Klondike Star Commences Placer Drilling Program.

SEATTLE -- Donald W. Flinn, Vice President, Operations for Klondike Star Mineral Corporation (OTCBB:KDSM) is pleased to announce that an auger drilling program to test for placer gold on 60 miles of placer prospecting leases in the Indian River and Montana Creek areas, 30km south of Dawson City, Yukon is underway.

As assessment requirements are met the placer prospecting leases will be converted into placer mining claims. Twenty miles of prospecting leases have been converted into about 200 mining claims to date.

The main target of the claims is a buried deposit of White Channel gravel inferred to be preserved under glacial lake sediments on a bench of the Indian River (see Press Release March 1, 2005). The White Channel Gravel is the main host of Klondike placer gold.

The secondary target is large bed load type alluvial gold deposits thought to be present along the wide, flat valleys. These deposits are characterized by very fine-grained gold typical of the Indian River area, enriched by larger flakes or nuggets.

A third target is creek placer deposits of the type that have sustained numerous Yukon placer mines for decades. The object of the exploration is to define very large placer reserves capable of sustaining a large placer mine.

The drilling is being conducted under the supervision of Vern Matkovich, using a Nodwell-mounted 6 inch auger. This equipment is most suitable for testing the permafrost gravels found in the Klondike, as the tracked Nodwell provides light weight transportation over boggy terrain, and the auger drill provides good recovery of frozen overburden and gravels. The drill is also able to recover a short (60cm) bedrock sample to aid in geological mapping of covered terrane, and to test the depth of bedrock commonly sluiced during placer mining. Holes are being drilled 30m apart in lines perpendicular to the valley, with lines very widely spaced in this initial evaluation.

Gravel and bedrock samples are collected from the drill in buckets and processed in a small Long Tom sluice box, which accurately simulates conventional placer mining equipment. The heavy minerals accumulated in the sluice are then hand panned, and gold grains picked out. The gold will be weighed using a high precision balance. All samples are being processed by Jerry Bryde, a veteran placer miner and 1984 World Gold Panning Champion.

Fifty-one holes have been completed to date, and while processing and weighing of the sluice concentrates has not been finalized, several favorable results are apparent. The average depth to bedrock is 7.0m, with 3.6m of organics and silty overburden overlying 3.3m of gravel. This represents a low stripping ratio. The placer leases cover a broad, very gently sloping area that will be easily worked, with access trails already in place. Most importantly, all holes drilled to date contain visually identified gold.

Phase II work will include additional drilling and test pitting. The Phase II program is intended to assess mineable placer gold reserves at Indian River. Work planned for this summer will include geological mapping and soil geochemical surveys to evaluate the hard rock potential in the Indian River area.

About Klondike Star

Klondike Star Mineral Corporation is exploring mineralized zones on a 250 square km land position underlying the site of the Klondike Gold Rush. Klondike Star can earn up to 75% interest in the Lone Star claim group from its joint partner by completing certain exploration programs, delivering a bankable feasibility study and financing to mining production.

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 also owns extensive 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.