Vancouver, British Columbia, Canada, December 23, 2015, Klondike Gold Corp. (TSX.V:KG) (the “Company”) is pleased to announce that the Company has closed its previously announced non-brokered private placement financing (the “Financing”) (see news release December 21, 2015) of 750,000 flow through shares (the “FT Shares”) at a price of $0.10 per share for proceeds of $75,000 and 3,415,000 non-flow through units (the “Units”) at a price of $0.10 per Unit for aggregate gross proceeds of $341,500. Each Unit consists of one common share and one common share purchase warrant (the “Warrant”). Each Warrant entitles the holder to purchase one common share at an exercise price of $0.15 per common share until December 23, 2017. The securities issued in connection with this Financing will be subject to a statutory hold period of four months which expires on April 24, 2016.

The net proceeds raised through the Financing will be used, in the case of the FT Shares, to incur “Canadian exploration expenses” in respect of the Company’s Yukon properties as defined in the Income Tax Act (Canada) as well as, in the case of the Units, for exploration and development of Canadian mineral properties and for general working capital purposes.

The Company also announces that pursuant to this transaction Frank Giustra acquired ownership and control of 1,000,000 Units at $0.10 per Unit, representing 2.6% of the issued and outstanding common shares of the Company.

As a result of this acquisition of securities described above, Fiore Financial Corporation, a Company owned and controlled by Frank Giustra, Frank Giustra personally, and The Radcliffe Foundation, a company controlled by Frank Giustra, hold in aggregate, 6,677,378 common shares of the Company, representing 17.58% of the current issued and outstanding shares of the Company and would own 10,145,006 common shares, representing 24.48% on a partially diluted basis, assuming exercise of the 3,467,628 warrants held by Frank Giustra, Fiore Financial Corporation and the Radcliffe Foundation. Frank Giustra together with his joint actors, has acquired the Units for investment purposes and, as disclosed in the Early Warning Report accompanying this news release, may in the future acquire or dispose of securities of the Company, through the market, privately or otherwise, as circumstances or market conditions warrant.

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 its Yukon gold projects located in the historic Klondike region covering 25,000 hectares of hard rock and 2,000 hectares of placer claims including the “McKinnon Creek” placer leased to “Todd Hoffman” and featured on the Discovery Channel show “Gold Rush”.

On behalf of Klondike Gold Corp.

“Peter Tallman”

President and CEO
(604) 559-4440
E-mail: info@klondikegoldcorp.com
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