New Klondike Reports Results of 2014 Reconnaissance Program from Its Goldstorm Project and Enters Into Debt Settlements

TORONTO, ONTARIO--(Marketwired - Oct. 23, 2014) - New Klondike Exploration Ltd. (TSX VENTURE:NK) ("New Klondike" or the "Company") is pleased to announce encouraging results from a reconnaissance scale rock sampling and mapping program completed on the Goldstorm Project near Dryden, Ontario during July and August 2014. The work was designed to examine and assess three target areas within the 230 square kilometre property for their potential to host economic gold mineralization.

Target 1 - Katisha Lake Au Occurrences: Nine gold occurrences were examined in this area, including the Katisha Extension, Katisha South, O-Zone, Oldtimers (Howie), and Twilight and Fringe zones; in addition, three zones examined in 2013 - the Fiji, Zig and Main Katisha zones were re-examined in light of a new geological model that may help to evaluate these zones. Gold mineralization at Katisha Lake occurs in discreet silicified lenses ranging in width from a few centimeters up to 3 meters that are localized within much wider alteration zones accompanied by ankerite, sericite, chlorite, pyrite and arsenopyrite. The alteration zones are associated with shear or fault zones ranging from 50 to 350 meters in length, although the full strike length of each of the zones has not been determined due to overburden or swamp cover. Gold values ranging from trace to 30.45 g/t have been reported in historical work programs on these zones. Results from the 2014 sampling in the Katisha Lake area ranged from trace to 9.84 g/t Au. These samples included mineralized and non-mineralized rocks that were discovered from prospecting as well as from the known gold showings. A total of 35 rock samples (grabs and composite grabs) that were collected from 8 of the Katisha Lake Zones averaged 2.40 g/t Au, indicating that these zones are excellent targets for future exploration. The table below presents the samples collected to date by New Klondike from the Katisha Lake Zones and the range of gold values from these zones.

Sampling Results for Katisha Lake Gold Prospects
			RANGE OF VALUES (Au g/t)
ZONE	Number of Samples		Low	High	Average (Au g/t)
Howie	3		0.73	1.96	1.41
Fiji	8		0.36	5.89	1.75
Main Katisha	3		0.19	4.75	2.20
Katisha Extension	3		5.20	9.84	7.95
South Katisha	1		0.12	1.23	0.68
Zig	7		0.28	8.69	2.82
Twilight	7		0.85	2.91	2.03
O-zone	3		0.05	0.37	0.19

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

Target 2 - Timiskaming Unconformity: A large component of the 2014 work program was directed toward mapping and prospecting along the projected trace of the southern unconformable contact of a band of Timiskaming-type sediments referred to as the Stormy Lake Group. This structure is located in the southern part of the Goldstorm Property, north of the Katisha Lake Gold zones. The results of this work program suggest that the contact zone is much more complex than shown on published maps, and that detailed geological mapping, sampling and petrological work will be required to delineate this structure. One of the potential gold targets in this area is a large shear zone developed in felsic agglomerate and brecciated rocks and referred to as the Kawie Schist Zone. This shear zone is poorly exposed but appears to be in excess of 100 metres in width and was traced for in excess of 1,000 metres before disappearing beneath the unconformable, overlying Stormy Lake Group of rocks. Six samples were collected from the zone on the south side of Kawijekiwa Lake. Five of the six samples contained elevated gold values. The six samples averaged 0.36 g/t Au, ranging from 0.005 to 1.08 g/t and suggest a strong potential for a broad zone of low-grade Au mineralization. A follow-up program is critical since very little sampling has been reported in this area.