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KLONDIKE SILVER CORP . KS: TSX-V OUR VISION: Silver/Lead/Zinc Production Silver/Lead/ Zinc Milling Complex Sandon, B.C. Canada 2018 THE YEAR TO DISCOVERY KLONDIKE SILVER CORP. - KS : TSX-V Forward Looking Information Statements


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SLIDE 1

KS: TSX-V

Silver/Lead/ Zinc Milling Complex – Sandon, B.C. Canada

KLONDIKE SILVER CORP.

OUR VISION: Silver/Lead/Zinc Production

2018 – THE YEAR TO DISCOVERY

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SLIDE 2

Forward Looking Information

Statements contained in this presentation that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward- Looking Information") within the meaning of applicable Canadian securities legislation. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company's properties; location and timing of potential future exploration activities; success of exploration, development and environmental protection and remediation activities; permitting time lines and requirements; requirements for additional capital; availability of skilled workforce and local service providers; staking and acquisition of additional mineral properties and claims; requirements for potential environmental conditions relating to mineral claims; planned environmental studies; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution

  • thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as "plans", "expects" or "does not expect", "is

expected“, "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "potential", "confirm" or "does not anticipate", "believes", "contemplates”, "recommends" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur"

  • r "be achieved". In preparing the Forward-Looking Information in this presentation, the Company has applied several material assumptions, including, but not limited

to, that any additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and Canadian currencies in the future will be consistent with the Company's expectations; that the current exploration, development, environmental and other objectives concerning the Company's properties can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for metals will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned exploration, development and environmental protection activities on the Company's properties will be obtained in a timely manner and on acceptable terms; the continuity of the price of silver and

  • ther metals, economic and political conditions and operations. Forward- Looking Information involves known and unknown risks, uncertainties and other factors

which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, the industry-wide risks and project-specific risks identified in the Company's management discussion and analysis available at www.sedar.com and summarized above; risks related to the availability of financing on commercially reasonable terms and the expected use of proceeds; operations and contractual obligations; changes in exploration programs based upon results of exploration; future prices of metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks, including environmental matters under Canadian federal and British Columbia rules and regulations; impact of environmental remediation requirements; certainty of mineral title; community relations; relations and negotiations with local First Nations in respect of the Company's current and planned activities; delays in obtaining governmental approvals or financing; fluctuations in mineral prices; the Company's dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability

  • f certain mineral deposits; the Company's lack of operating revenues; governmental regulations and the ability to obtain necessary licenses and permits; risks related

to mineral properties being subject to prior unregistered agreements, transfers or claims and other defects in title; currency fluctuations; changes in environmental laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may increase costs of doing business and restrict

  • perations; risks related to dependence on key personnel; and estimates used in financial statements proving to be incorrect; as well as those factors discussed in the

Company's public disclosure record. Although the Company has attempted to identify important factors that could affect the Company and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this presentation to reflect events

  • r circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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KLONDIKE SILVER CORP. - KS : TSX-V

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Cautionary Note

Cautionary Note: This presentation does not constitute an offer, advertisement or solicitation for the purchase of securities. Further, this presentation has been prepared by Klondike Silver Corp. management and does not represent a recommendation to buy or sell securities. Investors should always consult their investment advisors prior to making any investment decisions. National Instrument 43-101 Information The technical information in this presentation (the "Technical information") has been approved by David Makepeace P.Eng., a Qualified Person under National Instrument 43-101 ("NI 43-101"). Certain Technical Information in this presentation is based on technical information which has previously been disclosed by Klondike Silver in news releases available in its public disclosure record at www.sedar.com. Klondike Silver is permitted under NI 43-101 to satisfy disclosure requirements set forth under 43-101 in respect

  • f this presentation by providing references to previously disclosed news release that contain the requisite disclosure. In order to fully

understand this presentation, readers should refer to Klondike Silver’s full public disclosure record at www.sedar.com. In addition, investors are cautioned that this presentation contains information about historic mineral properties, mineral properties adjacent to or near the Company‘s properties, or properties which the Company believes may be similar to the Company's properties. The Company has no right or interest in such properties. Mineral deposits on such historic, adjacent, near or similar properties are not indicative of the mineral deposits, if any, which may be found on the Company's properties.

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KLONDIKE SILVER CORP. - KS : TSX-V

Silvana Ore - 36.75 oz Ag/ton (1,260 g Ag/mt), 61.46 % combined Pb & Zn

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The project is in the West Kootenay region

  • f southeastern British Columbia.

