Klondike Gold Corp. announce an Initial Mineral Resource Estimate in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards incorporated by reference in National Instrument 43-101 for the Lone Star and Stander Deposits at the Klondike District Gold Project, located near Dawson City in the Dawson Mining District, Yukon, Canada. The Initial Mineral Resource Estimate comprises a total Indicated Mineral Resource of 469,000 ounces of gold and a total Inferred Mineral Resource of 112,000 ounces of gold on the near-surface Lone Star and Stander Deposits.

The Mineral Resource Estimate is based upon drilling results from 2014 through 2021 field seasons. Both the Lone Star and Stander open pit deposits remain open with mineralization known to extend beyond the current resource model boundaries. Additionally, the average indicated mineral resource grade at Stander Deposit is 35% higher than at Lone Star Deposit.

The drill hole database is comprised of 241 diamond drill holes for the Lone Star deposit with a cut-off date of May 6, 2022. There are 29,623 assays for gold in g/t for a total of 26,988m of drilling. The original Au assays were composited to 1.0m as it is the most common sampling length with 55% of the data sampled to this length.

A total of 14,476 composites were generated from 195 holes located within the mineralized domain as defined by the geology model. The geology model is composed of a mineralized domain developed at a 0.2 g/t Au cut-off grade. The mineralized zone extends approximately 2 km along strike at an azimuth of 120° by 700 m wide and to a depth of approximately 400m below surface.

The high-grade gold outliers of the 1.0m composites within the mineralized domain were capped to 20.0 g/t Au. Statistics conducted on the capped composites showed lognormal distributions with reasonably well-behaved gold grade distributions. The spatial continuity of the gold grades was examined with a variographic study.

Results showed main orientations of gold grade continuity along the strike of the deposit oriented at 115°. Ranges of gold grade continuity within the mineralized domain are 49m along strike, 25m across strike and 33m vertically. The gold grades were estimated with an ordinary kriging technique into a rotated block model of 5.0m x 5.0m x 5.0m blocks with its X axis at an azimuth of 120°.

A minimum of 2 and maximum of 12 samples were used to calculate a grade estimate from the capped 1.0m composites. A 3-pass estimation approach was used with the first pass having a search ellipsoid oriented and dimensioned to the second range of the variograms and the second and third passes having a search ellipsoid dimensioned to two times and three times the second range of the variograms, respectively. Estimates were calculated within the mineralized domain only.

The gold grade estimates were visually and statistically validated to ensure that no bias is present and the level of smoothing/variability is adequate. The mineral resource was classified as indicated and inferred. The tonnage was calculated with a specific gravity value of 2.80 for the mineralized domain.

The mineral resource was constrained within a pit shell optimized from a Lerchs-Grossman algorithm with the following parameters: USD 1,700/oz Au, USD 2.50/t mining, USD 5.50/t processing, USD 2.00 G&A, 80% recovery, and 45° pit slope. The mineral resources are presented below at various gold grade cut-offs for the Lone Star deposit. The drill hole database is comprised of 174 diamond drill holes for the Stander deposit with a cut-off date of May 6, 2022.

There are 16,758 assays for gold in g/t for a total of 15,178m of drilling. The original Au assays were composited to 1.0m as it is the most common sampling length with 55% of the data sampled to this length. A total of 4,906 composites were generated from 96 holes located within the mineralized domains as defined by the geology model.

The Stander deposit is made of 2 mineralized zones; the Central zone and the East zone located some 500m to the southeast. Both mineralized zones were delineated at a 0.2 g/t Au cut-off grade. The Central mineralized zone extends approximately 400m along strike at an azimuth of 130° by 200 m wide and to a depth of approximately 150m below surface.

The East mineralized zone extends approximately 700m along strike at an azimuth of 130° by 250 m wide and to a depth of approximately 200m below surface. The high-grade gold outliers of the 1.0m composites within the mineralized domain were capped to 25.0 g/t Au for the Central zone and to 20.0 g/t Au for the East zone. Statistics conducted on the capped composites showed lognormal distributions with reasonably well-behaved gold grade distributions.

The spatial continuity of the gold grades was examined with a variographic study. Results showed main orientations of gold grade continuity along the strike of the deposit oriented at 140° for both zones. Ranges of gold grade continuity within the Central mineralized zone are 39m along strike, 27m across strike and 20m vertically.

For the East mineralized zone the ranges of gold grade continuity are 47m along strike, 32m across strike and 28m vertically. The gold grades were estimated with an ordinary kriging technique into a rotated block model of 5.0m x 5.0m x 5.0m blocks with its X axis at an azimuth of 135°. A minimum of 2 and maximum of 12 samples were used to calculate a grade estimate from the capped 1.0m composites.

A 3-pass estimation approach was used with the first pass having a search ellipsoid oriented and dimensioned to the second range of the variograms and the second and third passes having search ellipsoids dimensioned to two and three times the second range of the variograms, respectively. Estimates were calculated within the mineralized zones only. The gold grade estimates were visually and statistically validated to ensure that no bias is present and the level of smoothing/variability is adequate.

The mineral resource was classified as indicated and inferred. The tonnage was calculated with a specific gravity value of 2.7833 for the mineralized zones. The mineral resource was constrained within a pit shell optimized from a Lerchs-Grossman algorithm with the following parameters: USD 1,700/oz Au, USD 2.50/t mining, USD 5.50/t processing, USD 2.00 G&A, 80% recovery, and 45° pit slope.

The mineral resources are presented below at various gold grade cut-offs for the Stander deposit.