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KS.V ·

Klondike Silver MINE Permit M-65 Amended

Corporate Updates

Our Vision: Silver/Zinc/Lead Production

KLONDIKESILVER.com

KS : TSX.V K1SN : FSE

804 – 750 West Pender St. Vancouver, B.C. Canada, V6C 2T7 T: 604.682.2928

August 5, 2021

KLONDIKE SILVER MINE PERMIT M-65 AMENDED

Effective May 21, 2021 the Major Mines Office (MMO) of the Province of British Columbia’s Ministry

of Energy, Mines and Low Carbon Innovation (EMLI) am ended Mine Permit M -65 by “ Approving

change of Permitted Mine Area”. This “AMENDMENT” increased the Mine Permit Area at 2 locations

where Klondike Silver was seeking approval for advancement of work necessary for Tailings

Management Facility upgrades.

1. Rip Rap Quarry

Klondike Silver was seeking Mine Permit M -65 approval to establish a Rip Rap Quarry along the 4000’

Level Adit access road.

June 30, 2021: Based on the information provided by Klondike Silver, the Major Mines Office technical

staff have assessed that the proposed mining activity is considered within the AMENDED M-65 Mines

Act permit. As a result Klondike is preparing to mine the Rock Quarry for Rip Rap materials necessary to

protect the Tailings Management Facility.

2. Tailings Management Facility

Klondike Silver wa s seeking Mine Permit M -65 approval to proceed with mining activities primarily

along Carpenter Creek , relating to remedial actions on the tailing facility to meet the requirements

previously imposed by the Mining Ministry. The Tailings Management Facility (includes 3 tailing

ponds) is adjacent to Carpenter Creek.

July 22, 2021: Based on the information provided by Klondike Silver, the Major Mines Office technical

staff have assessed that the proposed mining activity is considered within the AMENDED M -65 Mines

Act permit. In accordance with recommendations prepared by Tetra Tech Inc. (a geotechnical and

engineering consulting firm), Klondike Silver is preparing to proceed with necessary remedial actions on

the Tailings Facility to meet the requirements previously imposed by the Mining Ministry.

Fisheries and Oceans Canada is responsible for “Fish and Fish Habitat” in British Columbia.

Carpenter Creek flows North along the East side of the Tailings Management Facility. This

section of Carpenter Creek is included in the new Permitted Mine Area.

July 26, 2021: Klondike Silver received approval to work in Carpenter Creek in accordance with

Fisheries and Oceans guidelines.

2

KLONDIKESILVER.com

KS : TSX.V K1SN : FSE

804 – 750 West Pender St. Vancouver, B.C. Canada, V6C 2T7 T: 604.682.2928

About Klondike Silver

Klondike’s Silvana Mine Silver Zinc Lead project is located in South Eastern B.C., 138 km north of

the Trail B.C. smelter. The Company is exploring from underground, the western extension of the

Silvana Mine, along the “Main Lode”. The “Main Lode” is a 9 km vein structure which is the most

prolific mineralized structure in the Slocan Mining Camp. There are 13 historical mines that are situated

along the 9 km vein structure which have produced 886,000 kg of silver, 95 million kg of zinc and 117

million kg lead so far. Including 8 of the 13 above there are 68 historical mines that are situated in the

Klondike Silver 116 square kilometer claim block which have produced 1,258,000 kg of silver, 72

million kg of zinc and 158 million kg lead so far. (source: BC MINFILE).

Additional information can be found on the Company website: www.klondikesilver.com

On Behalf of the Board of Directors Contact Information

Klondike Silver Corp. Corporate Inquiries:

"Thomas Kennedy" Dale Dobson: (604) 682-2928

Thomas Kennedy, B.Comm., J.D. Email: [email protected]

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.

Caution Regarding Forward-Looking Information

This news release includes certain information that may constitute “ forward-looking information” under applicable Canadian

securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, future work

programs and objectives and expected results from such work programs. Forward -looking information necessarily involve

known and unknown risks, including, without limitation, risks associated with general economic conditions; inability to acces s

sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; and other

risks.

Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered

reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and

future events to differ materially from those expressed or implied by such forward- looking information and the risks identified

in the Company’s continuous disclosure record. There can be no assurance that such information will prove to be accurate, as

actual results and future events could differ materially from those anticipated in such information. Accordingly, readers sho uld

not place undue reliance on forward-looking information. All forward- looking information contained in this news release is

given as of the date hereof and is based upon the opinions and estimates of management and information available to

management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward -looking

information, whether as a result of new information, future events or otherwise, except as required by law.