Klondike Gold Corp. Advances Consolidation Of Yukon Mining Interests

KLONDIKE GOLD CORP. (TSX-V:KG) (the “Company”) is pleased to announce that it has received conditional approval from the TSX Venture Exchange for its takeover bid for the shares of Klondike Star Mineral Corporation (“KSMC”) and that the management and Board of Directors of Klondike Star Mineral Corporation recently signed a letter of support for the Takeover Bid. The Company previously announced the proposed offer to exchange one share of Klondike Gold Corp. for four shares of Klondike Star Mineral Corporation in its news release dated March 1, 2012.

A successful takeover of KSMC will increase the land position held by the Company from 700 quartz claims covering 130 square km, to approximately 1100 claims covering 200 square km, (100% owned) which represents more than 70% of the Bonanza Eldorado Catchment area credited with providing over 50% of the historic gold production in the Klondike. Eldorado creek alone is reported to have produced over 2 million ounces of gold over as little as 8 km of placer workings while Upper Bonanza reported over 1 million ounces over 5 km of placer workings. Both of these creeks lie immediately adjacent to the company’s flagship Lone Star property.

The Company’s takeover bid is contingent on the tendering of a sufficient number of KSMC shares to bring the company’s shareholdings in KSMC to a minimum of 66.6%; the satisfying of the exchange’s filing requirements; and the completion of the Company’s due diligence process.

As announced in a February 8, 2012 news release, the Company has engaged the IR services of the Raya Group Inc. of Vancouver. This engagement is on a consulting basis for a term of one year at an anticipated cost for the next 12 months of $ 60,000 plus 50,000 incentive stock options. The Raya Group is headed by Robert A. Young who has over 20 years experience in working with the investment community.

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.

Copyright Business Wire 2010