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Re:   News Releases - Wednesday, June 17, 2009
      Klondike Silver Corp. Samples 351 g/t Silver, 10.29% Lead, and
      8.1% Zinc in Jackson Basin
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.. 2009 SUMMER EXPLORATION TO FOCUS ON EXPANDING 2008 DISCOVERIES
.. PERMITS RECEIVED AND TRENCHING PLANNED FOR EARLY JULY

VANCOUVER --- Klondike Silver Corp. (TSX-V:KS) (the 'Company') is
pleased to announce that recent exploration programs have discovered
new silver-rich prospects while also confirming the potential of
targets similar to past-producing mines within the Slocan Silver Camp
of south-central British Columbia. 

The 2008 exploration program focused on testing several project areas
that encompass past-producing mines.

Map of Slocan Silver Camp -
http://www.klondikesilver.com/i/pdf/08-07-02-Slocan-3.pdf

JACKSON BASIN AREA

The Jackson Basin Area, includes the historic Jackson Mine discovered
in 1892. Mining continued until 1955, followed by intermittent
operations until 1975.

Trenching is planned to begin in July along with testing those areas of
the Jackson Basin believed to potentially host high-grade silver zones.
 The main objectives of the 2008 exploration program in the Jackson
Basin Area was to determine the extent of the main vein to the east of
the Jackson Mine. The main lode exploited in the past is believed to
extend as far west as the Northern Belle Crown Grant on the northeast
side of the Mt. Payne which is also on the property.

Past programs conducted east of the Jackson Mine have generated
encouraging results that revealed a thick breccia zone with massive
sulphides throughout, cross-cut by quartz veins and hosted in a
limestone of the Slocan Group.

About 2.5 meters of the breccia zone is visible in outcrop.  Further
exploration is required to determine its orientation and true
thickness.

.. Samples collected directly from the breccia zone returned values of
79 g/t silver, 3.25% lead and 2.16% zinc. A vein crosscutting the
breccia zone was also sampled and returned 351 g/t silver, 10.29% lead
and 8.1% zinc. 

The Company also explored other portions of the Jackson Basin, which
revealed potential for high-grade silver zones that may be further
tested in future programs.

The Company is also conducting an underground exploration program
focused on the western extent of the Main Lode hosting the Silvana
Mine, the second largest past-producer in the Slocan Silver Camp. The
goal is to define resources that can be mined and processed in the
Company's fully permitted 100-tonne-per-day flotation mill in the
nearby historic town of Sandon. The cash flow generated from
test-mining and custom mining would be used to fund ongoing exploration
programs.

The Company would also like to announce it has arranged a Private
Placement for up to 10,000,000 flow-through or non flow-through units
priced at $0.06 per unit, for total proceeds of $600,000.  Each unit
will consist of either one flow through or one non-flow through common
share and one non-flow through, non-transferable share purchase warrant
entitling the holder to purchase one additional common share for a
period of two years at a price of $0.10 per share.  In accordance with
Exchange policies, finders' fees may be paid on a portion of the funds
raised.  The private placement is subject to regulatory approval.  The
proceeds of the private placement will be used for exploration
programs, property option payments and general working capital.

The Qualified Person for the purpose of National Instrument 43-101 is
Freeman Smith, PGeo, who has reviewed the technical contents of 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, (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 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 Wed Jun 17, 2009 at 11:03:24 AM Pacific Time
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