Klondike Gold Drills 45 Holes Totalling 6532 meters and Expands Drill Program

VANCOUVER, August 24, 2021 - Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTC PINK:KDKGF) ("Klondike Gold" or the "Company") is pleased to update exploration progress on the Company's wholly owned 586 square kilometer Klondike District Project near Dawson City, Yukon Territory.

Update Summary of 2021 Exploration Program

• Drill Phases 1, 2 and 3 are complete. Awaiting assays from 45 holes totaling 6,532 meters drilled.
• New Phase 4 1,500 m drill program added to include new high-priority targets generated by prospecting, scheduled to begin early September.
• Re-interpretation and detail analysis of 2019 LIDAR survey by GeoCloud Analytics of Melbourne, Australia, in progress with encouraging preliminary results.
• LIDAR Industries hi-res ortho-photo survey flight is complete with final results pending.
• SRK Consulting is contracted to prepare a NI 43-101 Technical Report. Field work and site visits are complete, report writing is underway, with filing expected by Q4 2021, contingent on timing on drill core assays to be included.

Drilling Update:

The 2021 exploration program was designed primarily around three phases of drilling with Phase 1 reconnaissance targeting Virgin and Lindow, and then phase 2 and 3 targeting areas of the Lone Star Zone and Stander Zone respectively for extensions to mineralization to be included in a planned maiden mineral resource study.

Phase 1 test of the Virgin and Lindow showing was completed in May with a total of 356 meters of core drilled in five holes; three at Virgin Mine and two at Lindow targets. (see NR May 26, 2021)

Phase 2 drill testing of the Lone Star Zone is complete. The Lone Star 'East' area (Phase 2a), the potential eastern extension of the drilled Lone Star Zone, was tested with 12 holes totalling 1,222 meters. The Lone Star 'Deep' area (Phase 2b), the downslope and potential down-dip extension of the drilled Lone Star Zone, was tested with 13 holes totalling 2,661 meters. (See Figure 1). Samples from all holes have been submitted for analysis.

Final results for the earliest drilled holes are expected to become available within the next 10 days.

Figure 1: Lone Star Zone Target Areas and 2021 Drill Holes.

Phase 3 drill testing of the Stander Zone is complete. A total of 20 holes totalling 2,649 meters tested for down-dip and along-strike extensions of the drilled Stander Zone mineralization. (See Figure 2). Samples from all Stander Zone holes have now been submitted to the lab for analysis.

Figure 2: Stander Zone Target Areas and 2021 Drill Holes.

Ongoing Exploration

A Phase 4 addition to the 2021 drilling program consisting of approximately 15 holes totalling 1,500 meters is planned to include testing a new target area located by recent prospecting described below. Phase 4 drilling is scheduled to being in early September.

Peter Tallman, President and CEO comments, "Recent prospecting efforts have targeted LIDAR features interpreted as faults identified from a 2019 high resolution survey of the Company's entire Klondike District Project. This work has located blocks of sub-cropping quartz veining with coarse pyrite and (rarely) visible gold associated along a 2km LIDAR feature which is a compelling new exploration target for Phase 4 drill testing."

Preliminary non-quantitative ICP analyses indicate the presence of gold in the samples; full prospecting assays are pending.

Klondike Gold has contracted GeoCloud Analytics of Melbourne, Australia to complete a detailed re-interpretation of the 2019 LIDAR survey data. This work is intended to substantially increase the overall resolution of the original survey and to identify and systematically map key features that will help the Company target additional areas of potential mineralization. The work is in progress.

Klondike Gold has contracted LiDAR Services International Inc. to complete a high resolution orthophoto survey over key areas of the Klondike District Project. The survey has been flown with final results pending. Preliminary results have identified a large number of undocumented prospect pits and workings, and also significant faults that have been masked by ground cover and permafrost. These are high priority prospecting targets to examine in September.

SRK Consulting of Toronto have been contracted to prepare a NI 43-101 Technical Report summarizing geology and exploration on the Company's Klondike District Project. Site visit field review has been completed. The report is anticipated to be completed for filing by Q4 2021. Previously in 2018 and 2019 SRK Consulting was contracted to provide services related to structural mapping and implementation of oriented core protocols.

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. Detailed technical information, specifications, analytical information and procedures can be found on the Company's website.

COVID-19 UPDATE

Klondike Gold continues to take proactive measures to protect the health and safety of our local host community, our contractors and our employees from COVID 19. Exploration activities in 2021 continue to have additional safety measures in place, following and exceeding all the recommendations made by the Yukon's Chief Medical Officer.

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.