The Sky North Air Ltd. Beechcraft A100 King Air operating as SN683 departed runway 32 at Gods Lake Narrows Airport, MB (YGO), Canada for Thompson Airport, MB (YTH) with two pilots, a flight nurse, and two patients on board. Shortly after takeoff, while in a climbing left turn, smoke and then fire emanated from the pedestal area in the cockpit. The crew continued the turn, intending to return to runway 14 at Gods Lake Narrows. The aircraft contacted trees and came to rest in a wooded area about one-half nautical mile northwest of the airport. All five persons onboard evacuated the aircraft; two received minor injuries. At approximately 02:50, the accident site was located and the occupants were evacuated. The aircraft was destroyed by impact forces and a post-crash fire. The emergency locator transmitter was consumed by the fire and whether or not it transmitted a signal is unknown. FINDINGS AS TO CAUSES AND CONTRIBUTING FACTORS: 1. An electrical short circuit in the cockpit pedestal area produced flames and smoke, which induced the crew to take emergency action. 2. The detrimental effects of aging on the wires involved may have been a factor in this electrical arc event. 3. The crew elected to return to the airport at low level in an environment with inadequate visual references. As a result, control of the aircraft was lost at an altitude from which a recovery was not possible