrument 43-101) and is responsible for preparing the technical information contained in this news release.