UNITED STATES ~~SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549~~

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE ~~SECURITIES EXCHANGE ACTS OF 1934~~

~~For~~SECURITIES ~~the~~EXCHANGE ~~quarterly~~ACTS ~~period~~OF ~~ended August 31, 2007~~1934

For the quarterly period ended November 30, 2007

Commission File Number 000-30965

KLONDIKE STAR MINERAL CORP. ~~(Exact name of registrant as specified in its charter)~~

(Exact name of registrant as specified in its charter)


Delaware	91-198708
(State or other jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification Number)

Box 20116, 1031 -– Ten Mile Road ~~Whitehorse, Yukon Y1A 7A2 (Address of principal executive offices)~~

~~(800) 579-7580 (Registrant's telephone number~~Whitehorse, ~~including~~Yukon ~~area~~Y1A ~~code)~~7A2

(Address of principal executive offices)

(800) 579-7580

(Registrant's telephone number, including area code)

(Former name, former address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, on a non-accelerated filer. See definition of "“accelerated filer and large accelerated filer"” in Rule 12b-2 of the Exchange Act. (Check One)

Large accelerated filer [ ~~] Accelerated filer~~ [ ] ~~Non-accelerated~~ ~~filer [X]~~

Accelerated filer [ ]

Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes [ ] No [X]

As of ~~August~~November 3130, 2007 there were 3233,~~957~~302,497 shares of the registrant's Common Stock, par value $.0001 per share, outstanding.

FORWARD LOOKING STATEMENTS

Some of the information presented in this quarterly report constitutes forward-looking statements within the meaning of the private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about management's expectations for fiscal year 2003 and beyond, are forward looking statements and involve various risks and uncertainties. Although the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge, there can be no assurance that actual results will not differ materially from the Company's expectations. Factors that could cause the actual results to differ materially from expectations are discussed in the Company's Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission.

Item 1. Financial Statements

~~KLONDIKE STAR MINERAL CORPORATION CONSOLIDATED FINANCIAL STATEMENTS August 31, 2007~~ .

KLONDIKE STAR MINERAL CORPORATION

~~August~~CONSOLIDATED ~~31,~~FINANCIAL ~~2007~~STATEMENTS

November 30, 2007

KLONDIKE STAR MINERAL CORPORATION

November 30, 2007

TABLE OF CONTENTS

FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS ~~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1~~

~~CONSOLIDATED STATEMENTs OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2~~1

CONSOLIDATED ~~StatementS~~STATEMENTS ~~of Stockholders'~~OF ~~Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3~~OPERATIONS

~~CONSOLIDATED StatementS of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4~~2

~~CONDENSED~~ CONSOLIDATED ~~NOTES~~STATEMENTS TOOF ~~CONSOLIDATED~~STOCKHOLDERS’ FINANCIAL STATEMENTS 5EQUITY

~~KLONDIKE STAR MINERAL CORPORATION (An Exploration Stage Company) CONSOLIDATED BALANCE SHEETS~~3

~~The~~ CONSOLIDATED ~~accompanying~~STATEMENTS ~~condensed~~OF ~~notes~~CASH ~~are an integral part of these consolidated interim financial statements. 1~~FLOWS

~~KLONDIKE STAR MINERAL CORPORATION (An Exploration Stage Company) CONSOLIDATED STATEMENTS OF OPERATIONS~~4

~~The~~CONDENSED ~~accompanying~~NOTES ~~condensed~~TO ~~notes~~CONSOLIDATED ~~are~~FINANCIAL ~~an integral part of these consolidated interim financial statements. 2~~STATEMENTS

~~KLONDIKE STAR MINERAL CORPORATION (An Exploration Stage Company) CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY~~5

~~The accompanying condensed notes are an integral part of these consolidated interim financial statements~~. 3

KLONDIKE STAR MINERAL CORPORATION ~~(An Exploration Stage Company) CONSOLIDATED STATEMENTS OF CASH FLOWS~~

~~The~~(An ~~accompanying~~Exploration ~~condensed~~Stage ~~notes are an integral part of these consolidated interim financial statements. 4~~Company)

~~KLONDIKE~~CONSOLIDATED ~~STAR~~BALANCE ~~MINERAL CORPORATION (An Exploration Stage Company) Condensed Notes to the Consolidated Financial Statements August 31, 2007~~SHEETS

[kdsm10qfinalnov3007vjan14002.gif]

~~NOTE~~The 1accompanying ~~-DESCRIPTION~~condensed OFnotes ~~BUSINESS~~are an integral part of these consolidated interim financial statements.

KLONDIKE STAR MINERAL CORPORATION

(An Exploration Stage Company)

CONSOLIDATED BALANCE SHEETS

[kdsm10qfinalnov3007vjan14004.gif]

The accompanying condensed notes are an integral part of these consolidated interim financial statements.

KLONDIKE STAR MINERAL CORPORATION

(An Exploration Stage Company)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

[kdsm10qfinalnov3007vjan14006.gif]

The accompanying condensed notes are an integral part of these consolidated interim financial statements.

KLONDIKE STAR MINERAL CORPORATION

(An Exploration Stage Company)

CONSOLIDATED STATEMENTS OF CASHFLOWS

[kdsm10qfinalnov3007vjan14008.gif]

The accompanying condensed notes are an integral part of these consolidated interim financial statements.

KLONDIKE STAR MINERAL CORPORATION

(An Exploration Stage Company)

Condensed Notes to the Consolidated Financial Statements

November 30, 2007

NOTE 1 – DESCRIPTION OF BUSINESS

Klondike Star Mineral Corporation (hereinafter "the Company") is engaged in mineral exploration in the Yukon Territory, Canada. The Company was originally incorporated in 1999 under the laws of the State of Delaware. The Company was also registered in the Yukon Territory, Canada effective June 22, 2004. The Company maintains its head office in Whitehorse, Yukon Territory, Canada.

The Company was originally incorporated as Cyberbiz, Inc., later changed its name to Urbanfind, Inc. and again in 2004 changed its name to Klondike Star Mineral Corporation. The Company'’s fiscal year-end is the last calendar day of February.

Historically, the Company had been principally engaged in an internet-based business. Upon its acquisition of certain mining claims in December 2003, the Company began a new exploration stage as a minerals exploration company.

As the Company is in the exploration stage, it has not realized any revenues from ~~its planned~~ operations.

On March 16, 2007, the Company incorporated a wholly owned subsidiary, Klondike Star Canada Inc. ("“Klondike Star Canada"”) under the Canada Business Corporations Act. Klondike Star Canada maintains its head office in Whitehorse, Yukon Territory, Canada. As of ~~August~~November 3130, 2007, Klondike Star Canada had no operation.

NOTE 2 -– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-K as promulgated by the Securities and Exchange Commission ("“SEC"”). Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements. These unaudited financial statements should be read in conjunction with the audited financial statements for the year ended February 28, 2007. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented. Operating results for the ~~six~~nine-month period ended ~~August~~ 31November 30, 2007 are not necessarily indicative of the results that may be expected for the year ending February 29, 2008.

This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company'’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the U.S. and have been consistently applied in the preparation of the financial statements.

Accounting Methods

The Company'’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

Basis of Presentation

These consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The Company consolidates more-than-50% owned subsidiaries that it controls and entities over which control is achieved through means other than voting rights. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Klondike Star Canada Inc. (incorporated under the Canada Business Corporations Act). All significant transactions and balances among the companies included in the consolidated financial statements have been eliminated.

Concentration of Risk

The Company maintains its cash in a commercial bank in Bellevue, Washington, and in a commercial bank in Whitehorse, Yukon Territory. The account in Washington is guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $100,000. The Canadian dollar accounts in Yukon Territory are guaranteed by the Canadian Deposit Insurance Corporation (CIDC) up to $100,000 Canadian ($94100,~~679~~000 US dollars at ~~August~~November 3130th, 2007). At ~~August~~November 3130, 2007, the Company ~~exceeded~~did not exceed either the FDIC insured ~~amount~~or ~~by approximately $400 and exceeded~~ the CIDC insured amount ~~by approximately $201,000 U~~.S.

Mineral Exploration and Development Costs

In accordance with accounting principles generally accepted in the United States of America, the Company expenses lease exploration costs as incurred. As of ~~August~~November 3130, 2007, the exploration costs and mineral rights expensed during the Company'’s exploration stage have been approximately $4445,~~025~~303,000. Significant property acquisition payments for active exploration properties are capitalized. If no minable ore body is discovered, previously capitalized costs are expensed in the period the property is abandoned. Expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operating mines, are capitalized and amortized on a units of production basis over proven and probable reserves.

Should a property be abandoned, its capitalized costs are charged to operations. The Company charges to operations the allocable portion of capitalized costs attributable to properties sold. Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area.

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company'’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions which could have a material effect on the reported amounts of the Company'’s financial position and results of operations.

Going Concern

As shown in the financial statements, the Company incurred a net loss of approximately $46,~~555~~623,000 for the ~~six~~nine months ended ~~August~~November 3130, 2007 and has an accumulated deficit of approximately $5658,~~074~~142,000 since inception of the Company'’s exploration stage (December 8, 2003). The Company currently has no revenues and no operating mining properties.

These factors indicate that the Company may be unable to continue in existence. The financial statements do not include any adjustments related to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Management'’s plans include actively seeking additional capital and management believes that new properties can ultimately be developed to enable the Company to continue its operations. However, there are inherent uncertainties in mining operations and management cannot provide assurances that it will be successful in its endeavors.

The Company'’s management believes that it will be able to generate sufficient cash from public or private debt or equity financing for the Company to continue to operate based on current expenditure projections of $11,000,000 for fiscal year ending in 2008. The Company has approximately $~~341~~14,000 in cash at ~~August 31~~November 30, 2007.

NOTE 3 -– PROPERTY AND EQUIPMENT

~~Capital~~Property ~~assets~~and equipment are recorded at cost. Depreciation is calculated using the straight-line method over three to ten years. The following is a summary of property, equipment, and accumulated depreciation:

				Net Book Value February 28, 2007	Net Book Value February 28, 2006
	Balances as at August 31, 2007
	Balances as at November30, 2007
	Cost	Accumulated Depreciation	Net Book Value
Depreciable Capital Assets:
Depreciable Property and Equipment:
Leasehold improvements	$ ~~988~~1,~~862~~049,365	$ ~~277~~330,~~967~~434	$ ~~710~~718,~~895~~931	$ 616,788	$ 207,178
Movable structures	975,894	~~355~~405,~~343~~247	~~620~~570,~~551~~647	697,267	579,123
Vehicles	415,505	~~225~~260,~~658~~289	~~189~~155,~~847~~216	228,869	137,185
Equipment	316,110	~~169~~195,~~379~~715	~~146~~120,~~731~~395	168,923	107,618
Heavy equipment	290,293	2328,~~399~~080	~~266~~262,~~894~~213	276,254	-
All-terrain vehicles	123,606	97108,~~758~~059	2515,~~848~~547	46,449	49,322
Trailers	94,550	3540,~~656~~383	5854,~~894~~167	68,350	24,290
Computer equipment	46,740	3034,~~938~~733	1512,~~802~~007	15,896	19,854
Computer software	21,966	1517,~~408~~338	64,~~558~~628	7,565	7,792
Furniture and fixtures	19,527	89,~~140~~116	1110,~~387~~411	13,340	8,523
Pack horse	~~5,765~~-	~~2,883~~-	~~2,882~~-	10,632	14,242
Total Depreciable Assets
Non Depreciable Capital Assets:
Non Depreciable Property and Equipment:
Gold samples	105,574	-	105,574	77,350	56,010
Total Capital Assets	$ 3,404,392	$ 1,242,529	$ 2,161,863	$ 2,227,683	$ 1,211,137
Total Property and Equipment	$ 3,459,130	$ 1,429,394	$ 2,029,736	$ 2,227,683	$ 1,211,137

Total depreciation expense for the ~~six~~nine months ending ~~August~~November 3130, 2007, 2006 and 2005 is $~~364~~554,~~653~~401, $~~243~~404,~~969~~529 and $~~138~~256,~~099~~841 respectively.

NOTE 4 -– RELATED PARTY TRANSACTIONS

Effective June 2004, the Company signed an agreement for the right of occupancy of a barn and property from one of the directors of the Company and his spouse ("“the Owner"”), for the shelter of pack horses and an office. The right of occupancy term is five years, renewable yearly thereafter. Rent is $1 per month. Prior to the expiration of the right of occupancy, the Owner may require the Company at the Company'’s sole cost and expense, to remove any alterations, installations, additions or improvements made by the Company. At the expiration of the lease, the Owner is obligated to pay to the occupier the fair market value of the buildings less 75 % and shall be entitled to pay such sum over a 20 year period in equal monthly installments without interest.

Leaseholds improvements, which total approximately $~~989~~1,049,000 as of ~~August~~November 3130, 2007, have been made to the barn and office.

On occasion, the Company'’s shareholders or directors pay corporate expenses and/or provide services to the Company. Related party payables are unsecured and non-interest bearing and are due on demand. Related party payables totaled $1865,~~586~~855, $110,148 and $14,465 at ~~August~~November 3130, 2007, February 28, 2007 and February 28, 2006, respectively. During the ~~six~~nine months ending ~~August~~November 3130, 2007, the Company included in mineral exploration expense $~~122~~273,200 ($~~563~~890,~~300~~700 for the ~~six~~nine months ended ~~August~~November 3130, 2006 and, $88205,~~700~~300 for the ~~six~~ nine months ended ~~August~~November 3130, 2005) in transactions with a company controlled by an officer and director of the Company. The transactions were recorded at fair market value.

~~NOTE~~During 5the -quarter ~~PREFERRED~~ended ~~STOCK~~November 30, 2007, a company controlled by the Company’s President and Chief Executive Officer advanced the Company $172,000 (Canadian) under a promissory note agreement, unsecured, non interest bearing, due upon demand, and repayable in US dollars. Subsequent to the quarter ended November 30, 2007, the Company repaid the promissory note in full. The terms of the agreement were modified to allow the repayment of the promissory note in Canadian funds.

~~The~~NOTE ~~Company~~5 is– ~~authorized~~ADVANCE toPAYABLE issue 20,000,000 shares of $0.0001 par value preferred stock. The Company previously issued 2,000,000 preferred stock convertible to 10 common shares of common stock, non-cumulative and non-dividend bearing. The Company's board of directors will determine the specific features of each additional issuance of preferred shares. At August 31, 2007, February 28, 2007 and February 28, 2006, the Company had 2,000,000 shares of preferred convertible stock issued and outstanding.

