SOURCE: Klondike Star Mineral Corp.

January 29, 2008 09:00 ET

Major Expansion of Gold Mineralization Forecast for Lone Star Gold Project

SEATTLE, WA--(Marketwire - January 29, 2008) - Donald W. Flinn, P.Eng., Vice-President, Operations of Klondike Star Mineral Corporation (OTCBB: KDSM), today reported consolidated analysis of 2007 exploration results together with geological research of the Klondike region by the University of British Columbia's Mineral Deposit Research Unit (MDRU) has resulted in the identification of high priority drill targets at the Lone Star Zone, expected to substantially increase the known gold potential." This zone is one of five major exploration targets on the expansive Lone Star property.

Detailed mapping and re-logging of drill core at the Lone Star Zone by Klondike Star's geological staff has resulted in the first comprehensive geological model of the zone. This model displays the major structures and identifies a major stratigraphic control of gold mineralization that was not previously apparent. The zone is highly deformed, with multiple phases of folding and faulting, and has few obvious geological markers. The rock types at Lone Star grade into one another, with subtle variations in mineralogy and highly variable percentages of the rock forming minerals.

The detailed geology of Lone Star zone was re-investigated, informed by the recent regional structural geological framework identified by the MDRU. Careful examination of the available rock outcrops at the zone, mostly present in trenches, combined with information available in drill core led to the identification of subtle marker horizons which could be traced across the zone at surface, and into the subsurface. These marker horizons allow for a realistic interpretation of the major folds and faults which control the geometry of the host rocks.

Gold mineralization was found to be strata-bound within certain favourable geological horizons. For the most part gold is disseminated within a muscovite-rich schist which is variably pyritic. Minor quartz veins are locally associated with gold, however most of the gold is not spatially associated with veining. A schistose meta-quartzite forms the footwall to the mineralized unit, and a distinctive, narrow, apple green band of quartzite is found within the muscovite schist that is a consistent marker horizon.

Combining the new geological model with plans and cross sections displaying gold mineralization has led to the identification of numerous locations within the existing Lone Star resource area that are very likely to host additional mineralization. It is also apparent from the geological cross sections that a significant deep gold target is present at the Lone Star zone that has never been drilled. The maximum depth tested to date is 175 meters/574 feet, and the favourable horizon is now interpreted to extend to approximately 400 meters/1,312 feet in the Lone Star area.

A program of infill, step-out and deep drilling has been planned based on this new interpretation of the geological setting. 11,000 meters/36,089 feet of drilling is proposed for 2008 that is expected to substantially increase the identified gold resource at the Lone Star zone. This drilling would consist of about 2,000 meters/6,562 feet of shallow drilling (maximum 100 meters/328 feet) along the southern edge of the deposit in areas that haven't been tested, 4,000 meters/13,123 feet to extend the zone to the Pioneer zone to the southwest, 1,000 meters/3,280 feet to extend the zone to the northwest and 4,000 meters/13,123 feet of deep drilling (holes of 200 to 400 metesr/656 to 1,312 feet) within the Lone Star resource area.

Exploration Manager, Bill Mann, M.Sc., said, "I am very pleased that our patient, systematic and sustained geological work in conjunction with the MDRU has resulted in a breakthrough in understanding of the structural and stratigraphic geological setting at Lone Star. It is exciting to be able to plan drill holes that are highly probable to intersect additional gold mineralization."

About the Lone Star Project

Lone Star is an advanced exploration stage project that is being studied for mine development. Of all its projects, Klondike Star is currently focusing exploration efforts at the majority-owned Lone Star Project. It involves an area of 135 square kilometres/152 square miles, including the Lone Star Zone, the Nugget Zone, the Buckland Zone, the JF Zone, Pioneer Zone and the 27-Pup-Dysle-Veronika Zone. These zones extend over large areas with excellent opportunity for the existence of multiple mineralized zones, along both strike and dip. They belong to a class of structures which have potential for large, medium-grade, bulk-tonnage ore bodies.

The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products or actions in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.

Contact Information

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    Investor Relations
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