Klondike Gold Corp. Amends Private Placement

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/22/10 -- Klondike Gold Corp. (TSX VENTURE: KG) (the 'Company') announces that subsequent to its news release of December 13, 2010 and subject to regulatory approval, it has amended the price of its brokered private placement of flow through shares from $0.22 to $0.25 per unit. Each $0.25 unit will consist of one flow through common share and one-half of one non-flow through, non-transferable share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.30 for a period of two years from closing the private placement.

The private placement will consist of up to 4,000,000 units. 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. A portion of this financing may be non-brokered with third party investors or brokers.

Proceeds from the private placement will be used for exploration expenditures on the Company's British Columbia and Ontario properties and general working capital.

About Klondike Gold Corp

Klondike Gold is a large landholder in southeastern British Columbia as well as in the Klondike District of the Yukon Territory, an area which produced between six and twelve million ounces of gold during its historic gold rush.

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.

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

(604) 685-2222
info@klondikegoldcorp.com