OnDuring ~~January~~the 12quarter ended August 31, 2007, the Company ~~modified~~received ~~the~~funds ~~terms~~from oftwo ~~the issued~~shareholders, ~~and~~originally ~~outstanding~~intended ~~preferred~~to ~~stock.~~be ~~Each~~short ~~Series~~term Abridge ~~convertible~~financing, ~~preferred stock~~non ~~("Series~~interest ~~A")~~bearing isand ~~convertible~~with ~~into~~no ~~one~~fixed ~~(1)~~terms ~~common~~of ~~stock~~repayment. In ~~and~~accordance ~~one~~with ~~(1)~~US ~~Series~~GAAP, ~~B preferred~~the ~~stock;~~Company ~~non-cumulative,~~has ~~non-dividend~~imputed ~~bearing,~~interest ~~non-voting~~on ~~and~~the ~~is subordinate~~Advance toPayable ~~common~~and ~~stock~~has inincluded the ~~event~~imputed ofinterest ~~liquidation,~~in ~~dissolution,~~Accounts ~~or wind-up.~~payable ~~Each~~and ~~Series~~accrued Aliabilities. As ~~shall~~disclosed bein ~~convertible, at~~ the ~~holders~~August ~~option~~31, ~~into~~2007 ~~one common~~Unaudited ~~stock~~Interim ~~and~~Consolidated ~~one~~Financial ~~Series B preferred stock~~Statements, in the ~~event the~~ Company ~~receives a~~intended ~~notice~~to ofissue ~~tender,~~Common asStock ~~defined~~ pursuant to ~~Regulation~~the ~~14D~~terms and conditions of the ~~Securities Exchange~~Private ~~Act~~Placement ofMemorandum ~~1934~~dated February 1, to2007 ~~purchase~~and ~~the~~updated ~~majority~~August of7, 2007, against the ~~issued~~Advance Payable, and ~~outstanding common~~included ~~stock~~the issuance of the ~~Company~~Common Stock in Shareholders’ Equity. The Company ~~shall~~was not ~~issue~~able ~~fractional~~to ~~shares~~obtain ~~of common~~the ~~stock~~necessary ~~resulting~~documentation from ~~conversion;~~the adepositors ~~cash~~to ~~payment~~effect inthe ~~lieu~~issuance of ~~fractional shares~~Common ~~shall~~Stock. Management behas ~~made.~~reported ~~The~~the ~~conversion~~funds ~~price~~as ~~shall~~a becurrent ~~adjusted~~liability ~~for~~Advance ~~any~~Payable ~~common stock~~until ~~dividends,~~the ~~subdivisions,~~terms ~~combinations,~~and orconditions ~~other~~of ~~adjustment~~the Advance Payable are clarified.

NOTE 6 – PREFERRED STOCK

The Company is authorized to issue 20,000,000 shares of $0.0001 par value preferred stock. The Company previously issued 2,000,000 preferred stock convertible to 10 common shares of common stock, non-cumulative and non-dividend bearing. The Company’s board of directors will determine the specific features of each additional issuance of preferred shares.

On January 12, 2007 the Company modified the terms of the issued and outstanding preferred stock. Each Series A convertible preferred stock (“Series A”) is convertible into one (1) common stock and one (1) Series B preferred stock; non-cumulative, non-dividend bearing, non-voting and is subordinate to common stock in the event of liquidation, dissolution, or wind-up. Each Series A shall be convertible, at the holders option, into one common stock and one Series B preferred stock, in the event the Company receives a notice of tender, as defined pursuant to Regulation 14D of the Securities Exchange Act of 1934, to purchase the majority of the issued and outstanding common stock of the Company. The Company shall not issue fractional shares of common stock resulting from conversion; a cash payment in lieu of fractional shares shall be made. The conversion price shall be adjusted for any common stock dividends, subdivisions, combinations, or other adjustment.

Series B preferred stock is non-dividend bearing, non-convertible into any other class of Company stock, and is not eligible to participate in the distribution of Company assets in the event of liquidation, dissolution, or wind-up. Each Series B preferred stock is entitled to vote for directors either at special or annual general meetings of shareholders. Each Series B preferred stock is entitled to vote such number of votes per share as shall equal four (4) shares of common stock.

At ~~August~~November ~~31,~~30 2007, February 28, 2007 and February 28, 2006, the Company had no2,000,000 ~~Series~~shares Bof preferred ~~shares~~convertible stock issued and outstanding.

NOTE 67 -– COMMON STOCK

As approved by the shareholders at the Company'’s 2006 annual general meeting, the Company'’s authorized common stock was increased to 120,000,000 shares of $0.0001 par value common stock. Each holder of common stock has one, non-cumulative vote per share on all matters voted upon by the shareholders. At ~~August~~November 3130, 2007, February 28, 2007 and February 28, 2006, the Company had 33,~~406~~302,~~909~~497; 29,035,782 and 25,202,800 shares of common stock issued and outstanding, respectively.

During the ~~six~~nine months ended ~~August~~November 3130, 2007, the Company sold through private placements 16,000 common shares at $1.25 per share for total net cash proceeds of $18,000; sold 20,000 common shares at $1.07 per share for total net cash proceeds of $19,260; sold 100,000 common shares at $1.00 per share for total net cash proceeds of $90,000; sold 285,715 common shares at $1.05 per share for total net cash proceeds of $270,000,; ~~sold 227,273 common shares at $1.10 per share for total net cash proceeds of $250,000~~ and sold ~~221~~45,~~239~~000 common shares at $1.1305 per share for total net cash proceeds of $~~250~~42,~~000~~500.

Effective May 29, 2007, the Company issued a private placement memorandum for the issuance of up to 3,000,000 common stock of the Company, at $0.50 per share, under Regulation S, for total estimated cash proceeds of $1,500,000 with the offering expiring on or before July 16, 2007. As of ~~August~~November 3130, 2007, the Company sold 3,~~500~~600,000 common shares under this private placement memorandum for total net cash proceeds of $1,~~725~~770,000.

During the ~~six~~nine months ended ~~August~~November 3130, 2007, the Company issued a private placement memorandum for the issuance of up to 2,000,000 common stock of the Company, at $0.50 per share, under Regulation S, for total estimated cash proceeds of $1,000,000 with the offering expiring on or before September 30, 2007. As of ~~August~~November 3130, 2007, the Company ~~sold~~had ~~500,000~~not ~~common~~ sold shares ~~under~~against this private placement memorandum ~~for total net cash proceeds of $225,000~~.

During the ~~six~~nine months ended ~~August~~November 3130, 2007, the Company approved a private placement memorandum for the issuance of up to 3,000,000 units of one common stock of the Company and one warrant to purchase one common stock of the ~~company~~Company ofat ~~up to~~ $1.50 per share; with the unit price being equal to the 5 day volume average price preceding the date of purchase less $0.10. As of ~~August~~November 3130, 2007, the Company ~~has not~~ sold ~~any~~200,000 units under this private placement memorandum.

During the three months ended May 31, 2007, the Company approved a private placement memorandum for the issuance of 13,200,000 shares of common stock at $2.25 per shares under Regulation S, with the offering expiring on or before July 6, 2007. The Company did not issue shares under this private placement memorandum.

Warrants

During the year ended February 28, 2006, the Company executed a private placement memorandum to issue up to 4,000,000 shares of common stock at $2.75 per share with one warrant attached to each share to purchase an additional share at a minimum conversion price of $3.50. Each warrant must be exercised within one year from date of the original investment. Using the Black-Scholes formula, the Company made the following assumptions to value the warrants for the year ended February 28, 2007; risk-free interest rate of 4.5%; volatility of 31%; life of one year; no dividends.

	Number of Warrants	Weighted Average Remaining Life	Average Exercise Price
Outstanding and exercisable, February 28, 2006	1,300,000	0.0 years	$ 3.50
Issued	3,032,982	0.2 years	3.50
Exercised	-		-
Rescinded or expired	(1,300,000)		3.50
Outstanding and exercisable, February 28, 2007	3,032,982	0.2 years	$ 3.50
Issued	-		-
Exercised	-		-
Rescinded or expired	(2,259,982)		3.50
Outstanding and exercisable, August 31, 2007	773,000	0.2 years	$ 3.50

During the nine months ended November 30, 2007, the Company executed a private placement memorandum to issue up to 3,000,000 units of one common stock of the Company and one warrant to purchase one common stock of the company of up to $1.50 per share; with the unit price being equal to the 5 day volume average price preceding the date of purchase less $0.10 with one warrant attached to each share to purchase an additional share at a minimum conversion price of $1.50. Each warrant must be exercised within one year from date of the original investment. Using the Black-Scholes formula, the Company made the following assumptions to value the warrants for the year ended February 28, 2007; risk-free interest rate of 4.75%; volatility of 54.33%; life of one year; no dividends.

NOTE 7 - STOCK-BASED COMPENSATION AND STOCK OPTIONS


	Number of Warrants	Weighted Average Remaining Life	Average Exercise Price
Outstanding and exercisable, February 28, 2006	1,300,000	0.0 years	$ 3.50
Issued	3,032,982	0.0 years	3.50
Exercised	-		-
Rescinded or expired	(1,300,000)		3.50
Outstanding and exercisable, February 28, 2007	3,032,982	0.0 years	$ 3.50
Issued	200,000	0.9 years	1.50
Exercised	-		-
Rescinded or expired	(3,032,982)		3.50
Outstanding and exercisable, November30, 2007	200,000	0.9 years	$ 1.50

NOTE 8 – STOCK-BASED COMPENSATION AND STOCK OPTIONS

During the year ended February 28, 2007, the Company granted options to employees to purchase a total of 250,000 shares of common stock at $2.50 per share. These shares are fully vested and exercisable over a five year term. The Company recognized employee compensation expense of $437,500. The Company also granted options to consultants to purchase a total of 100,000 shares of common stock at $2.50 per share and recognized $175,000 compensation expense during the year.

In accordance with Statement of Financial Accounting Standards No. 123, the fair value of the options granted was estimated using the Black-Scholes Option Price Calculation. The following assumptions were made to value the stock options:


Risk-free Interest Rate	4.5%
Expected Life	5 years
Expected Volatility	30.8%
Dividends to be paid	Nil

The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which are fully transferable.

In addition, option valuation models require the input of subjective assumptions including the expected stock price volatility. Because the Company's employee stock options have characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options.

Following is a summary of the status of the stock options during the ~~six~~nine months ended ~~August~~November 3130, 2007:

	2003 Stock Incentive Plan		2005 Stock Incentive Plan		Total
	Number of Shares Under Option	Weighted Average Exercise Price	Number of Shares Under Option	Weighted Average Exercise Price	Number of Shares Under Option	Weighted Average Exercise Price
Outstanding February 28, 2004	-	$ -	-	$ -	-	$ -
Granted	1,200,000	1.00	-	-	1,200,000	1.00
Exercised	-	-	-	-	-	-
Rescinded or expired	-	-	-	-	-	-
Outstanding February 28, 2005	1,200,000	1.00	-	-	1,200,000	1.00
Granted	30,000	2.50	-	-	30,000	2.50
Exercised	-	-	-	-	-	-
Rescinded or expired	-	-	-	-	-	-
Outstanding February 28, 2006	1,230,000	1.04	-	-	1,230,000	1.40
Granted	350,000	2.50	-	-	350,000	2.50
Exercised	-	-	-	-	-	-
Rescinded or expired	-	-	-	-	-	-
Outstanding at February 28, 2007	1,580,000	1.36	-	-	1,580,000	1.36
Granted	-	-	-	-	-	-
Exercised	-	-	-	-	-	-
Rescinded or expired	-	-	-	-	-	-
Outstanding at August 31, 2007	1,580,000	$ 1.36	-	$ -	1,580,000	$ 1.36
Outstanding at November 30, 2007	1,580,000	$ 1.36	-	$ -	1,580,000	$ 1.36
Exercisable at August 31, 2007	1,580,000	$ 1.36	-	$ -	1,580,000	$ 1.36
Exercisable at November 30, 2007	1,580,000	$ 1.36	-	$ -	1,580,000	$ 1.36
Weighted average fair value of options granted during the six months ended August 31, 2007		$ -		$ -		$ -
Weighted average fair value of options granted during the nine months ended November 30, 2007		$ -		$ -		$ -

NOTE 89 -– SUBSEQUENT EVENTS

Subsequent to the quarter ended ~~August~~November 3130, 2007, the Company issued a private placement memorandum ~~(Regulation~~dated S)December in9, ~~primarily~~2007 into ~~support~~issue ~~of exploration~~5,000,000 ~~investment~~common inshares ~~the~~at ~~Arab~~$0.10 ~~Republic~~per ofshare ~~Egypt~~ for upestimated tonet 3cash proceeds of $500,000. Subsequent to the quarter ended November 30,~~000~~ ~~shares at~~2007, the 5Company ~~day~~issued ~~volume~~a ~~averaged~~private ~~price~~placement ~~preceding~~memorandum ~~the~~dated ~~date~~December of17, ~~purchase~~2007 ~~minus~~to issue 2,500,000 common shares at $0.10~~, for~~ ~~total~~per share for estimated net cash proceeds ~~between~~of $3250,000~~,000~~. ~~and~~The $3Company sold 7,~~750~~500,000, ~~with~~common ~~the offering~~shares ~~expiring~~for oncash orproceeds ~~before~~of ~~February 29~~$750, ~~2008~~000.

~~ITEM~~Subsequent 2.to ~~Management's~~the ~~Discussion~~quarter ~~and~~ended ~~Analysis~~November of30, ~~Financial~~2007, ~~Condition~~the Company sold and ~~Results~~ issued 2,000,000 common shares at $0.50 per share for cash proceeds of ~~Operations~~$1,000,000.

~~Overview~~The accompanying condensed notes are an integral part of these consolidated financial statements.

