Lone Star Property by Lonestar Gold Inc.

nlk


FSC / Press Release

Klondike Gold Corp. Announces the Filing of a 43-101 Report on the Lone Star Property by Lonestar Gold Inc.

Vancouver, British Columbia CANADA, December 16, 2011 /FSC/ - Klondike Gold Corp. (KG - TSX Venture), is pleased to announce that its associated company, Lonestar Gold Inc., has completed a Geology and Summary Report of the Lone Star Claim Group (Klondike Goldfield), Yukon Territory in compliance with current N.I 43-101 rules. The report was authored by Mr. T. Liverton PhD, C. Geol, FGS. The Lone Star Crown Grant (7) and 699 quartz claim block under option to Lonestar Gold Inc. covers the region from El Dorado Creek to Bonanza Creek and north to Boulder Creek, much of the historical placer goldfield. Nineteenth century prospecting resulted in the discovery of quartz-vein associated gold on the ridges containing the Lone Star and Violet lodes. This resulted in the development of underground and open cut workings on these two properties. The report summarizes the exploration program to date and provides an introduction to the setting of gold mineralization within the Lone Star property.


Lonestar Gold Inc. operates the Lone Star property under an option from Klondike Gold Corp and Klondike Star Mineral Corporation, where it can earn up to a 100% interest in stages. (see News Release July 11, 2011).


Klondike Gold Corp. recently offered the shareholders of Lonestar Gold Inc. to acquire their shares in Lonestar Gold in exchange for shares of Klondike Gold Corp at a ratio of three Klondike Gold Corp. shares for one share of Lonestar Gold. (see News release October 18, 2011).


ABOUT KLONDIKE GOLD CORP. The company is exploring diverse projects prospective for precious and base metals in known mineral districts of Canada, including the historic Klondike (Yukon Territory) and Rossland (B.C.) gold camps. In addition the company holds a number of other properties in southeast British Columbia prospective for both gold and Sullivan type base metal deposits.


For further information contact:

Alan Campbell, CFO

Klondike Gold Corp.

Phone: (604) 639-4535

Email: info@klondikegoldcorp.com