News Releases

KLONDIKE GOLD CORP. (TSX-V: KS) is pleased to announce an amendment to and the closing of a private placement previously announced November 24, 2009 and amended on January 5, 2010. The total number of units was increased from 20,000,000 to 26,950,000 for total proceeds of $1,347,500. Each of the flow through and non flow units consisted of one flow through common share and one non flow through non transferable share purchase warrant entitling the holder to purchase one additional common share for four years at the price of $0.10 per share for the first two years, $0.15 for the third year and $0.20 for the fourth year. The units are priced at $0.05 per unit. Any shares issued pursuant to the private placement will be subject to a four month hold period.

In connection with the transactions, cash commissions totaling $65,200 were paid to PI Financial Corp., Canaccord Financial Inc. and Limited Market Dealer Inc. Included in the private placement was the sale of 16,000,000 flow-through units to MineralFields Group.

The proceeds of the private placement will be used for exploration expenditures on the Company's British Columbia properties and general working capital.
The Company announces that John de Jong has been appointed a director of Klondike Gold Corp. effective December 29, 2009. Mr. de Jong has an extensive background in management, organizational protocols and project development which will serve the company well. He is the general manager of operations for Klondike Silver Corp in British Columbia and Yukon including Klondike Silver Corp's mining and milling operation at Sandon, BC. He is also a director of Abitibi Mining Corp., Amador Gold Corp., Chalice Diamond Corp., Golden Chalice Resources Inc., Kalahari Resources Inc., Klondike Silver Corp., Sedex Mining Corp. and Zinccorp Resources Inc.
The Company also announces it has granted 1,775,000 stock options to directors and officers and 3,325,000 stock options to employees and consultants at a price of $0.10 each for a period of seven years.

About MineralFields
MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Information about the MineralFields Group is available at www.mineralfields.com.

About Klondike Gold Corp
Klondike Gold Corp. is a member of the Hughes Exploration Group of Companies and is led by a team with a stellar track record of discovery and development in Canada.

Klondike Gold is a large landholder in southeastern British Columbia as well as in the Klondike District of Yukon Territory, an area which produced between six and twelve million ounces of gold during its historic gold rush. The Company also holds a 50% interest with partner Chalice Diamond Corp in approximately 78,000 acres of diamond properties located in the Chapleau-Wawa region of Ontario and a number of properties in southeastern British Columbia.

For further information contact:
Alan Campbell or Kevin Hull, Investor Relations
Hughes Exploration Group
Phone: (604) 685-2222
Email: info@klondikegoldcorp.com

Please visit the Company's website: www.klondikegoldcorp.com for more information on the diamond properties in Ontario, our holdings in the Klondike and our properties in southeastern BC.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.