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KS.V ·

Klondike Silver – Update

Corporate Updates

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 – UPDATE

August 2, 2018 - Vancouver, Canada – Klondike Silver Corp. (the “Company”) (TSX.V: KS):

KLONDIKE SILVER continues to be actively advancing the Silvana project so that the mine can be quickly put

back into production. Several milestones have been achieved by the Company so that the 2018 exploration

drifting and drilling program can commence along the Silver Mile section of the Main Lode.

The Company completed the required Annual Reclamation Report for BC Ministry of Energy, Mines and

Petroleum Resources (EMPR), on March 31, 2018. This document included a summary of all work that has been

completed by the Company, in the last 3 years.

The Company also submitted an application with the EMPR to amend the Silvana Mine Permit (M -65), on April

9th, 2018. This application will allow the Company to start new underground exploration drifting and drilling

westward, along the 4625 West Lateral drift, into the Silver Mile section of the Main Lode. The 2018 proposed

underground exploration program is based on the successful exploration techniques used by Silvana, over the past

45 years.

In preparation for this underground exploration work, the Company has completed required ground support

rehabilitation work over the entire length of the Silvana 4625 Level. This work has been inspected and approved

by Golder Associates (Golder) and the confirmation report has been sent to EMPR.

The Silvana mine crew has obtained all the necessary secondary permits (i.e. explosive magazines, underground

mine rescue, miner certificates, etc.) and acquired all the necessary equipment and supplies to immediately start

exploration drifting, once the approval from EMPR is obtained.

The Company is working towards undertaking the required 2018 Dam Safety Inspection and requirement for an

Engineer on Record for the Tailings Management Facility (TMF), as required by EMPR . Golder has completed

the draft of the 2018 Operations, Maintenance and Surveillance (OMS) manual and the draft Emergency

Response Plan (ERP) for the TMF, also required by EMPR.

Klondike Silver has updated its Archaeological Chance Find manual at the request by EMPR, for f uture surface

work on the property.

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 the first real opportunity , in 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 likes to think

of the Slocan as the last best under -explored Silver Lead Zinc camps, 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

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.

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, President and Director

This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties 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. By their nature, forward

looking statements involve risk and uncertainties because they relate to events and depend 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 ex change

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.