Klondike Star Mineral Corporation is an exploration and development enterprise currently with eight gold, base and precious metal projects totaling about 446 km2 or 172.5 mi2 in the Yukon, located in the northwest corner of Canada; and one project totaling 1,245 km2 or 481 mi2 in the Arab Republic of Egypt In Canada, the Company is developing extensive surface and subsurface mineralized zones on a 353.4 km2 or 136.6 mi2 land position underlying in the site of the world-renowned Klondike gold producing region, and 92.6 km2 or 35.9 mi2 of select high potential targets in other parts of the Yukon. Klondike Star was awarded a major mineral exploration and development concession in Egypt for the Oweinat property pursuant to a law passed by the Egyptian Parliament.3

~~During~~ITEM ~~the coming year, the Company expects to continue increasing its land holdings, projects and exploration effort~~2. AtManagement's ~~the~~Discussion ~~same time, Klondike Star evaluates existing properties~~ and ~~makes~~Analysis ~~determinations~~of ~~about~~Financial ~~whether~~Condition ~~to sustain exploration or take other steps. Klondike Star is evaluating the Ultra~~ and ~~Indian~~ ~~River~~Results ~~Conglomerate~~of ~~properties vis-a-vis the new strategic plan and discussing next steps with joint venture partners to make a determination about whether to invest in further exploration.~~Operations

~~Description of the Business~~Overview

~~From~~Klondike ~~inception~~Star asMineral aCorporation ~~mineral~~is an exploration ~~stage~~and development enterprise incurrently ~~December~~with ~~2003, the~~five ~~Company~~gold ~~has~~projects ~~acquired~~totaling ~~mineral~~about ~~properties,~~290 ~~negotiated~~km2 ~~joint~~or ~~ventures, established~~112.4 ~~financing~~mi2 ~~arrangements~~in the Yukon, ~~and~~located ~~planned~~in ~~and~~the ~~conducted~~northwest ~~exploration activities~~corner ~~involving~~of 8Canada ~~different~~underlying ~~projects~~the insite of the ~~Yukon~~world-renowned Klondike gold producing region; and one gold, ~~Canada.~~iron Inand ~~addition~~multi-mineral project totaling 1, ~~opportunities~~245 inkm2 ~~other~~or ~~countries~~481 ~~are~~mi2 ~~being~~in ~~actively~~the ~~pursued,~~Arab ~~including~~Republic of Egypt.

~~Mineral~~During ~~exploration~~the ~~and~~quarter-ended ~~mine~~November ~~development~~30, ~~includes~~2007, ~~such~~the ~~activities~~Company ~~as conventional~~completed ~~prospecting,~~a ~~geological/geophysical~~review ~~surveys~~of properties and ~~research,~~made asdeterminations ~~well as~~about ~~excavation,~~the ~~diamond~~future of two intermediate and ~~auger~~one ~~drilling,~~early ~~analysis~~stage ofprojects. ~~core,~~In ~~soil~~the year ahead, ~~mini~~Klondike ~~and~~Star ~~bulk samples,~~is ~~milling~~focusing ~~and~~on ~~testing~~the ofadvanced-stage ~~processing~~exploration ~~technologies,~~targets ~~mineral~~on ~~resource assessment,~~the ~~facility~~Lone ~~construction~~Star and ~~maintenance,~~Dominion ~~equipment~~gold ~~acquisition~~properties and ~~maintenance~~ the potential Indian River Gold Mine in Canada; while supporting the involvement of our subsidiary, ~~road~~Klondike ~~and~~Star ~~access~~Canada ~~construction~~Inc., ~~scoping~~in ~~studies~~world-class ~~and~~mineral ~~environmental monitoring~~exploration ~~for~~prospects ~~potential~~in ~~mine~~the ~~development.~~Arab Republic of Egypt

InDescription ~~its first year as a mineral exploration company, Klondike Star earned a 55% and controlling interest in the Lone Star Project in the Dawson Mining District, Yukon. This property includes the site~~ of the original Klondike Gold Rush. Since then, the Company has expanded systematically to a total of nine exploration and development projects: six gold prospects in the Klondike region of the Yukon and two gold, base and precious mineral properties in other parts of the Yukon; and one major exploration project in EgyptBusiness

InFrom ~~support~~inception ofas ~~its~~a ~~mission,~~mineral ~~Klondike~~exploration ~~Star~~stage ~~has~~enterprise ~~established~~in ~~corporate~~December ~~goals relating~~2003, tothe ~~mineral~~Company ~~production,~~has ~~capital~~acquired ~~formation~~mineral ~~and~~properties, ~~durable~~negotiated ~~investor relationships~~joint ventures, ~~employer~~established offinancing ~~choice~~arrangements, ~~sustainable~~and ~~development~~planned and ~~good~~conducted ~~corporate governance.~~exploration ~~Following~~activities ~~substantive~~involving ~~research,~~8 ~~workshops~~different ~~and~~projects ~~discussions~~ in ~~February~~ -the ~~June~~Yukon, ~~2007,~~Canada. ~~the~~In ~~Board~~addition, ~~approved~~opportunities ain ~~formal~~other ~~Strategic~~countries ~~Plan~~are ~~setting corporate~~being ~~direction~~actively ~~for~~pursued, ~~the~~including ~~next three years~~Egypt.

~~Klondike~~Mineral ~~Star~~exploration isand ~~advancing~~mine ~~its~~development ~~projects~~includes ~~operating~~such ~~under~~activities aas ~~multi-prong strategy.~~conventional ~~This~~prospecting, ~~involves~~geological/geophysical asurveys ~~long-term~~and research, ~~systematic~~as well as excavation, diamond and ~~results-oriented~~auger ~~approach towards~~drilling, ~~exploration~~analysis ~~research~~of core, ~~supported~~soil, bymini aand ~~scaled~~bulk ~~expansion~~samples, ofmilling ~~field operations~~and ontesting ~~carefully~~of ~~selected~~processing ~~assets~~technologies, ~~combined~~mineral ~~with~~resource aassessment, ~~concurrent~~facility ~~investment in~~construction ~~planning~~and ~~for~~maintenance, ~~potential~~equipment ~~mine~~acquisition ~~development.~~and ~~The~~maintenance, ~~strategy~~road isand ~~founded~~access onconstruction, scoping studies and ~~features~~ ~~such~~environmental ~~elements~~monitoring ~~as:~~for potential mine development.

*In ~~undertaking~~its first year as a mineral exploration company, Klondike Star earned a 55% and ~~development~~controlling ~~within~~interest in the Lone Star Project in the Dawson Mining District, Yukon. This property includes the site of the original Klondike Gold Rush. Since then, the Company has expanded systematically to a ~~sustainable~~ total of nine exploration and development ~~paradigm~~projects: six gold prospects in the Klondike region of the Yukon and two gold, base and precious mineral properties in other parts of the Yukon; and one major exploration project in Egypt. As of November 30, 2007, the Company dropped options on one property in the Klondike (Indian River Quartz) and the two properties in other parts of the Yukon (Ultra and Spice).

*In ~~selecting~~support ~~and~~of ~~advancing~~its ~~quality~~mission, Klondike Star has established corporate goals relating to mineral ~~exploration~~production, ~~projects~~capital ~~managed~~formation and ~~evaluated~~ bydurable ainvestor ~~team~~relationships, employer of ~~qualified~~choice, ~~industry~~sustainable ~~professionals;~~development and good corporate governance. Following substantive research, workshops and discussions February – June, 2007, the Board approved a formal Strategic Plan setting corporate direction for the next three years.

*Klondike ~~establishing~~Star ~~links~~is ~~with~~advancing ~~internationally~~its ~~recognized~~projects ~~university~~operating under a multi-~~based geology~~prong ~~resources~~strategy. ~~for~~This ~~expertise~~involves a long-term, systematic and ~~access~~results-oriented toapproach ~~leading~~towards ~~technology~~exploration research, supported by a scaled expansion of field operations on carefully selected assets, combined with a concurrent investment in ~~geological science;~~planning for potential mine development. The strategy is founded on and features such elements as:

* demonstrating substantive focus on good corporate governance and best practices;•

*undertaking ~~forging~~mineral ~~strong~~exploration ~~relationships~~and ~~with~~development ~~financial~~within ~~professionals~~a insustainable ~~order~~development ~~to provide adequate capital investment for its projects with the goal of bringing new mining production on-stream in the future~~paradigm;

* investing in relationships with and collaborative efforts involving First Nations, local suppliers and contractors;•

*selecting ~~acquiring~~and advancing quality mineral exploration projects managed and ~~supporting~~evaluated by a ~~large~~team ~~and~~of ~~growing~~qualified ~~shareholder~~industry ~~base~~professionals;

* practicing proactive, balanced and timely disclosure addressing what is newsworthy from a shareholder perspective in a manner that meets and exceeds regulatory requirements; and•

*establishing ~~building~~links ~~shareholder~~with ~~value~~internationally ~~through~~recognized ~~every~~university-based ~~aspect~~geology ofresources ~~the~~for ~~Company's~~expertise ~~business~~ and ~~operations.~~access to leading technology in geological science;

~~Currently, mineral resource exploration and exploitation property rights are located in Canada and the Arab Republic of Egypt~~•

Ondemonstrating ~~March~~substantive ~~16,~~focus ~~Klondike~~on ~~Star~~good ~~established~~corporate ~~Klondike~~governance ~~Star Canada Inc., a wholly owned Canadian subsidiary. The new company was established to support planned growth~~ and ~~development~~best ~~including new mineral exploration and development opportunities in Canada and globally.~~practices;

The Company currently has a year-round full-time equivalent labour force of about 15-20 employees that expands to 60-70 employees, not including contractors and consultants during the summer/fall exploration season, with a winter seasonal labour force of about 10 employees.•

~~Klondike~~forging ~~Star~~strong ~~Mineral~~relationships ~~Corporation~~with isfinancial ~~listed~~professionals onin ~~the~~order ~~NASD.OTCBB~~to ~~trading~~provide ~~under~~ adequate capital investment for its projects with the ~~symbol~~goal ~~"KDSM".~~of bringing new mining production on-stream in the future;

~~Overall Performance~~•

~~Highlights~~investing ~~for~~in ~~the~~relationships ~~three-months~~with ~~ending~~and ~~August~~collaborative 31efforts involving First Nations, ~~2007~~local ~~include:~~suppliers and contractors;

~~Operational~~ •

-acquiring ~~Completing~~and ~~the~~supporting ~~first-ever summer Indian River gold project drilling program that finalized 1,000 foot drill lines on~~ a ~~substantial~~large ~~portion~~and ofgrowing ~~the mineralized~~shareholder ~~area on the property~~base; ~~as well as completing 500 foot in-fill drill lines facilitating assessment of mineral reserves, mine and business planning.~~

~~- Obtaining approval from the Government of Yukon for mine development at the Indian River Gold Project following a public environmental and socio-economic assessment process;~~•

-practicing ~~Undertaking~~proactive, ~~comprehensive~~balanced ~~exploration~~and ~~programs~~timely ~~including~~disclosure ~~diamond~~addressing ~~and~~what ~~rotary direct~~is ~~circulation~~newsworthy ~~drilling,~~from IPa ~~geophysical~~shareholder ~~survey,~~perspective ~~bulk~~in ~~sampling,~~a ~~soil~~manner ~~sampling on~~that ~~the~~meets ~~Lone Star~~ and ~~Dominion~~exceeds ~~gold~~regulatory ~~projects~~requirements; and

~~- Concluding the agreement the Arab Republic of Egypt for exploration and exploitation of the Oweinat property and making preparations for establishing operations in Egypt.~~•

-building ~~Completing~~shareholder ~~the~~value ~~energy~~through ~~supply~~every ~~options~~aspect ~~study with a mine/mill waste rock management and reclamation study and the fourth year~~ of ~~environmental monitoring in progress as part of~~ the ~~Lone~~Company’s ~~Star~~business ~~mine~~and ~~scoping study~~operations.

-Currently, ~~Undertaking~~mineral ~~year~~resource 3exploration ofand ~~the~~exploitation ~~Klondike~~property ~~Research~~rights ~~Project~~are ~~through~~located ~~the~~in ~~University of~~Canada ~~British~~and ~~Columbia's~~the ~~Mineral~~Arab ~~Deposit~~Republic ~~Research~~of ~~Unit.~~Egypt

-On ~~Adoption~~March of16, ~~the~~Klondike ~~2007-09~~Star ~~strategic~~established ~~plan~~Klondike ~~and~~Star ~~additional~~Canada ~~governance measures~~Inc., ~~including~~ ~~making~~a ~~progress~~wholly onowned ~~the~~Canadian ~~implementation~~subsidiary. The ofnew ~~Section~~company ~~404~~was ofestablished ~~the Sarbanes-Oxley~~to ~~Act~~support planned growth and development including new mineral exploration and development opportunities in Canada and globally.

~~Financial~~The Company currently has a year-round full-time equivalent labour force of about 15 employees that expands to 60-70 employees, not including contractors and consultants during the summer/fall exploration season.

-Klondike ~~The~~Star ~~unaudited~~Mineral ~~loss~~Corporation ~~from~~is ~~operations~~listed ~~for~~on the ~~three months ending August 31, 2007, was $2,786,785, net loss of $0~~NASD.09OTCBB ~~per~~trading ~~share,~~under ~~compared to unaudited operating loss of $3,178,703, net loss of $0.12 per share for~~ the ~~three~~symbol ~~months ending August 31, 2006~~"KDSM".

