Klondike Star Launches Drill Program at Spice Gold Project.

SEATTLE -- Donald W. Flinn, P.Eng., Vice-President, Operations for Klondike Star Mineral Corporation (OTCBB:KDSM) today announced an exploratory diamond drilling program has commenced on the Spice property, 40 kilometers east of the community of Ross River in the Watson Lake Mining District, Yukon, Canada. This builds on field work conducted during 2006 that not only confirms, but expands, the known zone of gold in till anomalies and identified drill targets.

The property has been explored since 2000, when a regional geochemical survey conducted by the Yukon Geological Survey (Yukon Government) identified strong, coincident gold, silver and epithermal pathfinder elements. Follow-up geochemical sampling identified an open-ended anomalous zone and samples assayed up to 13.9 grams/tonne gold. An IP chargeability high and low resistivity coincides with the highest geochemical values.

"Klondike Star's investment in the Spice gold properties is part of our continuing efforts to strengthen and diversify Company mineral exploration and development prospects," says Flinn.

The initial diamond drilling plan involves 5 holes for a projected 700 - 800 meters (2,297 - 2,625 feet). This is expected to shed light on the hosting stratigraphy and help determine the nature and style of the mineralization. To get an early start and minimize environmental impacts, a flyable rig is being deployed and operated by a leading northern diamond drilling company. The work is being supervised by Jean Paulter, P.Geo., senior independent consulting geologist. She is a Qualified Person under Canadian National Instrument 43-101 mineral resource reporting and qualifies as a Competent Person under U.S. reporting standards.

Since acquiring the Spice property, Klondike Star has stepped up exploration efforts, and in the spring of 2006, staking also increased the land base to 51 mineral claims totaling 10.9 square kilometers (4.2 square miles), an increase of 63%. Exploration to date has involved till, soil, silt and rock geochemistry, hand/blast pitting and trenching, ground magnetic, induced polarization/resistivity and VLF-EM geophysical surveys, a property evaluation, the delineation of drill targets and petrography.

The Spice Project is strategically located within the Tintina Gold Belt that hosts numerous gold deposits and producing mines, notably Fort Knox, Pogo and (former) Brewery Creek, and active exploration projects in the general vicinity. The target is a low-sulphidation epithermal-style gold deposit hosted by rhyolite, similar to the Grew Creek property being explored 60 kilometers (37.3 miles) to the west. Klondike Star has an agreement for the acquisition of up to 75% interest in the Spice claims.

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.