KS Klondike Silver Corp

Klondike Silver Corp. (TSX VENTURE: KS) (the "Company") is pleased to report that it has received assays for a number of samples taken from a number of recently completed trenches in the Jackson Basin. The Jackson Basin Area, which includes the historic Jackson Mine, was discovered in 1892. Mining continued until 1955, followed by intermittent operations until 1975.

"We are encouraged by the high assay values found in a number of trenches, especially from trenches 8 and 10 which are believed to be the eastern extension of the Jackson lode structure," comments Klondike Silver President, Richard Hughes. "Results received from this program and other recently completed trenches will be used to guide our next phase of exploration."

To view a map of the Klondike Silver's areas of exploration in the Slocan Camp click on the following link:

http://www.klondikesilver.com/i/pdf/08-07-02-Slocan-3.pdf

Trenching Summary:

- Trench 3 uncovered a 20cm diameter boulder of mainly galena which contained 72.42% Pb, 2.41%Zn, 2895g/tonne Ag. (JB09-09). Trench 3 is located west of the Jackson mine workings.

- Trench 5 had a fault zone with samples assaying up to 17.59% Pb, 1.12% Zn, 687g/tonne Ag. (JB09-T05-R03) A thin quartz vein offset by the fault contained 8.13% Pb, 3.91% Zn, 377g/tonne Ag. (JB09-T05-R04).

- Trench 10, 8m along strike from the mineralized zone in Trench 8, showed variable mineralization. Samples from the zone yielded values up to 5.01% Pb, 2.40% Zn and 124g/tonne Ag. The zone is believed to be the eastern extension of the Jackson lode structure which mined 5847 tonnes at average grades of 14.65%Pb, 10.92%Zn and 531g/tonne Ag.

- Trench 8 revealed a shear zone approximately 2.6m wide with extensional quartz veins hosting lead and zinc mineralization. Chip samples across the zone assayed up to 6.85% Pb, 6.42% Zn and 204 g/tonne Ag (see table below):

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Distance           Ag        Pb       Zn
  (m)        (g/tonne)       (%)      (%)
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0-0.2              64      2.12     0.70
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0.2-0.4            13      0.64     0.89
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0.4-0.6           204      6.85     6.42
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0.6-0.8            58      1.69     1.50
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0.8-1.0           126      4.79     3.52
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1.0-1.2            81      3.33     2.18
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1.2-1.4           110      3.95    12.50
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1.4-1.6            54      1.52     7.09
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1.6-1.8            34      1.20     6.04
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1.8-2.0           175      6.58     3.29
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2.0-2.2            34      1.34     0.79
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2.2-2.4            14      0.55     2.27
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2.4-2.6            62      2.17     4.32
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The Company is currently awaiting assays from several other trenching programs completed through the summer.

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.

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.

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

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy or contents of this news release.

Contacts: Corporate Inquiries: Klondike Silver Corp. Kevin Hull (604)-685-2222 Klondike Silver Corp. Alan Campbell (604)-685-2222 info@klondikesilver.com AGORACOM Investor Relations KS@agoracom.com http://www.agoracom.com/ir/KlondikeSilver