Klondike Gold Begins 2021 Exploration at Historic Virgin and Lindow Showings

VANCOUVER, BC / ACCESSWIRE / May 4, 2021 / Klondike Gold Corp. (TSXV:KG)(FSE:LBDP)(OTC PINK:KDKGF) ("Klondike Gold" or the "Company") is pleased to report commencement of 2021 exploration beginning at the Virgin Target area on the Company's wholly owned 586 square kilometer Klondike District Property near Dawson City, Yukon Territory.

Program Highlights:

• 2021 exploration/resource drilling program of approximately 6,500 meters will be distributed over three phases and test multiple target areas
• Phase 1 exploration drilling to focus on discovering bedrock sources of gold at the historic the Virgin/Lindow Target areas
• Phase 2 drilling to focus on expanding the discovery at the Stander Zone
• Phase 3 drilling to focus on outlining a maiden resource on targets within the Lone Star Zone

Peter Tallman, Klondike Gold's CEO stated, "The steady and thorough exploration programs of the past several years is now paying off. We're confident in our geologic understanding of the processes that formed widespread gold mineralization in the Klondike District, both placer and hard-rock and we're now set to capitalize on those efforts and insights. We have an abundance of targets to test with our 2021 drilling, some that will build toward our goal of completing a maiden resource estimate at Lone Star, and some that may surprise with new discoveries proximal to historic placer mines. It's going to be an exciting season."

The 2021 Phase 1 diamond drill program is expected to begin shortly. The Phase 1 program comprising approximately 1,000 meters will launch at the Virgin Target area located 10 km north of the Lone Star and Stander Zones, and 6 km from the Company's Dawson City office (see News Release dated February 3, 2021). The Virgin Target area is comprised of the Virgin Mine and the Lindow Showing located 2 km apart along Bear Creek, one of the significant placer gold producing creeks during the Klondike gold rush.

Visible gold in quartz veins at the Virgin Mine was originally discovered in 1902. Underground development consisting of two shafts and two adits was completed by 1913. A ‘stamp mill' was installed in that year which reportedly processed 265 ounces gold from the workings. In 1934 the stamp mill was upgraded from steam to electrical power but little further work ensued and the claims ultimately lapsed. (Source: Yukon Geological Survey Mineral Occurrence data). The area was restaked by Mr. Frank Burkhard in 1976 and Klondike Gold purchased the property directly from the Burkhard family in 2017.

Prospecting grab samples or mapping samples of host rocks collected by the Company (2014 to 2020) have yielded five samples between 5.0 to 14.2 g/t Au, one sample of 0.9 g/t Au, and fourteen samples with no significant assay. (Prospecting samples are selective in nature, non-representative rock grab samples of bedrock or boulders collected to test for the presence or absence of gold and other ‘economic' minerals.) The high assays come from quartz vein material in the main shaft and adjacent workings or from the stamp mill dump pile.

Gold in quartz veins was discovered at the Lindow Showing in 1911 located 2 km south of the Virgin Mine. Underground development consisted of two (or three) shafts and one adit however no contemporary records are known and the workings were obscured by subsequent placer mining.

In 2018 prospecting and mapping by the Company located a bedrock occurrence of visible gold in quartz veins. Twelve prospecting grab samples were collected from outcrop of veining and host rock with eight assaying between 0.2 g/t Au and 4.1 g/t Au and four samples with no significant assay. Recent recompilation and upgraded description of the Lindow Showing published by Yukon Geological Survey led the Company's realization that part of the ‘lost' Lindow Showing had been relocated by 2018 outcrop sampling.

Figure 1: Planned 2021 Drilling Targets (red stars) including Virgin/Lindow Target, Stander Zone and Lone Star Zone.

COVID-19 Update
Klondike Gold continues to take proactive measures to protect the health and safety of our local host community, our contractors and our employees from COVID 19 and exploration activities in 2021 will have additional safety measures in place, following and exceeding all the recommendations made by the Yukon's Chief Medical Officer. Additionally, the Company has received Yukon government approval for our 2021 Alternate Isolation Plan ("AIP") which mandates protocols and stringent isolation safety measures permitting essential personnel to transit to/from Yukon.

QUALIFIED PERSONS REVIEW
The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, P.Geo., Vice-President Exploration of Klondike Gold Corp. and Qualified Person as defined by National Instrument 43-101 policy. Detailed technical information, specifications, analytical information and procedures can be found on the Company's website.

ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp. is a Vancouver based gold exploration company advancing its 100%-owned Klondike District Gold Project located at Dawson City, Yukon Territory, one of the top mining jurisdictions in the world. The Klondike District Gold Project targets gold associated with district scale orogenic faults along the 55-kilometer length of the famous Klondike Goldfields placer district. To date, multi-kilometer gold mineralization has been identified at both the Lone Star Zone and Stander Zone, among other targets. The Company is focused on exploration and development of its 586 square kilometer property accessible by scheduled airline and 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) 609-6138
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 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."

SOURCE: Klondike Gold Corp.