Indian River Placer Project Shifts from Winter Exploration to Test Mining and Pre-Production Planning



    Donald W. Flinn, Vice-President, Operations is pleased
    to announce that Klondike Star Mineral Corporation (OTCBB:KDSM) is
    moving ahead with test mining and business planning on its placer gold
    property on the Indian River, located 40 kilometers from Dawson City
    in the heart of the Klondike gold producing region of the Yukon,
    Canada. Exploration efforts are shifting from winter drilling to an
    entirely new phase with new investments in the first-ever summer
    exploration and bulk sampling program. The objective is to develop a
    large-scale placer mine.
    The Indian River Placer Project consists of 185 mineral claims
    plus 17 leases totaling 35 square kilometers. The Indian River is
    emerging as one of the most active areas of new investment and
    productive placer mining in the Klondike region. Klondike Star holds
    100% ownership of the project. The property was staked by Vern
    Matkovich and Tom Morgan, 2004 Yukon Prospectors of the Year, both key
    members of Klondike Star's exploration team.
    During its recent winter drilling program, Klondike Star completed
    184 holes (double the 2005 drilling) for a cumulative total of 274
    holes or 2,426 metres. The winter drilling recovered gold from 90% of
    the holes, with gold recovered from 100% of the holes drilled in the
    main target area along the Indian River. (Press Release #4-2006). In
    2005, drilling resulted in gold recovery from 87% of the holes
    drilled. (Press Release #10-2005)
    2006 summer bulk sampling and test processing will be conducted on
    three or more high potential sites that are already prepared for this
    purpose through stripping, clearing and permitting. Test mining will
    be supervised by an established Canadian firm specializing in mine
    engineering and processing technology. After careful evaluation,
    Klondike Star is deploying two processing technologies to help refine
    the best approach for possible production. One is a dry separation
    technology used in mining operations elsewhere in the world in similar
    conditions; and, the other is a conventional sluicing system used
    extensively in the Klondike that is particularly suited to conditions
    along the Indian River. This will allow comparative analysis of
    throughput and gold recovery.
    In emphasizing the new importance of the Indian River Placer
    Project to Klondike Star, Hans Boge, P. Eng., President, Klondike Star
    Mineral Corporation said: "A scoping study is being initiated
    concurrently with the summer exploration program to assess the mineral
    resource, prepare a preliminary business plan for production, and
    complete arrangements for seeking necessary permits and regulatory
    approval."
    The Indian River Placer Project is an advanced exploration
    property. Bulk sampling is proceeding alongside the initiation of the
    scoping study to determine the economic viability of the mineral
    deposit and facilitate expedited planning and decision-making.

    About Klondike Star

    Klondike Star Mineral Corporation is an established exploration
    and development company actively working on seven major properties in
    the Yukon Territory, Canada. Klondike Star Mineral Corporation is
    developing mineralized zones on a 350 square kilometer land position
    underlying the site of the Klondike Gold Rush, and 88 square
    kilometers of select high potential targets in other parts of the
    Yukon.
    The famous Klondike goldfields have been in constant surface
    mining production since the discovery of gold in 1896. Thousands of
    ounces of gold continue to be produced from placer mining operations
    each year on streams in the Klondike. The company owns extensive
    subsurface and surface mining rights in the Klondike mining district.

    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.