Corvus Gold Announces Completion of Phase 2 Drilling Program at LMS Project, Alaska

August 23, 2011

Vancouver, B.C……..Corvus Gold Inc. (“Corvus” or the “Company”) - (TSX: KOR, OTCQX: CORVF) is pleased to announce an update from exploration activities at its LMS Project, Alaska. The Company’s joint venture partner, First Star Resources Inc. (“First Star”), which is fully funding all expenditures, has completed its phase two drill program totalling 7 drill holes (2,332 metres) with assays pending. First Star intends to commence a phase three drilling in September which will extend into the winter with the aim of producing a resource estimate on the project in 2012.

Highlights

  • A 250 metre extension of the known mineral deposit confirming at least 700 metres of down dip continuity, with the deposit still open.
  • Extension of the main alteration and mineralization system 500 metres to the west (assays pending).
  • A phase three drilling program planned to follow-up on existing drilling and a recently completed LIDAR Survey which identified a number of anomalies and structural targets.

First Star has advised that the exploration work on the LMS property has been conducted by exploration contractor Pacific Rim Geological Consulting Inc. of Fairbanks, Alaska, under the supervision of Dr. Karsten Eden, Vice President - Exploration of First Star. All sample shipments are sealed and shipped to ALS Chemex in Fairbanks, Alaska, for preparation and then on to ALS Chemex in Reno, Nevada, or Vancouver, B.C., for assay.  ALS Chemex’s quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999.  First Star also had its own quality control/quality assurance programs in place. First Star has advised that the technical information provided by First Star and contained in this news release was reviewed by Dr. Karsten Eden, a Qualified Person as defined in NI 43-101.

All of the foregoing information has been provided by First Star, which is the operator of the joint venture on the LMS Project. Russell Myers (CPG 11433), a qualified person as defined by National Instrument 43-101, has reviewed but not independently verified the LMS information that forms the basis for this news release on behalf of Corvus and has approved the disclosure herein.  Mr. Myers is not independent of the Company, as he is the President of Corvus and holds common shares and incentive stock options in Corvus.

About the LMS Project

The LMS claim block is located in the Goodpaster Mining District of Alaska and consists of 92 State of Alaska mining claims covering 61 square kilometres. Gold mineralization is believed to be intrusive related, similar to the Pogo Gold Mine operated by Sumitomo Metal Mining Pogo LLC and located 40 kilometres to the northeast.

Pursuant to an earn-in agreement made August 16, 2010 between Raven Gold Alaska Inc. (an Alaskan subsidiary of the Company) (“Raven”) and First Star USA Inc. (an Alaskan subsidiary of First Star) (“First Star US”), First Star US has the right to earn an initial 55% interest in the LMS property by incurring USD 3.5 million in exploration expenditures by December 31, 2013 (USD 500,000 prior to December 31, 2010) and paying International Tower Hill Mines Ltd. an aggregate of USD 280,000. After having earned the initial 55% interest, First Star US has the right to earn a further 45% (for a total 100% interest) in the project by either incurring a further USD 3 million in exploration expenditures, or by producing, filing and having accepted by the TSX Venture Exchange a NI 43-101 compliant technical report demonstrating a minimum inferred resource of two million troy ounces of recoverable gold (using a 0.3 g/t gold cutoff), in each case prior to December 31, 2015. Raven retains an NSR royalty on all gold and silver produced of either 3% (if the gold price is USD 1,000 or below) or 4% (if the gold price is above USD 1,000), plus a 1% NSR royalty on all other minerals produced. First Star US can purchase 1% of this royalty for USD 3 million at any time after having earned its initial 55% interest. In addition, should First Star US elect to acquire a 100% interest in the project, Raven will be entitled to receive an additional 2% NSR royalty on all products produced.

About Corvus Gold Inc.

Corvus Gold Inc. is a resource exploration company focused in Alaska and Nevada which controls a number of exploration projects representing a spectrum of early-stage to advanced gold projects. Corvus is committed to building shareholder value through new discoveries and leveraging those discoveries via partner funded exploration work into carried and or royalty interests that provide shareholders with exposure to gold production.

On behalf of
Corvus Gold Inc.

(signed) Jeffrey A. Pontius
Jeffrey A. Pontius,
Chairman and Chief Executive Officer

Contact Information:Â Â Investor Relations
Email: info@corvusgold.com
Phone: 1-888-770-7488 (toll free) or (604) 638-3246 / Fax: (604) 408-7499

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and US securities legislation.  All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, business and financing plans and business trends, are forward-looking statements.  Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. In addition, information with respect to the proposed activities of First Star on the LMS property has been provided by First Star (the operator of the LMS joint venture) and, as such activities are not within the control of the Company, the Company takes no responsibility for the accuracy of such statements.  Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events.  The Company cautions investors that any forward-looking statements by the Company or any of its joint venture partners are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company or its joint venture partners may produce or plan to produce, the inability of the Company or any of its joint venture partners to obtain any necessary permits, consents or authorizations required for its or their activities, the inability of the Company or any of its joint venture partners to produce minerals from their properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement their respective business strategies, and other risks and uncertainties disclosed in the Company’s latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada.  All of the Company’s Canadian public disclosure filings may be accessed via www.sedar.comand readers are urged to review these materials, including the technical reports filed with respect to the Company’s mineral properties.

Caution Regarding Adjacent or Similar Mineral Properties

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The Company advises US investors that the mining guidelines of the US Securities and Exchange Commission (the “SEC”) set forth in the SEC’s Industry Guide 7 (“SEC Industry Guide 7”) strictly prohibit information of this type in documents filed with the SEC. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties.

This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.