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Klondike Closes $3,800,410 Private Placement

Financings

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6138

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

Klondike Closes $3,800,410 Private Placement

October 20, 2020 TSX Venture Exchange Symbol – KG

Vancouver, British Columbia, Canada, October 20, 2020, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP;

OTC: KDKGF) (“Klondike Gold” or the “Company”) is pleased to announce that further to its news release

of September 25, 2020, the Company has closed the second tranche (the “Second Tranche”) of the non-

brokered private placement (the “Financing”) raising total aggregate proceeds of $3,800,410.80 of which

$2,630,410.80 is flow through funds.

The Second Tranche

In closing the Second Tranche, The Company issued 6,167,334 flow-through units at the price of $0.30 per

unit, comprising of 6,167,334 common shares which are “flow through” shares for Canadian i ncome tax

purposes and 3,083,667 warrants. The Company further issued 1,580,000 non-flow-through units at a

price of $0.25 per unit, comprising of 1,580,000 common shares and 790,000 warrants.

In connection with the completion of the Financing, the Company paid finder’s fees totalling $217,014.75

and has issued 70,000 warrants (the Compensation Warrants”).

All warrants issued in the Second Tranche and the Compensation Warrants are exercisable at a price of

$0.45 per share until October 19, 2022 and are subject to an acceleration right that allows the Company

to give notice of an earlier expiry date if the Company’s share price on the TSX Venture Exchange is equal

to or greater than $0.60 for a period of 10 consecutive trading days.

All securities issued in connection with the Second Tranche and the Compensation Warrants are subject

to TSX Venture Exchange approval and all securities will be subject to a four month statutory hold period

expiring on February 20, 2021.

The Company intends to use the proceeds from the private placement to continue exploration and

development of the Company’s Yukon properties, as well as for general working capital.

Peter Tallman, President and CEO of Klondike Gold stated “I would like to acknowledge and thank the

Company’s shareholders for their continued financial support and long-term confidence. The Company is

well funded for its operations through 2021.”

ABOUT KLONDIKE GOLD CORP.

Klondike Gold Corp. is a Vancouver based gold exploration company advancing its 100%-owned Klondike

District Gold Project located at Dawson City, Yukon Territory, one of the top mining jurisdictions in the

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world. The Klondike District Gold Project targets gold associated with district scale orogenic faults along

the 55-kilometer length of the famous Klondike Goldfields placer district. To date, multi- kilometer gold

mineralization has been identified at both the Lone Star Zone and Stan der Zone, among other targets.

The Company is focused on exploration and development of its 586 square kilometer property accessible

by scheduled airline and government-maintained roads located on the outskirts of Dawson City, YT within

the Tr’ondëk Hwëch’in First Nation traditional territory.

ON BEHALF OF KLONDIKE GOLD CORP.

“Peter Tallman”

President and CEO

(604) 609-6138

E-mail: [email protected]

Website: www.klondikegoldcorp.com

Neither the 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 ac curacy of this release.

Disclaimer for Forward-Looking Information

“This press release contains “forward-looking information” and “forward-looking statements” within the meaning of

applicable securities laws. This information and statements address futur e activities, events, plans, developments

and projections. All statements, other than statements of historical fact, constitute forward- looking statements or

forward-looking information. Such forward- looking information and statements are frequently identi fied by words

such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar

terminology, and reflect assumptions, estimates, opinions and analysis made by management of Klondike in light of

its experience, cur rent conditions, expectations of future developments and other factors which it believes to be

reasonable and relevant. Forward- looking information and statements involve known and unknown risks and

uncertainties that may cause Klondike’s actual results, performance and achievements to differ materially from those

expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not

be placed thereon.

Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of

financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations,

including environmental laws and obtaining requisite permits; political, economic and other risk s; as well as other

risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and

Analysis and in other filings made by us with Canadian securities regulatory authorities and available at

www.sedar.com. Klondike disclaims any obligation to update or revise any forward- looking information or

statements except as may be required.”