British Columbia

KLONDIKE SILVER CORP. - KS : TSX-V

Alberta

100 km

Calgary

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The project is located approximately 140 km northeast of TECK’s Lead-Zinc Smelter in Trail, B.C., and enjoys year round access. British Columbia

KLONDIKE SILVER CORP. - KS : TSX-V

Alberta

40 km

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Klondike Silver Corp.’s Mill and Mine Complex is in the Centre of the Slocan Mining Camp British Columbia

KLONDIKE SILVER CORP. - KS : TSX-V

Alberta

6 km

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SLIDE 7

History:

  • Silver-rich lead/zinc deposits discovered in 1891.
  • 173 past-producing mines located in the Slocan Silver Camp.*
  • Klondike Silver has control of 68 past-producing mines within the Camp*:

Processed - 2.2 M tons (t) / 2.0 M tonnes (T)* Silver - 40.5 M troy oz / 1.2 M kg * Lead - 350 M lb / 159 M kg * Zinc - 160 M lb / 72 M kg *

Geology:

  • A series of silver-rich lead/zinc veins in Triassic age Argillitic – Quartzite rocks.
  • The Main Lode is the largest and most prolific vein (9 km). Klondike Silver’s land

package includes 7 km of the Main Lode structure and, of that, 1.5 km is virtually unexplored.

  • One of the few remaining under-explored mining camps, of its kind, in Canada.

* Source: BC MINFILE

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* Source: BC MINFILE

The Klondike Silver Land Package Framework

KLONDIKE SILVER CORP. - KS : TSX-V

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  • Klondike Silver amalgamated many of the fragmented mineral claims and crown

grants located in the Slocan Mining Camp into a package - over one hundred square kilometres (100% royalty free ownership).

  • Klondike Silver’s land package contains 68 of the historical Silver Lead Zinc

producing mines in the Slocan Silver Camp. Klondike Silver’s land package produced 40.5 million troy ounces of silver.*

  • The Silvana Mine was the largest silver-lead-zinc producer of the 68 historical

producers in the Klondike Silver land package:

Processed - 563,000 tons (t) / 511,000 tonnes (T)* Silver - 7.8 M troy oz / 243 M grams * Lead - 63 M pounds / 29 M kilograms * Zinc - 58 M pounds / 26 M kilograms * Grade - 13.87 troy oz/t / 476 g Ag/T; 5.62 % Pb; 5.15 % Zn*

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* Source: BC MINFILE

* Source: BC MINFILE

KLONDIKE SILVER CORP. - KS : TSX-V

The Klondike Silver Land Package Framework (Con’t)

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* Source: BC MINFILE

* Source: BC MINFILE

KLONDIKE SILVER CORP. - KS : TSX-V

The Klondike Silver Land Package Framework (Con’t)

Top 10 Silver Lead Zinc Past-Producing Mines within the Klondike Silver Claim Block (100 km2)

Past Producing MINFILE Tonnage Silver Lead Zinc Silver Lead Zinc Mines (tons) (ounces) (lb) (lb) (oz/t) (%) (%) 1 Silvana 082FNW050 563,241 7,812,077 63,253,498 57,981,253 13.87 5.62 5.15 2 Silversmith 082FNW053 391,441 7,269,534 71,703,730 25,906,928 18.57 9.16 3.31 3 Violamac 082FNW204 164,797 4,151,538 47,941,942 31,362,942 25.19 14.55 9.52 4 Payne 082KSW006 121,920 3,741,914 38,308,927 2,258,451 30.69 15.71 0.93 5 Rambler 082KSW018 208,800 3,503,143 23,209,983 5,852,603 16.78 5.56 1.40 6 Van Roi 082FNW064 313,834 2,787,160 17,838,347 16,756,572 8.88 2.84 2.67 7 Ruth-Hope 082FNW052 66,772 2,473,893 22,316,356 3,540,000 37.05 16.71 2.65 8 Hewitt 082FNW065 124,090 1,916,970 3,902,572 5,971,520 15.45 1.57 2.41 9 Queen Bess 082FNW010 18,268 1,381,863 18,868,346 42,426 75.64 51.64 0.12 10 Reco 082FNW035 7,814 1,169,942 6,301,127 372,467 149.72 40.32 2.38 Production (Imperial) Grades (Imperial)

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SLIDE 10

CLAIMS, MINES AND LODES

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KLONDIKE SILVER CORP. - KS : TSX-V

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2017 WORK PROGRAM

  • Rehabilitation of the Silvana 4625 portal (Completed).
  • Rehabilitation of the Silvana 4625 level for ground support (Golder Associates)

(early Q2, 2018).

  • Rehabilitation of the access road to the Silvana 4000 and 4625 portals

(Completed).

  • LIDAR Survey over the entire property (240 km2). One metre accuracy contours

in UTM NAD83 coordinates (Completed).

  • GPS survey pick-up of all portals on the Main Lode in UTM NAD83 coordinates

(Carnation [east], Silvana, Mascot, Hope, Ruth, Silversmith) (Completed).

  • Create a 3D model of the underground workings along the Main Lode within

Klondike Silver Corp.’s claims. Convert the 3D model and drill hole database from Imperial to Metric and converting into UTM NAD83 coordinates (Completed).

