KLONDIKE SILVER CORP.

711-675 West Hastings Street, Vancouver, B.C. V6B 1N2 (604) 685-2222 *Fax: (604) 685-3764

FOR IMMEDIATE RELEASE

TSXV: KS

www.klondikesilver.com                                                                                                     

December 10, 2007                                                                                      

NEW SILVER-LEAD MINERALIZATION DISCOVERED

Klondike Silver Corp. is pleased to announce the successful completion of this year’s exploration program at the Connaught (CN) property, which is under option from ATAC Resources Ltd.  The property hosts an extensive system of silver-lead-gold veins located within the Sixtymile Placer Gold Camp, 65 km due west of Dawson City in western Yukon Territory.  It is accessed by four-wheel drive truck via the Sixty Mile Road off the Top of the World Highway, which extends from Dawson City west into Alaska.  The property is being explored as a high grade lead-silver vein target modeled after the highly productive Keno Hill district located 250 km to the east.

Terrain in the vicinity of the claim block is subdued with gentle to moderate slopes flanking broad rounded hilltops.  Outcrop is confined to isolated tors on ridge crests.  Geology consists primarily of metasediments belonging to the Fortymile River and Klondike Schist Assemblages that are in thrust contact with the South Fiftymile Batholith.  The metasediments are dominantly quartz-mica schist while the batholith is comprised of quartz monzonitic to granitic gneiss.

Historical work began in the early 1960s and continued intermittently through the mid 1980s.  During that time, exploration consisted of grid soil geochemical sampling, ground geophysical surveys, bulldozer trenching and limited diamond drilling.  It identified numerous lead-in-soil geochemical anomalies and seven silver-lead-gold bearing veins (referred to as #1 through #7) within a 13 km by 5 km area that is now mostly covered by the CN property.  Approximately 218 tonnes of galena/anglesite rich material is reported to have been collected from the #1 and #3 Veins and shipped to the Cominco smelter in 1976. The shipment reportedly averaged 2228.5 g/t (65 opt) silver, 60% lead and 1 g/t gold.

The vein zones are commonly associated with northeast trending, weakly to moderately recessive weathering lineaments.  Where exposed, the veins are typically 0.3 to 2 m wide and grade 100 to 1000 g/t silver with 0.3 to 2 g/t gold.  Lenses of nearly massive silver-rich galena are developed locally within the vein structures.  Most veins exhibit coarse, comb textured, multi-episodic quartz hosting varying amounts of galena, anglesite, arsenopyrite, scorodite, covellite, and stibnite.

The 2007 exploration program at the CN property followed a property wide, airborne VTEM survey conducted in 2006.  The work consisted of prospecting, grid soil sampling, approximately 1100 m of excavator trenching and 566 m of diamond drilling.  Most of this work was directed toward better establishing the tenor of mineralization at the known vein zones. 

Four historical vein zones were relocated and sampled.  Excavator trenching in the vicinity of the #1, #3, #4 and #7 veins located significant mineralization on the floor of an old trench at the #3 Vein and discovered two promising lenses in new trenches near the #7 Vein.  All of these occurrences consist of massive anglesite/galena in lenses, which have been exposed for widths up to 1.25 m and along strikes for up to 16 m.   Approximately two tonnes of massive galena were recovered from the soil during the exploration of the newly discovered lenses.  Closely spaced sawn channel samples were collected along each of the vein exposures to establish grade control. 

A total of seven diamond drill holes tested at shallow depths beneath the #1, #3 and #4 veins.  Mineralized vein material was encountered in all holes.  No drilling was done in the vicinity of the newly discovered lenses near the #7 vein because they were discovered after the drill program was completed.  All assays from the 2007 trenching and drilling are pending.

Only 30% of the property has been grid soil sampled, and trenching and diamond drilling have tested only a small proportion of the existing soil geochemical anomalies.  A compilation of soil geochemical results from 1969 to 2007 has identified ten northeast trending linear lead-in-soil anomalies ranging in length from 200 m to >2000 m.  Four of the known vein zones coincide with portions of these anomalies.  Statistical analysis shows that lead is highly correlated with silver.  The anomalous linear trends are defined by lead values greater than 100 ppm.  The highest lead- and silver-in soil values (6600 ppm and 24.9 ppm, respectively) were obtained from the 2007 program. 

Richard Hughes states “There is excellent potential for additional discoveries both on the CN property and the newly acquired Mag claim block which adjoins the CN claims to the east (see News Release dated November 11, 2007)”.  The Mag claims host another well mineralized vein zone referred to as the #8 Vein which was discovered by bulldozer trenching in 1969.  Vein mineralogy is similar to the veins exposed on the CN property and reported historical grades for galena- dominant samples collected intermittently along a 275 m strike length range from 723 g/t to 5498 g/t Ag with lead values up to 84.65%.  Table I lists historical results for samples collected in 1988 along the #8 Vein.

Table I - #8 Vein

All analyses for the 2007 program are being performed at ALS Chemex laboratory in North Vancouver using industry-standard fire assay and ICP techniques. This laboratory carries ISO 9001:2000 registration and is accredited to ISO 17025 by Standards Council of Canada for a number of specific test procedures including fire assay Au by AA, ICP and gravimetric finish, and multi-element ICP and AA assays for Ag, Cu, Pb and Zn.

The exploration program at the CN property is being carried out under the supervision of Bill Wengzynowski, P.Eng, President of Archer, Cathro & Associates (1981) Limited. 

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101.  Mr. Wengzynowski is designated as the qualified person who reviewed this information.

On behalf of the Board of Directors

KLONDIKE SILVER CORP.

“Richard W. Hughes” (signed)
President

For Further Information Contact: The Hughes Exploration Group at (604) 685-2222

Or visit the Company’s website:  www.klondikesilver.com to see the Smartstox Report in which Stanlie Hunt interviews Klondike Silver Corp. President Richard Hughes.

This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the corporation’s control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.