Klondike Gold Corp. announced that it has entered into a Property Acquisition Agreement with C2C Gold Corp. for the purchase, by Klondike Gold of a 100% interest in C2C's "Quartz" and "Sulphur" properties comprised of 689 mining claims covering 143 square kilometers located in the Dawson mining district, Yukon, Canada (the "Property Acquisition Agreement").

Upon completion of this transaction, Klondike Gold will have expanded its Klondike District Property land position covering the prospective Klondike goldfields with direct ownership of a total of 3,913 quartz claims (increased from 3,078) in one contiguous district-encompassing property covering a 727 square kilometer area (increased from 585), expanding the property area by 27%. In return for the acquisition by Klondike Gold of a 100% interest in C2C's Quartz and Sulphur properties, plus 12 years of exploration data, the terms of the Property Acquisition Agreement are as follows: Issuance of 1,000,000 common shares of the Company to C2C; and The granting to C2C of a 1% net smelter returns royalty in respect of C2C's Quartz and Sulphur properties, of which Klondike Gold may purchase one-half of the NSR Royalty (being a 0.5% NSR Royalty) from C2C for cash in the amount of $500,000 at any time. The Quartz and Sulphur properties each have underlying 2% NSR Royalty obligations where Klondike Gold has the right to purchase one-half (or 1%) of each NSR Royalty for one million dollars ($1,000,000) cash and has a right of first refusal to purchase the remaining 1%.