Klondike Star Mineral Corporation News Release.

Business Editors

SEATTLE--(BUSINESS WIRE)--March 5, 2004

Klondike Star Mineral Corporation announces it has received a report on its majority owned claims in the Klondike area of the Yukon, Canada from Consulting Geologist Dr. J.H.Montgomery, Ph.D., P.Eng.

Highlights of the report include:

"The world famous Klondike Gold Rush produced a minimum of 12 million ounces of placer gold. This number is considered a minimum because much of the gold recovered was not reported and, of course, placer miners are still actively mining gold more than 100 years after the initial discovery in 1896. The gold nuggets, which were dispersed largely over Bonanza Creek, Eldorado Creek and their tributaries might be considered a phenomenal geochemical anomaly, phenomenal because the gold values are not measured in parts per billion (ppb) as is usual but rather in Troy ounces per cubic yard. Klondike Star claims straddle Bonanza and Eldorado Creeks, the richest creeks in the Klondike.

Since the discovery of placer gold in 1896, entrepreneurial prospectors have sought the source, or "mother lode", for the vast quantities of alluvial and possibly eluvial gold taken from the Klondike.

The body of work done by many operators over the years has resulted in a clearer understanding of the geology of much of the bedrock source of Klondike gold. The target area has been defined by three sub-parallel mineralized shear zones which have been traced over almost 5 kilometers. Gold occurs within shear zones and related quartz veins. Also, these shears may have acted as feeder zones for disseminated gold deposition in favorable strata cut by the shears. Most of the large area traversed by the shear zones remains virtually untouched.

Extensive exploration work over the past 97 years (1897-1994) has served to define three northwesterly-trending, gold bearing sub-parallel shear zones: Boulder Shear Zone, Nugget Shear Zone and Buckland Shear Zone.

The Boulder Shear Zone has been traced over 4.8 kilometers strike length and is coincident with a gold geochemical anomaly. This shear is open at both ends. The best (not representative of the whole) samples taken from this zone were 7.67 gpt Au (20m), 4.75 gpt Au (11m), 10.76 gpt Au (5 m) and 2.5 gpt Au (15m).

The Buckland Shear Zone lies about three km southeast of the Boulder Shear. This zone is believed to be the probable source of much of the placer gold recovered from Eldorado Creek. It ranges from 3 to 13 meters in width and has been traced, with reasonable confidence, over a strike length of 3.4 km and is open at both ends. This structure also coincides with a significant gold-in-soil anomaly. Most assays from trenches are below 1.5 gpt Au across widths of less than three meters.

The Nugget Zone is a third sub-parallel zone which lies about one km northeast of the Buckland Shear Zone. This zone also carries high grade, discontinuous quartz veins (15 cm widths and up to 9 meter lengths) which have assayed up to 778 gpt Au.

The Klondike Star property is now ready for large scale, intensive and detailed exploration. It is obvious that the proximity and close geologic relationship of the sub-parallel shear zones and the distribution of placer gold is more than a coincidence and that there is reasonable probability for a large, significant gold deposit."

Klondike Star Mineral Corporation is an exploration and development company with mineral claims in the Klondike Mining District, Yukon, Canada. The property includes Bonanza and Eldorado Creeks, the Lone Star Mine, and the site of the discovery of the Klondike Gold Rush.

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.