Klondike Gold to Secure $2 Million from Private Placement; to Use Proceedings for Drilling at Irishman Project

KLONDIKE GOLD CORP. (TSX VENTURE:KG) has announced that it proposes to raise up to $2,000,000 by way of a brokered private placement through the issuance of up to 10,000,000 units at a price of $0.20 per unit.

Each Unit will consist of one non-flow through common share and one-half of one non-flow through, non-transferable share purchase warrant (the "Warrant"). Each full Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.25 for a period of three years from closing the private placement. The private placement and any modifications to it are subject to compliance with applicable securities laws and to receipt of regulatory approval. The Company may pay finders' fees in accordance with the policies of the TSX Venture Exchange.

Proceeds of the private placement will be used to drill a number of targets on the Company's Irishman project as well as advance its gold projects in the Timmins area of Ontario, and for general working capital.

M Partners Inc. has been retained as lead agent in connection with the Offering and as financial advisor to explore strategic alternatives for the Company. M Partners are located in Toronto and Vancouver with over 25 professionals serving the needs of their institutional and retail clients.