May 10, 2016 - Vancouver, Canada -- Klondike Silver Corp. (the 'Company') (TSX.V: KS) announces it has arranged a private placement to raise up to $550,000 with units at a price of $0.03 per unit. Each unit will consist of one common share and one non-transferable share purchase warrant entitling the holder to purchase one additional common share for a period of four years. Warrants will be exercisable at a price of $0.05 per share. There will be no forced conversion on these warrants. Finders' fees may be paid on the funds raised. Completion of the Private Placement is subject to the approval of the TSX Venture Exchange.

The Company also updates progress made with Golder Associates Inc ('Golder). Golder has completed the detailed design report for the armouring of a section of Carpenter Creek adjacent to the Company's Silvana mill site property. The Company received the go ahead to move forward with the armouring when the creek water flow levels are low from one B.C. government ministry and one federal government ministry.

The next stage of engineering with Golder is in relation to the Mt. Polley dam breach involves reporting on the Klondike Silver tailing dams (ponds). The Company needs to meet these reporting requirements to allow it to continue with it's active mine permit.

About Klondike Silver Corp.
Klondike Silver Corp. has assembled a portfolio of silver exploration properties throughout Canada, most notably, in the historic Slocan Mining District, southeastern British Columbia. This camp has produced silver since the first discoveries in the late 1800s. Klondike Silver is the primary land-holder controlling a majority of the camp and the permitted, 100% owned 'Sandon Milling Complex' which is ready for future production. In this land package there are approximately 150 past producing mines. Klondike views the Carnation zone commonly referred to as the 'Silver Mile' in the western end of the Silvana claim property, as the primary exploration target.

For additional information please visit the company website www.klondikesilver.com.

CONTACT INFORMATION

Corporate Inquiries:
Dale Dobson: (604) 682-2928
Email: [email protected]

On Behalf of the Board of Directors
Klondike Silver Corp.
'Thomas Kennedy'
Thomas Kennedy
Director

'Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.'