Klondike Gold Closes Financing Raising $352,400

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VANCOUVER, January 24, 2023 - Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTCQB:KDKGF) ("Klondike Gold" or the "Company") is pleased to announce that further to its news release of November 28, 2022, the Company has closed the second tranche (the "Second Tranche") of its non-brokered private placement financing (the "Financing"), raising an aggregate of $352,400 of which $24,900 is flow-through funds.

The Second Tranche

In closing the Second Tranche, the Company issued 1,000,000 non-flow-through units at a price of $0.10 per unit, with each unit comprised of one common share and one share purchase warrant.

A total of 1,000,000 share purchase warrants issued in connection with the Second Tranche are exercisable at a price of $0.20 per share until January 24, 2025.

All securities issued in connection with the Second Tranche are subject to a four month and one day statutory hold period expiring on May 25, 2023, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

Two insiders of the Company participated in the Financing and acquired an aggregate of 2,900,000 units. The purchases by these insiders constitute "related party transactions" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuances are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as they are distributions of securities for cash and the fair market value of the units issued to, and the consideration paid by, the insiders did not exceed 25% of the Company's market capitalization. No new insiders were created, nor any change of control occurred, as a result of the Financing.

The Company intends to use the proceeds from the Financing to continue exploration and development of the Company's Yukon properties, as well as for general working capital.

Stock Option Grant

The Company further announces that pursuant to the Company's incentive stock option plan, 3,900,000 stock options have been granted to certain directors, officers, employees and consultants of the Company. The stock options are exercisable at a price of $0.10 per share for a period of 5 years, subject to regulatory approval.

ABOUT KLONDIKE GOLD CORP.

Klondike Gold is a Vancouver based gold exploration company advancing its 100%-owned Klondike District Gold Project located at Dawson City, Yukon, 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. Multi-kilometer gold mineralization has been identified at both the Lone Star Zone and Stander Zone, among other targets. The Company has identified an Initial Mineral Resource of 469,000 Indicated and 112,000 Inferred gold ounces, a milestone first for the Klondike District. 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, Yukon, within the Tr'ondëk Hwëch'in First Nation traditional territory.

ON BEHALF OF Klondike Gold Corp.

"Peter Tallman"

Peter Tallman,
President and CEO

FOR FURTHER INFORMATION:

Telephone: (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.

SOURCE: Klondike Gold Corp.