Carpathian Gold Announces Initial Mineral Resource – Multi-Million Ounce Gold Estimate

(Toronto, Ontario – May 29, 2007) Carpathian Gold Inc. (CPN:TSX) (‘the Corporation”) is very pleased to announce its initial National Instrument 43-101 compliant Resource Estimate, as provided by independent consultants AMEC Americas Limited’s (“AMEC”), on its 100% owned Rovina Exploration License in central Romania, which hosts the Colnic Au-Cu porphyry deposit (“Colnic”) and the Rovina Cu-Au porphyry deposit (“Rovina”).  AMEC has estimated the Mineral Resource for each of the Colnic and Rovina porphyry deposits, located approximately 2.5 km apart, utilizing drill hole data to December 31, 2006.  Drilling on both of these porphyries is on-going and neither porphyry has yet been fully delineated in size and average tenor.

For both porphyries the Mineral Resources reported are confined to a Whittle 4x-generated conceptual pit shell to determine the amount of potentially mineable open pit mineralization using various economic assumptions. The Colnic resource estimate is divided into gold-copper (“Au-Cu”) mineralization (with block model of Cu grades greater than 500 ppm) and gold (“Au”) only mineralization (with block model Cu grades less than 500 ppm).  The Rovina resource estimate is entirely comprised of Au-Cu mineralization. 

The following table summarizes the results of the in-pit mineralization for each porphyry deposit; with Colnic comprised of Indicated and Inferred Mineral Resources reported at a base-case gold equivalent (“Au Eq.”) cut-off grade of 0.4 g/t and Rovina comprised of Inferred Mineral Resources reported at a base-case copper equivalent (“Cu Eq.”) cut-off grade of 0.25%. The base-case cut-offs are determined from assumed economic parameters such as mining and milling costs of comparable porphyry-type deposits and metal recoveries based on early-stage testwork (see Metallurgical section below).  For both Colnic and Rovina the various tonnage and grade estimates at different ranges of Au Eq. and Cu Eq. cut-off grades are attached in a table at the end of this press release.

Colnic and Rovina Mineral Resource (as of December 31, 2006)

• Au Eq. and Cu Eq. as determined by AMEC using a gold price of $US550 per ounce and a copper price of $1.30/lb.  Metallurgical recoveries are not taken into account.
• Base case cut-offs used in the table are for  0.40 g/t Au Eq. for Colnic and for 0.25% Cu. Eq. for Rovina
• Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.

Mr. Dino Titaro, President and CEO of the Corporation commented: “We are exceptionally pleased with this initial Mineral Resource Estimate, given that it represents a starting point of the resource potential for each deposit that was achieved within only 10 months of commencement from drilling in 2006. We are highly encouraged as the global resource has more than met our initial expectations and our original minimum target goal for the project of at least 200 million tonnes has already been surpassed. We are confident that the 2007 drilling program which is currently underway should add to these resources and upgrade their category confidence level.  Our exploration team has done an exceptional job in the advancement of this project and on behalf of senior management and the Board of Directors, I thank them all.  In addition we are pleased with the level of detail and thoroughness brought to this estimate by AMEC in providing a high caliber and high confidence resource estimate”.

The following provides information about the Resource Estimate and Conceptual Pits.

To generate the conceptual pits, the following early-stage assumptions were used. Additional work will be required to more accurately establish these parameters:

• Au Price: US$550/ounce
• Cu Price: US$1.30/lb
• Copper Concentrate Process Cost: US$3.00/tonne milled
• For the Au-only zone at Colnic, Pyrite Concentrate/Cyanide Leach Process Cost: US$4.00
• G&A: US$1.00/tonne milled
• Mining Cost: US$0.95/tonne
• Colnic – Process Recovery through Copper Concentrate: 60% Au, 85% Cu
• Colnic – Process Recovery through Pyrite Concentrate/Cyanide Leach: 75% Au, 0% Cu 
• Rovina – Process Recovery through Copper Concentrate: 60% Au, 90% Cu
• Pit Slopes: 50°

Resource Estimate:

·        Mineral resources were estimated in conformance with the CIM Mineral Resource and Mineral Reserve definitions referred to in National Instrument (“N.I.”) 43–101, Standards of Disclosure for Mineral Projects. 

