Klondike Gold Corp.-2008 Exploration Update: Precious Metal Projects

VANCOUVER, BRITISH COLUMBIA, Jul 31 (MARKET WIRE) --
Klondike Gold Corp. (TSX VENTURE: KG) is pleased to announce its updated
2008 exploration program on several precious metal projects in the
Kootenays of southeastern British Columbia. These include the Clubine, a
past-producing polymetallic silver vein camp just north of Salmo, the
gold-copper Red Point property just east of the Rossland gold camp, and
Ron Gold, a gold prospect west of Nelson. Dependent on financing,
programs will involve geological mapping, some soil geochemistry,
trenching and at Red Point, drilling. Klondike Gold is well positioned to
advance these properties as they control considerable land packages, have
a well-qualified exploration staff, and through another company of the
Hughes Exploration Group, Klondike Silver Corp., have a fully operational
mill located near New Denver.

The Clubine property, located just north of Salmo, is a past producing
precious metal-lead-zinc property wholly owned by Klondike Gold Corp. The
property produced 3,800 oz gold and 7,200 oz of silver, as well as lead
and zinc, mainly between 1936 and 1939. Previous work indicates that gold
increases with depth, with a reported 34.6 g/tonne Au over 21.6 meters (1
oz/ton over 70.9 feet) in the underground Level 2 (Yellowjack private
report, 1990 - these intercepts are non-Policy 43-101 compliant, true
thickness and grades will be determined with future drilling). Additional
exploration by the former owners (Yellowjack Resources Ltd.) included
drilling beneath the No. 5 level, with the intersection of gold-quartz
veins and silicified zones, and the discovery in 1990 of the Maggie zone,
approximately 1 km to the northwest.

Proposed exploration by Klondike Gold includes compilation of all past
data in digital format, retrenching and new trenching around known
mineralization at the Maggie zone, infill soil sampling, reevaluation of
past geochemical data, and a ground geophysical survey. Based on results
from this initial work, a second phase will include diamond drilling to
test for gold zones noted in underground workings and to determine strike
and depth of surface mineralized structures. With positive results,
direct shipping of silver-lead-zinc material to the Klondike Silver mine
site at Sandon will be considered.

Considerable exploration by Klondike Gold Corp. on the Red Point
property, including airborne geophysics and diamond drilling, has
identified several gold and gold-copper targets. 2007 exploration focused
on a large, bulk tonnage gold-copper target on the northern part of the
property, with the most northern of four holes intersecting anomalous
gold and copper through most of its 220-meter length. Several higher
grade intervals included approximately 10 m grading 1400 ppb (1.4
g/tonne) Au, 2 m grading 3900 ppb (3.9 g/tonne) Au and 0.4 m grading 6400
ppb (6.4 g/tonne) Au. Further drilling here should be directed to the
largely underexplored area immediately to the northeast. High grade vein
targets, similar to the massive sulphide Au-Cu veins that characterize
the Rossland camp, have been discovered and require further evaluation,
including trenching and drilling. A high grade gold-quartz vein, the
Cathedral vein, is exposed in a small open cut nearly 1.5 km south of the
North zone. It has a true width of several meters, and has returned grab
sample values that range up to 46 g/tonne gold. Cathedral lies along a
well-defined east-northeast trending structural trend, marked by a
pronounced airborne anomaly and a coincident gold soil anomaly, which
requires further exploration. The similarity in geology, structural
trends, and locally styles of mineralization between the Red Point camp
and the Rossland camp, which produced approximately 3 million ounces of
gold, enhances the potential of the Red Point camp.

The Ron Gold property is located west of Nelson, and along the structural
trend of Sultan Mineral's Keno property immediately to the south. They
are within a wide north-trending shear, and are underlain by mainly
Nelson age granitic rocks, similar to those that host the Rossland Gold
camp, and lesser Rossland volcanic rocks. Considerable past work includes
soil sampling by previous owners, an I.P. survey, limited mapping and
some sampling of known mineralized showings The claims are surrounded by
past producers and prospects, yet the claims are largely under-explored,
largely due to past fragmented ownership and general lack of outcrop. A
soil geochemical survey (by U.S. Borax) covered only a part of the ground
but was successful in returning copper values to over 4000 ppm and gold
values to 800 ppb (0.8 g/tonne). Work by Klondike Gold is limited to a
few days sampling along road cuts. There has been no additional soil
surveys, geophysics, prospecting or geological mapping. A limited 2008
field program is proposed, including reconnaissance mapping, extending
the soil grid, and prospecting and sampling.

Klondike Gold also announces that it has terminated option agreements for
the JCD & IOCG Cranbrook South properties, due to less than favorable
results.

The Qualified Person for the purpose of National Instrument 43-101 is
Trygve Hoy who has read and agreed with the contents of this news release.

About Klondike Gold Corp.

Klondike Gold Corp.'s portfolio covers mineral exploration for gold,
silver, lead, zinc, and diamonds in some of the best known mining areas
of Canada. Klondike Gold Corp.'s cost of acquisition for these properties
has been relatively inexpensive by getting positioned in the camps when
metal prices and exploration activity were low. It is now well positioned
to take maximum advantage of improved metal prices. Details relating to
exploration activities on specific properties will be announced as the
work programs are implemented.

Or visit Klondike Gold's web-site: www.klondikegoldcorp.com to see
Smartstox interviews with the Company's President.

The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's expectations
and projections.

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

Contacts:
Hughes Exploration Group
Kevin Hull
Investor Relations
(604) 685-2222
(604) 685-3764 (FAX)
Website: www.klondikegoldcorp.com

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