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Klondike Gold Lone Star Zone Assays 1.02 g/t Au over 91.0 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 1.02 g/t Au over 91.0 meters

December 3, 2018 TSX Venture Exchange Symbol – KG

Vancouver, British Columbia, Canada, December 3, 2018, Klondike Gold Corp. (TSX.V: KG; FRA: LBDP;

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

at the Lone Star Zone 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 51 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.

These nine holes LS18 -193 to LS18 -201 continued the systematic testing of the Lone Star target at

approximately 50-meter spacings from 11650E to 12300E with the objective of outlining the character,

geometry, and controls of gold mineralization.

Hole LS18-201 on 12300E intersected 1.02 g/t Au over 91.0 meters starting from near surface, and LS18-

200 on 12400E, one hundred meters east of LS18-201, intersected 0.80 g/t Au over 36.26 meters from

94.5 meters downhole. Holes LS18-196 and LS18-199 both encountered and drilled down a north-south

trending zone of fault gouge which has no significant gold values. Th is post-mineralization structure has

small apparent displacement and does not appear significant in the broader picture.

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 and continue to demonstrate

the auriferous nature of the bedrock mineralizing system.

LONE STAR ZONE DRILL RESULTS:

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

LS18-193 49.50 66.90 0.38 17.40

LS18-194 36.00 56.70 0.53 20.70

LS18-195 1.00 33.00 0.47 32.00

LS18-196 NSV

LS18-197 87.00 101.30 0.47 14.30

and also 117.40 123.55 0.61 6.15

LS18-198 12.90 25.10 1.19 12.20

LS18-199 NSV

LS18-200 94.50 130.76 0.80 36.26

LS18-201 17.70 108.70 1.02 91.00

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6110

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

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.

Lone Star Zone drill holes LS18-193 to LS18-201 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.

ONGOING WORK

The final report and lithologic and structural mapping results from across the Klondike District Project are

due imminently from SRK Consulting. This information, once received, will be integrated with final results

of Klondike Gold’s detailed mapping, as well as the products of district airborne geophysical surveying,

soil geochemical surveying, and prospecting. R esults of the regional program will be released with

discussion at that time.

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

results from Lone Star holes LS18-202 to LS18- 210, the last results pending from the Lone Star target

testing, are expected imminently. Results from EC18-215 to EC18-241 which tested 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 from the individual zones 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 -241 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 LS18-201) 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 ass ayed for gold by fire

assay (“FA”) fusion with a gravimetric finish (Code FS631). A 30 g subsample 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

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6110

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

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 reviewed 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 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.”