~~The~~Overall unaudited loss from operations for the six months ending August 31, 2007, was $4,553,762, net loss of $0.15 per share, compared to unaudited operating loss of $5,098,670, net loss of $0.20 per share for the six months ending August 31, 2006.Performance

-Klondike ~~The~~Star ~~unaudited~~Releases ~~cash flow used in operations for the six months ending August 31,~~ 2007, ~~was~~Annual ~~$3,873,023 compared to $3,602,745 for the six months ending August 31, 2006;~~Report

- The ~~changes~~advanced-stage inexploration ~~cash~~Lone ~~flow~~Star ~~used~~hard-rock ingold ~~operations~~property ~~from~~and ~~August~~the ~~2006~~early todevelopment-stage ~~August~~Indian ~~2007 relate~~River toalluvial ~~the~~gold ~~increased~~project ~~activity~~are onfeatured. ~~the~~In ~~Indian~~addition, ~~River~~a ~~gold~~three-year ~~project,~~performance ~~diamond drilling~~profile oncharts ~~the~~Klondike ~~Spice~~Star’s ~~project~~growth and ~~early~~development ~~mobilization~~as ofa mineral exploration ~~crews~~ and ~~drilling~~ ~~for~~development ~~Klondike-area~~enterprise. ~~projects~~

-Highlights ~~During~~for the ~~quarter~~three-months ending ~~August~~November 3130, 2007, ~~the Company raised $2,622,260 through private placements of common stock.~~include:

~~Financial~~Operational ~~indicators~~

	Six Months ended August 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006
Total expenses	$ 4,553,762	$ 9,967,672	$ 8,778,272
Net loss from continuing operations	$ 4,554,995	$10,043,789	$ 8,741,926
Cash used in operating activities	$ 3,873,023	$ 8,621,116	$ 5,610,326
Cash raised by financing activities, net	$ 2,622,260	$ 9,090,299	$ 8,068,568
Cash and cash equivalents on hand	$ 341,280	$ 2,390,876	$ 3,514,176
Net loss per common share: Basic and Diluted	$ (0.15)	$ (0.38)	$ (0.39)
Weighted average number of common shares outstanding: Basic and diluted	29,457,680	26,512,538	22,562,923
Cash dividends declared per common share	$ 0.00	$ 0.00	$ 0.00
Property, plant and equipment, net book value	$ 2,161,863	$ 2,227,683	$1,211,137
Long-term debt	$ 0	$ 0	$ 0
Shareholders' equity	$ 1,838,406	$ 4,271,141	$ 4,612,131

- completing the evaluation of mineralization for the Indian River gold project and making substantial progress on the business plan for mine development;

~~Investor~~- ~~relations~~completing ~~indicators~~drilling, exploration and bulk sampling programs on the Lone Star and Dominion gold projects; as well as the third year of the Klondike Research Project led by the University of British Columbia’s Mineral Deposit Research Unit;

	Six Months ended August 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Change from year-end 2007 to quarter-end August 31, 2007
Common shares issued and outstanding	33,406,909	29,035,782	25,202,800	Increase of 4,371,127 or 15%
Restricted shares	14,132,939	9,943,734	18,025,906	Increase of 4,189,205 or 42%
Free trading shares	19,273,970	19,092,048	7,176,894	Increase of 181,922or 0.95%
Warrants outstanding and exercisable	773,000	3,032,982	1,300,000	Decrease of 2,259,982 or 74.5%
Share price range by low and high	Monthly range of $0.90 to $1.44	Monthly range of $1.50 to $3.98	Monthly range of $2.75 to $3.40	Reduction in price and range between low and high
Share volume monthly high	1,009,940	4,223,025	2,359,551	Reduction in monthly high
Shareholders	About 4030	About 5,550	About 4,200	Decrease of 1,520 or 27%
Material event press releases and 8-K reports	10	36	22	Not applicable
Share options authorized and unexercised	1,580,000	1,580,000	1,230,000	Nil

- completing a review of mineral exploration and development priorities, resulting in dropping options on three properties to focus on prospects in the Klondike, Yukon, Canada and Egypt;

~~Share~~- ~~price~~developing ~~from~~plans ~~February~~and ~~2004~~exploration tostrategies ~~period-end~~for ~~August~~the ~~31,~~commencement ~~2007~~of the Oweinat project in Egypt;

~~(Source:~~- ~~Bell~~release ~~Globemedia~~of ~~Publishing~~the ~~Inc.~~ 2007 annual report providing detail information on mineral exploration properties, the ownership of mineral rights and ~~OTCBB)~~resources, financial matters, investor relations and Company operations, as well as a three-year performance profile;

~~Quarter High Quarterly Price Low Quarterly Price~~ Financial

Q1, 2004 March - May	3.69 2.90
Q2, June - August	3.30 3.00
Q3, September - November	3.75 3.05
Q4, December - 2005 February	3.74 2.80
Q1, 2005 March - May	3.70 2.55
Q2, June - August	3.15 2.50
Q3, September - November	3.85 2.85
Q4, December - 2006 February	3.50 2.70
Q1, 2006 March - May	3.98 3.00
Q2, June - August	3.92 3.50
Q3, September - November	3.72 2.50
Q4, December - 2007 February	2.70 1.50
Q1, 2007 March - May	1.75 1.00
Q1, 2007 June - August	1.44 0.90

- The unaudited loss from operations for the three months ending November 30, 2007, was $1,944,647 net loss of $0.06 per share, compared to unaudited operating loss of $2,652,651 net loss of $0.10 per share for the three months ending November 30, 2006.

~~Exploration~~The ~~and~~unaudited ~~development~~loss ~~projects~~from operations for the nine months ending November 30, 2007, was $6,608,409, net loss of $0.22 per share, compared to unaudited operating loss of $7,751,320 net loss of $0.30 per share for the nine months ending November 30, 2006.

- The ~~mineral~~unaudited ~~rights~~cash ~~are~~flow ~~organized~~used ~~into~~in ~~nine~~operations ~~discrete~~for ~~exploration~~the ~~and development~~nine ~~projects.~~months Asending ofNovember ~~August 31~~30, 2007, ~~the~~was ~~Company~~$4,583,692 ~~has~~compared ~~a majority ownership interest in five projects and an exclusive option~~ to ~~explore~~$6,316,280 ~~earn~~for ~~or purchase~~the annine ~~ownership~~months ~~interest~~ending inNovember ~~three~~30, ~~projects in Canada~~2006; ~~and has been awarded rights to explore and exploit a major exploration property in Egypt.~~

Property Synopsis
Project	Exploration stage	Location	Metal	Total area	Ownership
CANADA
Indian River Placer	advanced and pre-development	Klondike	gold	21.1 km2/8.2 mi2	100% ownership of 194 placer claims and 3 leases and 49% ownership of 29 placer claims
Lone Star Quartz	advanced	Klondike	gold	135.1 km2/52.2 mi2	55% and exclusive option to acquire up to 75% of 719 mineral claims and crown grants
Dominion Quartz	intermediate with one advanced target	Klondike	gold and silver	62.8 km2/24.2 mi2	100% ownership of 149 mineral claims, 55% ownership of 97 claims with exclusive option to acquire 75%, exclusive option to purchase 100% of 85 claims
Spice Quartz	intermediate	East Yukon	gold	10.9 km2/4.2 mi2	Exclusive option to acquire 75% ownership of 52 mineral claims
Ultra Quartz	intermediate	West Yukon	multiple precious and base	81.7 km2/31.7 mi2	Exclusive option to acquire 75% ownership of 416 mineral claims
Bonanza Quartz	early	Klondike	gold	65.6 km2/25.3 mi2	100% registered interest in 400 mineral claims
Indian River Quartz	early	Klondike	gold	62.1 km2/24 mi2	Exclusive option to acquire 75% ownership in 248 claims
Eldorado Placer	early	Klondike	gold	6.9 km2/2.7 mi2	55% ownership and exclusive option to acquire up to 75% ownership in 115 placer claims
EGYPT
Oweinat	early	Egypt	gold and iron ore	1,245 km2/481 mi2	Exclusive right to explore and exploit, subject to terms of concession agreement

- The changes in cash flow used in operations from November 2006 to November 2007 are mainly due to reduced drilling activity this year required to complete the Indian River project drilling program, an earlier shutdown of exploration activities due to earlier onset of winter conditions, as well as cost savings achieved in public relations and administration.

~~Mineral~~- ~~rights~~During ~~indicators1~~the quarter ending November 30, 2007, the Company raised $230,685 through private placements of common stock.

	2nd quarter ended August 31, 2007	1st quarter ended May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to period-end August 31,2007
Exploration projects	9	9	8	6	2	Increase of 1 project
Quartz mining claims	No change	2166	2166	1921	1753	None
Total area of quartz claims and crown grants	No change	418.3/161.5	418.3 km2/161.5 mi2	352 km2/ 135.9 mi2	239 km2 (estimate)/ 92.3 mi2	None
Placer mining claims	No change	338 plus 3 leases	329 plus 43 mi of leases	300 plus 43 miles of leases	114 plus 60 miles of leases	Increase of 9 claims or 2.7% and significant release of annual leases
Total area of placer claims and leases	No change	28 km2/10.9 mi2	43.9 km2/17 mi2	42 km2/ 16.2 mi2	21 km2 (estimate)/ 8.1 km2	Decrease of 15.9 or 36.1%
Total area of mining concessions	No change	1245 km2/481 mi2	0	0	0	Awarded Oweinat concession in Egypt

Financial indicators

Note 1: The mining claim and total areas for year-end February 28, 2007, have been adjusted to reflect changes resulting from the re-allocation of claims between projects and to ensure comparisons with Q1 to May 31, 2007 and subsequent figures are reasonable and appropriate. These changes are made throughout this report.


	Nine Months ended November 30, 2007	Year-end February 28, 2007	Year-end February 28, 2006
Total expenses	$ 6,608,409	$ 9,967,672	$ 8,778,272
Net loss from continuing operations	$ 6,622,836	$10,043,789	$ 8,741,926
Cash used in operating activities	$ 4,583,692	$ 8,621,116	$ 5,610,326
Cash raised by financing activities, net	$ 2,563,565	$ 9,090,299	$ 8,068,568
Cash and cash equivalents on hand	$ 14,295	$ 2,390,876	$ 3,514,176
Net loss per common share: Basic and Diluted	$ (0.06)	$ (0.38)	$ (0.39)
Weighted average number of common shares outstanding: Basic and diluted	33,164,497	26,512,538	22,562,923
Cash dividends declared per common share	$ 0.00	$ 0.00	$ 0.00
Property, plant and equipment, net book value	$2,029,736	$ 2,227,683	$1,211,137
Long-term debt	$ 0	$ 0	$ 0
Shareholders’ equity	$39,870	$ 4,271,141	$ 4,612,131

~~Operational~~Investor relations indicators

	2nd quarter ended August 31, 2007	1st quarter ended May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Change from year-end 2007 to Q2 ended August 31, 2007
	Nine Months ended November 30, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Change from year-end 2007 to quarter-end November 30, 2007
Health and safety incidents	5, 2 with lost time	0	1 with lost time; 2 incident with no injury or lost time; 3 vehicle incidents with no injuries or lost time; 1 incident for geophysical contractor	2 vehicle accidents, no injuries or lost time	5 incidents
Common shares issued and outstanding	33,302,497	29,035,782	25,202,800	Increase of 4,266,715 or 14.7%
Environmental incidents	0	0	0	0	0
Restricted shares	13,928,527	9,943,734	18,025,906	Increase of 3,984,793 or 40.1%
Free trading shares	19,373,970	19,092,048	7,176,894	Increase of 281,922 or 1.5%
Warrants outstanding and exercisable	200,000	3,032,982	1,300,000	Decrease of 2,832,982 or 93.4%
Share price range by low and high	Monthly range of $1.00 to $1.75 (Q1); $0.90 to $1.44 (Q2); $1.00 to $1.20 (Q3)	Monthly range of $1.50 to $3.98	Monthly range of $2.75 to $3.40	Reduction in price and ranges between low and high
Share volume monthly high	1,152,165 in Q1; 1,009,940 in Q2; 775,133 in Q3	4,223,025	2,359,551	Reduction in monthly high
Shareholders	About 4375	About 5550	About 4200	Decrease of 1175 or 21% since year-end, but an 8.5% increase from Q2 ended August 31, 2007
Material event press releases and 8-K reports	19	36	22	Not applicable
Share options authorized and unexercised	1,580,000	1,580,000	1,230,000	No change

~~Footnote~~Share 1:price ~~Definitions~~from ofFebruary ~~exploration~~2004 ~~stage~~to period-end November 30, 2007

~~Where~~(Sources: aBell ~~project~~Globemedia ~~fits~~Publishing onInc. ~~the~~2007, ~~spectrum~~OTCBB ~~of exploration~~ and ~~development is in part a matter of judgment exercised by management:~~Yahoo)

Early stage exploration


Quarter	High Quarterly Price	Low Quarterly Price
Q2, June - August	3.30	3.00
Q3, September - November	3.75	3.05
Q4, December - 2005 February	3.74	2.80
Q1, 2005 March - May	3.70	2.55
Q2, June - August	3.15	2.50
Q3, September - November	3.85	2.85
Q4, December – 2006 February	3.50	2.70
Q1, 2006 March - May	3.98	3.00
Q2, June - August	3.92	3.50
Q3, September - November	3.72	2.50
Q4, December – 2007 February	2.70	1.50
Q1, 2007 March - May	1.75	1.00
Q2, 2007 June - August	1.44	0.90
Q3, 2007 September - November	1.20	1.00

~~Intermediate~~Exploration ~~stage~~and ~~exploration~~development projects

~~Advanced~~The ~~stage~~mineral rights are organized into nine discrete exploration and development projects. As of November 30, 2007, the Company has 100% or majority ownership interests in five projects in Canada and has been awarded rights to explore and exploit a major exploration property in Egypt.

Early development


Property Synopsis
Project	Exploration stage	Location	Metal	Total area	Ownership
CANADA
Indian River Placer	advanced and pre-development	Klondike	gold	21.1 km²/8.2 mi²		100% ownership of 194 placer claims and 3 leases and 49% ownership of 29 placer claims
Lone Star Quartz	advanced	Klondike	gold	135.1 km²/52.2 mi²		55% and exclusive option to acquire up to 75% of 719 mineral claims and crown grants
Dominion Quartz	intermediate with one advanced target	Klondike	gold and silver	61.3 km²/24 mi²		100% ownership of 149 mineral claims, 55% ownership of 95 claims with exclusive option to acquire 75%, exclusive option to purchase 100% of 85 claims
Bonanza Quartz	early	Klondike	gold	65.6 km²/25.3 mi²		100% registered interest in 400 mineral claims
Eldorado Placer	early	Klondike	gold	6.9 km²/2.7 mi²		55% ownership and exclusive option to acquire up to 75% ownership in 115 placer claims
EGYPT
Oweinat	early	Egypt	gold and iron ore	1,245 km²/481 mi²		Exclusive right to explore and exploit, subject to terms of concession agreement

~~Development~~During the quarter-ended November 30, options on the following projects were dropped.

