Klondike Silver Corp. Discovers Multiple Gold Zones on ATAC Resources Joint Venture

- DISCOVERY OF SIX NEW GOLD- SILVER VEINS BY PROSPECTING

- GEOLOGICAL MAPPING REVEALS NEW CONTROLS ON MINERALIZATION

- LOCATED AT NORTHWESTERN END OF WHITE GOLD DISTRICT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2010) - KlondikeSilver Corp. (TSX VENTURE:KS) (the "Company") is pleased to announcethat a significant exploration program has resulted in several newdiscoveries at its Connaught Project (50-50 Joint Venture with ATACResources Ltd.). The program expanded on the highly successful soilgeochemical programs of the past three years, and followed up withmapping and prospecting in areas of multi-element anomalies.

The Connaught property lies in the headwaters of the 60 Mileplacer gold district, within the Tintina Gold Belt, and at thenorthwestern end of the White Gold District. The Yukon has seenincreasing interest as a gold exploration target in the past few years.Great success has been achieved by Kinross at their White Gold project,Kaminak at their Coffee project, and by ATAC Resources at their RAU goldproject, along with many other high potential gold properties in theregion.

"Klondike Silver continues to discover significantmineralization by prospecting. These new zones warrant furtherexploration by mechanized trenching and diamond drilling. We areoptimistic in the potential for both gold and silver," commented Company President, Richard Hughes.

Camp Area: Three veins have been discovered in the area of the exploration camp and across the intrusive body to the southeast. The "Kitchen Vein" is exposed beneath the camp kitchen, and extends for at least 80m in float. The best results from four samples were 1.08 g/t gold and 783 g/t silver. The "69-2 Vein"is exposed about 300m to the southeast of the Kitchen in a 1969 erabulldozer trench that was not previously sampled, and returned 3.00 g/t gold and 1660 g/t silver. A similar undocumented trench located a further 500m southeast contains the "69-3 Vein", which was discovered in 2009 and returned 4.13 g/t gold and 406 g/t silver(reported previously in Klondike Silver news release dated October 30,2009). These three veins lie within a robust multi-element soil anomalythat measures roughly 600m by 1100m, and lies at the west end of theintrusive trend, adjacent to a regional scale normal fault.

Cross Fault Area: Asecond area of newly discovered mineralization lies in the central partof the property, in the vicinity of a newly mapped north-south trendingcross fault that displaces the intrusive body and appears to controlthe location of a zone of intense hornfels alteration that forms aprominent ridge to the north of the intrusion. Gold in soil values areelevated in this area, and three new veins were discovered here in 2010. One vein (not named yet) returned 1.2 g/t gold and 528 g/t silver from a single cobble in an anomalous soil geochemical sample pit in an area near the cross fault. "Sandro's Vein" is located about 1000m southwest in a previously undocumented 1969 era bulldozer trench, and returned 5.77 g/t gold and 70.7 g/t silver. The "Woodpecker Vein" is located about 350m south of Sandro's, and returned 2.52 g/t gold and 343 g/t silverfrom a single boulder in an area with almost no rock exposure. TheWoodpecker is the first vein discovered on the south side of theintrusion, which expands the area of high potential on the property.

Ridge Junction Area: A new vein was discovered in another 1969 era bulldozer trench southwest of the main road junction. This vein returned 0.915 g/t gold and 182 g/t silver from vein material in the trench. Mineralized pebbles 50m to the southwest of the trench returned 1.825 g/t gold and 111 g/t silver.

Skarn Zones: Severalbands of marble, locally altered to skarn are present on east side ofthe property. Initial mapping and sampling of these zones in 2010 hasreturned values up to 0.386 g/t gold, 16.5 g/t silver and 7.24% zinc.This target warrants further investigation by mapping, prospecting andsoil geochemistry.

Mineralization at Connaught is intrusion related, with narrowpolymetallic veins discovered over an area of 11km by 4km. LateCretaceous age granitic intrusions are present on the property, withmetamorphic country rocks of the Yukon Tanana terrane. Hornfels andskarn zones present on the property may hold potential for bulk tonnagegold deposits. The project area has not been subject to glaciation, andtherefore soils and rocks are thought to be locally derived. Prospectingon the south side of the property was enhanced by an intense forestfire in 2009 that removed moss and lichen from rocks. The 1969exploration in the area was focused on lead-rich silver veins suitablefor direct shipping to smelters, and on porphyry copper-molybdenum. Thesilver- quartz veins discovered in that era were not considered to besignificant.

The Qualified Person for the purpose of National Instrument43-101 is William Mann, P.Geo., who has read and agreed with thetechnical information in this news release.

About the Connaught Property:

Exploration at the Connaught Property has now revealedsilver, gold and lead mineralization in 20 veins over an area measuringroughly 11 kilometres by 4 kilometres. Porphyry and skarn mineralizationis also present in the area.