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KG.V ·

Klondike Gold Leases Placer Gold Mine to Dulac Mining

Property Options & Staking

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6138

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

Klondike Gold Leases Placer Gold Mine to Dulac Mining

September 12, 2019 TSX Venture Exchange Symbol – KG

Vancouver, British Columbia, Canada, September 12, 2019 Klondike Gold Corp. (TSX.V: KG; FRA: LBDP;

OTC: KDKGF) (“Klondike Gold” or the “Company”) is pleased to report that the Company has entered

into a lease agreement with Dulac Mining Ltd (“Dulac Mining”) whereby Klondike Gold assigns to Dulac

Mining the righ ts and permits to placer mine on the Upper Eldorado Creek property, contained wholly

within the Company’s 576 square kilometer Klondike District Property, Yukon Territory.

The Upper Eldorado Creek Placer property (“the Placer Property”) is comprised of 114 contiguous placer

claims totaling 6.8 square kilometers in area covering the Upper Eldorado Creek and Chief Gulch

drainages. Under the terms of the lease agreement, Klondike Gold will receive from Dulac Mining a direct

10% gold production royalty from mining on the Placer Property payable in raw gold. The lease agreement

is for a term of 3 years , expiring July 1, 2022 and is renewable thereafter subject to approval by both

parties.

Dulac Mining has commenced mining work on the Placer Property lease. After establishing drainage and

zero-discharge water circulation, the mining plant was installed and placer operations have commenced.

During th e just completed plant commissioning phase a total of 38.07 troy ounces of gold has been

recovered, including 13.44 troy ounces of coarse nugget gold.

The gold recovered includes dendritic and wire gold as well as coarser ‘nuggets’ containing fragile thin

gold seams in quartz indicating a locally derived bedrock source. Upper Eldorado Creek crosses visually

similar gold-bearing quartz veins associated with the Nugget Fault 1,100 meters upstream of the current

placer mining operation. The ‘Dulac Mining Lease’ is shown in Figure 1 : Location map showing Dulac

Mining Lease in relation to the gold mineralized Nugget Fault.

Peter Tallman, President and CEO of Klondike Gold commented, “We are very pleased to be working with

Dulac Mining on this project and are impressed with the professionalism exhibited in building and

commissioning this new placer operation. We are also excited by the character of the gold returned from

initial mining and the resemblance to gold found in outcrop and drill core from the nearby Nugget Fault

gold trend . Dulac Mining’s operation provides Klondike Gold the opportunity to receive detailed

exploration information at no cost in an important target area. In addition, the Company once again is

receiving revenues from its placer properties.”

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6138

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

Figure 1: Location map showing Dulac Mining Lease in relation to the gold mineralized Nugget Fault.

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.

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6138

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

ABOUT KLONDIKE GOLD CORP.

Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia, and

Dawson City, Yukon Territory. The Company is focused on exploration and development of the Lone Star

gold target at the confluence of Bonanza and Eldorado Creeks, within a district scale 576 square kilometer

property accessible by 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 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 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.”