Klondike Silver Corp.′s Silvana Mine: Exploration and Bulk Testing

Klondike Silver Corp. (the 'Company?) (TSX-V: KS) is pleased to
announce an update of exploration and bulk testing activities at its
Silvana Mine located at the historic mining town of Sandon in SE British
Columbia. The Company′s 100% owned 120 ton per day mill has been
operating 10 hour shifts for 7 days a week resulting in the processing
of approximately 40 tons of material per day.

Exploration at the 4625 Level and the 4755 Level has continued the
search for large ore bodies that would allow the mill to work at full
capacity. The Company plans to focus on the continuation of the westward
drift on the 4625 Level to test the western extension of the main lode.
As previously reported (see October 13, 2010 News Release) exploration
at the 4625 Level of the Silvana Mine confirmed the continuation of the
mainlode structure west towards the Mammoth and Standard Mines, all part
of the East/West trend of the largest producers in the Slocan Mining
Camp.

Klondike Silver Corp. has steadily acquired key ground over the past 25
years to become the largest land holder in one of Canada′s larger silver
camps. Management believes there is considerable mineralization yet to
be discovered and has developed a strategy of minimizing dilution of
outstanding shares by generating operating revenues while it continues
exploration.

ABOUT KLONDIKE SILVER CORP.

Klondike Silver Corp. has established a dominant presence in the Slocan
Mining District of British Columbia which has produced more than 65
million ounces of silver plus associated base metals since the late
1800′s. The company′s assets include at least 25 past producing mines, a
fully permitted 100 tonne per day flotation mill and 25,000 hectares
(61,000 acres) of highly prospective exploration lands.

'Richard Hughes?

President

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

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.

Klondike Silver Corp.

Corporate Inquiries:

Richard Hughes /
Alan Campbell, 604-685-2222

info@klondikesilver.com

or

Visit
Klondike Silver′s web-site: www.klondikesilver.com