Klondike Star Acquires Diamond Drill

Donald W. Flinn, P. Eng., Vice-President, Operations for Klondike
Star Mineral Corporation (OTCBB:KDSM) is pleased to announce the
Company is building the capacity to meet its own diamond drilling
requirements in the future.

Klondike Star has purchased one new, state-of-the-art diamond
drill rig and will take delivery late October. It will be staffed by
expert, local crews complemented by a planned training initiative with
the Tr'ondek Hwech'in First Nation of the Yukon. One of the practical
operational risks pervasive in the mineral exploration industry
relates to the shortage of diamond drilling resources. Klondike Star,
too, has experienced challenges obtaining qualified drilling capacity
for planned levels of drilling on two of Klondike Star's eight
exploration projects this summer/fall.

"We are targeting every potential spot in our exploration
infrastructure and services that may impair achievement of our
aggressive exploration objectives," said Donald W. Flinn,
Vice-President. "As part of managing pro-actively, this initiative is
expected to give Klondike Star more capacity, flexibility and control
over our drilling programs."

The drill rig will supplement existing third-party diamond
drilling services that will continue to be used for production
drilling. The new rig will be used primarily for specialty holes
including known drill targets stepping out for delineation of ore
bodies on the Lone Star Project. It is mobile and well suited for
remote fly-in locations and, if needed, could be deployed on the Ultra
Project and the Spice Project. Flyable rigs also may remove the need
for additional mining land use permits in many circumstances, thereby
allowing the company greater flexibility.

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.