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KS.V ·

Klondike Silver Announces Private Placement

Financings

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

KLONDIKE SILVER ANNOUNCES PRIVATE PLACEMENT

August 27, 2018 - Vancouver, Canada – Klondike Silver Corp. (the “Company”) (TSX.V: KS) Further to the

news release issued on August 21, 2018 the announced private placement will also be open to Existing

Shareholders. The Company is raising up to $1,750,000 t hrough a non- brokered private placement (the

“Offering”) of up to 35,000,000 units at a price of $0.05 per unit. Each unit will consist of one common share and

one non- transferable share purchase warrant, with each warrant exercisable for a period of 5 years from the

closing at a price of $ 0.05 per share . The Offering is subject to TSX Venture Exchange ("TS XV") final

acceptance. All Units are subject to a four -month hold period from the date of issuance. Commissions may be

paid on a portion of the funds raised. The Company expects Insider(s) will be participating for more than 25% of

this private placement.

Existing Shareholder Exemption

Depending on demand and regulatory requirements, a portion of the Offering may be made in accordance with the

provisions of the existing shareholder exemption (the "Existing Shareholder Exemption") contained in

Multilateral CSA Notice 45 -313 and the various corresponding blanket orders and rules of participating

jurisdictions. In addition to conducting the Offering pursuant to the Existing Shareholder Exemption, the Offering

will also be conducted pursuant to other availab le prospectus exemptions, including sales to accredited investors,

family and close personal friends and business associates of directors and officers of the Company.

The Company has set August 17, 2018 as the record date for the purpose of determining ex isting shareholders

entitled to purchase Units pursuant to the Existing Shareholder Exemption. Subscribers purchasing Units under

the Existing Shareholder Exemption will need to represent in writing that they meet certain requirements of the

Existing Share holder Exemption, including that they were, on or before the record date, a shareholder of the

Company and are still a shareholder. The aggregate acquisition cost to a subscriber under the Existing

Shareholder Exemption cannot exceed $15,000 unless that subscriber has obtained advice from a registered

investment dealer regarding the suitability of the investment.

The net proceeds will be used for advancing the Sandon B.C. project, located 80 KM north of the Trail B.C.

smelter, and for general working capital.

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

About Klondike Silver

Klondike Silver’s Royalty Free S ILVER LEAD ZINC land packag e (100 km2) is located i n the S LOCAN

MINING CAMP (Southeast British Columbia – 138 km North of Teck’s Silver Lead Zinc smelter (Trail B.C.)).

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 the first real opportunity to invest in and properly explore a sizeable portion

of one of the most historic mining camps in British Columbia . Klondike likes to think of the Slocan as the last

best under explored Silver Lead Zinc camp in Canada. For additional information please visit the company

website www.klondikesilver.com.

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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

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, B.Comm., J.D.

CEO, 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.