On May 21, 2009, Yukon Gold Corporation, Inc. (the "Company"), through its wholly owned subsidiary, Yukon Gold Corp, a Canadian corporation, sold its interest in the Mount Hinton Property in the Yukon Territory of Canada to the Hinton Syndicate. The Mount Hinton Property was subject to an agreement with the Hinton Syndicate pursuant to which the Company had earned a 50% interest. All of the claims comprising the Mount Hinton Property were conveyed by the Company's subsidiary to a member of the Hinton Syndicate.

The Hinton Syndicate paid the Company (i) CDN$125,000 on May 21, 2009 and (ii) granted to the Company's subsidiary a 2% "Net Smelter Royalty (an "NSR") on the Mount Hinton Property claims. Such 2% NSR may be terminated at any time by payment to Yukon Gold of the following:

If the payment is made to Yukon Gold within the 12-month anniversary  CDN$115,000
of the Closing:

If the payment is made to Yukon Gold after the 12- month anniversary  CDN$140,000
of the Closing but before the 24- month anniversary of the Closing:

If the payment is made to Yukon Gold after the 24- month anniversary  CDN$165,000
of the Closing but before the 36- month anniversary of the Closing:

If the payment is made to Yukon Gold after the 36- month anniversary  CDN$190,000
of the Closing but before the 48- month anniversary of the Closing:

If the payment is made to Yukon Gold after the 48- month anniversary
of the Closing, it shall be increased by CDN$25,000 for each
12-month period following the 49-month anniversary of the Closing

In addition, Yukon Gold's subsidiary assigned its work permit to the Hinton Syndicate and the Hinton Syndicate became responsible for any reclamation costs imposed by the government of Yukon in connection with the work permit. As of May 21, 2009, Yukon Gold and its subsidiary have no further interest or obligations with respect to the Mount Hinton Property.