Klondike Silver Announces 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 ANNOUNCES PRIVATE PLACEMENT

January 17, 2017 - Vancouver, Canada – Klondike Silver Corp. (the “Company”) (TSX.V: KS)

announces that it is raising up to $1,000,000 through a non- brokered private placement (the “ Private

Placement”) of up to 20,000,000 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 five

years from the closing at a price of $0.05 per share. 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.

Completion of the Private Placement is subject to the approval of the TSX Venture Exchange.

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.

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.”