Klondike Gold Corp. announced a surface outcrop discovery of high-grade gold-silver in quartz veining at the Gay Gulch Showing on the Klondike District Property (the ‘Property') located in the Dawson mining district, Yukon, Canada. Assay results have been received for a total of 26 surface rock outcrop and subcrop grab samples collected in 2022 from the Property, including the headline Au-Ag sample from Gay Gulch.

A total of 14 surface rock samples were collected from examinations of known mineralized localities at Lone Star Zone, Stander Zone, and ‘other' structural areas of interest. Sampling from selected outcrop and subcrop yielded gold values of >0.05 ppm to 9.6 g/t Au at Lone Star (4 samples), 11.7 g/t Au at Stander (1 sample), and >0.05 ppm to 0.8 g/t Au from various areas (9 samples). The high Au sample was collected on Eldorado Creek approximately 1 km along a structural trend from Gay Gulch.

The high gold assay results are from sheeted quartz veins and are in line with expected values. Significant new observations and sample results that were obtained from Gay Gulch are discussed here. At the Gay Gulch Showing a total of 12 rock grab samples from outcrop were assayed.

A total of 11 of the 12 samples assayed between >0.05 g/t Au and 8.1 g/t Au, 0.3 ppm and 6.3 ppm Ag, and no detectable Te with the Au and Ag sample collected from a sheeted quartz vein in line with expected values. During field work to collect rock grab samples, hand trenching to expand the Gay Gulch Showing exposure revealed gold-bearing quartz veining at the fault contact between quartz augen schist and graphitic schist units. Dr. Ben Frieman, Colorado School of Mines, photographed the outcrop and provided annotations of the geology.

An outcropping quartz vein at the fault contact was observed to contain abundant coarse visible gold; rock sample ‘FV1A' was collected for research and part of this was submitted to the Company's commercial lab for assay as rock sample 1999552. This one sample, Gay Gulch rock sample 1999552, assayed 4,064 g/t Au with 1,149 g/t Ag with anomalous tellurium (16.1 ppm), bismuth (3.5 ppm), antimony (24.6 ppm), and mercury (15.2 ppm). Research sample FV1A was imaged and analyzed using a Scanning Electron Microprobe (‘SEM') by Dr. Ben Frieman at the Colorado School of Mines.

SEM work confirmed telluride minerals are directly associated with the gold (electrum) mineralization as well as silver sulfosalts, among other unique observations shown. This work for the Company establishes a direct link between high gold (Au), silver (Ag), and tellurium (Te) mineralization associated with cross-cutting fault structures. In 2014 at the Lone Star Zone, Klondike Gold discovered a quartz breccia vein in a cross-cutting fault, similar to sample 1999552.

Three rock grab samples from outcrop of this vein assayed 831 g/t Au to 1,776 g/t Au with 205 g/t Ag to 400 g/t Ag with anomalous Te. In 2019 at the Stander Zone, the Company intersected a zone of gold including dendritic (electrum) wires plus coarse gold clots assaying 1009 g/t Au with 1035 g/t Ag and with anomalous Te over 1.0 meter in drill hole EC19-267. This interval may also be structurally similar to rock sample 1999552.

The discovery of high-grade gold-silver bearing quartz veining within a significant fault in outcrop where structural orientation measurements have been collected, the documentation of telluride and silver sulfosalt minerals, the newly linked chemical association of Au-Ag-Te mineralization to structures significantly bolsters the Company's exploration model of mineralization. The Company has reviewed exploration information covering the immediate Lone Star - Stander - Gay Gulch area. Numerous linear Au-Ag-Te soil anomalies potentially resulting from in-situ high gold-silver mineralization coincident with LIDAR lineaments interpreted as potential late faults will be high priority targets for 2023 exploration.

In 2022, Klondike Gold established research partnerships involving students and professors from University of Ottawa, University of Toronto, and Dalhousie University in Canada plus the Colorado School of Mines and Centre for Advanced Subsurface Earth Resource Models (‘CASERM') in the United States. This news release includes preliminary research results from Colorado School of Mines /CASERM. Three posters reporting different aspects of ongoing research will be on display at the Prospectors and Developers Association of Canada (PDAC) convention in Toronto in early March.