(via Thenewswire.ca)

August 31, 2016 / TheNewswire / Vancouver, Canada (TSX.V: KS) - KLONDIKE SILVER's land package covers approximately 110 square kilometers of the Slocan Silver Camp. Based on the B.C. MINFILE mineral database, sixty eight (68) of the one hundred and seventy three (173) past producing mines in the Slocan Silver Camp are located in the Klondike Silver land package.

Klondike Silver is placing rip-rap along an 800-meter stretch of riverbed to stabilize and armor 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 (MEM File # 14675-60) 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 October 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 field work 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.

About Klondike Silver

Mr. Richard Hughes, Chairman of Klondike Silver's Technical Advisory Board identified and initiated the purchase and staking of mineral claims in the Slocan Silver Camp commencing in approximately the year 2000. The Camp was fragmented among many owners throughout its history. Klondike Silver's land package has grown in size to over 100 square km, to become the largest land package in the area. Klondike Silver has created the first real opportunity to invest and properly explore a sizeable portion of one of the most historic mining camps in British Columbia.

The scientific and technical disclosure in this news release has been reviewed and approved by David Makepeace, P.Eng., Senior Geologist - Environmental Engineer for Micon International Limited, who is an independent consultant to the Company and qualified person as defined in NI 43-101.

For additional information please visit the company website www.klondikesilver.com .

CONTACT INFORMATION

Corporate Inquiries:

Dale Dobson: (604) 682-2928
Email: dale.dobson@klondikesilver.com

On Behalf of the Board of Directors

Klondike Silver Corp.

"Thomas Kennedy"
Thomas Kennedy

CEO, President and Director

This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Klondike Silver Corp. which may cause actual results, performance or achievements of Klondike Silver Corp. to be materially different from the results, performance or expectation implied by these forward looking statements. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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