Klondike Gold Raises Closes on $1.452 Million

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/23/10 -- Klondike Gold Corp (TSX VENTURE: KG) (the 'Company') is pleased to announce that it has raised $1,452,000 by way of Brokered and Non-brokered private placement through the issuance of 7,260,000 Units (the 'Unit') at a price of $0.20 per Unit. Each Unit consists of one common share and one-half of one non-transferable share purchase warrant (the 'Warrant'). Each full Warrant entitles 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 of the private placement. The private placement and any modification to it are subject to compliance with applicable securities laws and to receipt of regulatory approval. In connection with the transactions, cash commissions totaling $130,680 were paid to M Partners and its selling group of brokers.

Proceeds of the private placement will enable the Company to continue exploration on its Sullivan target property near Eagle Plains' recent discovery near Creston, BC.

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 is 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.

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:

Klondike Gold Corp

Alan Campbell

Director

(604) 685-2222
info@klondikegoldcorp.com
www.klondikegoldcorp.com