KS Klondike Silver Corp

Klondike Silver Corp. (TSX VENTURE:KS) (the "Company") is pleased to report that
initial diamond drilling west of the past-producing Silvana Mine has revealed
the presence of a favorable structure with similar geological characteristics to
the historic "Main Lode" structure. The "Main Lode" structure was the principal
source of silver/lead/zinc production in the prolific Sandon Silver Camp of
south-central British Columbia.


An audio interview summarizing this release has been prepared with the Company's
Mine Manager, Steve Phillips, is available through AGORACOM Investor Relations
via the following link (link will go live at approximately 11:30am EST, August
27, 2009):


http://www.smallcapepicenter.com/executive/KSbtpr270809

"We have two goals in the current underground exploration program; first to
identify the presence of the lode structure within the prospective horizon, and
second to locate any ore-bearing chutes within the structure. The discovery of
lode structure this early in the initial phase of exploration is exciting as we
are just at the start of our target area," comments Company president Richard
Hughes. "This 1.5 km area between the Mammoth and Silvana mines has never been
tested before although it was slated for exploration before the mine shut down
in the early 1990s as a result of low metal prices. Drilling will now focus on
testing the newly discovered structure for the presence of ore-bearing chutes as
well as further delineating its extent."


To view a map of the 2009 drilling and target area please click on the following
link (if the link does not open cut & paste it into your browser address bar):


http://www.klondikesilver.com/i/pdf/MainLodeXsectioncropped.pdf

The "Main Lode" structure is more than 8 kilometers long, extending east from
Silverton on Slocan Lake to Sandon through the "Silver Ridge" of the Selkirk
Mountains some 50 kilometers north of Nelson, B.C.


The Company holds the ground for approximately 1.5 km to the west of this
productive zone, to within 0.5 km of the Mammoth Mine. This program represents
the first attempt since the early 1990s to explore west towards the Mammoth,
Standard and the other major "Main Lode" producers.


The initial phase of diamond drilling was conducted from the new underground
west extension of the main access (4625 Level) of the Silvana Mine.


- Four BQ-size holes totaling 363.6 meters (1,193 feet) were drilled at a
departure of 9,250.00 feet E. (mine grid). This initial drilling program
represents the first stage of exploring a 1.5-kilometer long (7,000 feet)
presumed highly prospective segment of the "Main Lode" structure.


- The recently completed drill program achieved an important objective as the
structure intersected by the drilling has characteristics typical of the "Main
Lode" as mined at Silvana.


- Following this identification, the next 100 meters (330 feet) westerly
extension of the main access (4625 Level) is now under way. The next drill
station for testing the presence and resource potential of the "Main Lode" will
be at approximately 9,500 feet E. (mine grid).


The Silvana Mine is one of 29 former producers staked or acquired by the Company
within the Slocan Camp. Other assets include extensive exploration lands and a
fully permitted 100-tonne-per-day (TPD) flotation mill.


The Silvana Mine produced approximately 8 million ounces of silver and more than
30,000 tons each of lead and zinc from 550,000 tons of mill-feed mined from a
1.5-kilometer section of the "Main Lode" under Silver Ridge. This section was
explored, developed and mined almost continuously from 1970 to 1993 by the
Silmonac Syndicate and its successors, including Kam-Kotia Mines Limited,
Silvana Mines Inc., Dickenson Mines Limited and Treminco Resources Ltd. Sporadic
mining has since been conducted by other companies, including Klondike Silver.


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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