Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to
report that it is in the process of finalizing documentation with Macquarie Bank
Limited to increase the Project Loan Facility for its wholly owned Riacho dos
Machados Gold Project (the "Project" or "RDM Project"), Brazil from gross
proceeds of US$80 Million (see press release dated January 10, 2012) to gross
proceeds of US$90 Million. This increase in the Project Loan Facility is to
cover off a previous funding gap that existed on the Project. With this
increase, the Corporation is funded for the construction and development of the
Project. To date in 2012 the Corporation has spent approximately US$40 million
of its own equity and has committed an additional US$35 million to the Project
from cash it has on hand. The overall initial CAPEX budget for 2012/2013 for the
Project currently remains the same at approximately US$160 Million. 


The following provides an overview progress update on the development of the
Project as of the date of this press release. 




--  The Project remains on track with the overall construction and
    development time-line schedule for gold production in the second half of
    2013. Approximately 45% of the Project is completed to date. Essentially
    all major contract items have been signed off or ready for sign-off. 
    
--  Optimized mine production plan has been completed which shows
    approximately 100,000 ounces of gold production on an annual basis,
    scheduled to commence in the second half of 2013. The process plant
    start-up is still scheduled for June/July 2013. 
    
--  Earth works for the process plant infrastructure areas are 95% complete
    and ready for the installation of civil works followed by the erection
    of the structural steel and installation of the 9,000 tpd crushing and
    grinding line equipment, which is on site.  
    
--  The earthworks for waste rock stockpile area is completed and is
    receiving the pre-strip material and pre-production waste rock from the
    open pit area that is currently being excavated by contract mining. 
    
--  Hiring and basic training programs for the project personnel from the
    local region are virtually completed. All senior project staff members
    have been hired. 
    
--  The owner mine fleet and excavation equipment is on site. The ADR plant
    is being shipped to site as per schedule. Two Atlas Copco sampling
    drills are in transit to the site as per schedule. 
    
--  Engineering and design plans for the lining of the tailing impoundment
    area, which is an extra scope for the Project, have been completed.
    Construction of the tailing dam and impoundment area is scheduled to
    commence in October.



With essentially all major contract items signed off and/or ready to sign off,
the overall Project budget is being optimized and updated monthly based on work
completed and committed contracts to incorporate the additional scope of
environmental work and the lining of the tailings impoundment area. The Project
budget is monitored and adjusted where appropriate on a monthly basis to best
incorporate the additional scope items to the Project.


Two on-strike exploration targets are currently being drill tested; Cinco Mil,
approximately 2 km north of the open-pit and Mato da Roca 2, approximately 13 km
south of the open-pit. Assay results are pending and will be reported when
available. Several other targets have been identified on the Project and will be
evaluated at a later date. The objective of the drill programs is to identify
shallow open pit material to truck to the mill facility for either expanded
yearly production and/or extended mine life. 


The Corporation will continue to post regular updates on its website on the
construction and development advancement of the Project.


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 focusing on
activities surrounding permitting and 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.


Forward-Looking Statements: Statements and certain information contained in this
press release and any documents incorporated by reference may constitute
"forward-looking statements" within the meaning of applicable Canadian
securities legislation which may include, but is not limited to, information
with respect to the Corporation's expected production from, and further
potential of, the Corporation's properties; the Corporation's ability to raise
additional funds; the future price of minerals, particularly gold and copper;
the estimation of mineral reserves and mineral resources; conclusions of
economic evaluation; the realization of mineral reserve estimates; the timing
and amount of estimated future production; costs of production; capital
expenditures; success of exploration activities; mining or processing issues;
currency exchange rates; government regulation of mining operations; and
environmental risks. Often, but not always, forward-looking
statements/information can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or variations (including negative
variations) of such words and phrases, or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be taken, occur or
be achieved. Forward-looking statements/information is based on management's
expectations and reasonable assumptions at the time such statements are made.
Estimates regarding the anticipated timing, amount and cost of exploration and
development activities are based on assumptions underlying mineral reserve and
mineral resource estimates and the realization of such estimates are set out
herein. Capital and operating cost estimates are based on extensive research of
the Corporation, purchase orders placed by the Corporation to date, recent
estimates of construction and mining costs and other factors that are set out
herein. Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of Carpathian and/or its subsidiaries to be materially different
from any future results, performance or achievements expressed or implied by the
forward-looking statements.

Such factors include: uncertainties of mineral resource estimates; the nature of
mineral exploration and mining; variations in ore grade and recovery rates; cost
of operations; fluctuations in the sale prices of products; volatility of gold
and copper prices; exploration and development risks; liquidity concerns and
future financings; risks associated with operations in foreign jurisdictions;
potential revocation or change in permit requirements and project approvals;
competition; no guarantee of titles to explore and operate; environmental
liabilities and regulatory requirements; dependence on key individuals;
conflicts of interests; insurance; fluctuation in market value of Carpathian's
shares; rising production costs; equipment material and skilled technical
workers; volatile current global financial conditions; and currency
fluctuations; and other risks pertaining to the mining industry. Although
Carpathian has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions,
events or results to differ from those anticipated, estimated or intended.
Forward-looking information contained herein or incorporated by reference are
made as of the date of this presentation or as of the date of the documents
incorporated by reference, as the case may be, and Carpathian does not undertake
to update any such forward-looking information, except in accordance with
applicable securities laws. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information. Accordingly,
readers are cautioned not to place undue reliance on forward-looking
information. The forward-looking information contained or incorporated by
reference in this document is presented for the purpose of assisting
shareholders in understanding the financial position, strategic priorities and
objectives of the Corporation for the periods referenced and such information
may not be appropriate for other purposes.