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Klondike Gold Lone Star Zone New Extension Assays 0.93 g/t Au over 90.60 meters and 0.81 g/t Au over 79.70 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 New Extension Assays 0.93 g/t Au

over 90.60 meters and 0.81 g/t Au over 79.70 meters

December 10, 2018 TSX Venture Exchange Symbol – KG

Vancouver, British Columbia, Canada, December 10, 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

targeting the new eastward extension of the Lone Star Zone at the Company’s wholly owned Klondike

District Property, Yukon Territory.

Significant near-surface gold mineralization has been encountered within a new 600 -meter extension to

the Lone Star Zone, effectively doubling the mineralized drilled length of the Zone.

The main drilling effort of 2017 and 2018 targeted the Lone Star Zone between sections 11650E to 12300E

across this 650-meter interval at approximately 50-meter spacings. New results reported here are from

drill holes along a further 600-meter interval from 12400E to 13000E, extending the drilled length of Lone

Star Zone gold mineralization to 1,350 meters which remains open.

Nine holes tested for the eastward along-strike continuation of Lone Star Zone gold mineralization in two

areas: LS18-202 to LS18- 205 plus LS18-209 and LS18-210 between 12400E to 12600E following up hole

LS17-124; and LS18-206 to LS18-208 between 12950E to 13000E following up hole LS17-144.

Hole LS18-204 intersected 0.93 g/t Au over 90.60 meters on 12500E, and LS18 -205 intersected 0.81 g/t

Au over 79.70 meters on 12600E. (LS17-124 from 2017 testing intersected 0.98 g/t Au over 21.3 meters

on 12550E.)

Hole LS18-206 intersected 0.74 g/t Au over 22 .10 meters on 12950E . ( LS17-144 from 2017 intersected

0.53 g/t Au over 32.50 meters on 12975E.)

The systematic pattern drill testing of the Lone Star target at approximately 50 -meter spacings between

11650E to 1 3000E so far has the objective of outlining the character, geometry, and controls of gold

mineralization across the 1,350 meter interval. T hese 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.

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6110

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

LONE STAR ZONE DRILL RESULTS:

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

LS18-202 NSV

LS18-203 NSV

LS19-204 25.40 116.00 0.93 90.60

LS18-205 4.60 84.30 0.81 79.70

LS18-206 16.37 38.50 0.74 22.10

LS18-207 51.10 84.50 0.30 33.40

LS18-208 29.00 30.00 3.45 1.00

LS18-209 20.30 72.80 0.42 52.50

LS18-210 58.60 82.00 0.18 23.40

LS17-124* 65.20 86.50 0.98 21.30

LS17-144* 48.00 80.50 0.53 32.50

*Holes from 2017 reported previously, mentioned in this news release.

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 LS18-202 to LS18-210 and also LS17-124, LS17-144 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 are due 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. Results of the regional program will be released with discussion at that time. Additionally,

a synthesis discussion of 2018 Lone Star Zone results including drilling, mapping, rock sampling, and soils

is expected in early 2019.

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

LS18-210 is the final 2018 hole drilled at the Lone Star Zone. Hole ID numbers LS18-211 to LS18-214 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. Results from 78 of 87 diamond drill holes

completed in 2018 have been released including all results from the Lone Star Zone (LS18-151 to LS18-

159; LS18-164 to LS18-210) and Gold Run area (GR18-160 to GR18-163).

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6110

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

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 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

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.

3123 – 595 BURRARD STREET

VANCOUVER, B.C. CANADA V7X 1J1

TELEPHONE: 604-609-6110

FAX: 604-609-6145

WWW.KLONDIKEGOLDCORP.COM

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.”