Klondike Gold 2020 Lone Star Zone Drilling Results

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6138

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

Klondike Gold 2020 Lone Star Zone Drilling Results

July 30, 2020 TSX Venture Exchange Symbol – KG

Vancouver, British Columbia, Canada, July 30 , 2020, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC:

KDKGF) (“Klondike Gold” or the “Company”) is pleased to announce results of Phase 1 diamond drilling

at the Lone Star Zone (described in News Releases June 1, 2020 and July 7, 2020) on the Company’s wholly

owned 586 square kilometer Klondike District Prop erty, Yukon Territory. Phase 1 drilling tested for

consistency in grade of gold mineralization and was designed to constrain the geometry and boundaries

of gold mineralization. Information obtained from results will be used to prioritize next phases of drilling

scheduled to commence in August.

SUMMARY:

 The Company has received assays from the Phase 1 diamond drilling program targeting a 1 25-

meter length by 75-meter width at the western end of the known 3.0 kilometer gold-mineralized

length of the Lone Star Zone along the Bonanza Fault.

 A total of 13 new holes were drilled at Lone Star on four sections totaling 748.24 meters.

 The drilling was designed to provide 25 by 25-meter hole spacing within a 125-meter by 75-meter

area as shown in Figure 1. The Lone Star Zone is gold mineralized from surface over a 60 -meter

width across the 125-meter length tested in detail, with lateral and vertical grade continuity.

 This Phase 1 program extended gold mineralization 25-meters further southward, expanding the

Lone Star Zone in this direction and opening a significant area with gold potential to test further

to the east along the 3.0 km length.

 Core logging the Lone Star Zone Phase 1 drill holes documented the Bonanza Fault as a major 60+

meter wide “D3” thrust fault which was re-activated during a 4th deformation event “D4” and was

accompanied by gold mineralization. (see NR dated December 10, 2019)

 Assays from Phase 2 and Phase 3 diamond drill holes targeting respectively the Stander Zone and

potential Stander Zone extensions are still pending.

Peter Tallman, President and CEO of Klondike Gold stated “Positive results from the Lone Star Zone

continue to solidify the Company’s guiding geologic theory of gold mineralization in the Klondike. The

grade and consistency of the drill results reported here at Lone Star and other areas allow the Company

to move away from exploration and towards resource delineation”.

Page 2 of 10

PHASE 1 LONE STAR ZONE DRILLING RESULTS

Thirteen drill holes at the western end of the Lone Star Zone on four drill ‘Sections’ tested a sub -area

where gold mineralization outcrops over a 1 25 meter by 75 -meter area shown in Figure 1. A total of

748.24 meters of core was drilled. All holes had 200-degree azimuth. The collar dip is -85 or -55 degrees

angle from surface as noted in the following Drill Summary Table.

Drill Hole Summary Table, Phase 1 Lone Star, 2020

Hole ID Easting Northing Azimuth Dip Depth (m)

LS20-336 586558 7086361 200 85 67.06

LS20-337 586551 7086344 200 85 79.25

LS20-338 586550 7086345 200 55 51.82

LS20-339 586536 7086319 200 85 54.82

LS20-340 586536 7086319 200 55 30.48

LS20-341 586558 7086320 200 85 65.53

LS20-342 586573 7086316 200 85 53.34

LS20-343 586573 7086316 200 55 60.96

LS20-344 586620 7086316 200 85 50.29

LS20-345 586620 7086316 200 55 48.77

LS20-346 586613 7086296 200 85 39.62

LS20-347 586623 7086331 200 85 65.53

LS20-348 586580 7086338 200 85 80.77

Total 2020 Phase 1 748.24

The width of the Lone Star Zone gold mineralization has been extended southward by 25-meters to the

south, wider than previously mapped, opening a large area with gold potential to test further to the east

along the known 3.0 km mineralized strike length.

Core logging of the Lone Star Zone Phase 1 drill holes documented the Bonanza Fault as a major 60+

meter wide “D3” thrust fault (the “Bonanza Fault”) exhibiting significant progressive alteration

(silicification, fuchsite alteration, chlorite-magnetite, and epidote) and deformation (laminar D3 shear

fabric, and D4 intense z-folds, kink-foliation fabrics, and extensional quartz fracture veins). Gold

mineralization within the Lone Star Zone occurs as disseminations within the laminar shear portions

hosted along later kink-foliation planes, and as extensional gold-bearing quartz veinlets within more

brittle portions of the deformation zone. The Company’s mapping supports earlier interpretations that

the Bonanza Fault cuts a regional recumbent anticline that folds Klondike district rocks and this is an

important potential gold-fluid focus and trap for gold-bearing fluids and a high priority exploration

target.

Page 3 of 10

Figure 1: Plan Map of location of Phase 1 Drilling at Lone Star Zone.

Section 1

On Section 1, both LS20 -339 and LS20- 340 intersected gold mineralization from surface; LS20 -339

intersected 0.94 g/t au over 34.0 meters and LS20 -340 intersected 5.82 g/t Au over 5.0 meters. Both

intersections were unexpected and positive by extending gold mineralization to the south. LS20-337 and

LS20-338 intersected typical broad widths of Lone Star Zone with gold mineralization disseminated and

as thin sheeted veins which assayed 1.07 g/t Au over 61.1 meters and 0.8 g/t Au over 49.07 meters

respectively, starting from surface.

