SOURCE: Klondike Silver Corp.

July 02, 2008 15:57 ET

Expanded Successful Regional Exploration Is Well Underway in the Silvery Slocan

VANCOUVER, BC--(Marketwire - July 2, 2008) - Klondike Silver Corp. (TSX-V: KS) (PINKSHEETS: KLSVF) is pleased to report that the 2008 regional exploration program is well underway in their Slocan camp holdings located near New Denver in southeastern B.C. The Company holds more than 10,000 hectares of claims and crown grants in the Slocan district, including numerous past producing mines such as the Silvana, Hinckley, Wonderful and Van Roi, and a fully permitted and operational 100 ton/day mill located near the historical mining town of Sandon in the heart of the belt.

The area has been broken down into six distinct areas for exploration as shown on map below and the expandable map located on the Klondike Silver website at www.klondikesilver.com. These include the main Sandon camp itself, Cody Creek immediately to the east, the Payne Mine area to the north and the Silverton Creek area to the south. Farther south, the Hewitt-Van Roi camp is centered on two past producers and to the northeast is the Jackson Basin exploration area.

The central area, the Sandon camp, includes one of the largest past producing mines as well as numerous smaller past producers, and has been the focus of much of Klondike Silver's surface and underground exploration for the past several years. It is currently producing from an extension of the McLanders vein on the Wonderful property and Silvana Mine and contains the Hinckley Mine deposit, scheduled to commence production within a few weeks. Past production from the Sandon camp area totals 731,980 kg (25,819,834 oz) silver, 103,409,796 kg (227,979,575 lbs) lead and 55,320,103 kg (121,959,950 lbs) zinc from the seven main producers. Current work, detailed in a recent press release, (June 24, 2008) includes underground rehab and follow-up exploration on an airborne geophysical survey and several coincident geophysical (VLF-EM) and soil geochemical anomalies. In particular, a soil geochemistry program completed on the north side of Carpenter Creek in 2007 indicates possible continuity of up to eight distinct east-west structures that align to old workings. Moreover, new anomalies appear in the intervals between known structures. Follow-up exploration on these anomalies will include prospecting, sampling and eventually, trenching.

The Cody Creek area includes the eastern projection of the two largest producing veins in the Sandon camp, the Silvana lode and A.E. Adams lode. The past producing Richmond-Eureka, Silversmith and Slocan King mines occur along these eastern extensions. A 2007 soil geochemistry program, targeting the area east of the known producing mines, identified several linear anomalies that are coincident with these trends. Additional soil geochemistry and prospecting of these areas, followed by trenching, is scheduled for the 2008 season.

Exploration of the Payne Mine area, located on the slopes and ridges north of Carpenter Creek, is restricted to a reconnaissance soil survey in 2007. The soil grid will be extended to the north this coming season, and several anomalous areas recognized from the 2007 survey require infill lines and sampling, followed by ground geophysics, and dependent on results, trenching.

The Jackson basin, located in the northeastern part of the Slocan area, is centered on several small, but reportedly high grade east trending veins. Known BC Minfile deposits and occurrences include Jackson, Dublin Queen and Towser, and prospecting by Klondike Silver discovered a new vein located in the northwestern part of the area. Exploration in 2007 included extending an earlier soil grid, and trenching one of the known occurrences, Stenson, (which contained grab samples with up to 53 oz/ton silver) with only limited success. A subsequent ground geophysical survey has demonstrated more clearly the trend of this vein and future trenching will be more accurately controlled. Soil sampling in the Jackson basin, currently underway, will be completed in 2008, and a ground geophysical survey is being extended between the known occurrences along areas marked by prominent airborne linears.

Little exploration has been done by Klondike Silver in the Hewitt-Van Roi area in the southern part of the Slocan Silver camp. The area has produced more than 146 million grams (5,149,998 ozs) silver, 10,800,000 kg (23,809,924 lbs) lead and 9, 370,000 kg (20,657,313 lbs) zinc. The 2008 program will include a regional soil survey between the two past producing mines, additional prospecting and, as in all areas, both reconnaissance and detailed geological mapping. This program, currently underway, has identified several new targets that will be followed up by a ground geophysical survey, sampling and eventually trenching.

The final exploration area, the Silverton Creek basin, is possibly the least explored of all the areas. Several lodes, including Klondike Silver's Canadian deposit, occur along its northern edge and probably form part of a discontinuous east-trending vein system that extends from the Wakefield to the Ivanhoe. As in other areas, initial exploration of the area will include a soil program followed by prospecting and geological mapping.

All past and ongoing exploration data is currently being converted and compiled in digital format onto common base maps at the new field office at Roseberry, just north of New Denver. This allows ready comparison and integration of all data, including surface and airborne geophysics, soil surveys, prospecting, and mapping, which will lead to more accurate and controlled delineation of trenching targets.

The exploration program is under the supervision of Dr. Trygve Hoy (P. Eng.) who has more than 30 years of mineral deposit research and exploration experience in southeastern British Columbia. The exploration team is managed by Dave Good (B.Sc. Geology) with more than 10 years of exploration and mine geology experience in Canada. Mike Seabrook (B.Sc. Geology) will be conducting much of the regional geological mapping and will lead the exploration of the Hewitt, Van Roi, Silverton Creek and Jackson basin areas. Also included in the exploration group is a geophysics technician (B.A. Belton) and two soil sampling crews. As well, several prospecting teams and additional contract soil samplers are employed. The systematic exploration of these blocks of the Slocan Silver camp will hopefully lead to the discovery of additional lodes or extensions of known deposits. Recent exploration of many of these areas has been limited and due to the previously fragmented nature of land holdings, has been patchy and sporadic.

Klondike Silver's president and chairman Mr. Richard Hughes states, "I am excited by the program Dr. Trygve Hoy has implemented as this will be the first time in the history of the Slocan Silver Camp that historical data and exploration is being combined with the newest scientific and technical methods of exploration available." He goes on to say, "Our extensive land package allows for an assessment of the area not previously possible. Combined with an exploration team that is outstanding, we expect great things to come out of our approach to exploration in this area."

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.

To view a map of Klondike Silver Corp. Slocan Silver Camp, please click on the link provided: http://www.klondikesilver.com/i/pdf/08-07-02-Slocan-3.pdf

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