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Re:   News Releases - Thursday, June 03, 2010
      Klondike Silver Corp. Discovers Mineralization within 20 foot
      Intersection of Silvana Main Lode Structure
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VANCOUVER, BC --- Klondike Silver Corp. (TSX-V: KS) (the "Company") is
pleased to announce results from its ongoing underground drill program
at its Silvana Mine in Sandon, BC. 

Hole K-1117 was completed in early May from Drill Station #2 and
intersected a true width of 20 feet of lode structure.  Company
geologists found sporadic intersections of quartz carbonate-vein
fragments within the core.

Hole K-1118 was completed on May 31st, also from Drill Station #2, and
the true width of the lode structure intersection exceeds that of hole
K-1117.  The geologists are also seeing much more quartz carbonate-vein
fragmental content in the core of K-1118 than they did in the core of
hole K-1117.

Completion of drill holes K-1117 & K-1118 at the west end of the 4625
level of the Silvana silver-lead-zinc mine, brings the company further
into the 7,000 foot long segment of unexplored and highly prospective
ground west of the Main Lode structure of the Silvana Mine.

To view a map of the Slocan Silver Camp highlighting recent work done
by the Company click on the following link:

http://www.brmstatpack.com/lt/1001/1133/slocan-map

Steve Phillips, Klondike Silver's mine manager, commented 'in my
experience these intersected thicknesses constitute very significant
widths of lode structure'.  Steve Phillips has 42 years mining-geology
experience, including 17 years in the Slocan Camp mostly at the Silvana
Mine, 6 of which were as Mine manager, chief geologist, geologist and
consultant.

Company President, Richard Hughes, made the following comments in the
Company's August 27, 2009 press release upon the initial discovery of
what is believed to be an extension of the Main Lode structure,
responsible for the majority of mineralization and production within
the Silvana Silver Camp. "We have two goals in the current underground
exploration program; first to identify the presence of the lode
structure within the prospective horizon, and second to locate any
ore-bearing chutes within the structure.  The discovery of lode
structure this early in the initial phase of exploration is exciting as
we are just at the start of our target area.  This 1.5 km area between
the Mammoth and Silvana mines has never been tested before although it
was slated for exploration before the mine shut down in the early 1990s
as a result of low metal prices.  Drilling will now focus on testing
the newly discovered structure for the presence of ore-bearing chutes
as well as further delineating its extent."

The recent intersection has demonstrated that the structure which the
Company is currently exploring has the potential to host
lead-zinc-silver mineralization.  The target zone is a 1.5 km long
section of  the Main Lode structure that has never been tested before.
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 between the
Silvana and 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.

Company geologists are also pleased that they now have 3 points of
intersection for the lode structure and are moving the drill for hole
K-1119.  Hole K-1119 will be drilled from Drill Station #3, 100 meters
to the west of Drill Station #2, and is expected to begin on June 3rd.

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 an excellent 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. 

Contact Information:

Corporate Inquiries: Kevin Hull or Alan Campbell, (604)-685-2222
Email: info@klondikesilver.com

Or visit Klondike Silver's web-site: www.klondikesilver.com to see
Smartstox interviews with Company President, Richard Hughes.

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Copyright (c) 2010 KLONDIKE SILVER CORP. (KS)  All rights reserved.
For more information visit our website at
http://www.klondikesilver.com/ or send mailto:info@klondikesilver.com
Message sent on Thu Jun 3, 2010 at 11:36:24 AM Pacific Time
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