PRIVATE PLACEMENT CLOSES, Company Signs Investor Relations
      Contract


Klondike Gold Corp. (TSX.V: KG) is pleased to announce it has received
acceptance for the final tranche of its private placement announced on
October 18, 2011. This final tranche totaled 17,470,000 shares (priced
at $0.10 per share) for total proceeds of $1,747,000.00. A finder's fee
of $20,520.00 was paid to Haywood Securities Inc. Together with the
initial tranche (completed Dec. 29, 2011) this private placement raised
$3,147,000.00 (inclusive of finders fee's). The securities issued under
the current private placement are subject to a four month hold. 
During the current Quarter the company has exceeded its financing
targets, raising a total of $3,760,000.00. These funds, in addition to
the $1,039,204.00 held by Lonestar Gold Inc.---80% of which is owned by
the Company---will bring the total funds available to the Company to
$4,799,204.00.  

With these proceeds the Company intends to advance its mineral
exploration projects in the Yukon and British Columbia. In addition the
Company will also actively seek opportunities to expand its property
interests in Canada and abroad.

The company also wishes to announce it has engaged The Raya Group of
Vancouver to assist with its investor relations. The Raya Group is
headed by Robert A. Young and has over 20 years experience in working
with the investment community.  

With the acquisition of Lonestar Gold Inc. the Company consolidated its
interest in the hard rock gold camp in the Klondike Gold Fields
immediately to the south east of Dawson City, Yukon. Subsequent to
this, the Company is building a geological team whose focus will be on
advancing its projects in the Yukon and British Columbia.

The previously announced compilation of historic and recent Lonestar
data from its Yukon property is proceeding well. Having obtained the
professional and technical capacity needed to advance exploration, the
company is currently engaged in securing the logistical and supporting
infrastructure for this year's exploration effort.
 
ABOUT KLONDIKE GOLD CORP. Klondike Gold Corp. is a Canadian exploration
company focused on generating and adding value to grassroots projects
through the discovery process. The Company is exploring diverse
projects prospective for precious and base metals in known mineral
districts of Canada, including the historic Klondike Gold Fields of the
Yukon and southern British Columbia.