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KG.V ·

Klondike Gold announces $2,500,000 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 Gold announces $2,500,000 Private Placement

August 25, 2020 TSX Venture Exchange Symbol – KG

Vancouver, British Columbia, Canada, August 25, 2020, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC:

KDKGF) (“Klondike Gold” or the “Company”) is announces that it plans to raise up to $ 2,500,000 in

aggregate of flow-through funds (the “Flow-Through Placement”) and non-flow-through funds (the “Non-

Flow-Through Placement) by way of a non-brokered private placement (the “Financing”).

The Flow-Through Placement will consist of the sale of flow -through shares at a price o f $0.30 per flow-

through unit with each unit consisting of one common share and one-half of one share purchase warrant.

The Non-Flow-Through Placement will consist of the sale of units at a price of $0. 25 per unit, with each

unit consisting of one common share and one-half of one share purchase warrant.

Each warrant will entitle the holder to purchase one common share at a price of $0.45 per common share

for a period of 2 years from closing (the “Warrants”). The Warrants are subject to an acceleration right

that allows the Company to give notice of an earlier expiry date if the C ompany’s share price on the TSX

Venture Exchange is equal to or greater than $0.60 for a period of 10 consecutive trading days.

A finder’s fee of 7% on the gross proceeds of the Financing may be paid.

The Financing may close in tranches. The Company intends to use the proceeds from the Financing to

continue exploration and development of the Company’s Yukon properties, as well as for general working

capital.

The securities issued in connection with the Financing are subject to TSX Venture Exchange approval and

all securities will be subject to a four month statutory hold period after the date of closing.

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 accuracy of this release.

Page 2 of 2

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 future activities, events, plans, developments

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

forward-looking information. Such forward- looking information and statements are frequently identified 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, current 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; fluctuati ons in commodity prices; changes to and compliance with applicable laws and regulations,

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

risks and uncertainties which are more fully descri bed 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.”