2010-10-04 04:05 ET - News Release

Mr. Kevin Hull reports

KLONDIKE GOLD CORPCORPORATE UPDATE

Klondike Gold Corp. will be, subject to shareholder approval, consolidating its shares to position itself better to raise funds and further advance its B.C. projects. Postconsolidation exploration will focus on the company's gold projects, as well as its Sullivan-type targets.

The board of directors has unanimously approved a consolidation of its share capital on the basis of one new common share for up to every existing 15 common shares, subject to approval of the shareholders of the company and regulatory approval. Where the exchange results in a fractional share, the number of common shares will be rounded to the nearest whole common share. The board of directors believes that the consolidation will enhance the marketability of the common share as an investment and should facilitate additional financings to finance future operations. Shareholder approval of the proposed consolidation will be sought at the company's upcoming annual general and special shareholders meeting to be held on Oct. 27, 2010. The record date for the proposed consolidation will be set subsequent to both the requisite shareholder and regulatory approvals being obtained. The company currently has a total of 204,389,745 common shares issued and outstanding and no preferred shares. In the event the required shareholder and regulatory approvals are obtained and the company effects the full one-new-common-share-for-every-existing-15-common-share consolidation, the company would have a total of 13,625,983 common shares issued and outstanding.