New Klondike Exploration Ltd. Announces Private Placement Closing

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TORONTO, ONTARIO -- (Marketwire - Oct. 25, 2012) - New Klondike Exploration Ltd. (TSX VENTURE:NK) ("New Klondike" or the "Company") is pleased to announce that is has closed the previously announced non-brokered private placement offering (the "Offering") of 5,000,000 units of securities of the Company (each, a "Unit") at a price of $0.10 per Unit, for aggregate gross proceeds of $500,000. Each Unit consists of one common share (each, a "Common Share") and one-half of one Common Share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share at a price of $0.15 for a period of 24 months from the date of closing of the Offering.

The proceeds of the Offering will be used to fund property maintenance costs, asset acquisition investigations, the balance of staking costs related to the acquisition of a new exploration property in Ontario and for general corporate purposes.

In connection with the Offering, the Company also paid cash finder's fees of $20,800, equal to 8% of the gross proceeds of Units acquired by investors introduced to the Company by certain eligible persons (each, a "Finder") and issued 208,000 warrants (each, a "Finder's Warrant"), equal to 8% of the aggregate number of Units sold under the Offering by the Finders. Each Finder's Warrant entitles the holder thereof to purchase one Common Share at a price of $0.10 for a period of 12 months from the date of closing of the Offering. Directors of New Klondike subscribed for a total of 900,000 Units representing 18% of the Offering.

Subsequent to the closing of the Offering, New Klondike has 16,142,845 Common Shares issued and outstanding. The securities issued in connection with the Offering are subject to a four month hold period expiring on February 25, 2013.

During the past 30 days the Company has further improved its cash position by selling an investment in marketable securities for net proceeds of $121,000.


About New Klondike

New Klondike presently owns the past producing Nickel Offsets property (nickel/copper) in the Sudbury area, a 30% working interest in the Santa Maria property (gold/base metals) in the Dryden area and is acquiring, by staking, a new project in Ontario with gold and base metal potential.

The Company has now finalized all significant matters related to its recent reorganization and management remains focused on completion of the acquisition of a new exploration project in Ontario and advancing New Klondike's future exploration strategy. A New Klondike website has been launched recently and will be fully updated in the near future. For further information about New Klondike please contact Michael Coulter, President at 416-368-3332 or email: info@newklondike.com.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.


Forward-Looking Information

This news release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, statements relating to the Company's expected use of the proceeds, are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the failure of the Company to spend the proceeds of the Offering as indicated herein and general business and economic uncertainties.

Any forward-looking statement speaks only as at the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Neither 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 press release.



Contact

New Klondike Exploration Ltd.
Michael Coulter, President
416-368-3332
info@newklondike.com
www.newklondike.com