Klondike Gold Corp. Announces Private Placement

Klondike Gold Corp. (the 'Company?) is pleased to announce it is
arranging for a private placement of up to 6 million units for total
proceeds of up to $600,000. The financing Unit will consist of either
flow-through shares or non flow through shares in addition to one-half,
non-transferable share purchase warrant entitling the purchaser to
purchase one common share for every full warrant at a price of $0.20 for
three years. The offering will be priced at $0.10 per unit for non flow
through share units and at $0.12 per unit for flow through share units.

The private placement is subject to regulatory approval and in
accordance with Exchange policies, finders' fees may be paid on a
portion of the funds raised. Proceeds ?will be used for exploration
expenditures on the Company′s Yukon and British Columbia properties, to
fund additional exploration ?on new targets and general working capital.
The Company has tendered the Take Over Offer for Klondike Star Mineral
Corporation (see NR # 12.0405) and expects to include an additional 411
Klondike Star mineral claims into the Klondike Gold Field exploration
program.

Klondike Gold Corp. currently hold 699 Mineral Claims in the Klondike
Gold Fields and the inclusion of the Klondike Star claims will boost the
number of claims under exploration to 1110 claims covering approximately
200 square km in the center of the Klondike Gold Fields.

About Klondike Gold Corp.

Klondike Gold Corp. is a Canadian exploration company with offices in
Vancouver, British Columbia and Dawson City, Yukon. The Company is
focused on the development of its Yukon and British Columbia gold
properties. In addition the Company holds a large portfolio of base
metal projects in southeastern British Columbia.

Neither the TSX Venture Exchange nor its Regulation Service Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this press
release. Statements in this press release, other than purely historical
information, including statements relating to the Company's future plans
and objectives or expected results, may include forward-looking
statements. Forward-looking statements are based on numerous assumptions
and are subject to all of the risks and uncertainties inherent in
resource exploration and development. As a result, actual results may
vary materially from those described in the forward-looking statements.

Klondike Gold Corp.

Robert A. Young, 604-685-2222 (Ext 398)

info@klondikegoldcorp.com

or

Erich
Rauguth, 604-685-2222

President & CEO