Klondike Silver Corp. Commences 2010 Gold and Silver Exploration Program at Connaught JV Project

VANCOUVER, BRITISH COLUMBIA, Jun 01, 2010 (MARKETWIRE via COMTEX News Network) --

Klondike Silver Corp. (TSX VENTURE: KS) (the "Company") is pleased to announce a significant exploration program has commenced at its Connaught Project (50-50 Joint Venture with ATAC Resources Ltd.). The program will continue to expand on the highly successful soil geochemical programs of the past three years, as well as follow up with prospecting and hand trenching in areas of multi-element anomalies. Emphasis in 2010 will give equal weight to gold in addition to silver, which has been the main focus of recent programs. The gold potential of the property has been known for some time, however, the very high grade silver- lead veins have seen the greatest exploration effort.

The Connaught property lies in the headwaters of the 60 Mile placer gold district, within the Tintina Gold Belt, and at the northwestern end of the White Gold District. The Yukon has seen increasing interest as a gold exploration target in the past few years. Great success has been achieved by Underworld Resources at their White Gold project, and by ATAC Resources at their RAU gold project, along with many other high potential gold properties in the region.

"Klondike Silver believes the project may have significant untested gold potential in addition to further high grade silver veins. The Connaught is a large well mineralized property that continues to deliver new discoveries by prospecting and soil geochemistry," commented Company President, Richard Hughes.

Mineralization at Connaught is intrusion related, with 14 narrow polymetallic veins discovered to date over an area of 11km by 4km. Late Cretaceous age granitic intrusions are present on the property, with metamorphic country rocks of the Yukon Tanana terrane. Hornfels and skarn zones present on the property may hold potential for bulk tonnage gold deposits. A thrust fault mapped on the property should also be investigated for enhanced gold values in a geological setting similar to the "White Gold" property, now owned by Kinross Gold.

The Qualified Person for the purpose of National Instrument 43-101 is William Mann, P.Geo., who has read and agreed with the technical information in this news release.

The Company is also pleased to announce that it has arranged for a private placement of up to 15,000,000 units for total proceeds of up to $750,000. The financing will consist of flow through and non-flow through units priced at $0.05 per unit. Each flow through unit will consist of one flow through common share and non-flow through share purchase warrant entitling the holder to purchase one additional common share for two years at a price of $0.10 per share. Each non-flow through unit will consist of one non-flow through common share and one non-flow through share purchase warrant entitling the holder to purchase one additional common share at the price of $0.10 per share in the years 1&2, $0.15 per share in year 3 and $0.20 per share in years 4&5. In accordance with Exchange policies, finders' fees may be paid on the funds raised. The private placement is subject to regulatory approval and the proceeds will be used for exploration programs and general working capital.

About the Connaught Property:

Previous exploration at the Connaught Property revealed silver, gold and lead mineralization in 14 veins over an area measuring roughly 11 kilometres by 4 kilometres. Porphyry and skarn mineralization is also present in the area.

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.

Or 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: Corporate Inquiries: Klondike Silver Corp. Kevin Hull (604)-685-2222 Klondike Silver Corp. Alan Campbell (604)-685-2222 info@klondikesilver.com

SOURCE: Klondike Silver Corp.

mailto:info@klondikesilver.com

Copyright 2010 Marketwire, Inc., All rights reserved.