The primary area of interest for your company will be Yukon Territory where our focus will be exploration and discovery of large, bulk tonnage gold deposits.  As you are probably aware, our road accessible, core holdings (approximately 200 sq. km. post take-over) encompass 5 separate projects located immediately to the southeast of Dawson City and cover a large portion of what was the core of the Klondike Gold Rush of the late 1800's.  We have the largest package of ground of any public company covering this favorable geology.

Over the past several years the Yukon has experienced a resurgence in mineral exploration.  In the past two years, over 200,000 new hard rock claims have been staked.  During this same period approximately $450 million was spent on exploration that included over 700,000 meters of drilling.   These figures point to a new Yukon gold rush.  Despite this, Klondike Gold Corp. had been inactive on the Lone Star property since 2007 primarily because of funding and other issues with our previous partner who held operating rights to our property.  These issues have now been resolved. With new management and with new sources of funding we are fully committed to maximizing the value of the Lone Star Project, one of the core holdings in our portfolio.

On the exploration side our intention is to benefit from the considerable ongoing research by various universities (including University of British Columbia, University of Leeds in England and Otago University in New Zealand) that has been directed towards the genesis of the gold found in the Klondike placer mines.  Recent advances in trace element geochemistry may assist us in identifying schist rocks more favorable for hosting primary gold mineralization.  In addition, our exploration team is compiling all historic property data and preparing for a program of systematic mapping and geochemical sampling covering the entire Lone Star property (133 sq. km.).  All of this is in preparation for a field program that has commenced.