Section Hole ID Dip From_m To_m Au g/t Interval_m

1 LS20-336 -85 53.00 58.00 2.78 5.00

1 LS20-337 -85 5.00 66.00 1.07 61.10

1 including 15.00 37.00 2.01 22.00

1 LS20-338 -55 2.75 51.82 0.80 49.07

1 including 18.00 51.00 1.00 33.00

1 LS20-339 -85 5.00 39.00 0.94 34.00

1 LS20-340 -55 6.00 11.00 5.82 5.00

1 including 7.00 8.00 25.92 1.00

Page 4 of 10

Figure 2: Section 1 Schematic with geology and mineralized Lone Star Zone.

Section 1.5

On Section 1.5, LS20-341 drilled to confirm the edge of mineralization also unexpectedly intersected gold

further southward and assayed 0.53 g/t Au over 14.1 meters typical of Lone Star Zone mineralization.

LS17-82 and LS16 -58 (reported previously in 2016 and 2017 and included here for reference) each

intersected typical Lone Star Zone mineralization north of LS20 -341 and assayed 2.41 g/t Au over 41.2

meters and 2.37 g/t Au over 37.0 meters respectively.

Section Hole ID Dip From_m To_m Au g/t Interval_m

1.5 LS17-82 -50 10.42 51.63 2.41 41.20

1.5 LS16-58 -55 6.50 43.50 2.37 37.00

1.5 LS20-341 -85 28.00 42.10 0.53 14.10

including 51.00 52.00 0.74 1.00

Page 5 of 10

Figure 3: Section 1.5 Schematic with geology and mineralized Lone Star Zone.

Section 2

On Section 2, LS20-348 intersected Lone Star Zone gold mineralization from surface assaying 0.69 g/t Au

over 42.2 meters. LS20 -342, 25 meters in front of LS20 -348, also intersected Lone Star Zone gold

mineralization from surface assaying 0.71 g/t A u over 38.0 meters. LS20 -343, drilled to test for the

southern extent of Lone Star Zone, passed out of the Zone at the start of the hole somewhat as predicted.

Section Hole ID Dip From_m To_m Au g/t Interval_m

2 LS20-348 -85 2.80 45.00 0.69 42.20

2 LS20-342 -85 4.00 42.00 0.71 38.00

2 including 32.00 33.00 10.11 1.00

2 LS20-343 -55 21.00 22.00 3.12 1.00

2 including 40.00 41.00 1.58 1.00

Page 6 of 10

Figure 4: Section 2 Schematic with geology and mineralized Lone Star Zone.

Section 3

On Section 3, LS20-347 and LS20-340 intersected gold mineralization from surface; LS20-339 intersected

0.94 g/t Au over 34.0 meters and LS20- 340 intersected 5.82 g/t Au over 5.0 meters. Both intersections

were unexpected and positive by extendin g gold mineralization to the south. LS20 -337 and LS20 -338

intersected typical broad widths of Lone Star Zone with gold mineralization which assayed 1.07 g/t Au

over 61.1 meters and 0.8 g/t Au over 49.07 meters respectively, starting from surface.

Section Hole ID Dip From_m To_m Au g/t Interval_m

3 LS20-347 -85 24.00 56.00 0.59 32.00

3 including 37.00 48.00 1.23 11.00

3 LS20-344 -85 3.05 45.00 0.59 41.95

3 including 3.05 23.00 1.07 19.95

3 LS20-345 -55 4.50 37.00 0.33 32.50

3 including 4.50 8.00 1.61 3.50

3 LS20-346 -55 3.05 16.70 0.50 13.65

3 including 3.05 8.30 0.81 5.25

Page 7 of 10

Figure 5: Section 3 Schematic with geology and mineralized Lone Star Zone.

Results from the Phase 1 program are anticipated to provide data to allow consideration of a resource

volume leading to evaluation as a potential ‘starter open pit’.

Results from Phase 2 diamond drilling program targeting Stander Zone and Phase 3 program targeting

Stander Zone extensions in conjunction with mapping, prospecting and trenching programs, are

pending.

Page 8 of 10

Figure 6: Location Map of Phase 1 Lone Star Zone 2020 Drilling

COVID-19 UPDATE

Regarding COVID-19, Yukon has remained virus-free since late April and has relaxed civil and travel

restrictions, however the Company is continuing protocols and measures that mitigates the risks of

COVID-19 infection and transmission to protect our local host community, our contractors and our

employees.

ASSAY PROTOCOLS

All 2020 drill holes referenced in this release produced NTW (5.71cm dia.) drill core. Assay samples from

drill core are cut using a diamond saw. Half the core sample interval is bagged, tagged, and sealed; the

other half is returned to the core box with a corresponding tag and retained for reference. Two gold

reference standards, two blank samples (a coarse and a fine), and a coarse sample duplicate per 100

samples, are routinely inserted as part of Klondike Gold’s quality assurance / quality control (“QA/QC”)

program, independent of and additional to the laboratory QA/QC program.

Sample bags are aggregated into rice bags, sealed, and submitted by Klondike Gold personnel to Bureau

Veritas Mineral Laboratories (“BV Labs”) preparation facility in Whitehorse, YT with chemical analysis of