Mr. Peter Tallman reports

KLONDIKE GOLD'S MONTANA CREEK PLACER PROPERTY EXCEEDS EXPECTATIONS IN FIRST SEASON YIELDS $542,282 IN ROYALTY PAYMENTS

Klondike Gold Corp. has provided a summary of significant work progress and has received an additional $42,282 production royalty payment from the Montana Creek placer property leased by Armstrong Mining Corp. This brings the total production royalty revenue paid to Klondike Gold in 2025 to $542,282, leaving $8.9-million of royalties or payments yet to be paid to complete the option to purchase payments by March, 2031 (see news release dated March 11, 2025).

Peter Tallman, president and chief executive officer of Klondike Gold, commented: "The Montana Creek placer deposit was an idle, underappreciated asset that is now returning dilution-free funding for Klondike Gold. We are pleased with Armstrong Mining's professional and competent management of the operation, which has exceeded our expectations from the start, and now is positioned to contribute increasing royalty revenues beyond our original projections for the next several years."

The company's Montana Creek placer property agreement grants Armstrong Mining a six-year lease with an option to purchase 100 per cent of Klondike's Montana Creek (surface gravel alluvial gold) placer property in return for a 10-per-cent production royalty per year on all gold and other minerals produced from the property up to $9.5-million (see news release dated March 11, 2025).

Armstrong Mining's 2025 season highlights:

• Began production and gold recovery ahead of schedule and exceeded projected returns;
• Early-season successful mobilization of all heavy equipment;
• Installed a new camp and upgraded existing camp infrastructure;
• Installed and calibrated new processing equipment (wash plant and gold cleaning machine), with second larger capacity plant scheduled before start of next season for increased capacity;
• Stripped and stockpiled material will facilitate a rapid start to 2026 season production;
• Installed a light aircraft emergency airstrip;
• Completed 140-short-hole sonic drilling exploration program covering approximately 1.5 square kilometres to further delineate and expand previously documented white channel gravel pay streaks;
• Maintained and filed all required permitting and remediation procedures.

Mr. Tallman further stated: "I congratulate the Armstrong Mining team for their professional effort that exceeded our productivity and financial objectives for 2025. Their crew completed significant mobilization early, reorganized the mine site plan to increase environmental remediation, including improvement of five km of access roads, completed a significant sonic drilling exploration program and then exceeded our aggressive economic target for 2025 by delivering $542,000 in royalty payments to Klondike Gold. This is a great beginning to our relationship, and we look forward to working with Armstrong Mining over the coming years. This year's completed work sets up 2026 for an early season start and the potential for high production and significant and lasting potential revenue through royalty payments to Klondike Gold."

Background

The Montana Creek placer property was staked in 2005 by Klondike Gold and is composed of 239 placer claims covering 13.4 square kilometres located near Dawson City, Yukon, within the area of quartz bedrock claims comprising the company's Klondike district property. Between 2005 and 2014, Klondike Gold completed 550 auger drill holes to delineate white channel gravel gold pay streaks covering approximately 50 per cent of the property. Gold grains were documented and weighed to determine grade per volume from gravels in nearly 100 per cent of the holes in the main target area. The company's auger drilling tested a 3,600-metre length by 1,850-metre width with results at the time indicating gold-bearing gravel pay streaks in local parlance extended over a length of more than three kilometers.

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 bedrock gold associated with district-scale orogenic faults along the 55-kilometre length of the famous Klondike goldfield placer district. Multikilometre gold mineralization has been identified at both the Lone Star zone and the Stander zone, among other targets. The company has identified a pit-constrained mineral resource estimate of 469,000 indicated and 112,000 inferred gold ounces, a first milestone for the Klondike district. The company currently maintains a royalty interest providing potentially significant seasonal cash revenue from the leased Montana Creek placer property. 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.

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