2011

PROSPECTING REPORT “Ricoridge Property”

EVENT # 5393495 TENURE # 704726

Tenure Name: Ricoridge

Sandon Region

Nelson Mining District

Map 082F

Coordinate Reference

49° 59' 36" N, 117° 12' 14"W

Date of Report – October 10, 2012

Tenure Owner – Klondike Silver Corp.

FMC 206010

Introduction:

The MTO cell claim Recoridge tenure #704726 is located on south facing slopes of a ridge between Payne Mountain and Recco Mountain. Lower slopes start at 1588m elevation and climb steeply to ridge top at 2361m. Approximate center of the claim lies 2.57 km at 38.22 degrees from Sandon. Access to the claim can be gained from a gravel road that leaves the K&S rail bed from the North part of Sandon and runs NE to the former Argenta Mine. From the Argenta a trail continues to the North and accesses the South boundary of the claim and on to the former American Boy Mine. There is also a road from Cody aptly named Switchback Road that climbs North from Cody with a spur running West at about 1840m elevation to the former upper workings of the Noble 5 Mine, which lies almost on the East boundary of the claim. From the Noble 5 Mine it is possible to walk to the Recoridge claim. From the North, the claim can be reached from roads running up the Antoine Basin to the Old Tom Moore Mine and South to near the North boundary of 704726.

History:

The Recoridge tenure covers three past producing mines, The American Boy, The Ajax, the Last Chance, and one showing, The Ajax Fraction occurrence. The east side of the tenure overlaps the West side of the Noble 5 Mine workings, or at least the Noble 5 and Knoxville Mineral Claims.

The American Boy and Last Chance adjoin and the mine workings are on the same lode system. The principal claims making up the properties were located in 1891 and were among the first staked in the Slocan Camp. These mines worked, intermittently, under different ownership until 1980. Production from the American Boy portion of the vein amounts to about 9 tonnes of silver, 1482 tonnes of lead, 85 tonnes of zinc and 62 grams of gold. Production from the Last Chance portion of the vein from 1895 to 1922 amounts to 33 tonnes of silver, 3493 tonnes of lead, from 8448 tonnes mined.

The Ajax claims were worked in the early 1890’s until the close of that decade. Since 1900 the property has lain idle and the workings inaccessible. Production from the Ajax property in 1899 and 1900 yielded 81,303 grams of silver and 10,456 kilograms lead from 27 tonnes mined. Production from the Treasure Vault 1898 and 1899 yielded 31 grams of gold, 239,928 grams of silver and 42,490 kilograms of lead from 135 tonnes.

There has been close to 6 Km of drifting, shafts and raises recorded in Minfile data on this claim. No doubt, there was more work done underground by leasers, not recorded over the years. This has left the surface ground greatly disturbed with waist rock dumps dominating the terrain and spilling down the hillside. This may lead to some kind of reclamation liabilities if there was to be any development work done. This would need to be evaluated with the department of mines.

Crown Grant Ownership:

The Recoridge MTO tenure #704726 is nearly totally underlain by crown grants, 21 total. Of the 21 crown granted mineral claims there are 5 that are reverted to the Crown, see attached map of crown grant ownership. Therefore, Klondike Silver holds only about 10%

1

of the claim’s mineral rights. The large surface dumps on the property are all on ground owned by other interests. It is recommended that the owners of the active crown grants be contacted in order to determine if they would be willing to make a deal to sell the mineral rights or go into some kind of joint venture partnership to further explore the economic potential of the property. There are at least five different parties, companies and individuals, that would need to be contacted for this purpose, see excel file of crown grant owners.

Objective and General Scope of 2012 Work:

The objective of this preliminary prospecting project is to ground truth the access to the property, search crown grant ownership, and evaluate the property to determine the possibilities of finding value in surface dumps or underground and if further work in the area is warranted.

Summary and Conclusions

On June 1, 2012 and June 2, 2012 reconnaissance prospecting was carried out to identify access to the property and dump sites. Three abandoned adits were identified as was a historical trench. Two samples were taken and examined from separate dumps yet neither appears to bear sufficient mineralization to warrant assaying.

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5

Map Center: 54.4781N 124.7082W Map Center: 54.4781N 124.7082W Map Center: 54.4781N 124.7082W Map Center: 54.4781N 124.7082W Map Center: 54.4781N 124.7082W

RecoridgeRecoridgeRecoridgeRecoridgeRecoridge

Recoridge Location

Topographic Layers

Lakes 1:6M

Rivers 1:6M

BC Border Layers

BC Border 1:6M

Recoridge Location Map

SCALE 1 : 10,784,480

0100 100 200 300

MILES

N

4

6

Recoridge access

0 500 1000 m.

Legend

This map is a user generated static output from an Internet mapping site and is for generalreference only. Data layers that appear on this map may or may not be accurate, current, orotherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION.

Scale: 1:28,646Map center: 49° 59' 26" N, 117° 12' 13" W

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Sample Location & Area of Work Map

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RecoridgeCrownGrantOwnership

0 210 420 m.

Legend

This map is a user generated static output from an Internet mapping site and is for generalreference only. Data layers that appear on this map may or may not be accurate, current, orotherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION.

Scale: 1:12,090Map center: 49° 59' 39" N, 117° 12' 14" W

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Map Center: 49.9940N 117.2041W Map Center: 49.9940N 117.2041W Map Center: 49.9940N 117.2041W Map Center: 49.9940N 117.2041W Map Center: 49.9940N 117.2041W

704726704726704726704726704726

SAPPHIRE (L.1857)

AJAX (L.585)

LAST CHANCE (L.717)

SURPRISE

GREY COPPER (L.580)

RECO

SLOCAN SOVEREIGN (L.1927)

NOBLE FIVE (L.467)

AMERICAN BOY (L.571)

R.E. LEE

OMEGA (L.618)

AJAX FR. (L.1727)

GALENA (L.593)

RUBY SILVER (L.515)

082K.004

082K.005

082F.094

082F.095

Mineral Titles Layers

Recoridge Tenure

All Mineral Tenures

Mineral Inventory Layers

MINFILE statusProducer Past Producer Developed Prosp...Prospect Showing All Others

MINFILE name labelDeveloped Prosp...Past Producer Producer Prospect Showing All Others

Topographic Layers

Recoridge Tenure Map

SCALE 1 : 18,786

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FEET

N

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