New Klondike Closes $50,000 Private Placement

TORONTO, ONTARIO--(Marketwired - July 29, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES

New Klondike Exploration Ltd. (TSX VENTURE:NK) ("New Klondike or the Company") is pleased to announce that it has closed a non-brokered private placement (the "Closing") of 1,000,000 units of securities of the Company (each a "Unit") at a price of $0.05 per Unit for gross proceeds of $50,000.

Each Unit consists of one common share in the capital of the Company (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share (each, a "Warrant Share") at an exercise price of $0.08 per Warrant Share, at any time before the date that is 12 months from the date of issuance of the Warrant and thereafter, at an exercise price of $0.12 per Warrant Share, at any time before 5:00 p.m. (Toronto time) on the date that is 24 months from the date of issuance of the Warrant.

The proceeds from the sale of the Units will be used towards funding a reconnaissance scale geological mapping and sampling program and a geo-referencing program on the Company's Goldstorm Project, for property maintenance costs, for asset acquisition investigations and for general corporate purposes.

Subsequent to the Closing, New Klondike has 19,622,845 Common Shares issued and outstanding. The Common Shares issued in connection with the Private Placement are subject to a four month hold period expiring on November 30, 2014. Two directors of the Company acquired 300,000 Units in the private placement. The directors and officers of New Klondike, as a group, now hold 23.3% of the Company's issued Common Shares.

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.