KLONDIKE SILVER CO : Klondike Silver Corp. Encounters Increased Visual Mineralization at Silvana Mine, British Columbia

March 20, 2013
Klondike Silver Corp. Encounters Increased Visual Mineralization at Silvana Mine, British Columbia

March 20th 2013: Klondike Silver Corp. (TSX-v symbol: KS) (Klondike) is pleased to announce
that production is now resuming at the 4755' level of the Silvana mine after a brief delay. Mining was interrupted as it took some time to cross the main access raise from the main level of 4625' to the 4755' level as a result of rerouting the power, water, and air system. Mining resumed in the silver vein which started as a 3 foot seam and has since widened to become a 6 foot seam with consistent mineralization.

It is the vision of management to revive the historic "Silvery Slocan" Mining Camp into the successful mining camp that it was intended to be all those years ago. Klondike is working towards gaining access to historically productive sites using the same historical records that have allowed the company to produce consistently for over a year now, there is no guarantee that the information on the availability of the potential silver deposits is accurate.

The Company also reports that Victory Mountain Ventures will not be proceeding with the Option Agreement previously announced January 8, 2013, to option a portion of the Silver Slocan Mining Camp.

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.klondikesilver.com

CONTACT INFORMATION
Corporate Inquiries:
Mark Luchinski: [phone]
Email: [e-mail]

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. The production rate and mine-life projections have been made without support of a feasibility study, there is no certainty the proposed operations will be economically viable. 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.