Carpathian Gold Inc. Closes $51.6 Million “Bought Deal” Financing

PRESS RELEASE

CARPATHIAN GOLD INC. CLOSES $51.6 MILLION “BOUGHT DEAL” FINANCING

Not for distribution to United States newswire services or for dissemination in the United States

November 3, 2010

Carpathian Gold Inc. (TSX: CPN) (“Carpathian”) is pleased to announce that it has closed its previously announced “bought deal” financing. A syndicate of investment dealers led by Cormark Securities Inc., and including Canaccord Genuity Corp., Haywood Securities Inc. and Jennings Capital Inc. (the “Underwriters”), bought 93,840,727 common shares (the “Shares”) of Carpathian at a purchase price of $0.55 per Share (the “Offering Price”), for aggregate gross proceeds in the amount of $51,612,99.85 (the “Offering”). The aggregate Shares issued included 12,040,727 shares bought pursuant to the exercise of the over-allotment option.

The net proceeds of the Offering will be used for construction and continued development of the Riacho dos Machados Gold Project in Brazil (“RDM Project”), exploration and development of the Rovina Valley Gold Project in Romania (“RVP Project”), and for general corporate purposes.

“The closing of the Offering represents an important milestone for Carpathian”, said Dino Titaro, President and CEO. “We now have the financial means to aggressively pursue our objectives with regard to the RDM Project, where construction work, major equipment purchases and an area exploration program to delineate new reserves will now be effected. Furthermore, we are now in a position to greatly expand the scope of work to be carried out on our RVP Project where, given recently published drilling results, we will now be aggressively accelerating our drilling program. Finally, as a result of this closing, we have substantially broadened our institutional as well as retail shareholder base and significantly increased our profile and visibility within the investment community.”

This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933 and were not and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

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

Caution regarding forward-looking information:

Statements contained in this document which are not historical facts are forward-looking statements that involve risk, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management’s expectations with respect to, among other things, obtaining required regulatory approvals for the Offering, the outcome of legal proceedings, the issue of permits, the size and quality of the company’s mineral resources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, and the financial results of the company. Factors that could cause such differences, without limiting the generality of the following, include: volatility and sensitivity to market metal prices; impact of change in foreign currency exchange rates and interest rates; imprecision in reserves estimates; environmental risks including increased regulatory burdens; unexpected geological conditions; adverse mining conditions; political risks arising from operating in developing countries; legal title to properties, outcome of litigation, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities; and other development and operating risks.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.

Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this document. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

For further information contact:

Mike O’Brien Tel: +1 (416) 368-7744 E-mail: [email protected]