Klondike Silver Closes Private Placement

KLONDIKE SILVER

CORP.

Suite 804 – 750 West Pender Street T: 604.682.2928

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

www.KlondikeSilver.com TSXV: KS / FSE: K1SN

KLONDIKE SILVER CLOSES PRIVATE PLACEMENT

February 1, 2017 - Vancouver, Canada – Klondike Silver Corp. (the “Company”) (TSX.V: KS) is pleased

to announce that it has closed the private placement previously announced on January 17 and 19, 2017.

The Company has issued 26,000,000 units (“Units”) for gross proceeds of $1,300,000. The terms of the

initial $1,000,000 (class A units) are as follows: 20,000,000 units at a price of $0.05 per unit. All class A

units consist of one common share and one non- transferable share purchase warrant, with each warrant

exercisable for a period of five years from the closing at a price of $0.05 per share. The terms of the

additional $300,000 (class B units) are as follows: 6,000,000 units at a price of $0.05 per unit. 5,600,000

of the class B units are flow-through. All class B units (flow-through or non flow-through) consist of one

common share and one non flow -through, non- transferable share purchase warrant, with each warrant

exercisable for a period of five years from the closing at a price of $0.055 per share.

Finder’s fees of $115,000 will be paid in cash to qualified parties. All securities issued are subj ect to a

four month hold period expiring June 1, 2017.

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

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

“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.”