·        The Resource Estimate for Colnic was based on 49 drill holes (15,714 m) drilled over an area of approximately 600 m by 600 m.  At Rovina the resource estimate was based on 17 drill holes (8,435 m) drilled over an area of approximately 400 m by 300 m.

·        All drill holes are diamond drill core and were sampled over their entire length over mostly 1 m sample intervals.  A thorough QA/QC program was in place during the drill program, which included the insertion of standard, duplicates and blanks at regular intervals.

·        The integrity of the drill hole database, including assays, used in the Resource Estimate was reviewed by AMEC and deemed as acceptable.

·        A three-dimensional (3D) geological and block model was generated using GEMS© software; separate domains were created for each lithology and alteration type at Colnic and Rovina.

·        Grade interpolation at Colnic was completed using a combination of outlier restricted kriging and ordinary kriging with multiple passes. At Rovina outlier restricted ordinary kriging and inverse distance cubed were used. 

·        Densities were determined for a representative number of rock and mineralization types using industry standard methods and an average value for each modeled rock type was applied to the block model.

·        Preliminary metallurgical work was completed by SGS Lakefield, Canada, for the Corporation (see below).

Mr. David Thomas, MAusIMM, Senior Geologist with AMEC, is the Qualified Person responsible for the Mineral Resource estimates for both the Colnic and Rovina Deposits.  The complete N.I. 43-101 Technical Report will be filed on SEDAR at www.SEDAR.com within 45 days.

For both the Colnic and Rovina porphyries, there is additional mineralization outside of the conceptual pit outline that is not reported as Mineral Resources.  This mineralization will require further evaluation to potentially be incorporated into a future Mineral Resource, particularly at Colnic where a comparable number of tonnes above the cut-off grade of 0.4 g/t Au. Eq. lies outside of the conceptual pit shell utilized for the initial resource estimate.

At both Rovina and Colnic there are higher grade portions of each deposit (see tables at end of this press release), some of which occurs near to surface.  These areas could represent potential starter pits for each deposit and need to be further evaluated. 

Metallurgical Testwork

Three metallurgical samples, each totaling a minimum of 20 metres of mostly ¼ HQ core comprised of 4 five-metre composite samples for a total sample weight of 35-42 kg each, were submitted to SGS Lakefield Research, Canada, to provide a preliminary estimate of copper and gold recoveries.  Two composite samples were submitted for the Colnic deposit and one composite sample for the Rovina deposit. The testwork program was overseen and supervised by Mr. Al Hayden, P. Eng., of EHA Engineering Ltd. who is a Qualified Person under N.I. 43-101 and a consultant to the Corporation. 

The purpose of the testwork was to investigate the recovery of copper and gold through flotation followed by cyanide leaching of gold from the flotation tailings.  Selective copper and bulk sulphide flotation samples were investigated in rougher and cleaning tests along with the effects of fineness of grind, pH, type of collectors and pyrite depressants.  One cycle test was conducted on each sample consisting of flotation test work for copper and gold recoveries and cyanide leaching of the cleaner tails for additional gold recovery.

Flotation testwork on the composite samples from the Colnic and Rovina deposits has demonstrated that a saleable copper concentrate containing a significant portion of the gold can be produced.  

Cycle tests for Rovina yielded copper recoveries to flotation of approximately 92%, with the concentrate grading 26.8% Cu and 28.4 g Au/t.  Gold recovery was in the order of 65%. Cyanidation tests on the cleaner tails indicate that additional gold can be recovered using acceptable reagent consumptions, by leaching of flotation cleaner tails and thus enhanced the gold recovery to 79%. 

For Colnic, cycle tests yielded copper recoveries to flotation of approximately 84 to 90% with the concentrate grading approximately 21% Cu and 94 to 98 g Au/t.  Gold recovery was in the order of 56 to 70%.  Cyanidation tests on the cleaner tails indicate that additional gold can be recovered using acceptable reagent consumptions, at this deposit by leaching of flotation cleaner tails and thereby enhancing the gold recovery to approximately 70 to 78%.

