Vancouver, British Columbia, Canada, August 10, 2016, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) announces assays from the Violet Ridge target and updates progress of ongoing drilling at the Lone Star property near Dawson City, Yukon Territory.

Nugget Zone Drilling Underway

Drilling is in progress at the Nugget Zone with the objective of testing for the western continuation of gold-bearing mineralization, and also testing for the eastern continuation previously thought to be closed off.

Nugget Zone drill results earlier yielded up to 5.1 g/t Au over 14.3 meters (see News Release July 14, 2016) with mineralization remaining open to the west.  Mapping prior to reclamation of these drill pads (cleared by the dozer) has identified two outcrops of visible gold-bearing quartz veining interpreted to potentially represent either the eastern continuation of Upper Nugget Zone mineralization or another parallel gold-bearing vein system 10 to 15 meters structurally above it.

Drilling Results – Violet Ridge

The Company has received assays from a total of 17 drill holes testing the Violet Ridge group of drill targets including the “310”, “Isaac” and “Violet Mine” subzones (as described in News Release dated July 14, 2016).  No economic grades or widths were encountered in any of these holes along Violet Ridge.  All holes intersected the targeted quartz veins which upon assay contained geochemically anomalous zones of gold above 100 ppb Au, and locally up to 4.1 g/t Au over narrow 0.44 meter widths.  Alteration surrounding the veins did not carry gold values.  Drill sections with simplified geology, assays, and surface grab assay information can be found HERE.

Dominion Property Drilling

A total of 10 holes have been completed on the Dominion Property.  Drill results remain pending.

Lone Star Magnetics Survey Completed

A total of 230 line kilometers of ground magnetics has been completed.  The survey extends the northern and southern extents of the Eldorado fault structures which are interpreted to be a significant control to Nugget Zone and Gay Gulch Zone of gold mineralization (see News Releases dated July 14, 2016 and October 26, 2015).

The technical and scientific information contained within this news release has been reviewed and approved by Peter Tallman, P.Geo, President of Klondike Gold Corp., and Qualified Person as defined by National Instrument 43-101 policy.  See previous news releases for prospecting grab sample assay procedures and protocols.

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, accessible by government maintained roads located on the outskirts of Dawson City, YT, covering 527 square kilometers of hard rock and 20 square kilometers of placer claims including “McKinnon Creek” featured on the Discovery Channel show “Gold Rush”.

On behalf of Klondike Gold Corp.

“Peter Tallman”
President and CEO
(604) 559-4440

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 Klondike disclaims any obligation to update or revise any forward-looking information or statements except as may be required.”