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KLONDIKE SILVER CORP. - KS : TSX-V

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2017 WORK PROGRAM (Con’t)

  • Interpret the Main Lode structure west of the Silvana Mine and east of the

Carnation 5480 Mine (Completed).

  • Application to Amend the Silvana Mine Permit M-65 for underground

exploration development drifting and diamond drilling in the Silvana Mine west end (4625 West Lateral) (Complete, sent to BC Ministry of Energy, Mines and Petroleum Resources (EMPR) for approval).

  • Rip-rap the west side of Carpenter Creek for 1.3 km to control stream erosion

beside the mill and tailings ponds Completed).

  • Mine office and dry have power (BC Hydro), direct phone and internet

(Completed).

  • Dam Safety Review and Dam Safety Inspection (Golder Associates) (Completed).
  • TMF deficiencies identified by MEM and Golder Associates restored (Completed).
  • 2017 Annual Report including all reclamation and rehabilitation work on the

property from 2013 to December 31, 2017 and other Health, Safety and Reclamation Code for mines documents (Completed, sent to EMPR).

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KLONDIKE SILVER CORP. - KS : TSX-V

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KLONDIKE SILVER CORP. - KS : TSX-V

(240 km2) 6 km

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KLONDIKE SILVER CORP. - KS : TSX-V

6 km

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KLONDIKE SILVER CORP. - KS : TSX-V Raw Data (Contours : 1 m)

Plan View

Silvana 4625 Waste Rock Dump Silvana 4625 Portal Carnation 5480 Portal

2017 LIDAR SURVEY

Lidar Mosaic : ai10.dwg + ai11.dwg

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KLONDIKE SILVER CORP. - KS : TSX-V

Silvana 4625 Waste Rock Dump Silvana 4625 Portal Carnation 5480 Portal

Digital Terrain Model (Contours : 1 m)

Plan View

2017 LIDAR SURVEY

Surpac Mosaic : ai10.dtm + ai11.dtm

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KLONDIKE SILVER CORP. - KS : TSX-V

Silvana 4625 Waste Rock Dump Silvana 4625 Portal Carnation 5480 Portal

Digital Terrain Model (Contours : 1 m)

Oblique View, Looking Southwest

2017 LIDAR SURVEY

Surpac Mosaic : ai10.dtm + ai11.dtm

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KLONDIKE SILVER CORP. - KS : TSX-V Digital Terrain Model (Contours : 30.5 m)

Oblique View, Looking Southwest

Silvana 4625 Portal Carnation 5480 Portal

OLD TOPOGRAPHICAL SURVEY

Surpac : topography_carnation1.dtm + topography_silvana1.dtm

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KLONDIKE SILVER CORP. - KS : TSX-V

Klondike Silver Main Lode Workings

2017 - 3D Model (feet)

Plan View

CARNATION SILVANA SILVERSMITH RUTH HOPE

4625 ADIT 4000 LEVEL (RUTH 5) ADIT

STEWART MASCOT

CARNATION 5480 ADIT CARNATION 6500 LEVEL SILVERSMITH 10 ADIT

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KLONDIKE SILVER CORP. - KS : TSX-V

Klondike Silver Main Lode Workings and Mined Stopes

CARNATION

SILVERSMITH RUTH HOPE

4625 ADIT

STEWART SLOCAN STAR NEW RUTH (LONE STAR) MASCOT

SILVANA

RABBITS PAW

4000 LEVEL (RUTH 5) ADIT CARNATION 5480 ADIT CARNATION 6500 LEVEL

2017 - 3D Model (feet)

Plan View

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KLONDIKE SILVER CORP. - KS : TSX-V

Klondike Silver Main Lode Workings and Major Faults

CARNATION SILVANA SILVERSMITH RUTH HOPE

4625 ADIT

West Hope Fault Ruth Fault Silversmith Fault Lone Star Fault Stewart Fault

MASCOT

4000 LEVEL (RUTH 5) ADIT CARNATION 5480 ADIT CARNATION 6500 LEVEL

2017 - 3D Model (feet)

Plan View

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KLONDIKE SILVER CORP. - KS : TSX-V

Klondike Silver Main Lode Workings and Soil Geochemical Surveys

CARNATION SILVANA SILVERSMITH RUTH HOPE

4625 ADIT

MASCOT

CARNATION 5480 ADIT CARNATION 6500 LEVEL 4000 LEVEL (RUTH 5) ADIT SILVERSMITH 10 ADIT

2017 - 3D Model (feet)

Plan View

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KLONDIKE SILVER CORP. - KS : TSX-V

Klondike Silver Main Lode Eastern Workings

2017 - 3D Model (feet)

