Mr. Peter Tallman reports

KLONDIKE GOLD TO EXTEND EXPIRY DATE OF OFFER TO KLONDIKE STAR SHAREHOLDERS TO JUNE 6, 2014

Further to its news release of March 24, 2014, Klondike Gold Corp. is extending its offer to acquire a majority interest in the issued and outstanding shares of Klondike Star Mineral Corp. (KSMC), a private Delaware company. Klondike Gold is offering each shareholder of KSMC the opportunity to exchange each share of KSMC held for 0.25 Klondike Gold share. This offer to exchange is subject to shareholders of KSMC tendering for exchange a minimum of 51 per cent of the outstanding shares of KSMC. With a total of 68,653,461 shares of KSMC issued and outstanding, Klondike Gold may issue up to 17,163,365 shares if 100 per cent of the shares of KSMC are tendered for exchange. The offer was set to expire on May 6, 2014, and has been extended to June 6, 2014.

Klondike Gold also announces that it has entered into agreements with certain creditors of KSMC to settle $1,077,894 (U.S.) of debt owed by KSMC to related parties upon tender of not less than 70 per cent of the KSMC shares under the offer. In settlement of these debts, the KSMC related-party creditors will receive an aggregate of 21,557,880 warrants to purchase shares of Klondike Gold, exercisable at 10 cents per share for 30 months from issuance. Klondike Gold understands that following settlement of the foregoing liabilities, KSMC will have approximately $183,000 (U.S.) in remaining debt.

Peter Tallman, president and chief executive officer of Klondike Gold, commented: "We continue to work diligently toward acquiring 100-per-cent title ownership in both hardrock and placer claims covering the most renowned portion of the famed Klondike goldfields. The extension to the offer allows for the retirement of KSMC trade and other debt obligations, as well as providing additional time for KSMC shareholders to consider the details."

We seek Safe Harbor.