New Klondike grab samples up to 16.46 g/t Au in Ontario

Sep 25, 2013

NEW KLONDIKE REPORTS RECONNAISSANCE GOLD ASSAYS FROM ITS GOLDSTORM PROJECT RANGING UP TO 16.56 G/T AND AMENDS TERMS FOR A $300,000 PRIVATE PLACEMENT OFFERING

New Klondike Exploration Ltd. has received gold assays from reconnaissance-scale sampling during late July on its Goldstorm project near Dryden, Ont. Ten samples taken from four gold prospects located in the southwestern part of the project area, collectively referred to as the Katisha Lake gold zone, assayed an average of 2.18 g/t Au with individual samples ranging from 0.28 g/t to 8.69 g/t Au. The samples were composite grab samples representing mineralized zones ranging in thickness from 0.3 to 0.8 m. Gold mineralization at Katisha Lake is hosted by silicified zones and quartz veining developed within sheared, sericitized and pyritized zones ranging from 1 to 20 metres in width. These zones have been traced by historical exploration programs for lengths ranging from 50 to 300 metres. The zones are hosted within a complex geological setting that includes layered gabbroic sills intruding Archean aged mafic to felsic volcanic and intrusive rocks. All of these rocks are unconformably overlain by a band of Timiskaming-type sediments immediately to the north of the known gold prospects. The recent sampling and geological reconnaissance program has helped to confirm recent prospector sampling and observations, which indicate that the major trend of the mineralized zones at Katisha Lake is from north-south to northeast-southwest. This trend is contrary to the east-west trends that were the targets of most historical exploration activity, including a drilling program carried out by Esso Minerals Limited in the 1980s.

In addition to the Katisha Lake gold zones, a single grab sample collected from a 20 cm wide quartz vein that passes through the northeastern part of the Goldstorm Project assayed 16.46 g/t Au. This vein is hosted within a north-south trending shear zone in deformed volcanic rocks adjacent to a northwest trending regional structure, the Long Lake Fault Zone. This fault zone is one of the regional scale structures that have been recognized as passing through the Goldstorm Project area.

Grab samples are selective by nature and may not represent average grades for the mineralized zones at Katisha Lake.

All of the samples were prepared and analyzed by Accurassay Laboratories located in Thunder Bay, Ontario. Accurassay Laboratories is an ISO-Certified laboratory. Gold values were determined by the fire assay method with AAS finish following assay code ALFA1 using a 30 grams pulverized sample.

A work program consisting of detailed geological mapping and systematic rock sampling of the Katisha Lake gold zones has been recommended including a shallow drilling program to test these structures.

Qualified Person

Mr. Seymour M. Sears, B.A., B.Sc., and P.Geo., a director of the Company, has reviewed and approved the technical content of this press release and was responsible for the collection of the samples referred to in this press release.

Private Placement Offering

To fund the mapping, sampling and drilling program referred to above, the Company has withdrawn the proposed private placement offering announced on April 24, 2013 and is proceeding with a new non-brokered private placement offering of units (the “Offering”) to qualified investors. The Offering will consist of up to 6,000,000 units of securities of the Company (each, a “Unit”) at a price of $0.05 per Unit, for aggregate gross proceeds of up to $300,000. 4,000,000 Units are being offered on a flow-through basis (each, a “Flow-Through Unit”) and 2,000,000 Units on a non-flow-through basis (each, a “Non-Flow-Through Unit”), or in such proportion and aggregate issue size as the Company may determine.

Each Flow-Through Unit will consist of one flow-through common share (each, a “Flow-Through Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”).

Each Non-Flow-Through Unit will consist of one common share (each, a “Common Share”) and a Warrant.

Each Warrant will entitle the holder to acquire one additional Common Share at a price of $0.08 for a period of 12 months from the date of closing of the Offering and thereafter at a price of $0.12 for the succeeding 12 months and expiring 24 months from the date of closing of the Offering.

The Offering is subject to receipt of all regulatory or other approvals that may be necessary in order to complete the transactions contemplated therein and is expected to close during mid-October. All securities issued pursuant to the Offering will be subject to a four-month statutory hold period.

Proceeds of the Offering will be used to fund a surface exploration and drilling program on the Goldstorm Project, for property maintenance costs and for general corporate purposes.

The Company will pay a finder’s fee to certain eligible persons (each, a “Finder”) for subscriptions to the Offering completed by qualified investors who have been introduced by such Finders. The Company will pay a cash finder’s fee equal to, in the aggregate, 8% of the gross proceeds of any Units acquired by investors introduced to the Company by such Finders and will issue to such Finders, warrants (each, a “Finder’s Warrant”) equal to 8% of the aggregate number of Units sold under the Offering by such Finder. Each Finder’s Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.05 for a period of 12 months from the date of closing of the Offering.

Goldstorm Project

The Goldstorm Project claims cover a large area, in excess of 230 square kilometres, within the southeastern part of the Eagle-Wabigoon-Manitou Lakes Greenstone Belt. Five regional scale structures and associated gold mineralization have been identified within or passing through the project boundaries. These include more than 45 kilometres of major fault zones and a 12 to 15 kilometre long band of Timiskaming-type sedimentary rocks that rest unconformably on mafic volcanic and ultramafic to felsic intrusive rocks. Maps and figures depicting the location and geology of the Goldstorm Project have been compiled in a presentation titled ‘Goldstorm Project-Northwestern Ontario’ available on the Company’s website, or by clicking here:

http://www.newklondike.com/news-newsreleases/2013