Significant Land Package Optioned Adjacent to U.S. Gold Corp. Project

VANCOUVER, BC–(EMWNews – August 19, 2008) – Klondike Silver Corp. (TSX-V: KS)

(PINKSHEETS: KLSVF) is pleased to report, subject to regulatory approval,

the option of the San Luis property in Sinaloa State, Mexico. The property

lies immediately adjacent to U.S. Gold Corporation’s El Magistral gold

mine, where recent drilling success has been reported by Robert McEwen,

Chairman and CEO (see U.S. Gold Corp.’s news release dated July 7, 2008).

The San Luis Mining Concession consists of a total of 143.0309 hectares in

Mocorito, Sinaloa, Mexico. Consideration for the property consists of

$1,200,000 and issuing 2,000,000 shares, over a period of 48 months. There

is also a 3% net smelter return payable, and Klondike Silver has the first

right of refusal to purchase up to 2% of the NSR.

Klondike Silver Corp.’s chief geologist in Mexico, Donald Cross, P.Eng., is

the qualified person in accordance with National Policy 43-101 and reports

that a geologic traverse was made across the eastern part of the San Luis

block. The country rock consists of propylitized andesite, the same rock as

the host at U.S. Gold’s adjacent Samaniego Hill deposit. Abundant float and

a few outcrops of quartz veined and/or silicified andesite were found on

the San Luis ground. One outcrop contained quartz veining with disseminated

chalcopyrite and strong copper staining. Samples were collected for

analysis. Klondike Silver will commence an exploration program consisting

of geological mapping and geochemical sampling to be followed by drilling

of potential extensions of U.S. Gold’s mineralization onto the San Luis

claim block.

About Klondike Silver

Klondike Silver Corp. has assembled a quality portfolio of silver and

silver-rich poly-metallic properties in historic mineral districts of North

America, and is applying advanced exploration technologies to add value to

these core assets.

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.