New Klondike Announces $500,000 Proposed Private Placement Offering

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, ONTARIO -- (Marketwire - Sept. 18, 2012) - New Klondike Exploration Ltd. (TSX VENTURE: NK) ("New Klondike" or the "Company") is pleased to announce a proposed non-brokered private placement offering of units (the "Offering") to investors. The Offering will consist of up to 5,000,000 units of securities of the Company (each, a "Unit") at a price of $0.10 per Unit, for aggregate gross proceeds of up to $500,000. Each Unit will consist of one common share (each, a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one additional Common Share of the Company at a price of $0.15 for a period of 24 months from the date of closing of the Offering. The Offering is subject to receipt of all regulatory or other approvals that may be necessary in order to complete the transactions contemplated therein and is expected to close during the first week of October. All securities issued pursuant to the Offering will be subject to a four-month statutory hold period.

The gross proceeds of the Offering will be used to fund property maintenance costs, asset acquisition investigations, the balance of staking costs related to the acquisition of a new exploration property in Ontario and for general corporate purposes.

The Company will pay a finder's fee to certain eligible persons (each, a "Finder") for subscriptions to the private placement completed by qualified investors who have been introduced by such Finders. The Company will pay a cash finder's fee equal to, in the aggregate, 8% of the gross proceeds of any Units acquired by investors introduced to the Company by such Finders and will issue to such Finders, warrants (each, a "Finder's Warrant") equal to 8% of the aggregate number of Units sold under the Offering by such Finder. Each Finder's Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.10 for a period of 12 months from the date of closing of the Offering.

New Klondike presently owns the past producing Nickel Offsets property (nickel/copper) in the Sudbury area, a 30% working interest in the Santa Maria property (gold/base metals) in the Dryden area and is acquiring, by staking, a new project in Ontario with gold and base metal potential.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.


About New Klondike

The Company is nearing completion of matters related to its recent reorganization and management remains focused on finalization of the acquisition of a new exploration project and advancing New Klondike's future exploration strategy. A New Klondike website will be launched in the near future. For further information about New Klondike please contact Michael Coulter, President at 416-368-3332 or email: info@newklondike.com.


Forward-Looking Information

This news release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, statements relating to the Offering and in particular, the expected closing date of the Offering and the Company's expected use of the proceeds to be raised in the Offering, are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the failure to close the Offering, if at all, in a timely manner.

Any forward-looking statement speaks only as at the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Neither 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 press release.



Contact

New Klondike Exploration Ltd.
Michael Coulter, President
416-368-3332
info@newklondike.com