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Klondike Silver Corp.: Hinkley Mine Rewards

Stocks in this article: KS

Klondike Silver Corp. (the “Company”) (TSX-V: KS) has been rewarded with silver, lead, zinc production resulting from its exploration and development work on the Hinkley Mine which lies just one mile from the Company’s 100 ton per day Sandon Mill. In 2008 the Company implemented a program of off-setting exploration expenses with selective mine production in areas where a greater geological understanding is required. The benefit to the company is the limiting of share dilution while at the same time conducting active exploration in one of Canada’s richest silver camps.

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.

The Slocan mining district has contributed greatly to the economic development of British Columbia. Published reports estimate that the present day value of the silver, lead and zinc mined from the Silvery Slocan exceeds $30 billion, more than the projected value of the combined California, Cariboo and Klondike gold rushes.

“Richard Hughes”

President

About Klondike Silver:

Klondike Silver has become the dominant player in one of Canada’s main silver camps and has become a significant economic engine in the mineral rich Slocan Valley of British Columbia.

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.

Copyright Business Wire 2010

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