Mr. Thomas Kennedy reports

RIVERBED STABILIZATION AND TAILINGS POND WORK COMMENCED

Klondike Silver Corp. has provided the following update on its land package covering approximately 110 square kilometres of the Slocan silver camp. Based on the B.C. Minfile mineral database, 68 of the 173 past-producing mines in the Slocan silver camp are located in the company's land package.

Klondike Silver is placing rip-rap along an 800-metre stretch of riverbed to stabilize and armour the existing berm along the south bank of Carpenter Creek in order to mitigate the risk of the creek overflowing its banks and flooding the mine office and mill and potentially damaging the current tailings pond facility. This proposed work is the result of a Ministry of Energy and Mines inspection order and is required prior to the reopening of the mine.

Fisheries and Oceans Canada has recommended that the mitigation measures identified in the Golder Associates memos of Oct. 5, 2015, and Dec. 18, 2015, be included into Klondike Silver's plans. Klondike Silver has included these measures into its plans and is proceeding with Golder Associates supervising the placing of the rip-rap.

The Ministry of Forests Lands and Natural Resources has given approval under Section 9(1) of the Water Act for bank erosion protection works, which shall be constructed in accordance with plans and specifications contained in Golder Associates' technical memorandum dated Oct. 5, 2015, and subject to terms set out in the June 25, 2016, approval letter from the ministry. Klondike Silver has made preparations and has commenced work.

Golder Associates will also carry out fieldwork necessary to provide a current annual dam safety inspection report for filing with the Ministry of Energy and Mines. This inspection will also assist Golder Associates in delineating a dam break study outline, which will assist Klondike Silver in carrying out any work necessary to comply with Ministry of Energy and Mines regarding the tailings dams.

The scientific and technical disclosure in this news release has been reviewed and approved by David Makepeace, PEng, senior geologist -- environmental engineer for Micon International Ltd., who is an independent consultant to the company and a qualified person as defined in NI 43-101.

We seek Safe Harbor.