Klondike Silver Corp.
TSX VENTURE : KS

Klondike Silver Corp.

November 10, 2009 23:58 ET

Klondike Silver Samples 53 oz/ton Ag, 6.38% Pb, 10.49% Zn and Announces 2010 Exploration Plans for Stenson Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2009) - Klondike Silver Corp. (the "Company") (TSX VENTURE:KS) is pleased to announce that based on results from trenching and sampling in the Jackson basin area in 2009, an aggressive exploration program is planned in the northern part of the basin for the 2010 field season. Work in 2009 focused in the area of the past-producing Jackson mine. Little work was done on the large claim group immediately to the north, referred to as the Stenson property and including the western extension of the Bonton and Dardenelles veins. Past work on the Stenson by Klondike Silver has included a soil geochemical program, a ground magnetometer-VLF-EM survey and trenching.

Soil and geophysical surveys confirmed the east to northeasterly trend of Stenson mineralization and helped direct the trenching program which exposed a silver-lead-zinc vein. Analyses of selected samples of the vein returned values up to 53 oz/ton Ag, 6.38% Pb and 10.49% Zn.

Work in 2009 extended the soil and geophysical surveys to the west, towards the Bonton and Dardenelle showings. These deposits are interpreted to be on strike with the Stenson and are unusually rich with reported production (BC Minfile data base) of 760 tons containing 207 oz/ton Ag, 27.5% Pb and 0.6% Zn (Dardenelles) and 13 tons containing 229 oz/ton Ag and 22.3% Pb (Bonton). Proposed exploration is intended to focus on the western slopes of Jackson Creek between Stenson and Bonton showings. This work will include some fill-in soil geochemical and geophysical surveys followed by trenching in an attempt to expose the mineralized structure. The Company is encouraged by the high grades of the mineralized showings on east side of the property, the continuity and strength of the structure where exposed, and its similarity to the past producing Jackson lode.

Further to the Company's news release of October 27, 2009, the Company announces that it has amended its private placement of up to 2,500,000 units for total proceeds of up to $162,500. The financing will consist of flow through units priced at $0.065 per unit. Each of the units will consist of one flow through common share and one non-flow through, non-transferable share purchase warrant entitling the holder to purchase one additional common share for five years at a price of $0.10 per share in the first two years and $0.15 per share for the remaining three years. Proceeds from the private placement will be used for exploration expenditures.

The Company is also pleased to announce that it has arranged for a private placement of up to 12,000,000 units for total proceeds of up to $960,000. The financing will consist of flow through units priced at $0.08 per unit and non-flow through units priced at $0.065 per unit. Each of the units will consist of one flow through or non-flow through common share and one non-flow through, non-transferable share purchase warrant entitling the holder to purchase one additional common share for five years at a price of $0.10 per share in the first two years and $0.15 per share for the remaining three years. In accordance with Exchange policies, finders' fees may be paid on the funds raised. The private placement is subject to regulatory approval and the proceeds will be used for exploration programs and general working capital.

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 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.

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. As well, Klondike Silver entered into a joint venture with Kootenay Gold Inc. to explore a copper-porphyry property in the state of Sonoro in northern Mexico.

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.

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