Klondike Gold Corp. Announces Private Placement

FOR IMMEDIATE RELEASE TSX-V: KG October 21, 2011 www.klondikegoldcorp.com

Klondike Gold Corp. Announces Private Placement

VANCOUVER, BC – KLONDIKE GOLD CORP. (TSX-V: KG) (the “Company”) is pleased to announce that it has arranged for a private placement consisting of up to 5,000,000 common shares at a price of $0.10 per share for total proceeds of up to $500,000. Up to 2,500,000 of the shares will be flow through shares.

The private placement is subject to regulatory approval and in accordance with Exchange policies, finders' fees may be paid on a portion of the funds raised. Proceeds from the flow through portion of the private placement will be used for exploration expenditures on the Company’s Yukon and British Columbia properties. Proceeds from the non-flow through portion will be applied to general working capital. All securities issued will be subject to an exchange mandated four-month hold period.

Contact Info:

Alan Campbell

Klondike Gold Corp.

Phone: (604) 685-2222 Email: [email protected]

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

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.