Klondike Gold 2020 Drilling Update

VANCOUVER, July 7, 2020 - Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTC PINK:KDKGF) ("Klondike Gold" or the "Company") is pleased to announce the completion of Phases 1,2 and 3 diamond drilling (described in News Release June 1, 2020) on the Company's wholly owned 586 square kilometer Klondike District Property, Yukon Territory.

SUMMARY:

• The Phase 1 diamond drilling program targeting the Lone Star Zone is complete. A total of 13 holes on four sections were drilled versus 9 holes planned. All drill samples have been submitted for analysis with assay and drill section results expected in July.
• The Phase 2 drill program targeting the Stander Zone is complete. A total of 5 holes were drilled as planned. The Phase 3 program targeting Stander Zone extensions with 4 holes is also complete as planned. Logging and sampling drill holes is complete. Assay and section results are expected to follow the release of Lone Star Phase 1 results.
• Detailed mapping, prospecting and trenching programs targeting the areas of Phase 1, 2 and 3 drilling are still ongoing. Results from these are anticipated to be released with the respective Phase drill assays.
• The drill remains on the property pending decisions on targets and scope of planned 2020 follow-up drilling.

This program of drilling will provide information to help evaluate and consider potential open pit configurations at both the Lone Star and Stander Zones. This program will also help provide information regarding the structural relationship with high gold grades to assist targeting further planned 2020 drilling.

Peter Tallman, President and CEO of Klondike Gold stated "The entirety of the phased drill programs went very smoothly and quickly considering the Company began exploration early and with comprehensive health protocols to prevent infection and transmission of the covid virus, and I want to commend our staff and our contractors for embracing the diligence and patience required. I am optimistic the results of this drilling will help point towards more of the higher grades of gold our shareholders want to see in addition to providing information on Lone Star and Stander Zones."

PHASE 1 LONE STAR ZONE DRILLING IS COMPLETE:

Phase 1 drilling is complete. Thirteen infill drill holes tested a sub-area at the western end of the Lone Star Zone where gold mineralization outcrops over a 200 meter by 50 meter area, shown in Figure 1. In most cases an additional hole from the same drill pad was completed resulting in thirteen holes drilled versus nine holes planned. Results from the Phase 1 program are anticipated to provide data to allow consideration of a resource volume leading to evaluation as a potential ‘starter open pit'.

Figure 1: Plan Map of Updated Phase 1 Drilling at Lone Star Zone.

PHASE 2 AND 3 STANDER ZONE IS COMPLETE:

The Phase 2 diamond drilling program targeting Stander Zone and Phase 3 program targeting Stander Zone extensions is complete with 5 holes and 4 holes drilled as planned in the respective Phases. In conjunction with drilling, a program of mapping, prospecting and trenching programs continues. Results from these areas will become available following release and discussion of Phase 1 results.

Figure 2: Location Map of Three Phases of 2020 Drilling

QUALIFIED PERSONS REVIEW

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

COVID-19 UPDATE

Regarding COVID-19, importantly the Yukon has remained virus-free since April 20 and has recently relaxed civil and travel restrictions, however the Company is continuing protocols and measures to mitigate the risk of COVID-19 infection and transmission that protects our local host community, our contractors and our employees.

ABOUT KLONDIKE GOLD CORP.

Klondike Gold Corp. is a Vancouver based gold exploration company advancing its 100%-owned Klondike District Gold Project located at Dawson City, Yukon Territory, one of the top mining jurisdictions in the world. The Klondike District Gold Project targets gold associated with district scale orogenic faults along the 55-kilometer length of the famous Klondike Goldfields placer district. To date, multi-kilometer gold mineralization has been identified at both the Lone Star Zone and Stander Zone, among other targets. The Company is focused on exploration and development of its 586 square kilometer property accessible by scheduled airline and 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) 609-6138
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."

SOURCE: Klondike Gold Corp.