Klondike Gold Corp. (KG: TSX.V) is pleased to report that the 2012 field season at the Lone Star Project has provided encouraging exploration results and positive direction for the 2013 season.

The 2012 exploration program at Lone Star has focused on defining and understanding historical mining areas - including Boulder Lode, one of the first operating mines in the famous Klondike camp - as well as known and newly discovered gold occurrences. This was the first year that consistent exploration has been conducted on the Yukon property since 2007.

Klondike Gold's 2012 work program has benefited from the compilation of exploration results and data from previous operators since the early 1900s. This extensive volume of work was fully reviewed and applied to a new generation of geological mapping and analysis before being deployed in a wide-scale exploration initiative throughout the summer.

Our management team believes it is important to evaluate the significance of the entire claim block consisting of approximately 200 sq km. The strategically assembled land package covers more than 70% of the Bonanza Eldorado catchment area, the source of roughly 50% of the approximately 20 million ounces of mostly placer gold recovered in Yukon since the Klondike stampede of 1898.

By compiling this year's results with historic and more recent exploration data, our technical team has obtained important new insights into the structure and geology of the flagship Lone Star Project. This improved understanding will help guide ongoing exploration, which is aimed at bringing the considerable gold occurrences on the property into a recognizable resource format.

The Company's strategy is to work with expert consultants and systematically build on existing work that has been compiled into new, usable datasets to facilitate a thorough data review and subsequent development of new ideas and geological models.

New understanding of the mineralization at the Boulder Lode has

Boulder Lode Mine in production from 1912 - 1914

been facilitated by the excavation and sampling of the 100-year-old open cut.  Structural and lithological mapping was conducted by consultants Dr. Doug Mackenzie and Dr. James Mortensen, who have extensive experience with the property.  Structure contouring and lithological mapping used previous drilling and trench data to generate an exploration model that shows gold enrichment in a sub-unit of the Klondike schist on the anticlines (structural high points) of undulating D2 and D3 folding on a 100 to 200 meter scale.  Late D4 extensional deformation appears to have preferentially mineralized these anticlines.  This has implications for new target areas to the east and north of the Boulder Lode (Figure 2) that will be investigated during the remainder of the 2012 exploration season.

View of Lone Star Project Looking West

Pioneer Zone Looking East