SOURCE: Klondike Silver Corp.

July 08, 2008 12:14 ET

Exploration Update on Espiritu, El Cuervo, Suzanne & Ofelia

VANCOUVER, BC--(Marketwire - July 8, 2008) - Klondike Silver Corp. (TSX-V: KS) and Kootenay Gold Inc. ("Kootenay") (TSX-V: KTN) are pleased to report an exploration update on the generative properties optioned from Kootenay Gold to Klondike Silver in the state of Sonora, Mexico.

All areas are in early stages of modern discovery and in all cases there are evidences of old artisan workings.

ESPIRITU

The Espiritu prospect is represented by a polymetallic Au, Ag, Cu, Pb & Zn mineralization that is traceable for up to 4 km in length to 500m in width. The mineral system is related to a NE trending structural zone hosting stockworks, veins and breccias mineralized with secondary metallic oxides, galena, sphalerite, chalcopyrite and sulphosalts.

Mineralization is hosted in argillic, sericitic, silica and biotite alteration zones and appears to be associated with at least two porphyry systems. Metals values are anomalous to highly anomalous over the whole length of the system and include gold (to 3720 ppb), silver (to 1231 ppm) and numerous locations of copper, lead and zinc with values greater than 1%.

A total of 55 grab samples have been collected ranging from background to the above noted highs.

EL CUERVO

This prospect contains both skarn and epithermal low sulphidation mineralization. The mineralization is related to granitic rocks intruding a massive limestone unit located at and along a major basin and range front fault. The skarn has been traced for in excess of 2 km strike length and in excess of 500 m wide along the contact of the granitic rock and the limestone. The skarn is a complex array of magnetite, hematite, garnet, pyroxene, actinolite, chlorite, epidote and ilvaite. The skarn is polymetallic with anomalous Au, Ag, Cu, Pb, Zn, Mo & W. Values range to Au (2550 ppb), Ag (237 ppm), Cu (2.9%), Pb (1.8%), Zn (10.9%), Mo (12500ppm) & W (2100ppm). The skarn is strongly zoned with strongest mineralization in the eastern parts.

The epithermal, low sulphidation zone is hosted in Tertiary rhyolites to the immediate west of the skarn and appears to represent a high level stage of mineralization related to the down drop margin of the basin and range front fault. Au values to 800 ppb (0.8 gr/ton) have been noted.

A total of 122 grab samples have been taken at El Cuervo with values ranging from background to the above noted highs.

SUZANNE

The Suzanne is represented by a polymetallic Au/Ag/Pb/Zn sheeted vein system related to major ENE faulting. The veins and associated stockwork are traceable for in excess of 1 km and range up to 5 m in width. Metal values for the veins and stockworks range to Au (695 ppb), Ag (665 ppm), Pb (6.4%), Zn (10.7%). Exploration peripheral to the vein revealed the probable presence of further veins with the discovery of proximal float with 506 ppb Au and 665 ppm Ag, 500 metres south from the main discovery veins.

63 grab samples were taken ranging from background to the above noted highs.

OFELIA

The Ofelia prospect is a low sulphidation epithermal quartz vein/stockworks system. Preliminary exploration has shown the system to contain gold values 5.7 gr/ton and silver values to 469 ppm, with little or no accompanying other metals or pyrite. The Ofelia system is hosted within a 5 km by 3 km alteration zone, most of which has not been explored. The mineralization appears to be immediately peripheral to the alteration system.

41 grab samples have been taken ranging from background to the above noted highs.

All values reported are from prospector grab samples and all were analyzed by IPL Laboratories in Richmond, B.C., Canada using multi acid digestion agua regia with ICP and a fire assay AA finish for gold and a fire assay gravimetric finish for gold and silver over 1000 ppb and 100 ppm respectively.

The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo. (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of the Company.

About Klondike Silver

Klondike Silver Corp. has assembled a quality portfolio of silver and silver-rich polymetallic 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 polymetallic 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.

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

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