Klondike Gold Drilling to Resume at Lone Star Zone

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6138

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

Klondike Gold Drilling to Resume at Lone Star Zone

August 20, 2020 TSX Venture Exchange Symbol – KG

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

KDKGF) (“Klondike Gold” or the “Company”) is pleased to announce the planned commencement of a

27-hole Phase 4 drilling program targeting the Lone Star Zone on the Company’s wholly owned 586 square

kilometer Klondike District Property, Yukon Territory.

The objective of Phase 4 drilling is to extend the dimensions of Lone Star Zone gold mineralization in all

surface directions, and to test for mineralization that would add to the Company’s effort to establish a

maiden mineral resource. Drill pad preparat ion is now underway with Phase 4 drilling planned to

commence by early September.

SUMMARY:

 Phase 4 drilling program to be comprised of approximately 27 drill holes (+/- 1,800 meters) testing

the Lone Star Zone across a 3.5 kilometer strike length. The program is directed in part towards

testing for potential high grade gold subzones.

 Lone Star Zone gold mineralization is recognized in drill holes over a 3.5 km strike length (see

Figure 1) and in rock grab samples for 4.5 km strike length. The Zone remains open in all directions

and is prospective at depth for higher grade zones of quartz veining which are interpreted to

represent the feeder ‘plumbing’ system to the broad Lone Star Zone at surface.

 A total of 181 individual drill co re sample intervals within the central 1.0 km length of the Lone

Star Zone show areas of inferred ‘corridors’ of higher gold grades >5 g/t Au. A selection is listed

in Table 1.

 Recent re -logging of holes suggest some high grade vein intersections may correlate across

several drill holes implying lateral and vertical continuity of higher grade quartz veining within the

broad lower grade envelope characteristic of the Lone Star Zone . (For example, see gold values

listed in Table 1 below: intersections in LS18-171, LS18-172, LS18-180, and LS18-201)

 Testing for potential high grade gold veining in structural corridors within the Lone Star Zone is a

priority for Phase 4 drilling.

Peter Tallman, President and CEO of Klondike Gold stated “The objective of drilling at the Lone Star Zone

is to attempt to outline a potential open- pit gold resource. As we continue to drill in this area, we are

steadily delivering the results needed to bring the Klondike District Property to that stage.”

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Compilation and reinterpretation of results within the main area of Lone Star Zone mineralization has

identified individual high -grade vein sets with high -grade assays that potentially correlate between

adjacent drill holes and across sections (see Table 1).

Gold-bearing quartz veins occur within LS18-171, LS18-172, LS18-201, LS18-198, and LS18-180 across 100

meters by 100 meters at shallow 5m to 40 meter depth, for example. These and other near-surface gold

intersections will be targeted as the Company proceeds with efforts to establish an initial mineral

resource.

Results of drilling are estimated to be available in November or later.

Table 1: Compilation of central Lone Star Zone higher grade quartz vein intercepts.

Hole ID From_m To_m Au g/t Interval_m

LS16-58 7.15 11.90 9.28 4.75

and 28.50 30.70 14.50 2.20

LS16-64 50.00 52.00 9.89 2.00

LS16-68 67.00 68.00 12.99 1.00

LS16-69 88.71 89.12 51.49 0.41

LS16-70 75.19 79.25 8.96 4.06

including 75.19 75.42 104.31 0.23

LS17-81 12.80 14.46 12.09 2.16

and 20.90 21.30 27.24 0.40

LS17-81.1 24.64 25.64 24.68 1.00

LS17-82 12.25 13.06 11.87 0.81

LS17-90 8.35 8.60 50.54 0.25

and 26.55 27.55 17.57 1.00

LS17-91 29.00 35.00 5.42 6.00

LS18-155 6.60 7.70 21.73 1.10

LS18-156 9.60 15.10 8.36 5.50

LS18-165 9.50 10.50 12.09 1.00

LS18-166 8.60 9.60 10.82 1.00

LS18-168 10.50 12.70 7.32 2.20

LS18-171 19.40 21.10 5.51 1.70

LS18-172 110.10 110.60 21.92 0.50

and 119.10 119.50 12.53 0.50

and 162.50 163.50 35.06 1.00

LS18-180 24.60 29.20 10.00 4.60

LS18-201 48.40 49.30 28.46 0.90

and 101.10 103.50 11.50 2.40

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LONE STAR ZONE LONGITUDINAL VIEW OF MINERALIZATION

The longitudinal section below shows 164 holes drilled from 2015 to 2020 which have intersected Lone

Star Zone gold mineralization over a 3.5 km strike length along the plane of the Bonanza Fault. Mineralized

intersections are all within 100 meters of surface with the majority starting at surface. (2020 Phase 1 drill

holes are labelled, with gold intersections listed in the inset. See News Release July 30, 2020).

The Lone Star Zone within the 3.5 km identified length has significant untested areas between holes

containing mineralization.

The Lone Star Zone is open along strike with targets identified beyond the current extent of drilling.

The Company interprets the zone to be open to depth, and is prospective at depth for higher gold grade

zones of quartz veining which represent the feeder ‘plumbing’ system to the broad Lone Star Zone at

surface.

Figure 1: Lone Star Zone 3.5 Km Length Longitudinal View of Gold Mineralization with 164 Mineralized

Drill Holes from 2015-2020.

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Figure 2: Location Map of 2020 Planned Phase 4 Lone Star Zone Drilling and Contingent Phase 5 Stander

Zone Drilling.

QUALIFIED PERSONS REVIEW

The technical and scientific information contained within this news release has been reviewed and

approved by Ian Perry, P.Geo., Vice-President Exploration of Klondike Gold Corp. and Qualified Person as

defined by National Instrument 43-101 policy.

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

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

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

mineralization has been identified at both the Lone Star Zone and Stander 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.

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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 defi ned in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy 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 future 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 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; fluctuations 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 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.”