Klondike Silver Review and Update

(TSXV: KS, Pink Sheets: KLSVF)

Subject: SLOCAN BC SILVER OPERATIONLocation: Sandon, Silverton and New Denver B.C.

• Klondike Silver has been acquiring over 80% of the Sandon silver camp during the past 20 years.
• The land position is now at 23,000Ha in the Sandon Camp.
• Sandon production – over 35 billion dollars (in todays mineral value) of lead zinc and silver for the Sandon area mines.
• 100 T.P day mill is fully paid for. Klondike Silver has no debt.
• Example of the few of the past producers owned by Klondike Silver.

Production to date

NAME

Silver Production (g)

Lead Production (kg)

ZN (kg)

        
      
      
        
          Silvana
        
        
           
        
        
           
        
        
           
        
        
          242,982,741
        
        
           
        
        
           
        
        
           
        
        
          28,691304
        
        
           
        
        
           
        
        
           
        
        
          26299854
        
      
      
        
          Van Roi
        
        
           
        
        
           
        
        
           
        
        
          86,690,377
        
        
           
        
        
           
        
        
           
        
        
          8,091,338
        
        
           
        
        
           
        
        
           
        
        
          7,600,657
        
      
      
        
          Violamac
        
        
           
        
        
           
        
        
           
        
        
          129,127,274
        
        
           
        
        
           
        
        
           
        
        
          21,746,099
        
        
           
        
        
           
        
        
           
        
        
          14,225,991
        
      
      
        
          Hewitt
        
        
           
        
        
           
        
        
           
        
        
          59,624,427
        
        
           
        
        
           
        
        
           
        
        
          2,708,636
        
        
           
        
        
           
        
        
           
        
        
          1,770,177
        
      
      
        
          Payne
        
        
           
        
        
           
        
        
           
        
        
          116,386,525
        
        
           
        
        
           
        
        
           
        
        
          17,376,637
        
        
           
        
        
           
        
        
           
        
        
          1,024,416
        
      
      
        
          Ruth Hope
        
        
           
        
        
           
        
        
           
        
        
          76,946,676
        
        
           
        
        
           
        
        
           
        
        
          10,122,529
        
        
           
        
        
           
        
        
           
        
        
          1,605,717
        
      
      
        
          Ivanhoe
        
        
           
        
        
           
        
        
           
        
        
          14,204,149
        
        
           
        
        
           
        
        
           
        
        
          2,366,970
        
        
           
        
        
           
        
        
           
        
        
          330,300
        
      
      
        
          Richmond Eureka
        
        
           
        
        
           
        
        
           
        
        
          24,993,034
        
        
           
        
        
           
        
        
           
        
        
          2,322,882
        
        
           
        
        
           
        
        
           
        
        
          761,064
        
      
      
        
          Wonderful
        
        
           
        
        
           
        
        
           
        
        
          13,057,008
        
        
           
        
        
           
        
        
           
        
        
          1,619,509
        
        
           
        
        
           
        
        
           
        
        
          1,214,509
        
      
      
        
          Idaho
        
        
           
        
        
           
        
        
           
        
        
          48,811,960
        
        
           
        
        
           
        
        
           
        
        
          2,124,884
        
        
           
        
        
           
        
        
           
        
        
          225,235
        
      
      
        
          Wake Field
        
        
           
        
        
           
        
        
           
        
        
          6,032,458
        
        
           
        
        
           
        
        
           
        
        
          1,111,226
        
        
           
        
        
           
        
        
           
        
        
          5,568
        
      
      
        
          Jackson
        
        
           
        
        
           
        
        
           
        
        
          3,106,070
        
        
           
        
        
           
        
        
           
        
        
          1,888,550
        
        
           
        
        
           
        
        
           
        
        
          1,407,175
        
      
      
        
          Hinkley
        
        
           
        
        
           
        
        
           
        
        
          778,446
        
        
           
        
        
           
        
        
           
        
        
          147,552
        
        
           
        
        
           
        
        
           
        
        
          203,603
        
      
      
        
          Canadian
        
        
           
        
        
           
        
        
           
        
        
          2,439,968
        
        
           
        
        
           
        
        
           
        
        
          374,301
        
        
           
        
        
           
        
        
           
        
        
          17,217
        
      
      
        
          Halmac
        
        
           
        
        
           
        
        
           
        
        
          7,754,000
        
        
           
        
        
           
        
        
           
        
        
          874,298
        
        
           
        
        
           
        
        
           
        
        
          172,704
        
      
      
        
        
        
           
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
           
        
        
        
      
    
    

• Note: Head frames and shafting was not normally used in the Sandon area; mostly adits. Therefore most of these past producers have not been exposed to depth.

    
      
        
          There are 5 main Silver Camps in Canada.
        
      
      
        
          1)
        
        
           
        
        
          Cobalt Ontario – (Mostly Mined out)
        
      
      
        
          2)
        
        
        
        
          An island in Ontario (now a Federal Park.)
        
      
      
        
          3)
        
        
        
        
          Gowganda – area- Ontario – mostly controlled by Klondike Silver and 
          Amador Gold Corp.
        
      
      
        
          4)
        
        
        
        
          Slocan- Klondike Silver 80% (plus) owned by Klondike Silver.
        
      
      
        
          5)
        
        
        
        
          Yukon – Rejuvenated exploration
        
      
    
    
      
        
          

Two main properties are owned by Klondike Silver

        
      
      
        
          1)
        
        
           
        
        
          Connaught - 50% owned by Klondike Silver where in 1976 218 tones 
          bulk samples milled at Trail BC resulting in 65 opt Ag at 60% Pb 
          (see December 10, 2007 News Release)
        
      
      
        
          2)
        
        
        
        
          Stump - 100% owned by Klondike Silver where in 2007 an 80 tonnes 
          bulk sample produced head grades averaging 45 opt Ag and 40% Pb. 
          (refer to News release December 10, 2007)
        
      
    
    
      
        
          Sandon Mining Camp – Brief history in numbers:
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          -
        
        
           
        
        
          Sandon was incorporated as a city in 1898
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          -
        
        
        
        
          More than 5000 people lived in Sandon during its ‘boom’ in the late 
          1800s
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          -
        
        
        
        
          In its prime Sandon had 29 hotels, 28 saloons, 3 breweries, 
          theatres, opera houses, cigar factory, soft drink plant, 3 sawmills, 
          3 churches, x2 newspapers, a schoolhouse, hospital, numerous lodges, 
          clubs, organizations and a curling rink and bowling alley (in 
          addition to one of the largest ‘red light’ districts in Western 
          Canada).
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          -
        
        
        
        
          2 major rail lines
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          -
        
        
        
        
          One of the first trade unions in the province
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          -
        
        
        
        
          A community with its own hydro electric utility
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          -
        
        
        
        
          Sandon area had over 200 mines, numerous tram lines and concentrator 
          mills
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          -
        
        
        
        
          Over 35 billion dollars (in today’s value) of lead, zinc and silver 
          have been produced from the Sandon area mines.
        
      
    
    

Surface and underground exploration is currently underway.

R. HughesPresident

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 processes material from local mines in the historic Slocan Silver Camp.

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

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.