Production


Project	Exploration stage	Location	Metal	Total area	Ownership
CANADA
Spice Quartz	intermediate	East Yukon	gold	10.9 km²/4.2 mi²	Exclusive option to acquire 75% ownership of 52 mineral claims
Ultra Quartz	intermediate	West Yukon	multiple precious and base	81.7 km²/31.7 mi²	Exclusive option to acquire 75% ownership of 416 mineral claims
Indian River Quartz	early	Klondike	gold	62.1 km²/24 mi²	Exclusive option to acquire 75% ownership in 248 claims

~~Early~~Mineral ~~development-stage~~rights ~~projects:~~indicators1

INDIAN RIVER PLACER PROJECT


	Nine months ended November 30, 2007	2^nd quarter ended August 31, 2007	1^st quarter ended May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to period-end November 30,2007
Exploration projects	6	9	9	8	6	2	Decrease of 2 projects
Quartz mining claims	1448	2166	2166	2166	1921	1753	Decrease of 718 or 33.1%
Total area of quartz claims and crown grants	262 km²/101.5 mi²	418.3/161.5	418.3/161.5	418.3 km²/161.5 mi²	352 km²/ 135.9 mi²	239 km²(estimate)/ 92.3 mi²	Decrease of 156.3 km²/60 mi²
Placer mining claims	No change	338 plus 3 leases	338 plus 3 leases	329 plus 43 mi of leases	300 plus 43 miles of leases	114 plus 60 miles of leases	Increase of 9 claims or 2.7% and significant release of annual leases
Total area of placer claims and leases	No change	No change	28 km²/10.9 mi²	43.9 km²/17 mi²	42 km²/ 16.2 mi²	21 km² (estimate)/ 8.1 km²	Decrease of 15.9 or 36.1%
Total area of mining concessions	No change	338 plus 3 leases	338 plus 3 leases	0	0	0	Awarded Oweinat concession in Egypt

~~The~~Note ~~Indian~~1: ~~River~~The ~~Placer~~mining ~~Project~~claim isand antotal ~~early~~areas ~~development~~for year-~~stage~~end ~~placer~~February ~~gold property.~~28, It2007, ishave ~~located~~been 40adjusted kmto ~~from~~reflect ~~Dawson~~changes ~~City~~resulting infrom the ~~heart~~re-allocation of ~~the~~claims ~~Klondike gold-producing~~between ~~region~~projects ofand ~~the~~to ~~Yukon,~~ensure ~~Canada.~~reasonable ~~The~~and ~~Company's~~appropriate ~~objective~~comparisons iswith ~~to develop~~current ayear ~~large-scale~~data. ~~placer~~These ~~mine.~~changes are made throughout this report.

~~The~~Operational Indian River Placer Project consists of 223 mineral claims plus 3 leases totaling 21.1 km2 (8.2 mi2). The Indian River is emerging as one of the active areas of new investment and productive placer mining in the Klondike region. With the exception of a 49% interest in a small group of 29 claims acquired in the second quarter ending August 31, 2006, Klondike Star holds 100% ownership of the project.indicators

During the 2005-2006 winter drilling program, the Company completed 184 holes (double the 2004-2005 drilling) for a cumulative total of 274 holes or 2,426 meters. The winter drilling recovered gold from 90% of the holes, with gold recovered from 100% of the holes drilled in the main target area along the Indian River. In 2005, drilling resulted in gold recovery from 87% of the holes drilled.


	3^rd quarter ended November 30, 2007	2^nd quarter ended August 31, 2007	1^st quarter ended May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Change from year-end 2007 to Q3 ended November 30, 2007
Health and safety incidents	0	5, 2 with lost time	0	1 with lost time; 2 incident with no injury or lost time; 3 vehicle incidents with no injuries or lost time; 1 incident for geophysical contractor	2 vehicle accidents, no injuries or lost time	Decrease of 2 overall
Environmental incidents	0	0	0	0	0	No change

~~During~~Footnote ~~2006,~~1: ~~bulk~~Definitions ~~sampling and testing~~ of ~~conventional~~exploration processing technology (for throughput and gold recovery) proceeded alongside a business planning study to determine the economic viability of the mineralized area. Test mining is being supervised by an established Canadian firm specializing in mine engineering and processing technology. Initial results from the first stage of test mining were announced in November 2006. The Company believes the test mining results at this one site correlate the general findings of the previous drill-holes on the site. The grade indicated by auger drilling is only an indication of true grade, and in the Company's opinion, it must be checked and calibrated by test mining. The test resulted in the recovery of 45.08 ounces of raw placer gold. A conventional sluicing system was used to assess throughput and gold recovery, and the findings will be used in mine planning.

~~Klondike~~Where ~~Star~~a ~~completed~~project ~~upgrading~~fits ~~and~~on ~~extension of~~ the ~~access~~spectrum ~~road,~~of ~~set~~exploration ~~up a camp,~~ and ~~identified~~development ~~additional~~is ~~bulk~~in ~~sample~~part ~~test~~a ~~sites~~matter ~~for~~of ~~the~~judgment ~~2007~~exercised ~~test~~by ~~mining program.~~ management:

~~The~~Early ~~third~~stage ~~consecutive~~exploration ~~winter~~– ~~drilling~~grass ~~program~~roots ~~commenced in late November 2006 and concluded in March 2007. Klondike Star completed 141 holes totaling 967 meters (3~~prospecting,~~173~~ ~~feet)~~mapping, ~~almost~~analysis ~~entirely~~of inregional/site ~~the main target zone. This increases the cumulative three-year total to 415 holes encompassing 3~~geology,~~393~~ ~~meters~~trenching ~~(11,132 feet).~~and ~~Gold~~chip ~~was recovered from 100% of the holes in the main target area (107 holes)~~sampling, anstaking ~~extension~~ of ~~the~~claims ~~ground~~possibly ~~where~~with ~~gold~~a ~~was~~few ~~recovered from 100% of the~~ holes indrilled ~~2006.~~with Inuseful ~~2005, drilling resulted in gold recovery from 87% of the holes drilled.~~ results;

AIntermediate ~~major~~stage ~~auger~~exploration ~~drilling~~– ~~initiative~~exploration ~~was~~continues ~~launched~~including ~~after spring break~~mini-upbulk insampling, ~~May 2007.~~soil ~~This~~chemistry, ~~accelerated~~geophysical ~~effort~~surveys ~~to delineate mineralized areas~~ and ~~assess~~analysis ~~probable reserves.~~as ~~Drill~~appropriate ~~lines were completed at 1000 foot intervals~~ with ~~holes~~more 100 feet apart along the drill lines spanning the complete width of the initial target zone. Mid-summer the drilling program has shifted to infill drilling with drill lines at 500 foot intervals to facilitate detailed mine planning and increase confidence in the assessment of whether there may be probable mineral reserves. As of August 31, a cumulative total of 602 holes ~~totaling 4,566 meters/14,797 feet had been~~ drilled onwith ~~the~~useful ~~property and gold recovery determined.~~ results;

~~The~~Advanced ~~target~~stage ~~zone~~exploration ~~forms~~– afull-scale ~~wedge~~bulk ~~that~~sampling, ismineral ~~300~~assessment ~~meters~~establishes ~~(984~~resource ~~feet)~~development ~~at the beginning and broadens to a width of over 1~~potential,~~500~~ ~~meters~~scoping ~~(4,921~~or ~~feet).~~pre-feasibility Tostudy ~~date,~~completed ~~the mineralized~~or ~~zone~~nearing ~~extends~~completion ~~over a distance of more than 3 kilometers (1.9 miles) and remains open to expansion to the east and south. Gold appears to be consistently distributed within this broad area~~ with ~~consistent~~positive ~~gold~~results, ~~values across~~environmental ~~the~~baseline ~~entire~~research ~~width of the property. The overburden is relatively thin~~ and ~~bedrock~~ isassessment ~~about~~in ~~7.7 meters (25 feet) deep on average, which indicates a modest amount of waste stripping.~~progress;

ToEarly ~~further~~development ~~calibrate~~– ~~drilling~~bulk ~~results,~~sampling ~~assess mining methods~~ and ~~determine water management design requirements,~~ test mining, ~~operations~~on-site ~~started~~testing inof ~~2006 using~~processing ~~selected~~technology ~~heavy~~for ~~equipment~~throughput and anmineral ~~industry-standard~~recovery; 5'decision ~~trommel.~~made ~~One~~to ~~test site~~proceed ~~was~~with ~~completed~~pre- inor ~~2006~~full ~~totaling~~feasibility ~~7249~~study ~~cubic~~in ~~meters~~progress ofor ~~material~~completed; ~~with~~scoping ~~positive results. As~~ of ~~August,~~environmental ~~test~~assessment ~~mining~~and ~~was~~permitting completed atand annecessary ~~additional~~steps ~~representative site. Results are expected to be available for release in October/November.~~initiated;

~~Following~~Development ~~regulatory~~– ~~and~~environmental ~~public~~ assessment ~~under~~completed, ~~the~~permits ~~Yukon Environmental and Socio-Economic Act~~obtained, ~~the~~financing ~~Yukon~~lined ~~government Department of Energy~~up, ~~Mines~~construction ~~and Resources~~to ~~has~~begin ~~formally~~in ~~authorized~~ the ~~development~~next ~~and~~6 ~~operation~~– of12 anmonths; ~~Indian River~~or ~~placer~~ mine byunder ~~Klondike~~construction ~~Star.~~through ~~This approval provides the direction to regulatory agencies for the detailed water and mining land use permits expected to be issued in the near future.~~commissioning;

AProduction ~~comprehensive~~– ~~business~~operating ~~plan based on a 10-year minimum~~ mine~~-life~~ ~~is nearing completion. It will comply~~ with ~~the~~sales ~~U.S. Securities~~ and ~~Exchange Commission requirements for assessment and reporting of mineral reserves~~revenue. The plan providing the information necessary for a mine development decision is expected to be considered by the Board of Directors. Subject to financing, this could allow for production to commence as early as 2008. A placer mining operation could generate cash flow for the Company to finance its major exploration and development initiatives.

	2nd quarter-end August 31, 2007	1st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Change from year-end 2007 to Q2-end August 31, 2007
Total claims	No change	223 and 3 leases	214 claims and 17 leases	185 claims and 17 leases	Increase of 9 claims due to staking or 4% and decrease in one year leases as ground determined to be of limited value
Total area	No change	About 21.1 km2 (8.2 mi2)	37.0 km2 (14.3 mi2)	35 km2 (13.5 mi2)	Decrease of 15.9 km2 (6.1 mi2) or 42.7%
Drilling - no. of auger drill holes and total meters	187 holes totaling 1,173 meters/3,847 feet	15 holes totaling 86 meters/282 feet after spring break-up	141 holes totaling 967 meters/3,173 feet (winter season December - April)	184 holes totaling 2,426 meters/7,959 feet (winter season December - April)	Increases cumulative drilling to 602 holes totaling 4,566 meters/14,797 feet
Bulk sampling	Two sites prepared; one with area of 1,624 square yards of which 6200 cubic yards were processed	Preparation of 2 test mining sites initiated	1 site of 7,249 cubic yards processed	None	Additional test mining site processed
Ownership	No change	100% ownership of 194 claims and 3 leases and 49% ownership of 29 claims	100% ownership of 185 claims and 17 leases and 49% ownership of 29 claims	100%	Increase in 100% ownership of 9 claims; low value placer leases allowed to lapse

Early development-stage projects:

~~Advanced-stage~~INDIAN ~~exploration~~RIVER ~~projects:~~PLACER PROJECT

~~LONE~~The ~~STAR~~Indian ~~PROJECT~~River Placer Project is an early development-stage placer gold property. It is located 40 km from Dawson City in the heart of the Klondike gold-producing region of the Yukon, Canada. The Company’s objective is to develop a large-scale placer mine.

The ~~Lone~~Indian ~~Star~~River Placer Project isconsists anof ~~advanced-stage~~223 ~~gold~~mineral ~~exploration~~claims ~~property~~plus ~~that~~3 ~~is being~~leases ~~studied~~totaling ~~for~~21.1 ~~potential~~km2 ~~mine~~(8.2 ~~development~~mi2). The ~~Project~~Indian ~~consists~~River is emerging as one of ~~719 mineral~~the ~~claims~~active areas of new investment and ~~crown~~productive ~~grants~~placer ~~totaling~~mining ~~135.1~~in ~~km2~~the ~~(52.2~~Klondike ~~mi2)~~region. ~~Lone~~ ~~Star~~With is the ~~largest~~exception ~~project~~of a 49% interest in a small group of ~~six~~29 claims acquired in the ~~gold-producing~~second quarter ending August 31, 2006, Klondike ~~region~~Star holds 100% ownership of ~~Yukon,~~ ~~Canada~~the project.

~~The~~During ~~property~~the is2005-2006 ~~situated~~winter indrilling program, the ~~Tintina~~Company ~~Gold~~completed ~~Belt~~184 ~~which~~holes ~~spans~~(double ~~Alaska and~~ the ~~Yukon~~ ~~and~~2004-2005 ~~includes~~drilling) ~~producing~~for ~~mines~~a ~~and~~cumulative ~~major~~total ~~deposits.~~of ~~The~~274 ~~Lone~~holes ~~Star~~or ~~Project~~2,426 ~~is located 20 km (12~~meters.4 ~~mi)~~The ~~from~~winter ~~Dawson~~drilling ~~City~~recovered ~~and~~gold isfrom ~~accessible~~90% byof ~~summer-maintained, graded gravel roads linking to~~ the ~~Klondike~~holes, ~~Highway.~~with ~~First~~gold ~~assembled~~recovered byfrom ~~Canadian mine-finder~~100% ~~Richard~~of ~~Hughes,~~ the ~~initial~~holes ~~500~~drilled ~~mineral claims~~ in the ~~Klondike~~main ~~were optioned~~target toarea ~~Klondike~~along ~~Star~~the inIndian ~~December 2003~~River. ItIn is2005, ~~the~~drilling ~~site~~resulted ofin ~~the~~gold ~~former producing~~recovery ~~Lone~~from ~~Star~~87% ~~Mine (1912-14) and decades~~ of ~~previous~~the ~~exploration~~holes drilled.

~~Since~~During ~~acquiring~~2006, ~~the~~bulk ~~property,~~sampling ~~the~~and ~~Company~~testing ~~has~~of ~~become~~conventional ~~the~~processing ~~majority~~technology ~~owner~~(for throughput and ~~operator,~~ ~~increased~~gold recovery) proceeded alongside a business planning study to determine the ~~size~~economic viability of the ~~project~~mineralized ~~from~~area. ~~500~~Test tomining ~~719~~is ~~mineral~~being ~~claims~~supervised ~~and crown~~by ~~grants,~~an ~~constructed~~established aCanadian ~~65-person~~firm ~~exploration~~specializing ~~complex,~~in ~~with~~mine ~~core~~engineering ~~processing~~ and ~~milling~~processing ~~infrastructure~~technology. Initial results from the first stage of test mining were announced in November 2006. The Company believes the test mining results at this one site correlate the general findings of the previous drill-holes on the site. The grade indicated by auger drilling is only an indication of true grade, and ~~completed~~in ~~extensive~~the ~~soil~~Company’s opinion, ~~chip~~it must be checked and ~~bulk sampling,~~calibrated ~~diamond~~by ~~drilling,~~test IPmining. ~~(induced~~The ~~polarization)~~test ~~geophysical~~resulted ~~surveys~~in the recovery of 45.08 ounces of raw placer gold. A conventional sluicing system was used to assess throughput and gold recovery, ~~assay~~ and ~~other~~the ~~analysis.~~findings will be used in mine planning.

