Klondike Star's Indian River Placer Project Advances



    Donald W. Flinn, Vice President, Operations for Klondike
    Star Mineral Corporation (OTCBB:KDSM) is pleased to announce that
    Klondike Star Mineral Corporation has acquired a strategic block of
    placer gold mining claims in the heart of the Indian River Placer
    Project.
    A 49% interest has been taken in 29 claims filling in a gap
    between existing groups of placer claims and leases owned 100% by
    Klondike Star. The ground has been subject of extensive prospecting,
    auger drilling, and sampling. High potential sites have already been
    cleared for bulk sampling and test mining. Klondike Star is the
    operator for the joint venture.
    "With a scoping study for potential mine development in progress,
    this strategic mineral rights acquisition advances prospects for the
    Indian River Placer Project considerably", says Hans Boge, P.Eng.,
    President, Klondike Star Mineral Corporation.
    This arrangement increases Klondike Star's total placer claims in
    the Dawson Mining District by 10% and the total area of placer mineral
    rights holdings to an estimated 46 square kilometers (17.8 square
    miles). The new properties come with a valid water use authorization
    and a placer mining land use operating permit.
    The Indian River Placer Project is an advanced exploration
    property. (Press release #9, June 13, 2006) The bulk sampling and test
    mining program currently underway is expected to incorporate one or
    more sites in the new block of placer claims.

    About Klondike Star

    Klondike Star Mineral Corporation is an established exploration
    and development company actively working on eight major properties,
    totalling 401 square kilometers (154.9 square miles) in the Yukon
    Canada. The company is developing extensive surface and subsurface
    mineralized zones on a 308 square kilometer (119 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.