Carpathian Gold Inc.: Re-Commissioning Resumes at RDM Mine and Corporate Update

TORONTO, ONTARIO--(Marketwired - March 13, 2014) -Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") advises that it has commenced re-commissioning of the processing plant at its wholly owned RDM mine in Brazil, following re-instatement of the Autorização Provisória de Operação ("APO" or provisional operating license), as announced on 24 February 2014.

The re-commissioning comprises a sequential start-up of the component parts of the plant. It is anticipated that the operation will gradually build up to the planned production target of approximately 8,000 ounces of gold per month, over the next several months.

As a result of the delays in the start up of the mine and the resulting delay in cash flow, the Corporation's outstanding debt with Macquarie Bank Limited ("Macquarie") has increased significantly to approximately US$141.2 million. The Corporation therefore continues to pursue strategic initiatives in conjunction with Macquarie, including various potential restructuring alternatives and the potential sale of the Corporation or some of its assets.

A corporate restructuring is likely to include a significant injection of new equity capital, which would be materially dilutive to existing shareholders and is likely to be dependent upon Macquarie agreeing to some concessions under the existing debt and gold streaming facilities. Macquarie has indicated that it would consider some level of concessions.

In addition, the Corporation is exploring a restructuring of its gold hedge book in an effort to significantly reduce the outstanding debt balance.

There can be no assurance that any such restructuring will take place or that a transaction will result.

About Carpathian

Carpathian is an exploration and development company whose primary business interest is developing near-term gold production at its 100% owned Riacho dos Machados Gold Project in Brazil. In addition, it is also focussed on advancing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania.