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KS.V ·

BC Mines Act Permit Approval

Permits & Approvals

Suite 804 – 750 West Pender Street T: 604.682.2928

Vancouver, B.C., V6C 2T7 Canada F: 604.685.6905

www.KlondikeSilver.com TSX.V: KS / FSE: K1SN

BC Mines Act Permit Approval

August 20, 2018 - Vancouver, Canada – Klondike Silver Corp. (the “Company”) (TSX.V:KS):

KLONDIKE SILVER is very pleased to announce that the BC Ministry of Energy, Mines and

Petroleum (EMPR) has approved the Company’s Application to Amend the Silvana Mine , Mines Act

Permit M-65 Mine Plan and Reclamation Program.

The amendment approval gives Klondike the Green Light to immediately proceed to explore and drill

the under-explored section of the “Main Lode”, referred to as the “Silver Mile”. The “Main Lode” is the

most productive silver-lead-zinc vein in the Slocan Mining Camp, southeast British Columbia.

Klondike Silver issued a News Release dated February 28, 2018 which contained the following

information:

“In the fall of 2017, Company staff took several chip samples from stope pillars and raises between the 4625 and

4755 level, west end workings of the Silvana Mine. The results are listed below:

Sample Silver Lead Zinc

Number (oz/t) (g/T) (%) (%)

1675 37.5 1,285 16.3 15.3

1676B 328.1 11,250 23.4 32.6

1677 41.6 1,425 12.8 24.7

1678 220.2 7,550 0.6 40.2

Note: 1 troy ounce per short ton (g/t) = 34.2857 grams per metric tonne (g/T)

Company staff also explored the Carnation 5480 level which is the lowest and most easterly of the Carnation

workings. Sampling of the footwall Main Lode are listed below:

Sample Silver Lead Zinc

Number (oz/t) (g/T) (%) (%)

1367 41.4 1,419 1.5 37.4

1369 23.5 806 3.1 41.1

1370 96.8 3,319 58.6 6.3

1371 54.5 1,869 5.6 45.9

Note: 1 troy ounce per short ton (g/t) = 34.2857 grams per metric tonne (g/T)

The high silver assay values with respect to lead assay values in some of the samples are attributed to

Pyrargyrite, also known as Ruby Silver rather than Argentiferous Galena.

The distance between the western end of the Silvana Mine (4625 West Lateral Dr ift) and the eastern end of the

Carnation workings (Carnation 5480) is approximately 350 meters. The Company’s goal is to advance the

Silvana 4625 West Lateral Drift and new internal levels and raises to eventually connect to the Carnation 5480.

This under ground exploration of the “Silver Mile” will continue to explore the Main Lode to its property

boundary, 1.5 kilometers to the west.

2

Suite 804 – 750 West Pender Street T: 604.682.2928

Vancouver, B.C., V6C 2T7 Canada F: 604.685.6905

www.KlondikeSilver.com TSX.V: KS / FSE: K1SN

All samples in this news release were analyzed at ALS Canada Limited, North Vancouver. Samples were crushed

to 70% < 2mm (Code: CRU-31), riffle split (Code: SPL-21) and pulverized to 85% < 75µm (Code: PUL-31). The

subsequent pulps were digested using a four -acid solution and assayed using an ICP -AES instrument (Code:

OG62). Silver samples that were over the detection limit used a 30 g Fire Assay with a Gravimetric Finish

method (Code: Ag-GRA21 or Ag-CON01). Lead and zinc samples over the detection limit used classical titration

methods (Code: Pb-VOL70 and Zn-VOL50 respectively). ALS Canada is a certified ISO/IEC 17025:2005 and ISO

9001:2015 compliant facility which incorporated their standard QA/QC laboratory procedure to the above

samples.”

The samples in the news release dated February 28, 2018 set out above were selective samples and are

not necessarily representative of the mineralization hosted on the property.

The Company will now proceed with extending the 4625 West Lateral Drift, create a diamond drill

station and will then drill an initial fan pattern of diamond drill holes to intersect the “Silver Mile”

section of the “Main Lode”. The data from this initial drill program will be used in planning the next

section of exploration drifting and drilling. Should Silver-Lead-Zinc mineralization be intersected by

the drilling, additional holes will be added to the program to delineate these mineralized pods. This

methodical testing of the Main Lode has been very successful in extending the life of the Silvana Mine

over the past 40 years.

About Klondike Silver

Klondike Silver’s royalty-free SILVER LEAD ZINC land package (100 km2) is located in the historic SLOCAN

MINING CAMP, southeast British Columbia. It is 138 km north of Teck’s Trail BC Lead-Zinc smelter. Based

on the British Columbia MINFILE mineral database, sixty-eight (68) of the one hundred and seventy -three (173)

past producing Silver Lead Zinc mines in the Slocan Mining Camp are located in the Klondike Silver land

package. Klondike Silver has created (with the use of modern technology) the first real opportunity, in the history

of the camp, to invest in and properly explore a sizeable portion of one of the most historic mining camps in

British Columbia. Klondike considers the Slocan the best under -explored Silver Lead Zinc camp, in Canada.

For additional information please visit the Company’s website www.klondikesilver.com.

The scientific and technical disclosure in this news release has been reviewed and approved by David Makepeace,

P.Eng., Senior Geologist – Environmental Engineer for Micon International Limited, who is an independent

consultant to the Company and Qualified Person as defined in NI 43-101.

CONTACT INFORMATION

Corporate Inquiries:

Dale Dobson: (604) 682-2928

Email: [email protected]

On Behalf of the Board of Directors

Klondike Silver Corp.

"Thomas Kennedy"

Thomas Kennedy

CEO, President and Director

This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertaintie s

not under the control of Klondike Silver Corp. which may cause actual results, performance or achievements of Klondike Silver

Corp. to be materially different from the results, performance or expectation implied by these forward looking statements. B y their

nature, forward looking statements involve risk and uncertainties because they relate to events and dep end 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.

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.