~~Exploration~~To ~~results~~support and professional analysis to date indicate that the Lone Star Project represents an extensive mineralized area with a large-tonnage, low-grade gold target augmented by higher grade zones that warrants an expanded exploration ~~effort~~activity and ~~intensive~~in ~~evaluation~~anticipation ~~for~~of potential mine ~~feasibility and~~ development., ~~The~~Klondike ~~Company~~Star iscompleted ~~working~~upgrading ~~towards~~and aextension ~~mineral~~of ~~resource~~the ~~assessment consistent~~access ~~with~~road ~~industry~~ and ~~international~~installed ~~standards~~a ~~and~~12-person ~~best practices~~camp.

A ~~full-scale~~major ~~scoping~~auger ~~study~~drilling isinitiative inwas ~~progress~~launched tolate ~~assess~~November, ~~the~~2006 ~~economic~~and ~~viability~~carried ~~of the~~on ~~Lone~~almost ~~Star~~continuously ~~mineral~~until ~~deposit,~~wrapped ~~provide~~up ain ~~baseline~~September. 343 ~~assessment~~holes ofwere ~~environmental and~~completed. ~~socio-economic~~602 ~~considerations~~holes ~~for~~totaling ~~development~~4,566 ~~permitting applications~~meters/14, ~~establish~~797 ~~mine~~feet ~~design~~have ~~concepts,~~now ~~analyze~~been ~~options~~drilled toon ~~address~~the ~~key~~property ~~factors~~and ~~(energy, water~~gold ~~supply,~~recovery ~~reclamation),~~determined. ~~and~~Gold ~~identify~~was ~~capital~~recovered ~~and~~from ~~operating~~nearly ~~cost~~100% ~~estimates~~of the holes in the main target area.

~~During~~Results from the ~~May~~drilling toprogram ~~October,~~have ~~2006~~allowed ~~summer exploration program,~~ the ~~focus~~acceleration ~~was~~of ~~on diamond~~technical ~~drilling,~~efforts ~~bulk~~to ~~sampling~~delineate, ~~and~~model ~~ground~~ and ~~airborne~~assess ~~geophysical surveys along with continuation of~~ the ~~sponsored~~mineralized ~~Klondike~~zone. ~~Research~~Drill ~~Project~~lines ~~with~~were ~~the Canadian~~completed ~~University~~at of1000 ~~British~~foot ~~Columbia~~intervals ~~Mineral~~with ~~Deposit~~holes ~~Research~~100 ~~Unit~~feet ~~(UBC~~apart ~~MDRU). The~~along ~~drilling program was designed to further delineate~~ the ~~extent~~drill oflines ~~the~~spanning ~~known gold bearing ore body in~~ the ~~primary~~complete ~~zones~~width of ~~interest,~~the ~~including~~initial ~~the~~target ~~Lone~~zone. ~~Star and~~In ~~extensions~~July, the ~~Buckland~~drilling ~~between~~program ~~Gay~~shifted ~~Gulch~~to ~~and~~infill 27drilling ~~Pup,~~of ~~and~~lines ~~the~~at ~~Nugget~~500 ~~zone above~~foot ~~Oro~~intervals ~~Grande~~to ~~Gulch.~~facilitate ~~New~~detailed ~~infrastructure,~~mine ~~including~~planning ~~a camp accommodation annex, a fitness~~ and ~~recreation~~increase ~~centre,~~confidence ~~and~~in ~~expanded~~the ~~kitchen~~calculation ~~and~~of ~~dining facilities~~probable ~~were~~mineral ~~constructed~~reserves inbased on the ~~vicinity~~mineralization ofidentified ~~the~~for ~~Eldorado Camp~~recovery.

~~Progressive~~The ~~exploration~~target ~~results,~~zone ~~including~~forms a wedge that is 300 meters/984 feet at the ~~discovery~~beginning ofand broadens to a ~~new~~width ~~target~~of over 1,500 ~~the JF~~meters/4,921 ~~Zone~~feet. To date, ~~were~~the ~~announced~~mineralized ~~between~~zone ~~December~~extends ~~2006~~over ~~and~~a ~~February~~distance ~~2007.~~of Amore ~~progress report~~than on3 ~~scoping~~kilometers/1.9 ~~study~~miles) ~~findings~~and remains open to ~~date~~expansion ~~was~~to ~~released~~the ineast ~~March~~and ~~2007~~south. ~~(filed~~Gold ~~with the~~appears ~~SEC~~to asbe anconsistently ~~8-K~~distributed ~~report,~~within ~~dated~~this ~~March~~broad ~~21,~~area ~~2007).~~with Agold ~~summary~~values ~~report~~present onacross the ~~UBC MDRU~~entire ~~geological~~width ~~studies~~of on the ~~Klondike~~property. ~~region~~The ~~was~~fineness ~~released~~of inthe ~~March~~gold ~~2007~~tested out at 82.27%.

~~Field~~To ~~work~~further ~~conducted~~calibrate todrilling ~~date~~results, increase levels of confidence in the ~~2007~~estimation ~~exploration~~of ~~season~~mineralization, ~~continues~~test ~~to confirm~~mining methods and ~~advance~~water amanagement ~~number~~design ofrequirements, ~~promising~~bulk ~~gold~~sampling ~~targets~~operations atstarted ~~the~~in ~~Lone~~2006 ~~Star~~using ~~project. After~~selected ~~completing~~heavy ~~structural~~equipment and ~~delineation~~an ~~drilling~~industry-standard on5’ ~~the~~trommel. ~~Lone~~One ~~Star~~test ~~zone~~site ~~last year,~~was ~~diamond~~completed ~~and~~in ~~rotary~~2006 ~~circulation~~processing ~~drilling~~7249 iscubic ~~proceeding~~meters onof ~~the~~material ~~Buckland~~for ~~zone and~~45.08 ~~the~~ounces ~~Pioneer~~of ~~zone~~raw gold. ~~These~~(Press ~~are~~Release ~~among~~#24-2006, ~~nine~~November ~~known~~30, ~~major~~2006). During the 2007 summer exploration ~~targets~~season, ~~on the~~a ~~expansive~~second ~~135.~~representative site was completed with an area of 1,624 ~~km2/52~~square yards of which 6200 cubic yards were processed for 32.283 ~~mi2~~troy ~~property~~ounces of gold. ~~Ongoing~~Test ~~work~~mining onis ~~the~~being ~~Lone~~supervised ~~Star~~by ~~Project includes~~an established Canadian firm specializing in mine engineering and processing technology. The experienced gained from the bulk sampling operations has contributed to the design of the proposed mining process. Key criteria for low-cost mining operations include reducing energy requirements, ~~trenching~~new methods for handling the mineralized and non-mineralized materials, ~~soil~~and ~~geochemistry~~effective water and ~~detailed~~environmental ~~geological mapping.~~management practices.

~~The~~Following ~~first~~regulatory ~~diamond~~and ~~drill~~public ~~target~~assessment ~~tested~~under ~~this~~the ~~year~~Yukon ~~was~~Environmental ~~the~~and ~~Buckland~~Socio-Economic ~~zone~~Act, ~~an area~~the ~~which~~Yukon ~~has~~government ~~returned~~Department ~~multiple intersections~~ of ~~gold mineralization for previous operators~~Energy, ~~but~~Mines ~~which~~and Resources has ~~not~~formally ~~been~~authorized ~~drilled by Klondike Star. This zone lies about one kilometre/0.62 miles south of~~ the ~~Lone~~development ~~Star zone~~ and ~~0.5 kilometers/0.31~~operation ~~miles southeast~~ of ~~the Nugget zone, and occupies~~ an ~~area~~Indian ~~roughly 800~~River ~~meters/2624.7~~placer ~~feet~~mine by ~~300~~Klondike ~~meters/984~~Star.3 ~~feet.~~This ~~The~~approval ~~Buckland~~provides ~~zone~~the ~~lies~~direction ~~between Emile~~to ~~Gay~~regulatory ~~Gulch~~agencies ~~and~~for ~~Oro Grande gulch, which have been significant producers of placer gold and are still being mined. Five holes have been completed in a fence which cuts across~~ the ~~centre~~detailed ofwater ~~the zone,~~ and ~~tests~~mining ~~the~~land ~~best~~use IPpermits ~~anomalies identified~~expected byto ~~geophysical~~be ~~surveys~~issued in ~~2006. A total of 845 meters/2772.3 feet have been drilled in~~ the ~~holes~~near ~~completed, and 710 samples from the first 4 holes have been sent for analysis~~future.

~~The~~A ~~reverse~~comprehensive ~~circulation~~business ~~drill~~plan ~~was~~based ~~moved~~on toa ~~the~~10-year ~~Pioneer~~minimum ~~zone,~~mine-life ~~which~~is ~~lies~~nearing ~~about 700 meters/2296~~completion.6 ~~feet~~The ~~southeast~~mine ofplanning ~~the~~team ~~Lone~~includes ~~Star~~a ~~zone.~~senior ~~The~~mining ~~Pioneer~~process ~~zone~~engineer ~~was~~with ~~the focus~~a ofleading ~~underground~~Canadian ~~exploration~~engineering ~~for~~firm, ~~gold~~and expertise in ~~the~~construction, ~~same~~economic ~~era~~analysis, asfinancial, ~~the~~energy ~~Lone~~supply ~~Star~~and ~~mine (ca.~~Yukon-specific ~~1911).~~placer ~~Only~~gold 3mining.It ~~holes~~will ~~have~~comply ~~previously been drilled in this area,~~ with ~~hole 87R-47~~the ~~returning 0~~U.60S. ~~g/t~~Securities ~~gold~~and ~~over~~Exchange 50Commission ~~meters/164~~requirements ~~feet.~~for Aassessment ~~fence~~and reporting of ~~several~~mineral ~~holes has~~reserves. ~~been~~The ~~drilled,~~plan ~~starting~~providing ~~from above~~ the ~~Pioneer~~information ~~shaft~~necessary ~~and~~for ~~progressing northward downslope into~~ a ~~linear~~mine IPdevelopment ~~anomaly~~decision ~~identified in 2006 which~~ is ~~thought~~ expected to be ~~the~~considered ~~eastward~~by ~~extension of~~ the ~~Lone~~Board ~~Star~~of ~~zone~~Directors. ~~This~~Subject ~~target~~to isfinancing, ~~200 meters/656.2~~this ~~feet~~could ~~wide~~allow ~~and~~for atproduction ~~least~~to ~~550~~commence ~~meters/1804.5~~as ~~feet~~early ~~long;~~as ~~the holes planned here represent a 400 meter/1312~~2008.3 ~~foot step-out to the known Lone Star zone.~~

~~Five~~In ~~bulk~~October ~~samples have been processed from the Lone Star zone to date in~~ 2007. ~~These~~a ~~samples~~senior ~~were~~professional ~~collected~~engineer ~~from~~with ~~the~~experience ~~southern~~as ~~end~~a ofmine ~~trench~~manager ~~87TR-16,~~ and ~~continue~~ toextractive ~~extend~~metallurgist ~~the~~was ~~sampling~~appointed ofmine ~~this~~development ~~area~~manager ~~reported~~for ~~in 2006 (Press Release #3-2007: Klondike Star Releases Bulk Sampling Results Including 1.33 G/T Over 24 Meters). The 2006 work at this site included 10 contiguous bulk samples which cut~~ the ~~zone~~proposed ~~over~~Indian aRiver 67gold ~~meter/219~~project.8 ~~foot length, and which proved the zone to be continuously mineralized. The 5 samples collected in 2007 extend this trend an additional 30 meters/98.4 feet.~~

A bulk test from a trench near the Pioneer zone is in progress - this is the first bulk sample from the Pioneer zone. A small bulk test from the 310 zone has also been processed. The 310 zone is a continuous, narrow vein located about 1500 meters/4921.3 feet southwest of Eldorado Creek on the Lone Star property. This vein has returned chip samples up to 1.12 g/t gold over 1.32 meters/4.3 feet.


	3^rd quarter-end November 30, 2007	2^nd quarter-end August 31, 2007	1^st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Change from year-end 2007 to Q3-end November 30, 2007
Total claims	No change	No change	223 and 3 leases	214 claims and 17 leases	185 claims and 17 leases	Increase of 9 claims due to staking or 4% and decrease in one year leases as ground determined to be of limited value
Total area	No change	No change	About 21.1 km² (8.2 mi²)	37.0 km² (14.3 mi²)	35 km² (13.5 mi²)	Decrease of 15.9 km² (6.1 mi²) or 42.7%
Drilling - no. of auger drill holes and total meters	No change	187 holes totaling 1,173 meters/3,847 feet	15 holes totaling 86 meters/282 feet after spring break-up	141 holes totaling 967 meters/3,173 feet (winter season December – April)	184 holes totaling 2,426 meters/7,959 feet (winter season December - April)	Increases cumulative drilling to 602 holes totaling 4,566 meters/14,797 feet
Bulk sampling	No change	Two sites prepared; one with area of 1,624 square yards of which 6200 cubic yards were processed	Preparation of 2 test mining sites initiated	1 site of 7,249 cubic yards processed	None	Additional test mining site processed
Ownership	No change	No change	100% ownership of 194 claims and 3 leases and 49% ownership of 29 claims	100% ownership of 185 claims and 17 leases and 49% ownership of 29 claims	100%	Increase in 100% ownership of 9 claims; low value placer leases allowed to lapse

~~A cut~~Advanced-~~line~~stage ~~grid~~exploration totalling 20 line-kilometers has been completed in preparation for geophysical surveys at the JF zone. A detailed soil geochemical survey, with samples collected at 25 meter/82 foot intervals on lines spaced 100 meters/328.1 feet apart is in progress on this grid, and an IP survey is anticipated to start by early September. An extension to the discovery trench is planned within the next month. An area immediately south of the JF zone grid that had not previously been geochemically sampled has been tested with 299 samples over a 1 kilometer/0.62 mile square area. projects:

~~Klondike~~LONE ~~Star,~~STAR in conjunction with the University of British Columbia Mineral Deposit Research Unit, has been developing an exploration model for this area that combines an improved understanding of the structural geology with compilation of other data, including airborne geophysics, geochronology, petrology and placer gold characteristics and distribution. A geological map at 1:10,000 scale has been produced for the Eldorado Dome - Lone Star ridge area. A detailed map of the Lone Star zone at 1:1,000 scale is also being produced by company geologists. PROJECT

~~Klondike~~The Lone Star's ~~objective~~Project ~~for~~is ~~the~~an ~~2007~~advanced-stage ~~season~~gold atexploration ~~the~~property ~~Lone~~that ~~Star~~is ~~property~~being isstudied ~~to be~~for ~~able~~potential tomine ~~significantly~~development. ~~advance~~The ~~the~~Project ~~Buckland,~~consists JFof ~~and~~719 ~~Pioneer~~mineral ~~targets,~~claims ~~to improve~~and ~~the~~crown ~~overall~~grants ~~understanding~~totaling ~~and~~135.1 ~~assessment~~km2 of(52.2 ~~the~~mi2). ~~scope~~Lone ~~mineralization~~Star on is the ~~property,~~largest ~~and~~project toof ~~extend~~five in the ~~Lone~~gold-producing ~~Star~~Klondike ~~zone~~region aof ~~substantial~~Yukon, ~~distance to the east~~Canada.

