Klondike Gold Reports 2.1 g/t Au over 28.9 meters and 31.2 g/t Au over 0.5 meter at Stander Zone, Yukon

VANCOUVER, January 30, 2020 - Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTC:KDKGF) ("Klondike Gold" or the "Company") is pleased to report exploration results including assays from nineteen drill holes from the 2019 drill program testing the Stander Zone Central along the Nugget Fault on the Company's wholly owned 586 square kilometer Klondike District Property, Yukon Territory. The drill program intersected broad zones of gold mineralization containing local intervals of high-grade gold consistently across a 200-meter strike length.

SUMMARY:

• The Stander Zone, a 15 Km magnetic low (fault) associated with gold mineralization traceable across the northwestern end of the property, is divided into three five-kilometer segments: "Stander Zone NW", "Stander Zone Central", and "Stander Zone SE".
• Drill results reported here are from Stander Zone Central between Km 6.7 and Km 6.9.
• GT-Probe results are also reported and provide exploration targets for the 2020 season.
• Overall drill and geologic results support the Company's interpretation that D4 structures are conduits for gold-bearing fluids and that both D4 and D3 structures are potentially gold mineralized exploration targets with a cross-cutting pattern analogous to a checkerboard.
• Remaining 2019 drill results plus results from other work are pending release.

DRILL RESULT HIGHLIGHTS

• Drill hole EC19-325 intersected Stander Zone mineralization from surface grading 1.19 g/t Au over 35.6 meters (4.40-40.00 m).
• Drill hole EC19-326 intersected Stander Zone mineralization from surface grading 0.83 g/t Au over 44.65 meters (5.80-50.45 m).
• Drill hole EC19-327 intersected Stander Zone mineralization from surface grading 1.21 g/t Au over 45.60 meters (1.15-46.75 m).
• Drill hole EC19-267 (previously announced) intersected mineralization grading 1,009 g/t Au with 1,035 g/t Ag over 1.0 meter (104.00-105.00 m). The gold is hosted in a fault structure now interpreted as a cross-cutting northeast-trending structure (a "D4" structure in the Company's orogenic model) that cuts the northwest-trending ("D3") Stander Zone. This further supports the Company's interpretation that D4 structures are conduits for gold-bearing fluids and that both D4 and D3 structures are potentially gold mineralized exploration targets with a cross-cutting pattern comparable to a checkerboard.

STANDER ZONE CENTRAL DRILL RESULTS

Assay results for samples from nineteen (19) drill holes (EC19-255 to EC19-259 plus EC19-266 to EC19-269) (EC19-270 to EC19-272 plus EC19-320 to EC19-335) are newly reported here. The nineteen holes were drilled in an area of 200 meters by 100 meters located at Km 6.7 to Km 6.9 along the newly defined 15-kilometer baseline length of the Stander Zone (see discussion below). Significant intersections from these nineteen holes are listed in Table 1.

Table 1: Results from Stander Zone Central new drill holes EC19-270 to E19-272 plus EC19-320 to EC19-335 (together with 4 holes** reported previously on August 6, 2019).

NOTES:

The true thickness of reported drill intervals cannot be determined with the information currently available.
NSA: no significant assay
*Hole EC19-259 ended in mineralization.
*Hole EC19-332 ended at 9.1 m.
**Reported August 6, 2019; referenced in this NR

Figure 1: Drill Plan Map of Stander Zone Central drilling, also with GT-Probe locations discussed below.

STANDER ZONE CENTRAL GT-PROBE RESULTS:

The Company engaged GroundTruth Exploration Inc. ("GroundTruth") of Dawson, YT to conduct GT-Probe surveying, an overburden penetrating system designed to sample bedrock, to identify gold along the Nugget Fault corresponding to strike extensions of Stander Zone gold mineralization.

A total of 75 samples were collected on each of two lines spaced 400 meters apart, with samples at 5-meter spaced intervals, at Stander Zone Central (Km 6.5 and Km 6.9) to test for extensions in both directions. Both GT-Probe lines returned anomalous results in areas where extensions of Stander Zone mineralization could be expected. The southeastern line returned 5 samples across 20 meters with values up to 0.5 g/t Au. One hundred meters further south on the southeastern line, the GT-Probe detected a previously unknown second gold interval of 3 samples across 10 meters with values up to 0.9 g/t Au.

The survey successfully detected interpreted extensions of the Stander Zone gold mineralization as well as identifying a potentially new parallel zone. These will be priority drill targets in 2020.

STANDER ZONE MAGNETIC MODEL OVERVIEW

The Stander Zone gold mineralization and associated Nugget Fault is marked in geophysics by an intense northwest trending magnetic low, a major "D3" structure as defined in the Company's orogenic gold model (see News Release December 10, 2019). This magnetic low target associated with gold mineralization is traceable across the northwestern end of the Klondike District Property for a distance of 15 kilometers. To aid exploration and understanding of the scale of this gold-mineralized structure, the Company has divided the magnetic low into three five-kilometer segments along a 15-kilometer baseline length as measured from point "Km 10" in outcrop in Upper Eldorado Creek. The segments of the Stander Zone are shown in Figure 2.

Figure 2: Location of Stander Zone segments.

