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Re:   News Releases - Friday, June 26, 2009
      Klondike Silver Increases Land Position in Slocan Silver Camp and
      Closes Private Placement
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VANCOUVER --- Klondike Silver Gold Corp. (TSX-V:KS) (the "Company") is
pleased to report that it has aggressively staked new mineral
properties in and around the Sandon Silver Camp of south-central
British Columbia. The newly expanded land package now encompasses more
than 4,500 hectares and includes 25 past-producing mines and a fully
permitted 100-tonne-per-day flotation mill.

Klondike Silver is by far the dominant landholder in the Slocan Camp,
which has produced more than 24 million ounces of silver plus
by-product base metals since the late 1800s. The Company's holdings
consist of 2,261 hectares of crown-granted mineral claims and 22,852
hectares of mineral claims, with new additions as follows.

.. Corrigan Mine Group: 145 hectares were added adjacent to the active
and promising Jackson Mine claims to cover three past-producers. The
Corrigan Mine was known for its high grades (16,043.71 g/t silver,
34.1% lead and 2.6% zinc). The others are the Rio Mine (8,025 g/t
silver, 31.1% lead and 6.0% zinc) and the Silver Bell Mine (5,130 g/t
silver and 45.8% lead).

.. Hewitt Mine Area: 956 hectares of new ground was staked adjacent to
the Company's 41 crown-granted claims.

.. Silverton Creek Area: 951 hectares of new claims were staked,
including the past-producing Jennie Lind, Canadian and Ivanhoe Mines on
Silver Ridge. This area also covers the Iron Mask silver-lead-zinc-gold
showing near the valley bottom.

Klondike Silver's exploration efforts in and around the Sandon Silver
Camp are focused on reviving the most promising historic mines near the
existing mill and exploring a highly prospective land package focused
on five main project areas.

The newly expanded, contiguous land package extends from the heights of
Silver Ridge (Idaho Peak, Selkirk Peak and Sandon Peak) to the valley
bottom at Sandon, and up and over Payne Mountain north to Three Forks
and beyond.

The Company also announces an amendment to and the closing of a private
placement previously announced April 21, 2009.  The total number of
units has been increased from 10,000,000 to 11,040,332 units for total
proceeds of $662,420.  Each of the units was priced at $0.06 and
consists of one flow-through or non flow-through common share and one
non flow-through non-transferable share purchase warrant entitling the
holder to purchase one additional non-flow through common share for a
period of two years at a price of $0.10 per share.  The financing has
been fully subscribed and the Company is pleased to announce the
closing of this private placement.  The proceeds of the private
placement will be used for exploration programs, property option
payments and general working capital.

The securities issued under the private placement are subject to a four
month hold period.  In connection with the closing of the private
placement, the Company paid a finder's fee of $7,996 to Bolder
Investment Partners Limited representing 8% of the gross proceeds
through Bolder Investment Partners Limited.  The Company also paid a
finders' fee of $540 to Barrington Capital Corp. and $540 to Richardson
Partners Financial Limited representing 8% of the gross proceeds
through Barrington Capital Corp. and Richardson Partners Financial
Limited.

The Company also announces an amendment to and the closing of a private
placement previously announced May 29, 2009. The total number of units
has been increased from 12,500,000 to 13,700,332 units for total
proceeds of $820,820.  Each of the units was priced at $0.06 and
consists of one flow-through or non flow-through common share and one
non flow-through non-transferable share purchase warrant entitling the
holder to purchase one additional non-flow through common share for a
period of two years at a price of $0.10 per share.  The financing has
been fully subscribed and the Company is pleased to announce the
closing of this private placement.  The proceeds of the private
placement will be used for exploration programs, property option
payments and general working capital.

The securities issued under the private placement are subject to a four
month hold period.  Included in the private placement was the sale of
8,333,332 flow-through units to MineralFields Group.  In connection
with the transaction, Limited Market Dealer Inc. was paid a total cash
commission of $40,000 and Mr. Ben Lee was paid $4,224 representing 8%
of the gross proceeds of the private placement through Ben Lee.

About MineralFields
MineralFields Group (a division of Pathway Asset Management) is a
Toronto-based mining fund with significant assets under administration
that offers its tax-advantaged super flow-through limited partnerships
to investors throughout Canada during most of the calendar year, as
well as hard-dollar resource limited partnerships to investors
throughout the world.  Information about the MineralFields Group is
available at www.mineralfields.com.

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 Fri Jun 26, 2009 at 8:10:49 AM Pacific Time
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