Mr. Peter Tallman reports

KLONDIKE GOLD UPDATE ON PHASE 2 EXPLORATION PROGRAM

Klondike Gold Corp. has provided an update on the company's phase 2 exploration activities following the successful completion of the 13-hole phase 1 drill program on the company's 100-per-cent-owned Klondike district property spanning 729-square-kilometre bedrock gold of advanced exploration.

Peter Tallman, president and chief executive officer of Klondike, stated: "Phase 2 mapping results are identifying new targets leading into an exciting phase 3 drilling program set to begin shortly. Through the extensive re-evaluation of the Klondike regional geology, we have incorporated much of previous drilling, sampling and mapping into 3-D visualization software (Leapfrog), which has significantly advanced our understanding of the gold mineralizing structures in the Klondike region enhancing our ability and confidence to target gold-bearing structures to much greater depths. This modelling is informing the upcoming phase 3 drill testing of lateral and deep extensions to high-grade gold vein zones."

Phase 1 drilling tested the orientation of major structures that control gold deposition at four separate gold showings along a 3.8-kilometre section of the Eldorado fault corridor. This work yielded important structural and alteration information regarding favourable environments for gold-bearing veins within the Eldorado target. Assays from 13 holes drilled in phase 1 are pending. The phase 1 drill program informs phase 2 work helping to complete detailed 3-D structural and lithologic maps for each of the company's four main gold zones (Lone Star, Nugget, Stander and Gay Gulch) and integrating them into an encompassing interpretation of gold mineralization for the Klondike district.

The phase 2 program was composed of mapping and re-evaluation synthesizing 10-plus years of the company's modern exploration data and incorporating specific insights gained in the recent phase 1 drilling program. Phase 2 work is a field and desktop compilation effort which systematizes the geology and structural controlling gold mineralization regionally throughout the Klondike district. Phase 2 results include differentiating and mapping regional thrusts, faults and fracture faults including those controlling gold mineralization, identification of major regional folds and a recharacterization of main Klondike lithologies. This work significantly updates the benchmark 1980s vintage government geological survey mapping and derived observations.

Phase 2 mapping work includes:

• Drill core relogging and mapping later faults in three dimensions (using Leapfrog 3-D visualization software); this involves re-examination of over 60,000 metres of past drill core collected from the property since 1980 and maintained as part of the company's core library;
• Analysis of over 10,000 oriented drill core structural measurements to map the 3-D distribution of major rock units, with particular focus on prospective lithology contacts associated with gold mineralization and documenting different fault types;
• A lithology remapping program using the company's airborne radiometric and total field magnetic data considered in combination with new mapping of graphitic thrusts and other faults;
• Systematic short wavelength infrared imaging of mineral characteristics in gold-rich vein area; this imaging helps identify gold-associated alteration and is extremely useful in qualifying gold-rich versus gold-poor vein zones using methodologies developed from recent academic research.

A phase 3 program with drill-specific targets recommended from phase 2 work is planned to commence in early September.

Qualified person review

The technical and scientific information contained within this news release has been reviewed and approved by Peter Tallman, PGeo, president of Klondike Gold, a qualified person as defined by National Instrument 43-101 policy.

About Klondike Gold Corp.

Klondike Gold is a Vancouver-based gold exploration company advancing its 100-per-cent-owned Klondike district gold project located at Dawson City, Yukon, one of the top mining jurisdictions in the world. The Klondike district gold project targets gold associated with district-scale orogenic faults along the 55-kilometre length of the famous Klondike goldfield placer district. Gold mineralization and indicated/inferred mineral resources have been identified at both the Lone Star zone and the Stander zone, among other targets. The company retains a 10-per-cent production royalty on the active Montana Creek placer property with payments capped at $9.5-million total over six years. The company is focused on exploration and development of its 729-square-kilometre property accessible by scheduled airline and government-maintained roads located on the outskirts of Dawson City, Yukon, within the Tr'ondek Hwech'in First Nation traditional territory.

We seek Safe Harbor.