The property is situated in the Tintina Gold Belt which spans Alaska and the Yukon and includes producing mines and major deposits. The Lone Star Project is anlocated ~~advanced-stage~~20 ~~hard~~km (12.4 mi) from Dawson City and is accessible by summer-~~rock~~maintained, ~~exploration~~graded ~~project~~gravel inroads linking to the ~~legendary~~ Klondike ~~gold~~Highway. First assembled by Canadian mine-~~producing~~finder ~~region,~~Richard ~~Yukon~~Hughes, ~~Canada.~~the Aninitial 500 mineral claims in~~-depth~~ ~~scoping study~~the Klondike were optioned to Klondike Star in December 2003. It is ~~progressing~~the ~~towards~~site ~~scheduled~~of ~~release~~the onformer orproducing ~~about~~Lone ~~December~~Star ~~2007~~Mine (1912-14) and decades of previous exploration.

	2nd quarter-end August 31, 2007	1st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q2-end August 31, 2007
Total claims and crown grants	No change	719	719	1056	500	None
Total area	No change	135.1 km2/52.2 mi2	135.1 km2/52.2 mi2	152 km2/58.7 mi2	100 km2 estimated/38.6 mi2	None
Drilling - no. of diamond drill holes and total meters	5 holes totaling 846 meters/2,774 feet	Nil	23 holes totaling 2,892 meters/9,488 feet; 17 holes totaling 2,100 meters/6,890 feet	32 holes totaling 4830 meters/15,846 feet	0	5 holes totaling 846 meters/2,774 feet
Direct circulation rotary drill	3 holes totaling 294 meters/965 feet	Nil	Nil	Nil	Nil	3 holes totaling 294 meters/965 feet
Bulk sampling, surface trenching and sampling	6 bulk samples totaling 34.7 tonnes/34,713 kg; 26 chips (rocks), 679 soil samples; 15 line-km cut grid with soils every 25 meters, ready for IP survey in September	Nil	16 bulk samples totaling 78 tonnes; trenching; 640 chip samples, 393 soil samples; 3 IP geophysical grids totaling 35 km or 21.7 mi of line; 470 rock samples, and 134 soil samples	14 trenches totaling 2858 m3/3,738 yd3, 421 soil samples, 551 trench samples, 23 rock samples and 57 bulk chip samples	17 trenches totaling 1,300 m3/1,700 yd3, 1,024 rock samples, 1,165 soil samples	6 bulk samples totaling 34.7 tonnes/34,713 kg; 26 chips (rocks), 679 soil samples; 15 line-km cut grid with soils every 25 meters, ready for IP survey in September
Assay and other analysis	878 core samples and 7 rotary samples	Nil	2866 core samples shipped for assay; 1,883 core samples shipped for assay	5095 core samples from drilling and core fire assays (1st round) at 1250 samples, trench ICP totaled 551 samples and 92 trench fire assays	1165 soil samples by ICP; also refer to the 2004 assessment report	878 core samples and 7 rotary samples
Ownership	None	55% with exclusive option up to 75%	55% with exclusive option up to 75%	55% with exclusive option up to 75%	55% with exclusive option up to 75%	None

Since acquiring the property, the Company has become the majority owner and operator, increased the size of the project from 500 to 719 mineral claims and crown grants, constructed a 65-person exploration complex, with core processing and milling infrastructure on site, and completed extensive soil, chip and bulk sampling, diamond drilling, IP (induced polarization) geophysical surveys, assay and other analysis.

~~Intermediate~~Exploration results and professional analysis to date indicate that the Lone Star Project represents an extensive mineralized area with a large-~~stage~~tonnage, low-medium grade gold target augmented by higher grade zones that warrants an expanded exploration ~~projects:~~effort and intensive evaluation for potential mine feasibility and development. The Company is working towards a mineral resource assessment consistent with industry and international standards and best practices.

~~DOMINION~~A ~~PROJECT~~full-scale scoping study is in progress to assess the economic viability of the Lone Star mineral deposit, provide a baseline assessment of environmental and socio-economic considerations for development permitting applications, establish mine design concepts, analyze options to address key factors (energy, water supply, reclamation), and identify capital and operating cost estimates.

AnDuring ~~intermediate-stage~~the ~~gold~~May ~~and~~to ~~silver~~October, ~~exploration~~2006 ~~project~~summer atexploration ~~the headwaters of Dominion Creek~~program, the ~~Dominion~~focus ~~Project~~was ~~includes~~on andiamond ~~advanced~~drilling, ~~exploration~~bulk ~~stage target at the JAE claims~~sampling, asand ~~well~~ground asand aairborne ~~large~~geophysical ~~area~~surveys along with ~~little~~continuation ~~previous exploration.~~of Ofthe sponsored Klondike ~~Star's~~Research ~~six~~Project ~~hard-rock~~with ~~Yukon~~the ~~projects,~~Canadian ~~the~~University ~~Dominion~~of ~~ranks second~~British inColumbia ~~importance~~Mineral ~~after~~Deposit ~~the~~Research ~~Lone~~Unit ~~Star~~(UBC ~~project~~MDRU). The ~~property~~drilling isprogram ~~comprised~~was ~~of 331~~designed ~~mineral~~to ~~claims~~further ~~involving~~delineate anthe ~~area~~extent of ~~62.8 square kilometres/24.3 square miles, including~~ the ~~Mitchell~~known ~~zone,~~gold ~~Sheba~~bearing ~~zone,~~ore ~~Dome~~body ~~Lode~~in ~~and~~the ~~Lloyd~~primary ~~zone. All~~ zones ~~extend~~of ~~over~~interest, ~~large~~including ~~areas~~the ~~with~~Lone ~~excellent~~Star ~~opportunity~~and ~~for~~extensions, the ~~existence~~Buckland ~~of multiple~~between ~~mineralized~~Gay ~~zones,~~Gulch ~~along~~and ~~both~~27 ~~strike~~Pup, and ~~dip.~~the ~~They~~Nugget ~~belong~~zone toabove aOro ~~class~~Grande ~~of structures~~Gulch. ~~which~~New ~~have~~infrastructure, ~~potential~~including ~~for~~a ~~large,~~camp ~~medium-to-low~~accommodation ~~grade~~annex, ~~gold~~a ~~bearing~~fitness ~~ore bodies.~~and ~~Klondike~~recreation ~~Star~~centre, ~~holds~~and ~~100%~~expanded orkitchen ~~majority interest in 246 claims~~ and ~~an additional~~dining ~~exclusive~~facilities ~~option~~were toconstructed ~~purchase an undivided 100% interest~~ in ~~85 claims acquired in~~ the ~~first~~vicinity ~~quarter~~of ~~ending May 31, 2006 and~~ the ~~second~~Eldorado ~~quarter ending August 31, 2006~~Camp.

OnProgressive ~~April~~exploration 27results, ~~2006,~~including the ~~Company~~discovery ~~announced~~of ~~the~~a ~~acquisition~~new ~~from Klondike Source Limited's (KSL) subsidiary~~target, ~~KSL~~the ~~Exploration~~JF ~~(Yukon) Limited~~Zone, of ~~the~~were ~~exclusive right~~announced tobetween ~~purchase~~December an2006 ~~undivided~~and ~~100%~~February ~~interest~~2007. inA upprogress toreport 56on ~~quartz~~scoping ~~claims~~study infindings ~~the DOM~~to ~~block~~date ~~located~~was onreleased ~~Hunker Dome~~ in ~~the~~March ~~eastern~~2007 ~~part~~(filed ofwith the ~~Klondike~~SEC ~~goldfield. On~~as ~~August~~an 8,-K ~~2006~~report, ~~Klondike~~dated ~~Star~~March ~~announced~~21, ~~the~~2007) ~~acquisition~~and ofupdated ~~the~~in ~~exclusive option~~November to2007 ~~explore~~(filed ~~and~~with ~~purchase~~ the ~~J.A.E.~~SEC ~~claim~~as ~~group~~an on8-K ~~King~~report, ~~Solomon's~~dated ~~Dome bordering~~November on19, ~~mineral~~2007). ~~claims~~A ~~already~~summary ~~held~~report byon the ~~Company.~~UBC ~~The~~MDRU ~~Company~~geological ~~has~~studies ~~also staked~~on ~~additional~~the ~~claims~~Klondike toregion ~~further~~was ~~consolidate~~released ~~the~~in ~~property~~March ~~into a single contiguous area~~2007.

~~Since~~Field ~~1999,~~work aconducted ~~portion~~in of the ~~property~~2007 ~~has~~exploration ~~been~~season ~~explored~~continues byto ~~KSL~~confirm ~~Exploration (Yukon)~~and ~~Limited,~~advance ~~including~~a ~~drilling,~~number ~~soil~~of ~~sampling~~promising ~~and~~gold ~~trenching.~~targets ~~Before~~at ~~that, United~~the ~~Keno~~Lone ~~Hill~~Star ~~Mines~~project. ~~Limited,~~After acompleting ~~longstanding~~structural ~~operator of gold~~ and ~~silver properties,~~delineation ~~such~~drilling ason the ~~Elsa~~Lone ~~and~~Star ~~Keno~~zone ~~Hill~~last ~~mines~~year, ~~invested~~diamond ~~significant~~and ~~effort~~rotary circulation drilling proceeded on the ~~other~~Buckland ~~portion~~zone ofand the ~~property~~Pioneer zone. ~~Significant~~These ~~exploration~~are ~~work~~among ~~has~~nine ~~been conducted~~known major exploration targets on the Jexpansive 135.A1 km2/52.E.2 ~~claim~~mi2 ~~block~~property. byOngoing ~~successive~~work ~~owners.~~on ~~Regional~~the ~~and project-specific~~Lone ~~infrastructure~~Star Project includes ~~good~~bulk ~~seasonal~~sampling, ~~road~~trenching, ~~access~~soil geochemistry, preparations for additional IP surveying and detailed geological mapping.

The ~~area~~first ~~covers~~diamond ~~several~~drill ~~mineralized~~target ~~vein~~tested ~~systems,~~this ~~some~~year ~~shafts~~was ~~and~~the aBuckland ~~long tunnel~~zone, ~~and~~an area which has ~~been~~returned ~~the~~multiple ~~subject~~intersections of ~~percussion~~gold ~~drilling~~mineralization for previous operators, ~~soil~~but ~~geochemistry~~which ~~and trenching.~~has ~~Various~~not ~~broad~~been ~~zones~~drilled ofby ~~disseminated~~Klondike ~~mineralization~~Star. ~~have~~This ~~been identified~~zone lies about one kilometre/0.62 ~~The~~miles ~~2006~~south ~~exploration~~of ~~objective~~the ~~was~~Lone toStar ~~consolidate~~zone and ~~ground-truth previous~~0.5 ~~exploration~~kilometers/0.31 ~~results,~~miles ~~advance~~southeast ~~knowledge~~ of the ~~mineral~~Nugget ~~resources~~zone, ~~take advantage~~and ofoccupies ~~extensive~~an ~~trenching~~area inroughly ~~situ,~~800 ~~identify~~meters/2624.7 ~~future~~feet ~~drill~~by ~~targets~~300 onmeters/984.3 ~~a systematic~~feet. ~~and~~The ~~expedited~~Buckland ~~basis,~~zone ~~and~~lies ~~consolidate~~between ~~the~~Emile ~~property~~Gay Gulch and ~~mineral interests~~Oro ~~through~~Grande agulch, ~~strategic~~which ~~claim-staking~~have ~~program.~~been ~~Activities~~significant ~~included detailed~~producers ~~mapping,~~of ~~extensive~~placer ~~chip~~gold and ~~soil~~are ~~sampling~~still ~~and~~being ~~geochemistry,~~mined. ~~evaluation of~~Five ~~more~~holes ~~than~~were 60completed ~~existing~~in ~~trenches~~a ~~and~~fence ~~assessment~~which cuts across the centre of ~~selected~~the ~~targets~~zone, and ~~bulk sampling~~tests ~~and~~the ~~processing~~best ~~through~~IP ~~the~~anomalies ~~Eldorado~~identified ~~test~~by ~~plant~~geophysical surveys in 2006. A ~~satellite~~total ~~camp~~of ~~was installed~~846 tometers/2774 ~~support~~feet ~~project~~have ~~operations~~been drilled in the holes completed and samples sent for analysis.

The ~~2006~~direct ~~field~~circulation ~~work~~rotary ~~confirmed~~drill targeted the ~~presence~~Pioneer zone, which lies about 700 meters/2296.6 feet southeast of ~~multiple,~~the ~~continuous~~ Lone Star zone. The Pioneer zone was the focus of underground exploration for gold~~-bearing~~ ~~structures~~in ~~that~~the ~~warrant~~same ~~testing~~era byas ~~drilling~~the Lone Star mine (ca. In ~~addition~~1911). Only 3 holes have previously been drilled in this area, ~~several significant~~with ~~new~~hole ~~gold~~87R-~~in-soil~~47 ~~anomalies~~returning ~~were~~0.60 g/t gold over 50 meters/164 feet. A fence of six holes was drilled, starting from above the Pioneer shaft and progressing northward downslope into a linear IP anomaly identified in ~~areas~~2006 ~~with~~which nois ~~apparent prior~~thought ~~exploration~~to be the eastward extension of the Lone Star zone. This target is 200 meters/656.2 feet wide and at least 550 meters/1804.5 feet long; the holes planned here represent a 400 meter/1312.3 foot step-out to the known Lone Star zone. Six holes totaling 523 meters/1715 feet were completed and samples sent for analysis.

