Klondike Silver Corp. Increases Land Position in the Silver Slocan Mining District through Acquisitions of Past Producing Mines

Klondike Silver Corp. (TSX-v symbol: KS) (Klondike) is pleased to announce that it has acquired an additional six past producing silver-lead-zinc mine sites in the Silver Slocan Mining District of southeastern British Columbia. Seven tenures were acquired representing 1,226 hectares holding several strong exploration targets. In addition to owning the fully permitted Sandon Mining Complex, Klondike now holds a total of 16,544 hectares in the region controlling a majority of the historically productive camp.

As recorded in the BC Geological Survey MINFILE reports, the total combined recoveries from the newly acquired past producing mines are as follows; 1,655,809 ounces of Silver, 10,485,781 pounds of Lead, and 177,666,955 pounds of Zinc. (Refer to MINFILE Numbers 082FNW086, 082KSW023, 082FNW023, 082KSW016, 082FNW079, 082FNW022).

The newly acquired “Cliff” claims have been explored and intermittently mined since the early 1900’s up until the last reported work in 1983. Based on the reported MINFILE information, the calculated recovery of Silver, and recovered pounds of Lead, and Zinc from the individual claims, have been presented in the table below. It is important to observe that the recorded data reflects the total recovery after milling. Percentage recovery of the metals was not reported so it is not known what was lost in the historical milling process.

Table 1. Recoveries of Silver, Lead, and Zinc after Milling

Claim MINFILE #Milled TonsSilver (oz/t)Lead (Pounds)Zinc (Pounds)
082FNW086 31,537 31.08 2,187,685 1,582,959
082KSW023 1,122,330 0.53 8,150,895 175,925,995
082FNW023 *8 50.13 5,307 ---
082KSW016 *500 1.83 6,378 24,844
082FNW079 *1,247 59.80 130,123 132,048
082FNW022 *7 74.29 5,393 1,109

-The information provided in Table 1 was tabulated from the total milled tons reported in the reported MINFILE’s. If the total milled tons were not recorded in the MINFILE table the calculations were then based on the total reported *mined tons.

Cancelation of Options
Klondike would also like to announce the cancellation of 347,650 incentive stock options granted to its directors, officers, consultants, and employees prior to the shareholder approved consolidation of the Company’s shares announced March 28th 2011.

About Klondike Silver Corp.
Klondike Silver Corp. has assembled a quality portfolio of silver properties throughout Canada, most notably, in the historic Slocan Mining District southeastern British Columbia. This historic camp has produced more than 24 million ounces of silver since the first discoveries in the late 1800s. Klondike Silver is the dominant land-holder controlling a majority of the historic camp and the fully permitted, 100% owned “Sandon Mining Complex”. The Company owns the past-producing Silvana, Wonderful, and Hinckley Mines and several other properties with significant exploration potential.

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

On Behalf of the Board of Directors
Klondike Silver Corp.
"Richard Hughes"

Richard Hughes,
President and 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.

Cautionary note:
This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

To view this press release as a webpage, please click on the following link:
http://www.fscwire.com/pr/klondikesilvernov272012.htm

Contacts:

Klondike Silver Corp.
Corporate Inquiries:
Mark Luchinski, (604) 685-2222
mark.luchinski@klondikesilver.com
or
Alan Campbell, (604) 685-2222
acampbell@klondikesilver.com
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