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.