Mr. Peter Tallman reports

KLONDIKE GOLD EXPLORATION UPDATE

Klondike Gold Corp. has provided a progress update for the $2-million 2019 exploration program (see news May 16, 2019, and July 7, 2019) on the company's wholly owned 576-square-kilometre Klondike district property, Yukon.

Drilling update

A total of 42 holes have been completed, testing Gay Gulch along the Eldorado fault, plus Nugget East, Nugget and Glacier Gulch zones along the Nugget fault (this corrects previous news release which double-counted drill holes). Drilling at the Lone Star zone has commenced with an increased total of 25 holes now, for a planned total of 67 holes.

Logging, geotechnical work, sampling and assaying are well under way. Assay results for early holes will be available shortly. Further drill assays are expected through August and September.

GT probe and soil survey update

The company contracted GroundTruth Exploration Inc. of Dawson, Yukon, to complete its soil sampling program and its GT-probe surveying. Gold analyses from a total of 1,671 soil samples collected covered the side slope along Eldorado Creek underlain by the Nugget zone have been received.

The highest gold-soils correlate well with the Nugget zone and show new high-priority prospective areas along strike to the northwest.

A total of 100 samples contain anomalous gold soils, with gold concentrations greater than the first standard deviation threshold of 29 parts per billion Au. A total of 37 samples have concentrations ranging from 75 ppb Au to 653 ppb Au. Refer to the company's website for analytical protocols.

The company has received 66 rock sample assays collected from a GT-probe survey also conducted by GroundTruth testing the Lone Star zone. The GT-probe survey tested for the continuation of Lone Star zone gold mineralization at a 450-metre stepout to the southeast. The GT probe systematically sampled bedrock along a 325 m line length at five m intervals by collecting a rock sample from bedrock beneath the thick overburden cover using a pneumatic drill.

Results indicate a 150 m wide anomaly of gold in bedrock between 0.15 gram per tonne gold to 0.48 g/t Au from 13 samples. These results confirm the trend of the Lone Star zone mineralization. Two drill holes are planned to test this wide anomaly as a priority, representing a 600 m extension to the Lone Star zone if successful.

Lidar survey update

McElhaney (Vancouver) completed airborne Lidar and orthophoto surveys of the Klondike district 576-square-kilometre property. All Lidar data have been received, with orthophotos expected in September.

One standout feature identified in the imagery is clearly an old shaft, previously unknown, with a rock dump alongside in an area of the projected Nugget zone trend where there are gold-in-soil anomalies but little bedrock information. The Lidar imagery is under continuing review and is initially expected to help prioritize drill targets.

Qualified persons review

The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, PGeol, vice-president, exploration, of Klondike Gold and qualified person as defined by National Instrument 43-101 policy.

About Klondike Gold Corp.

Klondike Gold is focused on exploration and development of the Lone Star gold target at the confluence of Bonanza and Eldorado Creeks, within a district-scale 576-square-kilometre property accessible by 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.