Klondike Star Not Aware of Any Developments to Account for Stock Volatility - Company Exploration Projects & Financing Remain on Track

Business Wire, Dec 22, 2006

SEATTLE -- Klondike Star Mineral Corporation (OTCBB:KDSM), in response to shareholder inquiries, today announced that the Company is unaware of any developments concerning the business of Klondike Star that could account for the recent trading volatility of the Company's common stock.

"As a matter of policy, the Company generally does not address trading trends regarding its stock", states, Hans Boge, P.Eng., President. "Our shareholders should know that Klondike Star's mineral exploration programs, including the two advanced-stage exploration projects, Lone Star and Indian River Placer, are proceeding as planned and as previously reported."

Boge also noted Klondike Star continues to be well funded and debt free, "An 8K report is being filed announcing the Company has over-sold its November 15, 2005 private placement offering of 4,000,000 shares of common stock at $2.75 per share, with proceeds of USD $11,915,700 for a total of 4,332,982 common shares.

For the information of shareholders, Klondike Star's offices are closing for the holiday season effective Saturday, December 23, 2006 and will re-open on January 2, 2007.

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.