Klondike Silver Corp. Commences Underground Drilling in 4625 East Decline

  Klondike Silver Corp. (TSX VENTURE: KS) (the "Company") is pleased to announce it has commenced a diamond drilling program and re-evaluation in an easily accessible, partly-explored area near former productive stopes. Test mining is planned for this area on and just below the main 4625 Level of the Silvana Mine. The program is taking place as the Company is also extending a drift at the west end of the 4625 level into the recently discovered lode structure (see press release October 7, 2009). Upon completion of the western drift extension the drill will be moved to drill into the lode structure to test for mineralization.

The Company has identified an area close to and updip of the East Decline (main access to the lower levels of the Silvana Mine) which in the past received limited diamond drilling partly because of its proximity to this main production haulageway. Earlier drilling shows intermittent narrow widths of high grade mineralization in an overall area of several thousand square feet. This occurs in the Main Lode structure between more consistently mineralized areas.

In-fill diamond drilling is planned for the gaps between the narrow intercepts to identify possible mineralized areas amenable to small-scale mining. Preliminary work has been completed including rehabilitation in both the 4625 East Drift and East Decline accesses with rock removal in the latter and re-establishing electric, compressed air and water services. Total drilling planned is 600 feet in up to 8 holes drilled from the 4625 East Drift and the East Decline. The intent is to explore at or above the elevation of the main 4625 Level so that no sinking would be necessary to access any remove mineralized material selected for milling.

Test mining would be by via cross-cutting to and/or raising relatively short distances (less than 100 feet) to the Main Lode structure in any identified areas of interest. As with the 4755 Level program previously announced grade control would be paramount, to include extensive channel and muck sampling to identify the economic production area(s). Similarly the muck from the development would be evaluated and stockpiled. On-site assaying of samples is available by fire and wet methods and by a newly commissioned Niton XRF analyzer. The Niton analyzer enables rapid multiple determinations of metal contents in conventionally-prepared samples. Turnaround time and quantity of data available to the mining operation are improved, both relevant factors in decision-making on a daily basis. Personnel using the XRF device are certified by NRCAN. Niton analyzer results are for in-house purposes only and are not NI 43-101 compliant.

The Qualified Person for the purpose of National Instrument 43-101 is Ed Craft, PEng, 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.

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 or Alan Campbell [phone] [e-mail] AGORACOM Investor Relations [e-mail] www.agoracom.com/ir/KlondikeSilver