Klondike Star Advances Dominion Gold Project

Donald W. Flinn, P.Eng., Vice-President, Operations for Klondike
Star Mineral Corporation (OTCBB:KDSM) today announced that field work
conducted in 2006 at the Dominion project has confirmed the presence
of multiple, continuous gold-bearing structures that warrant testing
by drilling. In addition, several significant new gold in soil
anomalies were identified in areas with no apparent prior exploration.
Work completed in 2006 consisted of soil geochemistry, regional and
detailed geological mapping, trenching, chip sampling and bulk
sampling.

Drilling is proposed for 2007 at the JAE claims, which lie at the
headwaters of Dominion, Gold Bottom and Hunker creeks, all of which
have been significant producers of placer gold, and are still being
actively mined. This area of the Dominion project hosts at least seven
parallel gold - (silver) vein zones within an area of highly anomalous
soil geochemistry that measures about 1.5 kilometers by 1 kilometer.
Two of these zones, the Mitchell and Sheba have been outlined along
hundreds of meters of length by previous exploration efforts since
1900, including numerous trenches and shallow shafts, direct shipping
of hand selected silver-rich ore (7.2 tonnes averaging 6090 g/t silver
= 178 oz/ton), soil geochemistry and geophysics. Only 3 shallow drill
holes, directed at the high grade silver have previously been drilled
on the property. It is expected that further surface work on the other
parallel zones will result in additional drill targets, possibly
during the 2007 program.

Work at JAE in 2006 included extending the soil geochemical
anomaly to the southwest, mapping and chip sampling of various new and
existing trenches, and processing of two bulk samples from the
Mitchell and Hunker Dome zones. The Mitchell sample consisted 5.7
tonnes of rusty schist without quartz veining, and returned 1.3 g/t
gold. This indicates potential for bulk mineable material beyond the
higher grade veins. The Hunker Dome zone bulk sample consisted of 2.3
tonnes across several narrow quartz veins, and returned 4.0 g/t gold.

Claims to the southeast of the JAE area were tested with
widespread MMI soil geochemical survey lines, and have identified
several large areas of gold in soil anomalies, up to 500 meters by
1000 meters. The surveys successfully confirmed some areas with known
mineralization, and identified new areas with no evidence of previous
exploration.

Klondike Star, in conjunction with the University of British
Columbia Mineral Deposit Research Unit has been developing an
exploration model for this area that combines an improved
understanding of the structural geology with compilation of other data
including airborne geophysics, geochronology, petrology and placer
gold characteristics and distribution. The claims of the Dominion
project are thought to be favourable as they cover mafic schists which
may be preferentially mineralized, and which occur in the hangingwall
of a thrust fault which may have produced favourable structural
preparation. It is anticipated that this model will enable the company
to focus on the highest potential targets. Plans for the Dominion
project in 2007 include diamond drilling, trenching, bulk sampling, IP
geophysical surveys, geological mapping and soil geochemistry.

About the Dominion Project

The Dominion Project includes an advanced exploration stage target
at the JAE claims, as well as a large area with little previous
exploration. Of Klondike Star's eight projects, the Dominion ranks
second in importance after the Lone Star project. Dominion is
comprised of 371 mineral claims involving an area of 62.8 square
kilometers including the Mitchell zone, Sheba zone, Dome Lode and
Lloyd zone. All zones extend over large areas with excellent
opportunity for the existence of multiple mineralized zones, along
both strike and dip. They belong to a class of structures which have
potential for large, medium-to-low grade, gold bearing ore bodies.

Gold on the Dominion property is present as coarse free gold, with
pyrite in disseminations, and locally is associated with narrow
discordant quartz veins. Three phases of vein mineralization have been
identified, two that are gold-rich, and one that is silver-rich. The
mineralized zones are associated with quartz-carbonate-pyrite
alteration, and are hosted by mafic metavolcanic schist.

About Klondike Star

Klondike Star Mineral Corporation is an established exploration
and development company actively working on eight major properties,
totalling 463 square kilometers or 179 square miles in the Yukon,
Canada. The company is developing extensive surface and subsurface
mineralized zones on a 370 square kilometer or 143 square mile 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 or 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.