Company Signs Investor Relations Contract

Vancouver, British Columbia CANADA, February 09, 2012 /FSC/ - Klondike Gold Corp. (KG - TSX Venture), 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 fees). 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.

CONTACT INFORMATION
Inquiries Robert A. Young 604-685-2222 (Ext 398)
Email [email protected]
Or Erich Rauguth, President & CEO 604-685-2222

Please note that the company's website is presently under construction. www.klondikegoldcorp.com


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Klondike Gold Corp.
711-675 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6B 1N2


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Source: Klondike Gold Corp. (KG - TSX-V) http://www.klondikegoldcorp.com
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Source: Filing Services Canada (February 9, 2012 - 8:55 AM EST)