FOR IMMEDIATE RELEASE: July 31, 2013            TSX: KG

Vancouver, BC: Klondike Gold Corp. (the 'Company') is pleased to report that Portuguese Authorities have granted 3 key new exploration licenses. The Company's application for the Castelo de Paiva, the Valongo and the Ponte do Barca exploration areas have been accepted by the Portuguese Authorities and that exploration licenses have been granted to the 100% owned European subsidiary of Klondike Gold Corp., Klondike Gold Corp. Portugal.

 

CASTELO de PAIVA

 

The Castelo de Paiva license covers an area of 110 square kilometers and is located near the southeastern limit of the Valongo Mineral Belt approximately 60 km east of Porto.  It is contiguous to Klondike Gold's Lagares-Castromil License.  Mineral occurrences of gold, silver, antimony, lead, zinc, and feldspar are common and the area includes the historic Roman gold mine of Cabranca as well as several other Roman gold mine sites.  The Terramont silver, lead, zinc mine is also located in this exploration license.  This silver mine was one of the most important in Europe in the 1960's and shut down in 1973 when silver prices languished at around $1.80 per ounce.  The Terramonte zone is of great interest to the company because of current silver prices.

 

VALONGO  

 

The Valongo license covers the center of the Valongo Anticline which hosts the Valongo gold and antimony belt.  Gold deposit occurrences in the Valongo belt are clustered in a number of areas which have been explored intermittently since Roman times.  Old mines occur along the north-eastern limb of the Valongo anticline in the upper Arenigian quartzite near the junction with the basement-greywacke complex at Santa Justa Pias and Banjas, and also at the contact between the calc-alkaline granite and the Silurian shale at Castromil..  Some antimony-gold deposits in the turbiditic greywacke and shale sequence in the vicinity of the arc-shaped thrust fault zone in Montalto, Tapada and Fontinha were also mined.  In terms of Portuguese gold

historical production, this auriferous district was the second most important in the 20th century, right after Jales, having produced about 5.6 tons of gold.

 

The Valongo License connects the Companies Lagares-Castromil license to the south with its Balazar license to the north. The Klondike Gold exploration area now extends over a contiguous area of over 550 square kilometers that covers over 80% of the mineralization in the Valongo Gold and Antimony Belt.

PONTE DO BARCA

The Ponte do Barca license is located approximately 70 km north of Klondike Golds' Castromil mine and hosts a shear zone associated with the Rio Lima Valley which was exploited by several Roman gold mines.  Historic assay results posted in the report "Mina de Pirites Aur�feras C�to da Cruz - Mem�ria descritiva e justificativa: Situa��o e vias de comunica��o," presented by the Department of Mines and Economy in 1948 include:

 Klondike Gold's Portuguese technical staff is currently engaged in compiling all available data in to its data base and expects to provide exploration plans for all 3 areas by September 30, 2013.