Private Placement

#711-675 WEST HASTINGS STREET VANCOUVER, B.C. CANADA V6B 1N2 TELEPHONE: 604-685-2222 FAX: 604-685-3764 WWW.KLONDIKESILVER.COM

July 21, 2011 TSX: KS

Private Placement

KLONDIKE SILVER CORP. is pleased to announce that it has increased the private placement announced May 20, 2011 from 4,000,000 Units to 6,000,000 Units for total proceeds of up to $1,500,000. The financing will consist of the Units priced at $0.25 per Unit. Each of the Units consist of one common share and one non-transferable share purchase warrant entitling the holder to purchase one additional common share for four years at a price of $0.30 per share. The private placement is subject to regulatory approval.

Proceeds from the private placement will be used for exploration expenditures on the Company’s Yukon, British Columbia and Ontario mineral properties as well as for general working capital.

Klondike Silver is a Canadian mineral exploration company focussing on the development of silver properties in Yukon, British Columbia and Ontario. The Company owns 100% of a fully operational and permitted 125 ton per day mill in Sandon, British Columbia.

Contact Information:

Corporate Inquiries: Kevin Hull or Alan Campbell, (604)-685-2222 Email: [email protected]

Or visit Klondike Silver’s web-site: www.klondikesilver.com

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