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K2 Gold Commences 2017 Exploration Program at the Wels Gold Property

Exploration Programs

K2 Gold Commences 2017 Exploration Program at the Wels Gold Property

Vancouver, B.C. – May 25, 2017 – K2 Gold Corporation (“ K2” or the “ Company”) (KTO:TSX -V) is

pleased to announce that field preparations have commenced for a Phase 1 exploration program at the

Wels Gold Property, and a diamond drilling program is anticipated to begin on or around June 6, 2017.

The Wels Property is located in west -central Yukon Territory in the Traditional Territory of White River

First Nation (“WFRN”) , approximately 45 kilometers east of Beaver Creek and 185 kilometers south of

Dawson City (the “Wels Property”). It is a new gold discovery within the highly prolific ‘Tintina Gold Belt’

and exhibits characteristics of a reduced ‘Intrusion Related Gold System ’ (“IRGS”) similar to the multi -

million ounce Fort Knox (Kinross) and Dublin Creek deposits (Victoria Gold) . Please CLICK HERE to view

an exploration program map of the Wels Property.

As previously disclosed in August 2016, the Company entered into an agreement with Gorilla Minerals

Corp. (“Gorilla”) wh ich provides the Company with the option to acquire a 90% intere st (subject to an

existing 3% N SR) in the Wels Property . The Wels Property (total area 47.5km2) was staked in 2011 and

to date only approximately 1km 2 of the prospective area has undergone any significant exploration (soil,

trench-rock sampling and diamond drilling). No work was undertaken at the Wels Property during 2016.

Highlights of previous work between 2011 and 2015 at the Wels Property include:

 Drilling - A five-hole 442 metre diamond drill program in 2015 returned gold mineralization in all

holes. Hole DDH01 recorded 0.76 g/t Au over 97.5m, including 19.50 m of 3.11 g/ t Au starting at

31.5m. The holes were drilled at 90 degrees to the mineralized structure in the Saddle Zone area

and the true width is estimated at 80% of intersected intervals. The five holes were drilled in an

extremely limited area of approximately 1 00m x 1 00m and were located to only test the depth

extent of high grade rock samples seen a t surface in trenches and by no means tested the full

extent of the Au-As soil anomaly which current ly measures approximately 1,800m east-west by

400m north-south.

 Trenching – 155 metres of trenching including T14 -01 4.53 g/t Au over 11.00m, T14 -02 8.8 g/t

Au over 45.00m and T14-03 3.04 g/t over 10.50m.

 Soil Sampling - 1,658 soil samples have been collected over a limited area of approximately

12km2 and were the most useful exploration tool in identifying 3 prospective areas for further

follow up in 2017. The most useful geochemical identifier elements besides gold were a rsenic,

antimony and bismuth.

 Rock Sampling – 28 ‘rock grab’ samples from the Saddle zone have been taken from the

property to date. One sample from Trench A ran 149.5 g/t Au and a composite of nine samples

from the same hand-dug trench ran 32.8 g/t Au.

The Company’s Board of Directors have approved an initial exploration budget of $750,000 for the Phase

1 2017 exploration program. Allan Doherty, P.Geo, who has 36 years experience managing exploration

projects in the Yukon, will lead the exploration crew . A comprehensive and systematic program is

planned; comprised of drilling, trenching, soil sampling, and prospecting. A description of the proposed

2017 Phase 1 exploration program is outlined below.

 Drilling - 1200m of core drilling will be completed in 5 -8 holes with the goal of extending the

Saddle Zone mineralization, currently open in all directions. Core drilling to date had intersected

the host granite with minor late mafic dykes. The contacts of the intru sion have not yet been cut

by drilling, and are a target for this year’s program.

 Trenching - Additional trenching will be completed on the Southwest Spur zone and the North

Ridge zones which are located 1.0 km south and 1.5 km north respectively of the Saddle Zone ,

the site of the drilling in 2015. View map HERE.

 Soil Sampling - Up to 2,000 new grid auger soil samples will be collected on new claims added

to the west of the original claim block. Soil sampling ha s proven effective on the Wels Property

and led directly to the high grade sampling interval of 8.8 gm/t Au over 4 5.00m in Trench 2 . Soil

samples will be collected over the unglaciate d areas primarily above the 750 m elevation level

contour elevation.

 Prospecting - Additional prospecting and mapping will be completed over the entire property.

The Company is also pleased to confirm that , once finalized, exploration programs will soon be

announced at its other projects located in the Yukon Territory, including the Flume, Storck an d Ladue

Properties.

The company has adequate funds to complete its Wels Phase 1 exploration program.

About K2 Gold Corporation

K2 Gold Corporation is a mineral exploration company focused on building a portfolio of gold exploration

projects in the Yukon, including the Wels Property located approximately 185 km south of Dawson City,

Yukon. The Company has assembled an experienced management team and board of directors with a

track record of discovery success.

For additional information please contact Stephen Swatton at 604-331-5090.

On behalf of the Board of Directors,

“Stephen Swatton”

President and CEO

K2 Gold Corporation.

Forward-Looking Caution:

This news release contains forward -looking statements that are not historical facts. Forward -looking statements

involve risks, uncertainties and other factors that could cause actual results, performance, prospects and

opportunities to differ materially f rom those expressed or implied by such forward -looking statements, including

statements regarding the 2017 exploration program at the Wels Gold Property and future exploration plans at the

Company’s other properties located in the Yukon . Factors that could cause actual results to differ materially from

these forward-looking statements include, but are not limited to, variations in the nature, quality and quantity of any

mineral deposits that may be located, the Company’s inability to reach satisfactory agreements with First Nations to

facilitate its exploration and development plans for the Wels Property, the Company's inability to obtain any

necessary permits, consents or authorizations required for its planned activities, and the Company' s inability to raise

the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's

public disclosure record which is available on SEDAR ( www.sedar.com). Although the Company believes that the

assumptions and factors used in preparing the forward -looking statements are reasonable, undue reliance should not

be placed on these statements, which only apply as of the date of this news release, and no assurance can be gi ven

that such events will occur in the disclosed time frames or at all. Except as required by securities laws and the

policies of the TSX Venture Exchange, the Company disclaims any intention or obligation to update or revise any

forward-looking statement, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of

any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the

securities in the United States of America. No securities of the Company have been or will, in the foreseeable future,

be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not

be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S

under the 1933 Act) unless registered under the 1933 Act and applicable state securities l aws, or an exemption from

such registration requirements is available.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS

DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE

ADEQUACY OR ACCURACY OF THIS RELEASE.