KS Klondike Silver Corp

Klondike Silver Corp. (the "Company") (TSX VENTURE:KS) is pleased to announce
results of underground diamond drilling from the Fall of 2008 through Spring
2009 from the Wonderful Mine, near Sandon, British Columbia. Underground
exploration and development, including a raise and two diamond drill stations,
has been undertaken in the lowermost workings, Levels 3 and 4, located half a
kilometre from Klondike Silver's 100-tonne-per-day flotation mill in the Sandon
townsite. 


Two drill stations were developed in the lowest underground workings, Level 4 at
1140m elevation, 100 meters apart, creating setups for two drill arrays. Ten
diamond drill holes were completed, targeting mineralization at and above this
elevation, for a total of 637m drilled. 


These holes tested the extent of mineralization between Level 4 and Level 3, the
latter at 1192m elevation. Klondike Silver had mined a new raise by the fall of
2008, from Level 4 up to Level 3, following continuous, if narrow,
mineralization along a single, near vertical, E-W striking vein. Widths and
grades improved where there were structural distortions and a splaying or
stepping vein.


Drilling results demonstrate that the Wonderful vein, in the lower levels, is a
nearly straight, vertical E-W planar structure with a typical width of 35cm, and
is primary a sphalerite (zinc) - carbonate vein; minor amounts of lead and
silver are present. Recent underground mapping, of Levels 3 and 4, show the vein
to vary between 20 and 65cm width.


One drillhole, DD09-06, intercepted an interpreted zone of structural distortion
where the vein is divided into at least 3 closely-spaced veins, combining for a
true width of 2.47m (8.12ft) with average grade of 12 g/T silver, 0.16% lead and
11.16% zinc (see table below). 


Holes drilled around DD09-06 found a single vein at the typical 35cm width, but
were not able to follow the splaying structure.


A final hole, DD09-10m was drilled steeply upward to test the vein continuity
above the Level 3 working. It had been formerly interpreted that the zinc vein,
shown in the lower workings, was structurally connected to a lead-silver vein,
known as McLander's vein, found on surface (grab values reported as high as 79%
lead and silver as high as 197 oz per ton as previously reported), at 1265m
elevation. DD09-10 intercepted a major fault, near 1230m elevation - Level 2 and
it is possible that this fault separates the zinc resource delineated in the
lower workings from McLander's vein. 


Continued exploration at the Wonderful will apply this new structural
information while focusing on locating fault systems and their relationship to
the McLander's vein at surface.


Drilling is currently underway in the Silvana mine and the Company will be
providing an update on its progress in the near future. For details on the
Silvana drill program see news release dated May 28, 2009.


Table: Mineralized interval DD09-06 54.45m - 58.30m - Apparent width = 3.85m 



----------------------------------------------------------------------------
From (m)      To (m)        Width (m)        Ag (g/T)       Pb%         Zn%
----------------------------------------------------------------------------
54.45         58.30             3.85              12      0.16       11.16
----------------------------------------------------------------------------
Including
----------------------------------------------------------------------------
54.45          55.2             0.75              13      0.13       13.51
----------------------------------------------------------------------------
55.20         56.00             0.80     less than 5      0.04        6.06
----------------------------------------------------------------------------
56.00         56.50             0.50     less than 5      0.02        0.09
----------------------------------------------------------------------------
56.50         57.20             0.70              27      0.16       25.05
----------------------------------------------------------------------------
57.20         57.80             0.60     less than 5      0.01        0.09
----------------------------------------------------------------------------
57.8          58.30             0.50              25      0.74       20.69
----------------------------------------------------------------------------

 

True Width Calculation: CORE ANGLE apparently 40 degrees - 2.47 m / 8.12 ft 

The Company also announces that after an extensive review of its Mexican
property portfolio it has decided to terminate its options on the Alaska North &
South, Mina Grande, San Dimas, San Luis, Santa Lucia and 5 of its Starling
properties. The Company's focus in Mexico will continue to be the Espiritu
property, a joint venture with Kootenay Gold Corp.


Klondike Silver is pleased to report, subject to regulatory approval, the terms
of the acquisition of the 100% interest in the Goldsmith property, located in
the Slocan Mining Camp. The property consists of the Enterprise Mine Group,
Hallmac Mine Group, Conductor Mine Group, Vulture Mine Group, Adams Lode Mine
Group, and Chambers Mine Group, as well as some additional claims. The claims
cover a total of 1,063 hectares in prime mining area. Consideration for the
property consists of $200,000 (payable over 10 years) and 200,000 shares
(payable over 4 years). The Company is also required to incur $400,000 in
exploration expenditures over a period of 10 years. There is a 2% net smelter
return payable on the claims, of which half (1%) may be purchased for $250,000.


The Qualified Person for the purpose of National Instrument 43-101 is Trygve
Hoy, PEng, PhD who has read and agreed with the technical information in this
news release.


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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