Carpathian Reports RDM Project Now Over 80% Completed With Gold Production Expected by the End of the 3rd Quarter, 2013

TORONTO, ONTARIO–(Marketwired – Jun 4, 2013) –

Carpathian Gold Inc. (TSX:CPN)(the “Corporation”
or “Carpathian”) is pleased to provide an update on its progress
towards completion of its wholly owned Riacho dos Machados Gold
Project (“RDM” or “Project”) located in the state of Minas Gerais,
Brazil. A video that shows the development of the Project as of the
end of April is available on the Corporation’s website at

www.carpathiangold.com
.

Project Construction and Development

  • Development of the Project remains on schedule for gold
    production, expected to commence by the end of the 3
    rdquarter of 2013.
  • The Project will produce approximately 100,000 ounces of gold
    on an annualized basis for an initial period of +8 years.
  • As of the end of May, the construction and development of the
    project is approximately 82% complete with a peak work force of
    approximately 1,300 people. To date there has been approximately
    2.0 million man-hours of work on the Project with no loss time
    injuries.
  • The Project will treat 7,000 t/d of ore from an open pit
    operation utilizing a standard crush, grind, CIL and ADR processing
    facility. The extraction rate of the mine for the combined waste
    plus ore will be about 2.1 million tones per month.
  • The gold production line (crushing to smelting) is well
    advanced with crushers running and being commissioned.
  • Two new reverse circulation drill rigs dedicated for ore
    control and short-term mine planning are in operation for use for
    grade control procedures. Ore is currently being stockpiled for the
    start-up of the process plant.
  • Waste removal is progressing at full capacity and stockpiling
    of waste is within the planned Project schedule.
  • The tailing dam and impoundment area construction is nearing
    completion and will be ready to receive water for the operation
    this month.
  • The assay laboratory is fully functioning and treating
    approximately 250 samples per day for ore grade control
    purposes.

“This is an exciting time for Carpathian as the RDM Project is
now nearing its scheduled completion of construction in order to
commence gold production and be the next gold producer in
Brazil”,
said Chairman and CEO, Mr. Dino Titaro.
“We commenced grubbing and clearing of the site less than 11
months ago with expected gold production by the end of the third
quarter of this year. The mine building and operating experience of
our on-site management team and our employees and contractors has
allowed us, to date, to progress the Project on schedule within a
short construction time line.”

“While the price of gold has significantly declined over the
past few months and is currently meeting resistance at the $1,400
level, we are fortunate that the Project was designed using a $950
gold price and that we had entered into protective measures for the
Project, including the selling forward of approximately 216,000
ounces of gold at $1,600 per ounce. We also have a loan facility
arrangement with Macquarie Bank for US $90 million to build the
Project and to date we have only drawn down approximately $62.5
million dollars with the scope to scope project budget remaining on
track”.

When the Project is in its initial production phases, the
Corporation will provide guidance as to the gold production
forecast for 2013 and its forecasted cash cost and total cash cost.
On an annualized basis, it is expected that the total cash cost for
the project will be below industry average.

Further details on the Corporation and a video link on the
development progress of the RDM construction can be found on

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.

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: 26.8 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.

Carpathian Gold Inc.

Shobana Thaya

Director, Communications & Investor Relations

+1(416) 368-7744

+1(416) 363-3883


info@carpathiangold.com


www.carpathiangold.com

Paradox Investor Relations

Montreal

+1(514) 341-0408 or

+1 (514) 341-1527

info@paradox-pr.ca

Seton Services, UK

Toni Vallen

+44 207 224 8468


toni@setonservices.co.uk