SOURCE: Klondike Silver Corp.

July 14, 2008 15:10 ET

Agreement for Sandon Concentrate Reached

VANCOUVER, BC--(Marketwire - July 14, 2008) - Klondike Silver Corp. (TSX-V: KS) (PINKSHEETS: KLSVF) is pleased to announce that the Company has entered into an agreement with a smelter for the concentrate presently on inventory. Shipments will commence shortly. The concentrate was produced from the Wonderful and Silvana mines where production continues, and also in part from the 80 ton Stump property bulk sample shipped from the Yukon in 2007. The lead concentrate assays 74% lead and 135 ounces silver per ton and the zinc concentrate assays 55% zinc and 50 ounces silver per ton.

Shipments of 2500 to 3000 tons of ore from the Stump property located in the Yukon to the mill at Sandon, B.C., are scheduled to begin on July 19, 2008, and will be processed upon arrival. This ore is from the same source as the 80 ton bulk sample shipped in 2007 assaying 40% lead and 40 ounce silver per ton. The concentrate will be transported to the smelter once the entire lot has been processed at Sandon. A similar sized shipment is planned for 2009.

Management plans to continue mining while conducting further underground exploration in the Silvana, Wonderful and Hinckley mines. The concentrate from this ore will be shipped to smelter subject to an agreed upon schedule.

A vigorous regional exploration program is being undertaken (reported July 2, 2008) with emphasis being placed on locating and recovering zinc zones previously ignored due to low prices or penalties being assessed. The region has been broken into six camps, the Payne, Jackson Basin, Silverton Creek, Sandon Camp, Cody, and the Hewitt Van Roi.

The management team is pleased with the progress being made in the Silvery Slocan and looks forward to building on its successes.

About Klondike Silver

Klondike Silver Corp. has assembled a quality portfolio of silver and silver-rich poly-metallic properties in historic mineral districts of North America, and is applying advanced exploration technologies to add value to these core assets. The Company holds more than 10,000 hectares of claims and crown grants in the "Silvery Slocan" district, including numerous past-producing mines and a fully permitted and operating 100 tons per day mill near the historic mining town of Sandon, B.C.

Klondike Silver is reviving the historic Gowganda and Elk Lake silver camps in Ontario, and is exploring silver-rich poly-metallic targets in the world-famous Klondike district of Yukon Territory. The Company has also recently optioned eight high-potential mineral concessions in under-explored historic mineral districts of Mexico.

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.

This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the corporation's control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements.

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

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