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Klondike Gold Drills 1.08 g/t Au over 49.65 meters at Lone Star Zone, Extends Mineralization 250 Meters East

Drill Results

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6138

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

Klondike Gold Drills 1.08 g/t Au over 49.65 meters at Lone Star Zone,

Extends Mineralization 250 Meters East

September 27, 2021 TSX Venture Exchange Symbol – KG

Vancouver, British Columbia, Canada, September 27, 2021, Klondike Gold Corp. (TSX.V: KG;

FRA: LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) is pleased to report results of 2021

Phase 2a diamond drilling at the Lone Star Zone , Klondike District Property, Yukon. Twelve (12)

holes totalling 1,222 meters were completed in July 2021. Klondike Gold is pleased that near -

surface gold mineralization at the Lone Star Zone has been significantly extended east by 250

meters or ~25% greater in length with these results.

Assay highlights from this phase of Lone Star Zone drilling includes:

• 1.70 g/t Au over 14.6 meters from 21.0 meters to 35.6 in LS21-388

• 1.08 g/t Au over 49.65 meters from 40.35 meters to 90.0 meters in LS21-389

• 2.9 g/t Au over 11.0 meters from 15.0 meters to 26.0 meters in LS21-392

• 3.23 g/t Au over 6.0 meters from 58.0 meters in LS21-394

• 0.84 g/t Au over 29.0 meters from 4.0 meters to 33.0 meters in LS21-399

• 1.11 g/t Au over 23.5 meters from 1.5 meters to 25.0 meters in LS21-410

Peter Tallman, Klondike Gold’s CEO states “Results continue to show the Lone Star Zone discovery

hosts significant near -surface gold mineralization which is expandable and remains open in all

directions. Near term milestones include a Geology technical report followed by a maiden

mineral resource. The Company is well positioned to rapidly advance the Lone Star Zone as one

among a number of ‘pipeline’ targets within our district- spanning 586 square kilometer claim

package that has excellent access to existing highway, power, communications, commercial

airport and town infrastructure.”

Page 2 of 8

LONE STAR ZONE PHASE 2 DRILLING

2021 drilling at the Lone Star ‘East’ area (Phase 2a) tested for an eastern extension of the Lone

Star Zone with 12 holes totalling 1,222 meters. See Figure 1 for drill hole locations and Table 1

for assay results on the Phase 2a Drilling on the Lone Star Zone.

These latest significant positive results at the Lone Star East target demonstrate continuity of

mineralization at least 250 m eters eastward beyond the currently defined Lone Star Zone gold

mineralization model shell and also show downslope continuity of mineralization (see Figure 2

and Figure 3).

Positive results reported from the Lone Star Zone (Phase 2b) tested the downslope and potential

down-dip extension (see News Release September 23, 2021). This work extend ed the downhill

slope dip length to 350 meters from 200 meters.

Figure 1: Lone Star Zone Target Areas and 2021 Phase 2 Drill Holes.

Page 3 of 8

Table 1: 2021 Lone Star Zone East (Phase 2a) Significant Results:

Hole ID From (m) To (m) Au (g/t) Length (m)

LS21-388 21.00 35.60 1.70 14.60

LS21-388 21.00 49.00 1.05 28.00

LS21-389 40.35 90.00 1.08 49.65

LS21-390 47.50 50.00 0.53 2.50

LS21-392 15.00 26.00 2.90 11.00

LS21-393 14.00 118.00 0.42 104.00

LS21-393 30.00 64.00 0.69 34.00

LS21-394 56.00 64.00 2.46 8.00

LS21-394 58.00 64.00 3.23 6.00

LS21-395 80.00 83.00 0.38 3.00

LS21-408 23.00 33.00 1.21 10.00

LS21-408 23.00 46.00 0.76 23.00

LS21-409 6.10 25.00 0.62 18.90

LS21-410 1.50 25.00 1.11 23.50

LS21-411 13.00 82.00 0.47 69.00

LS21-412 53.64 69.00 0.74 15.36

Page 4 of 8

Figure 2: Cross-section 12575E sketch of Lone Star Zone mineralization including holes LS21-

409 and LS21-411 from this news release showing downslope continuity of the zone.

Page 5 of 8

Figure 3: Cross- section 12650E sketch of Lone Star Zone mineralization including holes LS21 -

388 and LS21-389 from this news release showing downslope continuity of the zone.

PHASE 4 DRILLING AND EXPLORATION UPDATE

Phase 3 drilling testing the Stander Zone was completed in August. Results are pending.

Phase 4 drilling testing along the Eldorado Fault in Eldorado Creek over a 4 kilometer length nears

completion with drilling just finished and with logging and sampling in progress . A total of 13

holes were completed testing various targets exclusively . The holes targeted various graphitic

fault zones evident from LIDAR surveying potentially associated with gold mineralization. One of

these targets at the Gay Gulch Zone , the second o f two original discoveries made in 2015, has

previously returned significant gold intersections including 420 g/t Au over 0.4 meters within 75.6

g/t Au over 2.8 meters in the discovery hole EC15-10 (see News Release October 26, 2015). No

estimate is yet known for availability and reporting of assay results.

Page 6 of 8

Klondike Gold contracted GeoCloud Analytics of Melbourne, Australia to complete a detailed re-

interpretation of the 2019 LIDAR survey data (see NR 23 September 2021). The work is in

progress.

SRK Con sulting of Toronto have been contracted to prepare a NI -43-101 Technical Report

summarizing geology and exploration on the Company’s Klondike District Project. Site visit field

review has been completed. The report is in progress and is anticipated to be completed for filing

by Q4 2021.

2021 ASSAY PROTOCOLS

All 2021 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 sample pulps completed in Vancouver, British Columbia. Bureau Veritas Labs

is an accredited ISO 9001:2008 full-service commercial laboratory.

At BV Labs each drill core sample is crushed to 70% passing 2 mm size. A 500 g subsample is

pulverized to 85% passing 75 microns size (200 mesh)(Code PRP70 -500). All samples of 500 g

were sieved to 106 microns (140 mesh) for “metallic screen” assaying. The +140 mesh fraction is

weighed and assayed for gold by fire assay (“FA”) fusion with a gravimetric finish (Code FS631).

A 30 g subsample of the -140 mesh fraction is assayed for gold by fire assay (“FA”) fusion with an

atomic absorption (“AA”) finish (Code FA430). All over-limit results in excess of 10 ppm (10 g/t)

for both silver and gold are re -assayed using a 30 g subsample and assayed by FA with a

gravimetric finish (Code FA530 -Au/Ag). Total gold grade is then calculated using a weighted

average of the plus and minus fraction assay results.

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 define d by National Instrument 43 -101 policy. Detailed technical

information, specifications, analytical information and procedures can be found on the

Company’s website.

Page 7 of 8

COVID-19 UPDATE

Klondike Gold continues to take proactive measures to protect the health and safety of our local

host community, our contractors and our employees from COVID 19 . E xploration activities in

2021 continue to have additional safety measures in place, following and exceeding all the

recommendations made by the Yukon’s Chief Medical Officer. Over 9 5% of Klondike Gold’s

employees and contractors are fully vaccinated.

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 Goldfields 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.

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.

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 factor s 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.

Page 8 of 8

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 desc ribed 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.”