Klondike Star Releases Official 2006 Annual Report

Donald W. Flinn, Vice President, Operations for Klondike Star
Mineral Corporation (OTCBB:KDSM) is pleased to formally release the
2006 annual report for the year-ended February 28, 2006, with
supplementary performance and progress data through May 31, 2006
inclusive.

Selected highlights for year-end February 28, 2006 include:

- moving two projects into advanced stage exploration;

- initiating scoping studies and environmental baseline research
on the Lone Star Project and the Indian River Placer Project;

- augmenting the total land position held to 394 square
kilometres, an increase of 52% combined with a move from two to six
discrete exploration projects;

- increasing hard-rock gold mineral rights by 9% and placer gold
mineral rights by 163%;

- completing a 45-person (now 65 person) exploration facility, a
bulk sample testing plant on Company property in the Klondike and a
permanent Yukon field operations office in Whitehorse, Yukon;

- increasing funds raised by 158% to $8,068,568, the sale of
common shares by 15.7% to 25,202,800 and total shareholders to about
4,200;

- increasing the net loss from continuing operations to
$8,741,272; and, this was due to an increase in mineral exploration
activities as a result of the increased scope and number of projects
underway, an increase in professional fees due mainly to the fair
value recognition of stock options issued, and an increase in general
and administration, due primarily to the fair value recognition of
employee and consultant stock options issued.

The Annual Report is being mailed to all shareholders and posted
on the Company's website www.klondikestar.com under Investor Relations
and then Reports & SEC Filings. To request a hard-copy, please contact
Investor Relations by calling toll free (800) 579-7580 or by email at
info@klondikestar.com.

The annual 10-KSB to February 28, 2006 filed with the Securities
and Exchange Commission, including complete financial statements and
notes to financials can be viewed at www.klondikestar.com or at
www.sec.gov and under "Filings and Forms (EDGAR)," click on "Search
for Company Filings," then click on "Company & Other Filers," enter
"KDSM" in the "CIK or ticker symbol" box and open the appropriate
file.

About Klondike Star

Klondike Star Mineral Corporation is an established exploration
and development company actively working on eight major properties,
totalling 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.