Mr. Peter Tallman reports

KLONDIKE GOLD ANNOUNCES LEASE AGREEMENT WITH TODD HOFFMAN'S JERUSALEM MINING

Klondike Gold Corp. has entered into a lease agreement with Jerusalem Mining LLC, whereby Klondike Gold assigns to Jerusalem the rights and permits to placer mine on the McKinnon Creek property, Yukon. Under the terms of the lease agreement, Klondike Gold will receive from Jerusalem a direct 15-per-cent production royalty payable in raw gold and will receive an additional 5 per cent on behalf of an underlying, pre-existing royalty holder. The lease agreement is subject to a minimum annual payment by Jerusalem Mining to Klondike Gold of 100 ounces raw gold or cash equivalent. As of October, 2014, this payment to Klondike Gold has been made. The lease agreement is renewable annually for three years subject to annual approval by both parties. As of October, 2014, the lease for 2015 has been approved by both parties. The agreement also acknowledges that during the term of the lease, as part of the development and production activities, Jerusalem Mining will be allowing employees and agents of Discovery Channel television access to the McKinnon Creek property.

The principal of Jerusalem Mining is Todd Hoffman. Mr. Hoffman and his crew are prominently featured on the Discovery Channel (USA) cable TV show Gold Rush, which focuses on the trials of the Hoffman crew mining for placer gold. Gold Rush is Discovery Channel's No. 1 rated show, and is distributed to 100.8 million U.S. homes and over 200 million households globally in 210 countries.

Gold Rush returned for its fifth season on Friday, Oct. 17, at 9 p.m. ET/PT in the United States, and will air as a two-hour special in Canada on Tuesday, Oct. 21, at 8 p.m. ET/PT, and weekly thereafter at 9 p.m. ET/PT. Klondike Gold and Peter Tallman, the company's president and chief executive officer, will be featured in the first episode and periodically throughout season five.

Mr. Tallman states: "The lease agreement with the Hoffman crew represents a positive business opportunity for Klondike Gold in terms of increasing production at McKinnon Creek while decreasing Klondike's operating and carrying costs. Additionally, it has been a pleasure to work with Todd, his crew and the film crew personnel on an interesting mining season. We look forward to watching the fun fifth season of Gold Rush."

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