Mr. Thomas Kennedy reports

2026 UPDATE

Klondike Silver Corp. has provided this update on its immediate plans for 2026.

Corporate update

The company finds itself in an unprecedented silver market that is valuing and welcoming in situ mineralization.

The company is actively planning for the next phase of growth as silver prices approach historic highs. Klondike remains confident that its minerals and operational footprint will support meaningful value creation as market conditions continue to improve. The company believes it has the minerals in place to achieve its goals and vision for the future -- the company is now planning that future.

Klondike intends to consolidate its capital structure, settle debts and raise financing. The company will use new capital to refurbish and expand its existing production and milling facilities, explore its Silver Mile, and support enhanced operations; all of which will allow the company to exploit the upcoming trends with strength.

Klondike's 100-ton-per-day Sandon processing facility is presently on care and maintenance; however, the company continues to critically evaluate the infrastructure. In that regard, the company has hired a new interim mine manager for the facility -- Robert Van de Werve is now in that position. Mr. Van de Werve is experienced in mine operations and is well suited for this role and to assist in the company's initiatives.

The company's intention is to consolidate its share capital on a 1:10 basis, subject to regulatory approval. This will result in its share capital being reduced from approximately 156,916,893 shares issued and outstanding to approximately 15,691,689 shares. Any outstanding convertible securities will be adjusted by the same ratio. As this is a matter which will involve a number of regulatory initiatives, further announcements (including Cusip and ISIN details) will be made as the company proceeds.

AGSM (annual general and special meeting)

At the recent annual general and special meeting of shareholders, the incumbent board of Glen Harder, Ron Coombes and Thomas Kennedy were re-elected as directors. The incumbent auditor (Dale Matheson Carr-Hilton LaBonte) was reappointed. Thomas Kennedy remains chief executive officer, and Lawrence Smoliuk remains chief financial officer.

Tom Kennedy, CEO, commented:

"This is a pivotal moment for Klondike. As silver gains momentum, we are taking decisive steps to strengthen our foundation and unlock the potential of our mineral assets -- including new exploration along the Main Lode system. We are excited about the road ahead and the opportunities presented for our shareholders."

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.

We seek Safe Harbor.