KS Klondike Silver Corp

Klondike Silver Corp. (the "Company") (TSX VENTURE: KS) is pleased to announce it will be cutting a new drill station to advance underground exploration as well as commence a 300 foot extension to the existing drift.

A map and diagram have been prepared highlighting the Company's current underground operations. To view the image, please click on the following link or cut and paste the link into your browser:

http://media3.marketwire.com/docs/KS_Slocan_Plan_View.pdf

Stage #1: A 525 foot drift to the southwest with Drill Station #1 at the end. Drilling here indicated lode structure which directed the Company to go west. (See news release August 27, 2009)

Stage #2: A 300 foot drift (See news release October 7, 2009) westward into the footwall of the Main Lode structure and was recently completed. Drifting in the footwall, or below the lode, will allow the Company to use gravity in the removal of mineralized material should there be any identified within the lode. Drill Station #2 is currently being cut at the end of this drift and diamond drilling will take place in the New Year. Drilling from Station #2 will be towards the Main Lode structure to determine if mineralization is evident. The initial program, approximately 2000 feet planned, is expected to be completed by mid-March.

Stage #3: While diamond drilling is taking place at Station #2, a 300 foot extension to the Stage #2 drift will commence with a diamond drill station cut at the end. This drift will continue on in a westward direction unless the lode structure alters. Work is planned to be completed near the end of February. Drifting may be stopped in the event that mineralized zones are located through diamond drilling from Station #2.

The "Main Lode" structure is more than 8 kilometers long, extending east from Silverton on Slocan Lake to Sandon through the "Silver Ridge" of the Selkirk Mountains some 50 kilometers north of Nelson, B.C.

The Company holds the ground for approximately 1.5 km to the west of this productive zone, to within 0.5 km of the Mammoth Mine. This program represents the first attempt since the early 1990s to explore west towards the Mammoth, Standard and the other major "Main Lode" producers.

The Silvana Mine is one of 29 former producers staked or acquired by the Company within the Slocan Camp. Other assets include extensive exploration lands and a fully permitted 100-tonne-per-day (TPD) flotation mill.

The Silvana Mine produced approximately 8 million ounces of silver and more than 30,000 tons each of lead and zinc from 550,000 tons of mill-feed mined from a 1.5-kilometer section of the "Main Lode" under Silver Ridge. This section was explored, developed and mined almost continuously from 1970 to 1993 by the Silmonac Syndicate and its successors, including Kam-Kotia Mines Limited, Silvana Mines Inc., Dickenson Mines Limited and Treminco Resources Ltd. Sporadic mining has since been conducted by other companies, including Klondike Silver.

The Qualified Person for the purpose of National Instrument 43-101 is Ed Craft, PEng, 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.

Contacts: Klondike Silver Corp. Kevin Hull or Alan Campbell (604) 685-2222 (604) 685-3764 (FAX) info@klondikesilver.com www.klondikesilver.com AGORACOM Investor Relations Email: KS@agoracom.com www.agoracom.com/ir/KlondikeSilver