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Klondike Gold Lone Star Zone Assays 0.72 g/t Au over 92.3 meters including 10.0 g/t Au over 4.6 meters

Drill Results

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6110

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

Klondike Gold Lone Star Zone Assays 0.72 g/t Au over 92.3 meters including

10.0 g/t Au over 4.6 meters

October 4, 2018 TSX Venture Exchange Symbol – KG

Vancouver, British Columbia, Canada, October 4, 2018, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC:

KDKGF) (“Klondike Gold” or the “Company”) is pleased to report assays from a further six drill holes at the

Lone Star Zone, and results from four holes in the Gold Run Creek area at the Company’s wholly owned

Klondike District Property, Yukon Territory.

A total of 87 holes (9,511.93 meters) were drilled in 2018. To date, final assay results have been received

and released from 30 of the 87 diamond drill holes completed in 2018. Exploration continues to affirm

multiple local sources of bedrock gold mineralization which explain placer deposits exploited historically

within the Klondike District.

Within the Lone Star Zone associated with the Bonanza Fault, six holes LS18-175 to LS18-180 tested in the

central portion of the mineralized area. These results from sectional drilling continue to show broad

intervals of gold mineralization starting at or near surface, as well as the presence of gold mineralization

at greater depths.

LONE STAR ZONE DRILL RESULTS:

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

LS18-175 23.00 45.00 0.50 22.00

LS18-176 7.62 35.00 0.59 27.38

LS18-177 8.90 28.10 1.17 19.20

LS18-178 9.31 20.00 0.37 10.69

LS18-179 14.10 53.00 0.54 38.90

including 14.10 29.00 1.21 14.90

LS18-180 2.70 95.00 0.72 92.30

including 24.60 29.20 10.00 4.60

An updated plan map of Lone Star Zone drill hole locations is available on the Company’s website

http://www.klondikegoldcorp.com/photos/gallery/2018-drill-maps. Cross sections for 2018 holes

including 2016-2017 holes are also posted or will be added as sections are completed.

Lone Star Zone drill holes LS18-175 to LS18-180 were drilled at -55 dip and 200 azimuth. Assay averages

are calculated over drilled core lengths; true thickness from holes drilled at 200 azimuth is approximately

the drilled interval.

GOLD RUN STEP-OUT DRILLING

The structural geology and faults associated with the Lone Star Zone are inferred to run the 50 km length

of the district and be present in the vicinity of Gold Run Creek area. Four initial holes were drilled in the

Gold Run Creek area to test this premise. These drill holes targeted an area of historic shafts located by

prospecting from which numerous grab samples returned values of 0.6 to 55 g/t Au (see news release

May 24, 2018). Drilling in all four holes encountered gold -bearing quartz veins, some with visible gold,

within extensive carbonate alteration hosted by weakly foliated mafic schist.

Assay results show that the quartz veins are anomalously gold -bearing, however within the area tested

the carbonate alteration surrounding the quartz veining is not, unlike at the Lone Star and Nugget Zones.

A table of significant assays follows.

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

GR18-160 64.15 65.60 0.99 1.45

GR18-161 28.60 36.75 0.22 8.15

GR18-162 37.25 50.75 1.23 13.50

including 37.25 38.40 9.51 1.15

GR18-163 24.00 28.50 0.58 4.50

These early-stage results from the long 30 km step-out from Lone Star Zone to Gold Run along the 50 km

length of the Klondike District trend are encouraging and demonstrate the auriferous nature of the

bedrock mineralizing system as expected. Further work is planned for this target and others as exploration

continues to establish local sources for the extensive alluvial gold-bearing gravels along this mineralized

trend.

Gold Run area drill holes GR18-160 to GR18-163 were drilled at -50 dip and 210 azimuth. Assay averages

are calculated over drilled core lengths; true thickness is unknown.

ONGOING WORK

Core logging has now been completed and sampling is projected to be completed in October . Detailed

mapping and sampling of recently identified mineralization and follow -up of preliminary structural and

lithologic mapping is expected to continue until then as well.

The Lone Star Zone is one of five targets drill tested during the 2018 exploration program. Additional drill

results from Lone Star and other targets will be released as they are received, evaluated and incorporated

into the evolving exploration model. Cross sections, including geology and mineralization will be posted

when all holes on the section are available. For reference , LS18-210 is the final 2018 hole drilled at the

Lone Star Zone, the hole ID numbers -211 to -214 were unused, and holes EC18-215 to EC18-247 targeted

the Nugget Zone or other targets along Eldorado Creek.

A total of 87 holes (9,511.93 meters) were drilled in 2018. Assays from drilling at the Lone Star Zone (LS18-

151 to LS18-159; LS18-164 to LS18-180) and Gold Run area (GR18-160 to GR18-163) have been released.

QUALITY ASSURANCE AND METHODS

Klondike Gold maintains a rigorous quality assurance / quality control (“QA/QC”) program. Details can be

viewed on the Company’s website http://www.klondikegoldcorp.com/projects/sampling-and-assay-

protocols/.

Drill core samples are submitted by Klondike Gold personnel to Bureau Veritas Mineral Laboratories (“BV

Labs”) (formerly Acme 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 core sample is crushed to 70% passing 2 mm size. A 500 g subsample is pulverized to 85%

passing -75 microns size (Code PRP70-500). The 500 g subsample is then sieved to 106 microns (140 mesh)

for “metallic screen” assaying. The plus 140 mesh fraction is then weighed and assayed for gold by fire

assay (“FA”) fusion with a gravimetric finish (Code FS631). A 30 g subsam ple of the minus 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.

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

approved by Ian Perry, P.Geol., 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 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 557 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) 609-6110

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.

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.”