Mr. Thomas Kennedy reports

KLONDIKE SILVER - GRANTS OPTIONS

Pursuant to its stock option plan, Klondike Silver Corp. has granted incentive stock options to directors, officers, employees and consultants to purchase a total of 19.4 million common shares in the capital stock of the company, exercisable for a period of 36 months, at a price of five cents per share. This grant of options is subject to the approval of the TSX Venture Exchange.

About Klondike Silver Corp.

• Klondike's Silvana mine silver-zinc-lead project is located in southeastern British Columbia.
• Klondike's 114-square-kilometre claim block is 138 km north of the Trail, B.C., smelter.
• Klondike Silver is exploring from underground, along the nine km Main Lode. The Main Lode is the most prolific mineralized structure in the Slocan mining camp.
• There are 13 past-producing mines that are situated along the Main Lode which have produced 886,000 kilograms of silver, 95 million kg of zinc and 117 million kg lead so far.
• There are 67 past-producing mines that are situated in Klondike Silver's 114-square-kilometre claim block.