Klondike Gold Corp.-Purcell Basin, BC: Massive Sulphide Exploration Update

VANCOUVER, BRITISH COLUMBIA, May 19 (MARKET WIRE) --
Klondike Gold Corp. (TSX VENTURE: KG) (the "Company") has led a detailed
and comprehensive exploration program focused on the search for
"Sullivan-type" massive sulphide deposits in the Purcell Basin of
southwestern British Columbia since 2002. These programs were conducted
in partnership with Sedex Mining Corp., Abitibi Mining Corp, Golden
Chalice Resources Inc. and Supergroup Holdings Ltd.

Approximately $6 million has been spent to date on airborne geophysical
surveys, geochemical programs and deep drilling to locate structural
basins similar to the Proterozoic basin hosting the world-class Sullivan
Mine near Kimberley, which closed in 2001 after producing more than 150
million tonnes averaging 6.9% lead, 5.1% zinc and 67 g/t silver. The
Sullivan deposit is known as one of the largest and richest sedimentary
exhalative (SEDEX) deposits in the world.

Exploration programs to date have successfully identified six structural
basins as well as several more areas with indicators of Proterozoic
tectonic activity, one of the main criteria for basin recognition.
Drilling in several of these basins - Panda, Cold Creek, Sullivan South
(Pitt-Ash), Fors-Davent and Pakk - intersected distal base metal sulphide
mineralization at Sullivan time, indicating seafloor exhalite
mineralization. This initial exploration success was followed up by
systematically testing these basins, also by deep widely spaced drill
holes, in order to vector towards the source of sulphide mineralization.

One of the more successful programs focused on the Panda Basin and
involved drilling six holes, all to the Sullivan time horizon, over a
widely spaced area. This work clearly defined the limits of the basin and
also showed that the sulphide content is increasing towards the
southwest, near the intersection of the basin axis with a
northeast-trending Proterozoic-age fault. A seventh hole initiated in the
2007 field season was successfully completed late last fall. Hole DDH
Irish 07-01 intersected an anomalously thick Sullivan-type stratigraphic
interval with considerable disseminated and wispy sulphides, including
both lead and zinc mineralization. This represents one of the best
Sullivan intersections drilled in the Purcell Basin outside of the
immediate Sullivan basin itself. The Company believes that further
exploration of the Panda Basin is warranted, including down-hole
geophysics and additional step-out drilling.

Klondike Gold and its joint venture partners have held a large ground
position in the Purcell Mountains, which has since been reduced to cover
key ground based on the recognition of the location and evaluation of
prospective Sullivan-type basins. The Cold Creek basin, located 20 km
south of the Panda basin, is marked by numerous surface indicators of
mineralization as well as diagnostic sedimentary units but has, to date,
only one hole drilled to Sullivan time. Considerable ground has been
released in the southern part of the Sullivan-Pitt-Ash basin, but several
key tenures have been retained to cover ground where a well-mineralized
Sullivan horizon was intersected. Some ground was also retained in the
Hughes Range, 25 km east of the Sullivan Mine where a small
past-producing stratiform silver-lead-zinc deposit known as the Kootenay
King is located.

The Purcell Basin is considered one of the most prospective
Proterozoic-age sedimentary successions in the world, based largely on
the successful exploration of the $40-billion Sullivan deposit. These
basins typically contain several SEDEX-type silver-lead-zinc deposits, in
contrast to the Purcell basin, which until recently had only one known
massive sulphide deposit of substantial size. The recently reported
drilling success of Azteca Gold Corp. in intersecting several meters of
massive lead-zinc mineralization in similar rocks in Idaho increases the
potential for discovery of Sullivan-type massive sulphide deposits in
correlative Purcell rocks in British Columbia. After an aggressive and
successful exploration program, Klondike Gold believes it has the
knowledge and expertise, as well as an excellent ground position, to
successfully continue its exploration for a world-class massive sulphide
deposit.

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 is a large landholder in the Klondike District of the Yukon
Territory, an area which produced between six and twelve million ounces
of gold during its historic gold rush. The Company also holds a 50%
interest with partner Chalice Diamond Corp in approximately 78,000 acres
of diamond properties located in the Chapleau-Wawa region of Ontario and
a number of properties in southeastern British Columbia.

Please visit the Company's website: www.klondikegoldcorp.com for more
information on the diamond properties in Ontario, our holdings in the
Klondike and our properties in southeastern BC. You will also find
Smartstox interviews with company President, Richard Hughes located on
the website.

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
Alan Campbell
CFO
(604) 685-2222

Hughes Exploration Group
Kevin Hull
Investor Relations
(604) 685-2222
info@klondikegoldcorp.com
www.klondikegoldcorp.com

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