Klondike Gold Confirms Along-Strike Continuity, Intersects 1.6 g/t Au over 30.7 meters at Lone Star Target

Vancouver, British Columbia, Canada, August 1, 2017, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) has received drill assay results from ongoing drilling at the Lone Star target within the Company’s 527 square kilometer Klondike district property, Yukon Territory.  Assay results from nine of the earliest 2017 holes, LS17-83 to LS17-91, are reported.  Based on the early success of drilling at the Lone Star target reported here, the Company’s Board of Directors has approved a 20 hole expansion of the drill program to 80 holes.

Peter Tallman CEO of Klondike Gold said: “The Company has achieved a number of important milestones with the discovery of large, bulk tonnage style mineralization on its Klondike district property.  At the Lone Star target, recent systematic drilling confirms continuity of near-surface gold mineralization along strike over 750 meters.  Step out holes, 500 meters in one direction to Pioneer and 700 meters in another to O’Neill, both have lithologies containing visible gold which potentially doubles the Lone Star mineralized target length to 2 kilometers if these zones can be connected with ongoing exploration.  Our current focus is continuing to expanding the footprint of gold mineralization at the multi-kilometer long Lone Star target, one of four gold-bearing targets identified in the Eldorado Creek – Bonanza Creek area.”

Holes LS17-85 to LS17-91 completed connection of the central to eastern part of the Lone Star target and confirmed continuity of near-surface gold mineralization over broad widths up to 1.6 g/t Au over 30.7 meters in LS17-91.  Infill holes LS17-83 and LS17-84 successfully connected the western extension of the Lone Star target to the central portion, assaying up to 0.8 g/t Au over 32.8 meters.  All holes intersected near surface gold mineralization across broad widths listed in the table below.

A total of 18 holes have infilled and all intersected near-surface gold mineralization at the Lone Star target over a 750 meter length, primarily in the western and central portion of the target.  The following table compiles all assay results and “pending” results for the Company’s 2016 and 2017 near-surface holes, in order from west to east.  The relative step out locations of the O’Neill and Pioneer drill hole intersections are also listed, with a total potential mineralized length of nearly 2 kilometers.

Summary of 2016 and 2017 Lone Star Target Assay Results:

An updated plan map of collar locations for 2017 Lone Star target drilling, along with a table of drill collar statistics, is available on our website HERE.

Thus far in 2017, the drill program has completed 35 holes.  Assays for the earliest 11 holes have been received, including 9 holes in this news.  Twenty-four holes are still in the lab queue, while drilling continues.

Drill Core and Assay Protocols 2017

All drill holes are photographed wet.  Magnetic susceptibility, foliation, and rock quality determination (“RQD”) measurements are systematically collected.  All cross-cutting (potentially mineralized) quartz veins and adjoining alteration envelopes are individually photographed.  Core logging records lithology, structure, and alteration.  Visible gold is identified, measured, photographed, and then excluded from the assay sample for that interval.  Assay samples from drill core are cut using a diamond saw.  Half the core sample interval is bagged, tagged, and sealed; the other half is returned to the core box with a corresponding tag and retained for reference.  Sample bags are aggregated into rice bags, sealed, and submitted by Klondike Gold personnel to Bureau Veritas Mineral Laboratories (“BV Labs”) (formerly Acme Labs) preparation facility in Whitehorse, YT with chemical analysis of sample pulps completed in Vancouver, British Columbia.  Bureau Veritas Labs is an accredited ISO 9001:2008 full-service commercial laboratory.

At BV Labs each rock sample is crushed to 80% passing 2 mm size.  A 500 g subsample is pulverized to >85% passing -75 microns size (Code PRP70-500). The 500 g subsample is then sieved to 106 microns (140 mesh) for “metallic screen” assaying. The plus 140 mesh fraction is then weighed and assayed for gold by fire assay (“FA”) fusion with a gravimetric finish (Code FS631). A 30 g subsample of the minus 140 mesh fraction is assayed for gold by fire assay (“FA”) fusion with an atomic absorption (“AA”) finish (Code FA430).  All over-limit results in excess of 10 ppm (10 g/t) for both silver and gold are re-assayed using a 30 g subsample and assayed by FA with a gravimetric finish (Code FA530-Au/Ag).  Total gold grade is then calculated using a weighted average of the plus and minus fraction assay results. Samples were also analyzed for multi-element chemistry by ICP-MS analysis (AQ201+U code).  Samples over-limit in lead are rerun by a high-detection limit ICP-ES procedure (Code MA370).  QA/QC includes the insertion and continual monitoring of Klondike Gold standards, blanks, and duplicates within each batch, in addition to BV Labs QA/QC samples.

The technical and scientific information contained within this news release has been reviewed and approved by Peter Tallman, P.Geo, President 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 527 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.”