Klondike Silver Corp (KLSVF)

[Mr. Zen]

Klondike Silver Corp Research Notes 2/17/09


Klondike Silver Corp. has assembled a quality portfolio of silver and silver-rich polymetallic 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 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 polymetallic 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 an award-winning management team with an established track record of mineral discovery and mine development in North America.

Founder Richard Hughes has created shareholder value for investors of numerous junior companies through his role in the development of the Hemlo gold camp of Ontario, and the Belmoral, Beaufor and Sleeping Giant gold mines in Quebec.

In the case of the world-class Hemlo Mine --- which produced 6.9 million ounces of gold --- an investment of $2,500 in the junior companies involved in the discovery would have been worth close to $1 million at its peak.

Companies in the Hughes Exploration Group have shared access to an extensive geological database and the diverse skills and experience of a major company-sized exploration team, which reduces overhead costs and improves the odds of success.

THE STRATEGY: The core assets of Klondike Silver --- a consolidated land package with ten historic mines and a 100-tonne-per-day mill in the prolific Slocan Mining Camp of BC --- were initially acquired by Klondike Gold, a member of the Hughes Exploration Group, during the industry downturn of the late 1990s and early 2000s. In 2005, Klondike Gold spun-off its silver holdings to Klondike Silver in order to create value for shareholders in a rising metal price environment.

Klondike Silver has also assembled properties in other historic silver-producing districts. The Company's goal is to rehabilitate and restore the most prospective mines to production and use the cash flow generated to explore the silver districts using advanced exploration technologies.

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Weighted Average Number Of Shares
Outstanding 94.437,154 Nov 30/08

the following share purchase warrants were outstanding:

As at November 30, 2008 the following share purchase warrants were outstanding:
TOTALNUMBER OF EXERCISE EXPIRY
WARRANTS PRICES DATES
3,815,000 $ 0.60 December 20, 2008
70,000 $ 0.60 February 15, 2009
3,500,000 $ 0.50 August 10, 2009
5,178,301 $ 0.40/0.50 December 3, 2008/December 3, 2009
3,510,000 $ 0.40/0.50 December 27, 2008/December 27, 2009
4,083,333 $ 0.40/0.50 December 27, 2008/December 27, 2009
6,115,000 $ 0.20 July 09, 2010
4,650,000 $ 0.20/0.25 July 22, 2009/July 22, 2010
7,105,000 $ 0.20/0.25 August 27, 2009/August 27, 2010
_________
38,026,634

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Head Office: Klondike Silver Corp.
Email: [e-mail]
Address: 711-675 West Hastings Street
Vancouver, British Columbia
Canada V6B 1N2
Telephone: [phone]
Fax: [phone]



Corporate Solicitors/ Registered and Records Offices: Stephen Pearce
Address: 711-675 West Hastings Street
Vancouver, British Columbia
Canada V6B 1N2
Telephone: [phone]
Fax: [phone]



Auditors: Morgan & Company
Address: P.O. Box 10007 Pacific Centre
1488-700 West Georgia Street
Vancouver, British Columbia
Country V7Y 1A1
Telephone: [phone]
Fax: [phone]
Fiscal Year End: May 31st



Registrar and Transfer Agent: Computershare Trust Company of Canada
Address: 510 Burrard Street
Vancouver, British Columbia
Canada V6C 3B9
Telephone: [phone]
Fax: [phone]
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http://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo=00022916&fileName=/csfsprod/data94/filings/01370626/00000001/C%3A%5CSEDAR8%5CFILINGS%5CKS%5CFS%5CKS-FS-Nov08.pdf

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Richard W. Hughes
Board Chairman, President

Mr. Richard Hughes, President of Klondike Gold Corp., is widely recognized as one of the original people behind the discovery of the Hemlo gold mines in Ontario and was also behind the discovery of the Balmoral Mine in Quebec. Mr. Hughes controls Hastings Management Corp., and is the president of six companies currently listed on the Toronto Venture Stock Exchange. He was also instrumental in discovering and putting into production the Sleeping Giant Mine (owned 50% by Aurizon Mines and 50% by Cambior), and also the Beaufor Mine (owned by Aurizon Mines). Mr. Hughes' proven track record and extensive experience in the management of public mineral exploration companies enables Klondike Silver to pursue potential world class projects.

Alan Campbell
Director, Chief Financial Officer, Secretary

Over the past 25 years, since being Director of Golden Sceptre Resources, Alan Campbell has managed and financed several public mining companies in addition to private real estate companies. He has worked with several national mineral investment funds in the financing of mineral exploration companies. Previous to his involvement in the resource sector Mr. Campbell ran his own real estate financing and development company specializing in commercial properties on the Pacific coast of Canada and the United States.

John Keating
Director

With over 25 years of experience in the metals and minerals industry, John Keating most recently directed the successful financing, development and commencement of Black Bull Resources' White Rock Mine in Nova Scotia. Prior to this he developed and directed strategies that advanced Canada's interests in minerals and metals while working as a Senior Commodity/Policy Analyst with the Department of Natural Resources Canada.

Dr. Joseph Montgomery
Director

Dr. Joseph Montgomery Ph.D., P. Eng. is President of Montgomery Consulting Ltd. and has worked in the mining industry for over 40 years. He is the author of numerous published geological papers and engineering reports. His clientele has included federal and provincial governments as well as several major mining companies.


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December 23, 2008 Klondike Silver Acquires Clagor Property
December 08, 2008 Wonderful Mine - Raise And Level 3 Sampling Results - Up To 50.25% Zinc
November 26, 2008 Klondike Silver Acquires Mexican Properties
October 29, 2008 New Mine Manager Named at Sandon, BC
August 20, 2008 Connaught Update
August 19, 2008 Concentrate Shipments Begin
August 19, 2008 Significant Land Package Optioned Adjacent to U.S. Gold Corp. Project
July 31, 2008 First Stump Delivery Arrives on Schedule
July 17, 2008 New Discoveries: Hewitt-Van Roi Project, Slocan Camp, Southeastern British Columbia
July 14, 2008 Agreement for Sandon Concentrate Reached


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Conversation with IR Feb 19/09 highlights

-Slocan BC property, received checks for product from smelter company although still considered bulk sampling lots
-Receiving silver from several sources
-2 mines currently rehabbed
-shareholders will be able to buy silver bullion directly from the company