Mr. Thomas Kennedy reports

KLONDIKE SILVER ANNOUNCES PRIVATE PLACEMENT

Klondike Silver Corp. is raising up to $1.5-million through a non-brokered private placement of up to 30 million units at a price of five cents per unit. Each unit will consist of one common share and one share purchase warrant, with each warrant exercisable for a period of five years from the closing at a price of five cents in year 1 and year 2, then eight cents per share in year 3, year 4 and year 5. All units are subject to a four-month hold period from the date of issuance. Commissions may be paid on a portion of the funds raised. The offering is subject to TSX Venture Exchange final acceptance.

The net proceeds will be used for advancing the Sandon, B.C., project, located 138 kilometres north of the Trail, B.C., smelter, and for general working capital.

About Klondike Silver Corp.

Highlights:

• Klondike's Silvana 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 of lead so far.
• There are 67 past-producing mines that are situated in Klondike Silver's 114-square-kilometre claim block.

We seek Safe Harbor.