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KS.V ·

Reviving the Slocan Mining Camp

Corporate Updates

KLONDIKE SILVER

TSX.V: KS CORP.

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

Reviving the Slocan Mining Camp

May 26, 2017 Vancouver, Canada (TSX.V: KS) Further to the News Releases dated Oct 12, 2016 and March 3,

2017: Klondike Silver Corp. has one of the most unique silver -lead-zinc projects in Canada. Klondike’s Slocan

Mining Camp is a 100 square kilometre brownfields project located in southeastern British Columbia, a safe and

stable jurisdiction. The project has an active Mine Permit, a 100 ton per day mill and a licenced tailings pond

facility. The mill has power, water and an all -weather system of roads and highways as well as a large educated

population nearby, to draw on. The mill is 1.5 hours from Teck Corp.’s Trail lead-zinc smelter and one hour from

the main airport and rail system in the area. Once additional economic mineralization is identified, production

can start alm ost immediately. Underground drilling necessary to identify additional economic mineralization is

scheduled to commence in the fall of 2017.

David Makepeace, Technical Advisory Board Member provides 3D Model update:

The construction of the Main Lode 3D model is progressing. The model now incorporates eight past producing

mines, with their respective ore bodies, some faults, topography with surface features, soil geochemical data and

selective surface and underground diamond drill holes. More data is being input regularly from the volume of

historical data available. Presently, the data for the model is based on the main local mine grid which is in

imperial measurements. The model will be transformed into UTM (metric) coordinates once the LIDAR survey is

complete the two will be meshed together.

Eagle Mapping Ltd. is currently contracted to commence the LIDAR SURVEY once the Slocan Mining Camp

is snow-free.

About Klondike Silver

Klondike Silver’s Silver Lead Zinc land packag e is over 100 km2 - the largest land package in the Slocan Mining

Camp (Southeast British Columbia – 138 km North of Teck’s Lead Zinc smelter (Trail BC)) . 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 Silver 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 Col umbia. Klondike likes to think of the Slocan as the last best under

explored silver camp in Canada.

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

2

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 Corp.

"Thomas Kennedy"

Thomas Kennedy, B.Comm., J.D.

CEO, 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 S ilver 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 E xchange 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.