Klondike Star Reports Indian River Test Mining Results

Donald W. Flinn, Vice-President, Operations is pleased to announce
the results of Klondike Star Mineral Corporation's (OTCBB:KDSM) placer
bulk sample test mining program undertaken this summer/fall at a
selected site on its placer gold property on the Indian River, located
about 25 miles (or 40 kilometers) from Dawson City in the Klondike
gold producing region of the Yukon, Canada.

The objective of test mining, simulating actual mine production,
is to strengthen the Company's knowledge and assessment of the
economic potential of the mineralized areas delineated through two
previous drilling programs (274 holes). The test further validates
mineral resource estimates for business planning, and assesses the
effectiveness of conventional mining methods.

One test site was mined in September. A total of 7,249 cubic yards
of placer gold bearing materials was processed. It is of note that the
test cut was located in an area over previously drilled auger
drill-holes. The grade indicated by auger drilling is only an
indication of true grade, and it must be checked and calibrated by
test mining. The test resulted in the recovery of 45.08 ounces of raw
placer gold. The purity has yet to be determined. On the basis of
preliminary analysis, the Company believes the test mining results, at
this one site, correlate and improve on the general findings of the
previous drill-holes on the site. The results from the test site in
terms of gold recovered and the corroboration of drill-hole analysis
contribute in a positive manner to the business case for an expanded
test mining program in 2007.

A conventional sluicing system was used to assess throughput and
gold recovery. This method is commonly used in the Klondike, and other
parts of the world, and is well suited to conditions along the Indian
River. To assure quality control and reporting, the entire process was
supervised by an established Canadian firm specializing in mine
engineering and processing technology supported by an experienced
placer mining team.

An all-weather access road into the area was
constructed. Subsequent to the mining test, additional sites were
stripped, cleared and prepared for continuation of the test mining
program immediately following spring break-up in 2007, bringing the
total sites available for test mining to four.

About the Indian River Placer Project

The Indian River Placer Project is an advanced-stage exploration
property entering early development with test mining, preliminary
business planning for a production decision, and preparation of permit
applications for expanded operations in progress. The Indian River
Placer Project consists of 214 mineral claims plus 17 leases, totaling
37 square kilometers or 14.3 square miles. The Indian River is
emerging as one of the most active areas of new investment and
productive placer mining in the Klondike region. The 2006 winter
drilling recovered gold from 90% of 184 holes. The 2005 drilling
program resulted in gold recovery from 87% of the 90 holes drilled.
Klondike Star Mineral Corporation holds 100% ownership of 185 claims
and 17 leases, as well as 49% interest in 29 additional claims
acquired in the second quarter ended August 31, 2006. The goal is to
develop a large-scale placer mine.

About Klondike Star

Klondike Star Mineral Corporation is an established exploration
and development company actively working on eight major properties,
totaling 463 square kilometers (179 square miles) in the Yukon Canada.
The company is developing extensive surface and subsurface mineralized
zones on a 370 square kilometer (143 square miles) land position
underlying the site of the Klondike gold producing region in the
Dawson mining district. These holdings include, but are not limited to
properties known as the Lone Star Project and the Indian River Placer
Project, both advanced stage exploration. Additionally, Klondike Star
holds interests in 93 square kilometers (36 square miles) of select
high potential targets for gold, base and precious metals in the
Watson Lake and Whitehorse mining districts of the Yukon.

The statements in the press release that relate to the company's
expectations with regard to the future impact on the company's results
from new products or actions in development are forward-looking
statements, within the meaning of the Private Securities Litigation
Reform Act of 1995. The statements in this document may also contain
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Since this information may contain statements that involve
risk and uncertainties and are subject to change at any time, the
company's actual results may differ materially from expected results.