LKA Gold Issues 7.5% Convertible Notes to Members of the Koski Family

GIG HARBOR, Wash., Oct. 9, 2015

Through a series of three separate, private, transactions since August of 2014, the Koski family (individually and collectively through the Koski Family Limited Partnership) has made an aggregate investment in LKA, and/or its affiliates, of $2.65 million not including convertible notes, open-market share purchases, or off-market transactions with unaffiliated shareholders. KFLP and Koski family members comprise LKA's largest shareholder position aside from Abraham family-controlled interests.

According to LKA President, Kye Abraham, "This latest transaction with members of the Koski family enables LKA to postpone any larger equity sales and avoid excessive dilution for our existing shareholders during the currently depressed market for gold and gold-related equities. We're very appreciative of Koski family support as we move forward with our new exploration partner, Kinross Gold USA, in the search for the next high-grade ore body at the Golden Wonder mine."

About Koski Family Limited Partnership
The Koski Family Limited Partnership ("KFLP") was organized in 1996 by members of the Robert E. Koski family as a vehicle for managing family assets and making strategic investments in a variety of industries. KFLP owns substantial equity interests in Sun Hydraulics Corporation (NASDAQ), Oragenics, Inc. (NYSE MKT), nMetric, LLC, and other private companies.

About LKA's exploration program at its Golden Wonder Mine
Vein material is extracted as crews follow the volcanic vent system along the wall of the Uncompahgre Caldera. This method of exploratory mining and underground drilling proved successful in locating the first commercial ore body which yielded more than 133,000 ounces of gold from a single ore shoot measuring less than 10,000 cubic feet. From 1998, through the second quarter of 2006, the average grade of Golden Wonder ore was 16.01 ozs. (454 grams) gold per ton. LKA believes that multiple ore shoots may exist on its mining claims. Upon resuming exploratory operations in the first quarter of 2009, LKA has extracted and/or shipped (sold) thirty-one bulk samples of crushed vein material containing over 4,200 ounces of gold with a net value, after processing, of over $5 million. These shipments have offset the majority of LKA exploration costs to date. On July 13, 2015, LKA and Kinross Gold U.S.A. entered into an agreement that allows Kinross to explore those portions of LKA's property beyond the Company's historic working areas. Kinross' exploration effort is ongoing. Details of the LKA-Kinross agreement can be found on the LKA website at: http://lkagold.com or in the "President's Email Updates" at: http://lkagold.com/Management_Team_-_LKA_Inter.html  Investors are cautioned that the Company continues to generate substantial losses and additional funding and exploration work is required. A commercially viable ore reserve has yet to be established and there can be no guarantee that the Company will be successful in this regard.

Safe Harbor Statement
Projections, and opinions expressed in this message are made pursuant to the "Safe Harbor'" provisions of the Private Securities Litigation Reform Act of 1995 and the Bespeaks Caution Doctrine. LKA's plans to resume/expand Golden Wonder production are subject to a number of conditions including, but not limited to, favorable geology, successful exploration efforts, favorable financing terms/availability, permits, gold prices, market conditions, etc. Mining and related activities are inherently high-risk endeavors and there can be no assurance that LKA will be successful. This press release contains certain forward-looking statements. Statements contained in this press release that are not purely historical are considered forward-looking. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding LKA Gold's future plans for exploration and/or production, future expenses and costs, future liquidity and capital resources, and estimates of ore, ore grades and mineralized material. All forward-looking statements in this press release are based upon information available to LKA Gold on the date of this press release and the Company assumes no obligation to update any such statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's reports filed with the Securities and Exchange Commission.

Company Contact
LKA Gold Incorporated
Kye Abraham, President
(253) 514-6661
info@lkagold.com    
http://lkagold.com