Klondike Gold Corp. Announces Private Placement

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/08/10 -- KLONDIKE GOLD CORP. (TSX VENTURE: KG) (the 'Company') is pleased to announce that it proposes to raise up to $2,000,000 by way of a brokered private placement through the issuance of up to 10,000,000 units at a price of $0.20 per unit (the 'Unit'). Each Unit will consist of one non-flow through common share and one-half of one non-flow through, non-transferable share purchase warrant (the 'Warrant'). Each full Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.25 for a period of three years from closing the private placement. The private placement and any modifications to it are subject to compliance with applicable securities laws and to receipt of regulatory approval. The Company may pay finders' fees in accordance with the policies of the TSX Venture Exchange.

Proceeds of the private placement will be used to drill a number of targets on the Company's Irishman project as well as advance its gold projects in the Timmins area of Ontario, and for general working capital.

M Partners Inc. has been retained as lead agent in connection with the Offering and as financial advisor to explore strategic alternatives for the Company. M Partners are located in Toronto and Vancouver with over 25 professionals serving the needs of their institutional and retail clients.

About Klondike Gold Corp

Klondike Gold is a large landholder in southeastern British Columbia as well as in the Klondike District of Yukon Territory, an area which produced between six and twelve million ounces of gold during its historic gold rush. The Company also holds a 50% interest with partner Chalice Diamond Corp in approximately 78,000 acres of diamond properties located in the Chapleau-Wawa region of Ontario and a number of properties in southeastern British Columbia.

Please visit the Company's website: www.klondikegoldcorp.com for more information on the diamond properties in Ontario, our holdings in the Klondike and our properties in southeastern BC.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contacts:

Hughes Exploration Group

Alan Campbell or Kevin Hull

Investor Relations

(604) 685-2222
info@klondikegoldcorp.com