Klondike Silver Corp. (TSX-V: KS) is pleased to announce that it has arranged a private placement for up to 12,600,000 units. The financing will consist of both flow-through units and non flow-through units priced at $0.25 per unit for gross proceeds of up to $3,150,000. Each of the units will consist of either 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 common share for a period of two years at a price of $0.25 per share in the first year and at a price of $0.30 per share in the second year.

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 advancing exploration on the Company's Yukon, British Columbia, Ontario and Mexico properties and for general working capital.

About Klondike Silver

Klondike Silver is a young and dynamic silver exploration company focusing on advanced exploration and small, high-grade silver production in British Columbia, Yukon, Ontario and Mexico. Klondike Silver's wholly owned 100 tons per day mill at Sandon, B.C. is currently processing ore from local and Yukon properties for exploration purposes. Klondike Silver is using modern geophysical, geochemical and drilling technology to explore historical silver camps and discover new mineralization. A large exploration program is also underway in 2008 in the Gowganda and Cobalt silver camps of Ontario.

CONTACT INFORMATION

Corporate Inquiries:

Kevin Hull

Investor Relations

(604)-685-2222

Email: info@klondikesilver.com

Website: www.klondikesilver.com

AGORACOM Investor Relations

Email: KS@agoracom.com

Website: http://www.agoracom.com/ir/KlondikeS...

The statements made in this Press 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.

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