Agreement for Sandon Concentrate Reached

VANCOUVER, BC--(Marketwire - July 14, 2008) - Klondike Silver Corp.
(TSX-V: KS) (PINKSHEETS: KLSVF) is pleased to announce that the
Company has entered into an agreement with a smelter for the
concentrate presently on inventory. Shipments will commence shortly.
The concentrate was produced from the Wonderful and Silvana mines
where production continues, and also in part from the 80 ton Stump
property bulk sample shipped from the Yukon in 2007. The lead
concentrate assays 74% lead and 135 ounces silver per ton and the
zinc concentrate assays 55% zinc and 50 ounces silver per ton.
 
Shipments of 2500 to 3000 tons of ore from the Stump property located
in the Yukon to the mill at Sandon, B.C., are scheduled to begin on
July 19, 2008, and will be processed upon arrival. This ore is from
the same source as the 80 ton bulk sample shipped in 2007 assaying
40% lead and 40 ounce silver per ton. The concentrate will be
transported to the smelter once the entire lot has been processed at
Sandon. A similar sized shipment is planned for 2009.
 
Management plans to continue mining while conducting further
underground exploration in the Silvana, Wonderful and Hinckley mines.
The concentrate from this ore will be shipped to smelter subject to
an agreed upon schedule.
 
A vigorous regional exploration program is being undertaken (reported
July 2, 2008) with emphasis being placed on locating and recovering
zinc zones previously ignored due to low prices or penalties being
assessed. The region has been broken into six camps, the Payne,
Jackson Basin, Silverton Creek, Sandon Camp, Cody, and the Hewitt Van
Roi.
 
The management team is pleased with the progress being made in the
Silvery Slocan and looks forward to building on its successes.
 
About Klondike Silver
 
Klondike Silver Corp. has assembled a quality portfolio of silver and
silver-rich poly-metallic properties in historic mineral districts of
North America, and is applying advanced exploration technologies to
add value to these core assets. The Company holds more than 10,000
hectares of claims and crown grants in the "Silvery Slocan" district,
including numerous past-producing mines and a fully permitted and
operating 100 tons per day mill near the historic mining town of
Sandon, B.C.
 
Klondike Silver is reviving the historic Gowganda and Elk Lake silver
camps in Ontario, and is exploring silver-rich poly-metallic targets
in the world-famous Klondike district of Yukon Territory. The Company
has also recently optioned eight high-potential mineral concessions
in under-explored historic mineral districts of Mexico.
 
Klondike Silver is a member of the Hughes Exploration Group of
Companies and is led by a team with a stellar track record of
discovery and development in Canada.
 
This document contains certain forward looking statements which
involve known and unknown risks, delays and uncertainties not under
the corporation's control which may cause actual results, performance
or achievements of the corporation to be materially different from
the results, performance or expectation implied by these forward
looking statements.
 
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
 
Distributed by Filing Services Canada and retransmitted by Marketwire
 
Contact Information
Corporate Inquiries:
Kevin Hull or Alan Campbell
(604)-685-2222
Email: info@klondikesilver.com
Or visit Klondike Silver's website: www.klondikesilver.com to see
Smartstox
interviews with our Company President.
 
AGORACOM Investor Relations
Email: KS@agoracom.com
Website: http://www.agoracom.com/ir/KlondikeSilver
 
Klondike Silver Corp.
#711-675 West Hastings Street
Vancouver, B.C.
Canada V6B 1N2
Telephone: (604) 685-2222
Fax: (604) 685-3764
www.klondikesilver.com