Vancouver, British Columbia (FSCwire) - Klondike Gold Corp. (TSX.V:KG) (“Klondike Gold” or the “Company”) announces that it has closed its acquisition of 46799 Yukon Inc., in consideration for the issuance of 6,435,000 common shares of the Company at a deemed price of $0.20 per share. 46799 Yukon Inc. is the holder of the other 50% interest in the joint venture on the Company's Indian River Property located in the Yukon Territory. As a result of the acquisition the Company now holds an undivided 100% interest in the property subject to an existing third party 5% royalty on production of gold or other minerals. The securities issued in connection with this transaction are subject to a four month statutory hold period.

The Company also announces that pursuant to this transaction, Fiore Financial Corporation, a Company owned and controlled by Frank Giustra, acquired ownership and control of 2,964,500 shares at a deemed price of $0.20 per share, representing 15.35% of the issued and outstanding common shares of the Company.

As a result of this acquisition of securities described above, Fiore Financial Corporation, a Company owned and controlled by Frank Giustra, and Frank Giustra personally will hold in aggregate, 3,209,750 common shares of the Issuer, representing 16.62% of the current issued and outstanding shares. Fiore Financial Corporation together with its joint actors, has acquired the common shares for investment purposes and, as disclosed in the Early Warning Report accompanying this news release, may in the future acquire or dispose of securities of the Company, through the market, privately or otherwise, as circumstances or market conditions warrant.

The Company has also been advised that pursuant to this acquisition, 451178 BC Ltd., a Company owned and controlled by Roberto Aquilini, acquired 2,839,500 shares at a deemed price of $0.20 per share, representing 14.71% of the current issued and outstanding common shares of the Company.

As a result of this acquisition described above 451178 BC Ltd., and Trisec Securities Inc., both companies owned and controlled by Mr. Aquilini, will hold in aggregate, 2,839,500 common shares of the Issuer, representing 14.71% of the current issued and outstanding shares of the Issuer and would own 3,102,000 common shares, representing 15.85% on a partially diluted basis, assuming exercise of the 262,500 warrants held by Trisec Securities Inc. 451178 BC Ltd., together with its joint actors, has acquired the common shares for investment purposes and, as disclosed in the Early Warning Report accompanying this news release, may in the future acquire or dispose of securities of the Company, through the market, privately or otherwise, as circumstances or market conditions warrant.

ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp., is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon. The Company is focused on the development of its Yukon gold properties, and also holds a large portfolio of gold and base metal projects in southeastern British Columbia.

On behalf of Klondike Gold Corp.

“Peter Tallman”

President and CEO

(604) 559-4440

E-mail: info@klondikegoldcorp.com