Klondike Star Discovers New Mineralized Zone at Lone Star Gold Project.

SEATTLE -- Donald W. Flinn, P.Eng., Vice-President, Operations for Klondike Star Mineral Corporation (OTCBB:KDSM) today announced the discovery of a new gold-bearing zone at the Lone Star Project in the Klondike region, Yukon, Canada. This brings the known, large gold mineralized zones that are active exploration targets on the expansive 58.7 square mile (152 square kilometer) Lone Star Project to five.

An exploration excavator trenching program has discovered a new gold zone near the centre of the Lone Star property. A 95 meter length of trench 06TR-06 returned highly anomalous values up to 2.32 g/t gold over a 5 meter interval. The last sample in the trench returned 1.27 g/t gold over 5 meters. The zone is located 1.5 kilometers east of the Buckland zone, 1.5 kilometers southeast of the Lone Star zone, and is open in all directions. The new zone, named the "JF" zone, is not on trend with any previously known mineralization on the property.

Bill Mann, M.Sc., Exploration Manager noted, "It is very encouraging to have made a brand new discovery in such a central location on our main Lone Star Project claim block. There is no indication of any previous exploration in this area, other than a soil geochemical survey."

The decision to explore the area of the JF zone was based on the presence of a 400 meter by 500 meter soil geochemical gold anomaly, with a peak value of 291ppb gold. The soil survey was conducted in the mid 1980's, but was not followed up until 2006. The mineralized zone is hosted by rusty quartz-muscovite schist with no quartz veining noted. These rocks appear similar to those hosting the Lone Star zone, and occur in a similar structural setting above a gently dipping thrust fault. The zone is located in the headwaters of Gay Gulch, a rich placer stream named after miner Emile Gay who discovered gold at the gulch in 1897.

The trench was sampled by 5 meter long continuous chip samples along a 480 meter long trench, with samples analyzed for 36 elements by the ICP method. The last 95 meters of the trench was found to be significantly mineralized with gold, and samples above 100ppb were re-analyzed by metallic sieve fire assay.

Plans for the JF zone in 2007 will include extending the discovery trench at least 250 meters further to the west to cut across the soil anomaly, and re-sampling the mineralized zone at 2 meter intervals. An IP geophysical survey will be laid out to cover the area of the soil anomaly. Additional trenches will be laid out at offsets to the discovery trench, and an initial diamond drill test is planned for later in the summer.

About the Lone Star Project

Lone Star is an advanced exploration stage project that is being studied for mine development. Of its eight projects, Klondike Star is currently focusing exploration efforts at the majority-owned Lone Star Project. It is comprised of 1,056 mineral claims and crown grants involving an area of 152 square kilometers (or 58.7 square miles) including the Lone Star Zone, the Nugget Zone, the Buckland Shear Zone, the 27-Pup-Dysle-Veronika Zone and the new JF Zone. All five zones extend over large areas with excellent opportunity for the existence of multiple mineralized zones, along both strike and dip. They belong to a class of structures which have potential for large, medium-to-low grade, gold bearing ore bodies.

The Lone Star Mine was built in 1912 and was the largest of the underground gold mines built in the Klondike. By 1914, the Lone Star Mine had produced 7,640 tons of ore (calculated to represent approximately a head grade of 0.202 oz/ton: Cathro, 1969, or 5.67 grams/tonne) from an open cut which was connected to a 225 meter adit by means of an ore pass. An amalgamation 4-head stamp mill was built on Victoria Gulch and a gravity tramway connected this to the mine. The mine was closed at the outbreak of World War I. Various attempts at underground development took place between 1911 and 1948.

Gold on the Lone Star property is present as coarse free gold, with pyrite in disseminations, and locally is associated with narrow discordant quartz veins. The mineralized zones are associated with quartz-carbonate-pyrite alteration, and are hosted by felsic metavolcanic schist.

About Klondike Star

Klondike Star Mineral Corporation is an established exploration and development company actively working on eight major properties, totalling 463 square kilometers or 179 square miles in the Yukon, Canada. The company is developing extensive surface and subsurface mineralized zones on a 370 square kilometer or 143 square mile 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 or 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.