We consider these preliminary metallurgical test results to be excellent and demonstrating that there is no unusual metallurgical process that may be required and that subject to economic assessments, additional metallurgical testwork is warranted to optimize the flowsheet and to establish various process design parameters.  So far, from the limited testwork, the indicated flowsheet includes bulk flotation of sulphides followed by regrinding and cleaning of concentrate to produce a saleable grade, and cyanidation of one or more cleaner tailing products.  Further work will be completed on larger and more representative compiled samples throughout each deposit to determine the optimum process design.  It should be noted that the additional recovery of gold mineralization from the cleaner tails was not incorporated into the AMEC conceptual pit-model for the purposes of this initial Mineral Resource estimate. Further details and comments on the preliminary metallurgical testwork will be discussed in the 43-101 report.

2007 Exploration Program

The Corporation is continuing its drilling program on each of the Colnic and Rovina porphyries, comprised of in-fill drilling, delineation drilling and exploration drilling for extensions to the mineralization as well as its generative exploration work to evaluate other porphyry targets within the vicinity of these two deposits. Highlight intersections to date in 2007 include (see press release dated April 30, 2007; note for Au Eq. and Cu Eq. grades the metal prices used at the time of the release are $US450/ounce for gold and $1.25/lb for Copper, metallurgical recoveries not taken into account):

462 m of 0.43 g Au/t and 0.41% Cu (1.21 g/t Au Eq. or 0.64% Cu Eq.) including 203 m of 0.49 g Au/t and 0.47% Cu (1.38 g/t Au Eq. or 0.73% Cu Eq.) in drill hole RRD-21 at Rovina, and;

131 m of 0.37 g Au/t and 0.23% Cu (0.81 g/t Au Eq. or 0.42% “Cu Eq.”) including, 40 m of 0.57 g Au/t and 0.23 % Cu (1.01 g/t Au Eq. or 0.53% Cu Eq.)  in drill holeRRD-20 at Rovina, and;

235 m of 0.79 g Au/t and 0.12% Cu (1.02 g/t gold Au Eq.) including  184 m of  0.89 g Au/t and 0.14% Cu (1.16 g/t Au Eq.) in drill hole RCD-51 at Colnic.

Both porphyries have yet to be fully delineated in respect of either their size or contained mineral content.  The objective of the 2007 drilling program is to further define the size of each porphyry deposit with the additional information that is collected to be incorporated into an updated Mineral Resource estimate planned to be completed during the early part of 2008.

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.

A conference call has been scheduled for Wednesday May 30, 2007 at 1:00 pm Eastern Standard Time (E.T.) to discuss the Mineral Resource results and the project. 

Conference Call Information

Local Area                                                                   416-641-6130

Toll Free (North America)                                            1-866-226-1798

International                                                                  1-800-2787-2090

Call participants can go to www.carpathiangold.com home page during the call to view maps of the project.

Conference Call Replay

Replay Call                                                       +1-416-695-5800    –  password 3224822#

Replay Toll Free Call                                          1-800-408-3053     – password 3224822#

The Conference call replay will be available from 3:00 pm E.T.on May 30, 2007 to 6:00 pm E.T. on May 31, 2007.

The Corporation is a mineral exploration company focused on gold exploration primarily on its properties in Romania.

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The TSX does not accept responsibility for the adequacy or accuracy of this news release. 

Forward-Looking Statements: This press release includes certain statements that may be deemed “forward-looking statements”. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, and other similar words, or statements that certain events or conditions “may” or “will” occur.  All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements.  The Corporation undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change.  The reader is cautioned not to place undue reliance on forward-looking statements.

For more information please contact:         

Colnic Deposit Mineral Resources (as at December 31, 2006)

(Various Cut-off Au Eq. grades)

• Au Eq. (Gold Equivalent) determined by using a gold price of $US 550 per ounce and a copper price of $1.30/lb.  Metallurgical recoveries are not taken into account.
• Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.
• The above mineral resources were all constrained within a conceptual pit limit using a Au Eq cut-off of approximately 0.40 g/t.

Rovina Deposit Mineral Resources (as at December 31, 2006)

(Various Cu Eq. cut-off grades)

• Cu Eq. and Au Eq. are determined by using a gold price of $US 550 per ounce and a copper price of $1.30/lb.  Metallurgical recoveries are not taken into account.
• Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.
• The above mineral resources were all constrained within a conceptual pit limit using a Cu Eq cut-off of approximately 0.15%.