Klondike Gold Commences Drilling at Lone Star Zone

Vancouver, British Columbia, Canada, July 22, 2019, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) has commenced diamond drilling at the Lone Star Zone, part  of the $2-million 2019 exploration program (see news May 16, 2019) on the Company’s wholly owned 576 square kilometer Klondike District Property, Yukon Territory.

The Lone Star Zone is located 20 kilometers from Dawson City, Yukon by government maintained road.  It is hosted by Permian age rocks of the Klondike Schist unit, affected by younger orogenic thrust faulting which has introduced gold mineralization.  The Lone Star Zone is the significant bedrock source of alluvial placer gold mined from Bonanza Creek continuously since discovery in 1896, as determined by recent academic studies and the Company’s ongoing work.

A total of 15 to 20 holes are planned to test the Lone Star Zone for an approximate total of 1,500 to 2,000 meters of drilling.  The program will target a 1 kilometer strike length to the east with the objective of doubling the drilled length of gold mineralization.  Refer to Figure 1: Lone Star Zone with proposed 2019 drill sites.

The last two holes drilled in 2018 on the east end of the Lone Star Zone intersected extended lengths of gold mineralization starting at or near surface, as follows:

Work at the Lone Star Zone from 2016 through 2018 has included 114 holes systematically drilled along a 1,000 meter length by 250 meter width nominally at 50 meter spacing which have intersected disseminated gold over broad widths; 102 of these intersected extended intervals of interesting gold mineralization, and 12 holes determined the upper and lower edges of the zone.

The Lone Star Zone is within a coincident 3.5 km area of gold-in-bedrock known from prospecting and mapping.  Newly discovered gold mineralization includes three prospecting rock grab samples from the west end which assay from 0.6 to 6.8 g/t Au; ten prospecting samples from the east end assay from 4.1 to 38.5 g/t Au.  (Prospecting samples are selective in nature, non-representative rock grab samples of bedrock or boulders collected to test for the presence or absence of gold and other ‘economic’ minerals.  Systematic additional test results may vary significantly.)  The latter area is being systematically channel sampled at this time.

The Lone Star Zone is within a coincident 5.3 km long gold-in-soil anomaly from 2018 and 2019 sampling, with anomalous soils defined as above 45 ppb Au at one-standard deviation.  The west end has a 61 ppb Au soil anomaly and the east end has a 175 ppb Au anomaly.  A total of 236 soil sites within the anomaly have gold values above 250 ppb Au to a high of 2900 ppb Au.

Figure 1: Lone Star Zone with proposed 2019 drill sites

QUALIFIED PERSONS REVIEW

The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, P.Geol., Vice-President Exploration of Klondike Gold Corp. and Qualified Person as defined by National Instrument 43-101 policy.

ABOUT KLONDIKE GOLD CORP.

Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon Territory. The Company 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 kilometer property accessible by government maintained roads located on the outskirts of Dawson City, YT within the Tr’ondëk Hwëch’in First Nation traditional territory.

On behalf of KLONDIKE GOLD CORP.

“Peter Tallman”

President and CEO
(604) 609-6110
E-mail: info@klondikegoldcorp.com
Website: www.klondikegoldcorp.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

“This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Klondike in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Klondike’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.

Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Klondike disclaims any obligation to update or revise any forward-looking information or statements except as may be required.”