The northwest 5-kilometer segment from "Km 0" to Km 5" ("Stander Zone NW") has had no systematic exploration. Prospecting within this segment located an historic (c.1900) undocumented bedrock shaft with quartz in the ‘ore pile' (assays to 2.3 g/t Au at Km 2) and gold in quartz veining in outcrop (assays to 8.5 g/t Au at Km 3) within a significant fault zone now interpreted to be the northwest continuation of the Nugget Fault. This portion of the Stander Zone is offset slightly southward across the Eldorado Fault.

The central 5-kilometer segment ("Stander Zone Central") includes nearly all of the Stander Zone gold showings and has seen the vast majority of recent work including drilling. The central segment has gold mineralized quartz veins in outcrop and drilling across the 5-kilometer length, from Glacier Gulch (visible gold, assays to 9 g/t Au at Km 5) to Upper Eldorado Creek (visible gold, assays to 24 g/t Au at Km 10). The area of drilling described in this news release occurs between Km 6.7 and Km 6.9.

The southwest 5-kilometer segment ("Stander Zone SE") has also had only cursory exploration. It begins at Upper Eldorado Creek (visible gold, assays to 24 g/t Au at Km 10). Brief prospecting within this segment in 2019 located gold in quartz veining in outcrop in a creek (assays to 4 g/t Au at Km 12).

STANDER ZONE CENTRAL GOLD MINERALIZATION

Stander Zone Central drilling has intersected gold mineralization from surface over broad widths, consistent with previous drill results.

Gold in Stander Zone Central outcrops at surface between Km 6.7 and Km 6.9. The gold is coarse, visible free gold usually 1-mm in size but commonly occurs in larger clots to 1-cm size, hosted by quartz veining. Individual quartz veins range in size from 0.1 to 1.0+ meters with many close-spaced veins defining individual zones. These quartz vein zone(s) strike to the northwest adjacent to and above (in the hangingwall of) the controlling Nugget Fault. Individual quartz veins have a shallow 30-degree northeast dip however the aggregate quartz vein zones geometrically extend sub-horizontally away from the Nugget Fault for approximately 50 meters, forming gold zone(s) exposed at surface and running parallel to the Stander Zone / Nugget Fault along the slope.

STANDER ZONE CENTRAL DRILL INTERSECTION

The Company announced a drill intersection of 1,009 g/t Au with 1,035 g/t Ag over 1.0 meter in EC19-267 (see news release August 6, 2019). Subsequently, the Company re-engaged structural consultants SRK (Toronto) who conducted detailed core relogging and examination of oriented core measurements. This work interpreted the gold-bearing interval to be related to a cross-cutting northeast-trending structure (a "D4" structure in the Company's orogenic model) that cuts the northwest-trending ("D3") Stander Zone / Nugget Fault. This supports the Company's interpretation that D4 structures are conduits for gold-bearing fluids and that both D4 and D3 structures are potentially gold mineralized exploration targets with a cross-cutting pattern analogous to a checkerboard.

MACHINE LEARNING APPLICATION AT STANDER ZONE

The Company has developed and applied specific custom ("machine learning") algorithms to the main area of Stander Zone Central gold mineralization which has been used successfully to identify potential new drill targets. The objective was to test for correlations or linkages in mineralized vein sets in a data-rich area. Iterative processing identified linkages to veins sets in high priority target areas known to the Company, but also assigned high priority to areas not highlighted by other means. These new areas are considered for drill testing in 2020 - a successful outcome. The Company is extending these custom training algorithms to identify prospective areas in data-poor areas such as the Stander Zone NW and Stander Zone SE. The objective of this work is to develop new tools to accelerate identifying new targets for drilling.

2019 ASSAYS PENDING

Remaining unreleased 2019 drill results plus results from other work such as additional soil sampling, GT-Probe surveying at Lone Star Zone, rock (channel) sampling and oriented core analysis are also pending.

DRILL HOLE STATISTICS

Drill holes EC19-270 to EC19-272 were HTW-diameter and the remainder were NTW-diameter. Drill holes are generally oriented with 210 azimuth and -55 dip or -85 dip at collar, except where noted in the following table. The purpose of varying collar dip and azimuth was to test for cross-cutting structures and to obtain structural measurements from the use of oriented core tools.

Location, azimuth, dip and end of hole ("EOH") lengths for drill holes in this news release are listed in the following table:

SAMPLE AND ANALYTICAL PROTOCOLS

Stander Zone samples in this release are from "HTW" and NTW diameter drill core. Assay samples from drill core are cut using a diamond saw. Half the core sample interval is bagged, tagged, and sealed; the other half is returned to the core box with a corresponding tag and retained for reference. Three gold reference standards, blanks, coarse crush blanks, and sample duplicates are routinely inserted as part of Klondike Gold's quality assurance / quality control ("QA/QC") program, independent of and additional to the laboratory QA/QC program. See the Company website for additional information.

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.

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 bearing quartz veins and disseminations associated with district scale orogenic faults along the 55-kilometer length of the famous Klondike Goldfields placer district. To date, extensive gold mineralization has been identified at both the Lone Star Zone and Stander Zone, and other gold-mineralized targets have been located. 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.