Klondike Silver Corp. Increases Land Position in the Silver Slocan Mining District through Acquisitions of Past Producing Mines

Klondike Silver Corp. (TSX-v symbol: KS) (Klondike) is pleased to
announce that it has acquired an additional six past producing
silver-lead-zinc mine sites in the Silver Slocan Mining District of
southeastern British Columbia. Seven tenures were acquired representing
1,226 hectares holding several strong exploration targets. In addition
to owning the fully permitted Sandon Mining Complex, Klondike now holds
a total of 16,544 hectares in the region controlling a majority of the
historically productive camp.

As recorded in the BC Geological Survey MINFILE reports, the total
combined recoveries from the newly acquired past producing mines are as
follows; 1,655,809 ounces of Silver, 10,485,781 pounds of
Lead, and 177,666,955 pounds of Zinc. (Refer to MINFILE Numbers
082FNW086, 082KSW023, 082FNW023, 082KSW016, 082FNW079, 082FNW022).

The newly acquired 'Cliff? claims have been explored and intermittently
mined since the early 1900′s up until the last reported work in 1983.
Based on the reported MINFILE information, the calculated recovery of
Silver, and recovered pounds of Lead, and Zinc from the individual
claims, have been presented in the table below. It is important to
observe that the recorded data reflects the total recovery after
milling. Percentage recovery of the metals was not reported so it is not
known what was lost in the historical milling process.

Table 1. Recoveries of Silver, Lead, and Zinc
after Milling

-The information provided in Table 1 was tabulated
from the total milled tons reported in the reported MINFILE′s. If the
total milled tons were not recorded in the MINFILE table the
calculations were then based on the total reported *mined tons.

Cancelation of Options

Klondike would also like to announce
the cancellation of 347,650 incentive stock options granted to its
directors, officers, consultants, and employees prior to the shareholder
approved consolidation of the Company′s shares announced March 28^th
2011.

About Klondike Silver Corp.

Klondike Silver Corp. has
assembled a quality portfolio of silver properties throughout Canada,
most notably, in the historic Slocan Mining District southeastern
British Columbia. This historic camp has produced more than 24 million
ounces of silver since the first discoveries in the late 1800s. Klondike
Silver is the dominant land-holder controlling a majority of the
historic camp and the fully permitted, 100% owned 'Sandon Mining
Complex?. The Company owns the past-producing Silvana, Wonderful, and
Hinckley Mines and several other properties with significant exploration
potential.

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

On Behalf of the Board of Directors

Klondike Silver Corp.

'Richard
Hughes'

Richard Hughes,

President and 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.

Cautionary note:

This report contains forward looking statements.
Resource estimates, unless specifically noted, are considered
speculative. Any and all other resource or reserve estimates are
historical in nature, and should not be relied upon. 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 exchange
rates, and, but not limited to, general economic factors. Cautionary
Note to US investors: The U.S. Securities and Exchange Commission
specifically prohibits the use of certain terms, such as 'reserves'
unless such figures are based upon actual production or formation tests
and can be shown to be economically and legally producible under
existing economic and operating conditions.

To view this press release as a webpage, please click on the following
link:

http://www.fscwire.com/pr/klondikesilvernov272012.htm

Klondike Silver Corp.

Corporate Inquiries:

Mark Luchinski,
(604) 685-2222

mark.luchinski@klondikesilver.com

or

Alan
Campbell, (604) 685-2222

acampbell@klondikesilver.com