Klondike Silver Corp. Discovers Mineralization Within 20 Foot Intersection of Silvana Main Lode Structure

  Klondike Silver Corp. (TSX VENTURE: KS) (the "Company") is pleased to announce results from its ongoing underground drill program at its Silvana Mine in Sandon, BC.

Hole K-1117 was completed in early May from Drill Station #2 and intersected a true width of 20 feet of lode structure. Company geologists found sporadic intersections of quartz carbonate-vein fragments within the core.

Hole K-1118 was completed on May 31st, also from Drill Station #2, and the true width of the lode structure intersection exceeds that of hole K-1117. The geologists are also seeing much more quartz carbonate-vein fragmental content in the core of K-1118 than they did in the core of hole K-1117.

Completion of drill holes K-1117 & K-1118 at the west end of the 4625 level of the Silvana silver-lead-zinc mine, brings the company further into the 7,000 foot long segment of unexplored and highly prospective ground west of the Main Lode structure of the Silvana Mine.

To view a map of the Slocan Silver Camp highlighting recent work done by the Company click on the following link:

http://www.brmstatpack.com/lt/1001/1133/slocan-map

Steve Phillips, Klondike Silver's mine manager, commented 'in my experience these intersected thicknesses constitute very significant widths of lode structure'. Steve Phillips has 42 years mining-geology experience, including 17 years in the Slocan Camp mostly at the Silvana Mine, 6 of which were as Mine manager, chief geologist, geologist and consultant.

Company President, Richard Hughes, made the following comments in the Company's August 27, 2009 press release upon the initial discovery of what is believed to be an extension of the Main Lode structure, responsible for the majority of mineralization and production within the Silvana Silver Camp. "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. 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."

The recent intersection has demonstrated that the structure which the Company is currently exploring has the potential to host lead-zinc-silver mineralization. The target zone is a 1.5 km long section of the Main Lode structure that has never been tested before. 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 between the Silvana and 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.

Company geologists are also pleased that they now have 3 points of intersection for the lode structure and are moving the drill for hole K-1119. Hole K-1119 will be drilled from Drill Station #3, 100 meters to the west of Drill Station #2, and is expected to begin on June 3rd.

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

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 local mines in the historic Slocan Silver Camp.

Or 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.

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 [e-mail] www.klondikesilver.com