Klondike Star Dominion Gold Project Update

Donald W. Flinn, P.Eng., Vice-President, Operations for Klondike
Star Mineral Corporation (OTCBB:KDSM) today announced that field work
is proceeding at the Dominion project, and is further confirming the
presence of multiple, continuous gold-bearing structures that warrant
testing by drilling. Work completed to date in 2007 consists of
detailed geological mapping, surveying, grid cutting, trenching, chip
sampling and bulk sampling. A rotary drill rig is scheduled to start
at the property by mid September, with 10 holes totaling 1000m
planned.

Drilling is scheduled for September 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/0.9
miles by 1 kilometer/0.6 mile. 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. The Mitchell -
Sheba trend will be the initial focus of the drilling. The Mitchell
zone is well known for impressive specimens of visible gold, but has
never been drilled. It is expected that further surface work on the
other parallel zones will result in additional drill targets.

Six bulk samples have been collected and processed at the JAE
property this year. The samples were collected from a variety of
targets, including major veins, subsidiary veins, and pyritic
alteration zones located near veins. The large size samples (up to 7
tonnes) are effective at accurately indicating the grade of these
targets, which contain coarse free gold.

A grid with 15 kilometers/9.3 miles of line has been cut at the
JAE property for an IP geophysical survey. This survey will be
conducted in the 2007 field season by Aurora Geosciences Ltd. of
Whitehorse. The results of the current survey will be integrated with
those of an IP survey conducted on widely spaced lines at the site in
1990. IP geophysics is known from the earlier survey to be appropriate
for this area, as the mineralized quartz veins have gold-rich pyritic
haloes which responded well to this method.

Soil geochemical surveys and other investigations are in progress
in select areas of the Dominion project beyond the JAE property.

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. A geological map at 1:20,000
scale has been produced for this area.

The major mineralized structures at the JAE property have a
well-defined, north- northwesterly trend and steep easterly dip, with
local en echelon offsets to the veins. This clearly defined structural
setting lends itself to a straight-forward exploration approach, with
drill targets and hole orientations easily selected. One highlight of
the exploration this season has been the rediscovery of substantial
mineralized quartz veins that were trenched at some time in the past,
but were not recorded in any of the available property assessment
reports. A thorough compilation of the existing data has been ongoing
for the past two years, as well as conventional and differential GPS
surveying of the extensive network of overgrown roads, trails,
trenches and vein deposits.

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
kilometres/24.3 square miles, 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.

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.