Oblique View, Looking Northeast

SILVANA WORKINGS

SILVERSMITH RUTH HOPE RABBITS PAW NEW RUTH (LONE STAR) SLOCAN STAR STEWART

4000 LEVEL (RUTH 5) ADIT 4625 EAST LATERAL SILVERSMITH 10 ADIT SILVERSMITH 5 ADIT

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KLONDIKE SILVER CORP. - KS : TSX-V

Klondike Silver Main Lode Western Workings and Drilling

2017 - 3D Model (feet)

Oblique View, Looking North

SILVANA WORKINGS

HOPE MASCOT

4625 ADIT 4625 WEST LATERAL 4690 WEST LATERAL CARNATION 5480 HW WEST LATERAL

UNEXPLORED MAIN LODE

4000 LEVEL (RUTH 5) ADIT

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KLONDIKE SILVER CORP. - KS : TSX-V Structural Interpretation 4625 West Lateral Drift

Plan View UTM NAD83

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The Silver Mile is the most highly prospective segment

  • f the

Main Lode

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KLONDIKE SILVER CORP. - KS : TSX-V

A B

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KLONDIKE SILVER CORP. - KS : TSX-V

Sample # - Location B on page 26 Silver Lead Zinc Oz per Ton % % 1675 - 4755 Stope 37.4 16.3 15.3 1676 - 4855 Foot Wall 324.3 23.4 32.6 1677 - 4625 East End 41.5 12.8 24.7 1678 - 4625 West End Raise 226.0 0.6 40.2 Sample # - Location A on page 26 Silver Lead Zinc Oz per Ton % % 1367 - 5480 East Footwall Lateral Drift 41.4 1.5 37.4 1369 - 5480 East Footwall Lateral Drift 23.5 3.1 41.1 1370 - 5480 East Footwall Lateral Drift 96.8 58.6 6.3 1371 - 5480 East Footwall Lateral Drift 54.5 5.6 45.9

Carnation 5480 Level In September 2017 Klondike Silver sent grab samples to be

  • assayed. The results are shown in the following table:

Silvana Mine In October 2017 Klondike Silver sent grab samples to be assayed. The results are shown in the following table:

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KLONDIKE SILVER CORP. - KS : TSX-V Carnation 5480 Level The location of Samples: # 1367 # 1369 # 1370 and # 1371 are shown in the map to the right.

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KLONDIKE SILVER CORP. - KS : TSX-V Proposed 2018 Initial Underground Exploration

Plan View UTM NAD83

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The 2018 Exploration Program

  • Finish ground support rehabilitation of the 4625 Level (early Q2).
  • Underground exploration drifting in 76 meters increments from the extension
  • f the Silvana 4625 West Lateral Drift.
  • Slash out diamond drill stations after each 76 meter increment.
  • Diamond drill an initial 1,500 m in a fan-shape pattern from new drill

stations.

  • Continue to compile and interpret new exploration diamond drill data and

exploration drifting utilizing the 3D model.

  • Continue to upgrade the mine and mill infrastructure.
  • Apply to BC Ministry of Energy, Mines and Petroleum Resources to re-start

the mill/TMF.

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KLONDIKE SILVER CORP. - KS : TSX-V

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2018 - The YEAR To DISCOVERY

The Klondike Silver’s land package represents: For the first time in history - prime hunting ground for:

  • Extensions of known silver/lead/zinc deposits

(historically claim locked),

  • Discovery of new silver/lead/zinc deposits.

Regional and underground exploration programs will be directed by seasoned geologists that have decades of experience in this mining camp.

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KLONDIKE SILVER CORP. - KS : TSX-V

Klondike Silver Anticipates New Discoveries!

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THE SLOCAN MINING CAMP

HAS NUMEROUS UNDER-EXPLORED AND POTENTIALLY NEW SILVER-LEAD-ZINC DEPOSITS

Silver price down 1% since Jan 2017

March 31, 2018 CDN$ 20.90 (US$ 16.33) Lead price up 19% since Jan 2017 March 31, 2018 CDN$ 1.39 (US$ 1.09) Zinc price up 28% since Jan 2017 March 31, 2018 CDN$ 1.90 (US$ 1.49)

KLONDIKE SILVER CORP. - KS : TSX-V

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  • Head Office:

804 - 750 West Pender Street Vancouver, British Columbia Canada V6C 2T7

  • Telephone:

604.682.2928

  • Website:

www.klondikesilver.com

  • Email

dale.dobson@klondikesilver.com

KS: TSX-V

Share Structure: Issued: 132,831,893 Warrants: 85,717,500 Options: 12,195,000 Diluted 230,744,393 Investor Relations: Paradox Public Relations

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KLONDIKE SILVER CORP. - KS : TSX-V

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A WORLD CLASS PROJECT

KS: TSX-V

KLONDIKE SILVER CORP.

OUR VISION: Silver/Lead/Zinc Production

May 2018