KS Klondike Silver Corp

Klondike Silver Corp. (TSX VENTURE:KS) (the "Company") is pleased to announce
the Company received $1,050,960 from over 500 tonnes of concentrate shipped to a
smelter in the last year. The 506 tonnes of silver/lead concentrate had an
average grade of 67.43% lead and 88 oz/tonne silver. At current metal prices the
bulk sample would have grossed over $1.4M, encouraging management to move
forward with more bulk sampling this coming year.


"We are encouraged by the results from the mill and are moving forward on a
number of fronts to provide mill feed. The western drift extension in the 4625
level of the Silvana mine is underway into a previously unexplored area where
the Main Lode structure was recently intersected. Underground drilling is
currently testing a number of targets at the east end of the same level."
comments Company President, Richard Hughes. "We've recently completed a four
hole surface drill program in the Hewitt Van-Roi exploration area with the final
hole intersecting a wide structural zone, on strike with the Hewitt vein, which
is believed to be an extension of the lode system. The Connaught property and
Stump property also saw summer exploration programs which we expect to see
results from shortly. These programs were designed to further the Company's
understanding of the high-grade vein systems occurring on both properties as
well as prepare them for potential 2010 bulk samples."


The Company is especially encouraged with the positive performance and recovery
rates shown by the mill throughout the processing of the bulk sample. With the
knowledge gained the Company feels confident in its decision to continue
providing mill feed from underground exploration in the immediate area as well
as proposed bulk sampling from its high-grade Yukon properties.


Total milling costs of the 506 tonne sample were $217,970. Mining and
transportation costs of the bulk sample, which were paid in advance in early
2008, totaled $877,500. Overall the Company experienced a slight loss of $36,490
due to collapsing metal prices in late 2008/early 2009. As the transportation
and mining had been paid for in advance, the total milling cost was more than
offset by revenue which prompted the Company to go ahead with the milling, even
though the low metal prices meant it would not be able to recoup all of its
transport costs. This is the largest/highest grade sample has put through the
mill since its acquisition.


The Company would also like to announce it has arranged for a private placement
of up to 2,500,000 units for total proceeds of up to $162,500. The financing
will consist of flow through units priced at $0.065 per unit. Each of the units
will consist of one flow through common share and one non-flow through,
non-transferable share purchase warrant entitling the holder to purchase one
additional common share for one year at a price of $0.065 per share in the first
year, $0.10 per share in the second year and $0.15 for the remaining three
years. Proceeds from the private placement will be used for general exploration
expenditures.


About Klondike Silver:

Klondike Silver Corp. has assembled a quality portfolio of silver properties in
historic mineral districts in North America, and is applying advanced
exploration technologies to add value to these core assets. Klondike Silver is
reviving the Gowganda and Elk Lake silver camps in Ontario, and the world-famous
Klondike district of Yukon Territory. The Company owns a 100 TPD fully
operational flotation mill in Sandon, BC, which is currently processing material
from one of its Yukon properties and local mines in the historic Slocan Silver
Camp.


Klondike Silver is a member of the Hughes Exploration Group of Companies and is
led by a team with a stellar track record of discovery and development in
Canada.


Visit Klondike Silver's web-site: www.klondikesilver.com to see Smartstox
interviews with Company President, Richard Hughes.


The statements made in this news release may contain forward-looking statements
that may involve a number of risks and uncertainties. Actual events or results
could differ materially from the Company's expectations and projections.

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