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Re:   News Releases - Thursday, August 27, 2009
      Klondike Silver Corp. Discovers Western Extension of Lode
      Structure on Initial Underground Drilling of Silvana Mine
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..  'MAIN LODE' WAS PRINCIPAL SOURCE OF PRODUCTION FOR NUMEROUS MAJOR
PRODUCERS WITHIN THE SLOCAN CAMP, INCLUDING THE SILVANA, MAMMOTH,
SILVERSMITH AND STANDARD MINES

.. TARGET AREA WAS SLATED FOR FURTHER EXPLORATION WHEN MINE SHUT DOWN IN
1990s AS A RESULT OF LOW METAL PRICES

VANCOUVER, BC --- Klondike Silver Corp. (TSX-V: KS) (the "Company") is
pleased to report that initial diamond drilling west of the
past-producing Silvana Mine has revealed the presence of a favorable
structure with similar geological characteristics to the historic "Main
Lode" structure.  The "Main Lode" structure was the principal source of
silver/lead/zinc production in the prolific Sandon Silver Camp of
south-central British Columbia.

An audio interview summarizing this release has been prepared with the
Company's Mine Manager, Steve Phillips, is available through AGORACOM
Investor Relations via the following link (link will go live at
approximately 11:30am EST, August 27, 2009):

http://www.smallcapepicenter.com/executive/KSbtpr270809

"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," comments Company president Richard Hughes.  "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."

To view a map of the 2009 drilling and target area please click on the
following link (if the link does not open cut & paste it into your
browser address bar):

http://www.klondikesilver.com/i/pdf/MainLodeXsectioncropped.pdf

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 initial phase of diamond drilling was conducted from the new
underground west extension of the main access (4625 Level) of the
Silvana Mine.

.. Four BQ-size holes totaling 363.6 meters (1,193 feet) were drilled at
a departure of 9,250.00 feet E. (mine grid). This initial drilling
program represents the first stage of exploring a 1.5-kilometer long
(7,000 feet) presumed highly prospective segment of the "Main Lode"
structure.

.. The recently completed drill program achieved an important objective
as the structure intersected by the drilling has characteristics
typical of the "Main Lode" as mined at Silvana.

.. Following this identification, the next 100 meters (330 feet)
westerly extension of the main access (4625 Level) is now under way.
The next drill station for testing the presence and resource potential
of the "Main Lode" will be at approximately 9,500 feet E. (mine grid).

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
Trygve H�y, PEng, PhD who has read and agreed with the technical
information in this news release.

About Klondike Silver:

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 one of its
Yukon properties and local mines in the historic Slocan Silver Camp.

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.


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.
AGORACOM Investor Relations
Email: KS@agoracom.com;    Website:
http://www.agoracom.com/ir/KlondikeSilver

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.

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Copyright (c) 2009 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 Aug 27, 2009 at 6:59:06 AM Pacific Time
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