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KDSM News Klondike Star Launches Major Indian River Drilling Program

SEATTLE--(BUSINESS WIRE)--Donald W. Flinn, Vice President, Operations for Klondike Star Mineral Corporation (OTCBB:KDSM) is pleased to announce the third consecutive winter drilling program on the Indian River Placer Project, located about 25 miles (or 40 kilometers) from Dawson City. The Indian River project covers over 14 square miles (or 37 square kilometers) of placer claims and leases along the southern edge of the Klondike placer mining region of Yukon, Canada.

The plan is to auger drill and sample 150 – 200 holes between November and April, 2007. The winter exploration base facility has re-opened for operations with drill crews and equipment already mobilized to the site.

The auger drilling program is designed to step out from the known mineralized areas identified through the previous delineation and infill drill programs in 2005 and 2006. The objective is to expand the total area and volume of gold-bearing placer material to help assess the economic potential of the property. The drilling results and analysis would be supplemented by the expanded test mining program in the planning stages for 2007 (Press release 9-2006). These initiatives could accelerate the ability of the Company to make a production decision.

In 2005 and early 2006 ninety (90) holes drilled tested a variety of locations on the property, and identified an area of high potential for placer mining. A further one hundred eighty four (184) holes drilled in early 2006 focused mainly on this area, and an area of 1.24 miles (2 kilometers) by .44 miles (.7 kilometers) wide was extensively drilled on a grid of drill-holes spaced 33 yards (30 meters) apart along lines spaced 219 yards (200 meters) apart. This drilling identified an extensive bench gravel deposit along the Indian River, with consistent gold values across its entire width, and gold returned from every hole. The area is considered favorable for placer mining, as overburden is relatively thin and bedrock is only about 8 yards (7.25 meters) deep on average. This area is open for expansion to the east and south, which will be the main focus of the current drill program. Additional infill drilling will also be conducted in this main target area.

Several other areas on the property were also identified which appear to have placer mining potential, and will be tested with further drilling as part of this program.

The Company’s goal is to bring a large-scale placer mine into production. Based upon conventional mining methods and the nature of the permitting regime for placer mining, it would be feasible to bring a placer mine into production in the short-term. A placer mining operation could generate cash flow for the Company to finance its major exploration and development initiatives.

Drilling is conducted using track-mounted hydraulic auger drills with either 6 or 8-inch diameter augers (6” for exploration and deeper holes). Drill samples are collected 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 hand panned, and the gold grains picked out. The gold is weighed using a high precision balance.

About the Indian River Placer Project

The Indian River Placer Project is an advanced-stage exploration property entering early development with test mining, preliminary business planning for a production decision, and preparation of permit applications for expanded operations in progress. The Indian River Placer Project consists of 214 mineral claims plus 17 leases, totaling 14.3 mi² (37 km²). The Indian River is emerging as one of the most active areas of new investment and productive placer mining in the Klondike region. Klondike Star Mineral Corporation holds 100% ownership of 185 claims and 17 leases, as well as 49% interest in 29 additional claims acquired in the second quarter ended August 31, 2006.

About Klondike Star

Klondike Star Mineral Corporation is an established exploration and development company actively working on eight major properties, totaling 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.