~~Work~~A at15 ~~JAE~~line-km ingrid ~~2006~~was ~~included~~cut ~~extending~~with ~~the~~soils ~~soil geochemical anomaly to the southwest, mapping~~ and IP ~~chip~~survey ~~sampling various new and existing trenches~~completed, ~~and processing~~along ~~two~~with ~~bulk~~200 ~~samples from the Mitchell and Hunker Dome zones. The Mitchell sample consisted~~ meters of ~~5.7~~new ~~tonnes of rusty schist without quartz veining, and returned 1~~trenching.3 g/t gold. This indicates potential for bulk mineable material beyond the higher grade veins. The Hunker Dome zone bulk sample consisted of 2.3 tonnes across several narrow quartz veins, and returned 4.0 g/t gold.

~~Klondike~~Five ~~Star~~bulk ~~tested~~samples ~~claims~~have tobeen processed from the ~~southeast~~Lone ofStar ~~the~~zone ~~JAE~~in ~~area~~2007. ~~with~~These ~~widespread MMI~~samples ~~soil~~were ~~geochemical~~collected ~~survey~~from ~~lines~~the southern end of trench 87TR-16, ~~identifying~~and ~~several~~continue ~~large~~to ~~areas~~extend the sampling of ~~gold~~this area reported in ~~soil~~ ~~anomalies,~~2006 up(Press toRelease ~~500~~#3-2007: ~~meters~~Klondike byStar ~~1000~~Releases ~~meters~~Bulk Sampling Results Including 1. 33 G/T Over 24 Meters). The ~~surveys~~2006 ~~successfully confirmed~~work ~~some~~at ~~areas~~this ~~with~~site ~~known~~included ~~mineralization~~10 contiguous bulk samples which cut the zone over a 67 meter/219.8 foot length, and ~~identified~~which ~~new~~proved ~~areas~~the ~~with~~zone ~~no evidence~~to ofbe ~~previous~~continuously ~~exploration~~mineralized. The 5 samples collected in 2007 extend this trend an additional 30 meters/98.4 feet.

~~Field~~A ~~work~~first ~~during~~bulk sample test from a trench near the ~~quarter~~Pioneer ~~ending~~zone ~~August~~was ~~31,~~completed ~~2007,~~and isa ~~further~~small ~~confirming~~ bulk test from the ~~presence~~310 ofzone ~~multiple,~~also processed. The 310 zone is a continuous, ~~gold-bearing~~narrow ~~structures~~vein ~~that~~located ~~warrant testing~~about by1500 ~~drilling~~meters/4921.3 ~~Work~~feet ~~completed~~southwest toof ~~date~~Eldorado inCreek ~~2007~~on ~~consists~~the ofLone ~~detailed geological~~Star ~~mapping,~~property. ~~surveying,~~This ~~grid~~vein ~~cutting,~~has ~~trenching,~~returned chip ~~sampling~~samples ~~and~~up ~~bulk sampling~~to 1.12 g/t gold over 1.32 meters/4.3 feet.

~~Drilling~~A iscut-line ~~scheduled~~grid ~~for~~totalling ~~September~~20 atline-kilometers ~~the~~has ~~JAE~~been ~~claims~~completed ~~using~~in apreparation ~~rotary~~for ~~drill rig~~geophysical ~~with~~surveys ~~up to 10 holes totaling 1000 meters planned (weather dependent), which lie~~ at the ~~headwaters~~JF ofzone. ~~Dominion,~~A ~~Gold~~detailed ~~Bottom~~soil ~~and~~geochemical ~~Hunker creeks~~survey, ~~all~~with ofsamples ~~which have~~collected ~~been significant producers of placer gold, and are still being actively mined. This area of the Dominion project hosts~~ at ~~least~~25 ~~seven~~meter/82 ~~parallel~~foot ~~gold~~intervals ~~- (silver)~~on ~~vein~~lines ~~zones~~spaced ~~within~~100 ~~an area of highly anomalous soil geochemistry that measures about 1.5 kilometers~~meters/0328.~~9 miles by~~ 1 ~~kilometer/0.6~~feet ~~mile.~~apart ~~Two~~was ofundertaken ~~these zones,~~on ~~the~~this ~~Mitchell~~grid. ~~and~~An ~~Sheba~~extension ~~have~~to ~~been~~the ~~outlined~~discovery ~~along~~trench ~~hundreds~~was ~~of meters of length by previous exploration efforts since 1900~~completed, ~~including numerous trenches~~ and ~~shallow~~an ~~shafts,~~area ~~direct~~immediately ~~shipping~~south of ~~hand~~the ~~selected~~JF ~~silver-rich~~zone ~~ore~~grid ~~(7.2~~that ~~tonnes averaging~~had ~~6090~~not ~~g/t silver = 178 oz/ton), soil geochemistry and geophysics. Only 3 shallow drill holes, directed at the high grade silver have~~ previously been ~~drilled~~ ongeochemically ~~the~~sampled ~~property. The Mitchell - Sheba trend will be the initial focus of the drilling. The Mitchell zone is well known for impressive specimens of visible gold, but~~ has ~~never~~ been ~~drilled.~~tested Itwith is299 ~~expected~~samples ~~that~~over ~~further~~a ~~surface work~~1 onkilometer/0.62 ~~the~~mile ~~other~~square ~~parallel zones will result in additional drill targets~~area.

~~Six~~Klondike ~~bulk~~Star, ~~samples~~in ~~have~~conjunction ~~been~~with ~~collected~~the ~~and~~University ~~processed~~of atBritish ~~the~~Columbia ~~JAE~~Mineral ~~property~~Deposit ~~during the~~Research ~~second~~Unit, ~~quarter~~has ~~ending~~been ~~August~~developing ~~31,~~an ~~2007.~~exploration ~~The~~model ~~samples~~for ~~were~~this ~~collected~~area ~~from~~that ~~a variety~~combines an improved understanding of ~~targets~~the structural geology with compilation of other data, including ~~major~~airborne ~~veins~~geophysics, ~~subsidiary veins~~geochronology, petrology and ~~pyritic alteration~~placer ~~zones~~gold ~~located~~characteristics ~~near~~and ~~veins~~distribution. ~~The~~A ~~large~~geological ~~size~~map ~~samples~~at ~~(up~~1:10,000 toscale 7has ~~tonnes)~~been ~~are effective~~produced atfor ~~accurately~~the ~~indicating~~Eldorado ~~the~~Dome ~~grade~~- Lone Star ridge area. A detailed map of ~~these~~the ~~targets~~Lone Star zone at 1:1,000 ~~which~~scale ~~contain coarse~~is ~~free~~also ~~gold~~being produced by company geologists.

AKlondike ~~grid~~Star’s ~~with~~objective 15for ~~kilometers/9.3~~the ~~miles~~2007 ofseason ~~line has been cut~~ at the ~~JAE~~Lone Star property ~~for~~ anis IPto ~~geophysical~~be ~~survey.~~able ~~This~~to ~~survey~~significantly ~~will~~advance ~~be conducted in~~ the ~~2007~~Buckland, ~~field season~~JF byand ~~Aurora~~Pioneer ~~Geosciences~~targets, ~~Ltd.~~to ofimprove ~~Whitehorse. The results of~~ the ~~current survey~~overall ~~will~~understanding beand ~~integrated~~assessment ~~with those~~ of anthe IPscope ~~survey~~mineralization ~~conducted~~ on ~~widely spaced lines at~~ the ~~site~~property, inand ~~1990. IP geophysics is known from the earlier survey~~ to ~~be appropriate~~extend ~~for this area, as~~ the ~~mineralized~~Lone ~~quartz~~Star ~~veins~~zone ~~have~~a ~~gold-rich pyritic~~substantial ~~haloes~~distance ~~which responded well~~ to ~~this~~the ~~method~~east.

~~Soil~~The ~~geochemical~~Lone ~~surveys~~Star ~~and~~is ~~other~~an ~~investigations~~advanced-stage ~~are~~hard-rock exploration project in ~~progress~~the legendary Klondike gold-producing region, Yukon, Canada. An in-depth ~~select areas~~scoping ofstudy ~~the~~is ~~Dominion~~progressing ~~project~~towards ~~beyond~~scheduled ~~the~~release ~~JAE~~on ~~property.~~or about December 2007.

Klondike Star, in conjunction with the University of British Columbia Mineral Deposit Research Unit has been developing an exploration model for this area that combines an improved understanding of the structural geology with compilation of other data including airborne geophysics, geochronology, petrology and placer gold characteristics and distribution. A geological map at 1:20,000 scale has been produced for this area.


	3^rd quarter-end November 30, 2007	2^nd quarter-end August 31, 2007	1^st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q3-end November 30, 2007
Total claims and crown grants	No change	No change	719	719	1056	500	None
Total area	No change	No change	135.1 km²/52.2 mi²	135.1 km²/52.2 mi²	152 km²/58.7 mi²	100 km² estimated/38.6 mi²	None
Drilling - no. of diamond drilling	No change	5 holes totaling 846 meters/2,774 feet	Nil	23 holes totaling 2,892 meters/9,488 feet; 17 holes totaling 2,100 meters/6,890 feet	32 holes totaling 4830 meters/15,846 feet	0	5 holes totaling 846 meters/2,774 feet
Direct circulation rotary drilling	6 holes totaling 523 meters/1715 feet	Not available	Nil	Nil	Nil	Nil	3 holes totaling 294 meters/965 feet
Bulk sampling, surface trenching and sampling	8 bulk samples totaling 40.6 tonnes/40,596kg, 65 chips (rocks), 1045 soil samples, 15 line-km grid cut with soils and IP survey completed. 200 meters new trenching.	6 bulk samples totaling 34.7 tonnes/34,713 kg; 26 chips (rocks), 679 soil samples; 15 line-km cut grid with soils every 25 meters, ready for IP survey in September	Nil	16 bulk samples totaling 78 tonnes; trenching; 640 chip samples, 393 soil samples; 3 IP geophysical grids totaling 35 km or 21.7 mi of line; 470 rock samples, and 134 soil samples	14 trenches totaling 2858 m³/3,738 yd³, 421 soil samples, 551 trench samples, 23 rock samples and 57 bulk chip samples	17 trenches totaling 1,300 m³/1,700 yd³, 1,024 rock samples, 1,165 soil samples	6 bulk samples totaling 34.7 tonnes/34,713 kg; 26 chips (rocks), 679 soil samples; 15 line-km cut grid with soils every 25 meters, ready for IP survey in September
Assay and other analysis	878 core samples and 327 rotary samples	878 core samples and 7 rotary samples	Nil	2866 core samples shipped for assay; 1,883 core samples shipped for assay	5095 core samples from drilling and core fire assays (1^st round) at 1250 samples, trench ICP totaled 551 samples and 92 trench fire assays	1165 soil samples by ICP; also refer to the 2004 assessment report	878 core samples and 7 rotary samples
Ownership	No change	No change	No change	55% with exclusive option up to 75%	55% with exclusive option up to 75%	55% with exclusive option up to 75%	None

~~The major mineralized structures at the JAE property have a well~~Intermediate-~~defined, north-~~stage ~~northwesterly trend and steep easterly dip, with local en echelon offsets to the veins. This clearly defined structural setting lends itself to a straight-forward~~ exploration approach, with drill targets and hole orientations easily selected. One highlight of the exploration this season has been the rediscovery of substantial mineralized quartz veins that were trenched at some time in the past, but were not recorded in any of the available property assessment reports. A thorough compilation of the existing data has been ongoing for the past two years, as well as conventional and differential GPS surveying of the extensive network of overgrown roads, trails, trenches and vein deposits. projects:

	2nd quarter-end August 31, 2007	1st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q1-end August 31, 2007
Total claims	No change	331	331	168	112	None
Total area	No change	62.8 km2 or 24.2 mi2	62.8 km2 or 24.2 mi2	33.5 km2 or 13 mi2	23.5 km2 or 9 mi2	None
Ownership	No change	- 100% ownership of 149 claims- 55% ownership of 97 claims with exclusive option for up to 75% - exclusive option to acquire 100% of 85 claims	- 100% ownership of 149 claims- 55% ownership of 97 claims with exclusive option for up to 75% - exclusive option to acquire 100% of 85 claims	- 100% ownership of 56 claims - 55% ownership with exclusive option of 75% of 112 claims	55% with exclusive option for up to 75% of 112 claims	None
Exploration activity	Trenching (3 totaling 100 meters); 50 chip samples, 209 soil samples; 15 line km grid cut for IP survey in September; roads upgraded and drill sites prepared for direct circulation rotary drilling starting September; detailed geological mapping, RTK-BPS and conventional surveying	Nil	Trenching, mapping, sampling including 2 bulk sampling, soil geochemistry and staking			Full program of activity in progress
Bulk Sampling	6 bulk samples totaling 34.8 tonnes/30,746 kg	Nil	2 bulk samples totaling 8 tonnes	Nil	Nil	6 bulk samples totaling 34.8 tonnes/30,746 kg

DOMINION PROJECT

~~SPICE~~An ~~PROJECT~~intermediate-stage gold and silver exploration project at the headwaters of Dominion Creek, the Dominion Project includes an advanced exploration stage target at the JAE claims, as well as a large area with little previous exploration. Of Klondike Star’s six hard-rock Yukon projects, the Dominion ranks second in importance after the Lone Star project. The property is comprised of 331 mineral claims involving an area of 62.8 square kilometres/24.3 square miles, including the Mitchell zone, Sheba zone, Dome Lode and Lloyd zone. All zones extend over large areas with excellent opportunity for the existence of multiple mineralized zones, along both strike and dip. They belong to a class of structures which have potential for large, medium-to-low grade, gold bearing ore bodies. Klondike Star holds 100% or majority interest in 246 claims and an additional exclusive option to purchase an undivided 100% interest in 85 claims acquired in the first quarter ending May 31, 2006 and the second quarter ending August 31, 2006.

~~The~~On ~~Spice~~April ~~Project~~27, is2006, anthe ~~intermediate-stage~~Company ~~gold~~announced ~~exploration~~the ~~project~~acquisition ~~that~~from ~~has moved~~Klondike toSource anLimited’s ~~exploratory~~(KSL) ~~diamond~~subsidiary, ~~drilling~~KSL ~~phase.~~Exploration As(Yukon) Limited, of ~~May~~the ~~31,~~exclusive ~~2007,~~right ~~the~~to ~~Spice Project~~purchase ~~consists~~an ofundivided 52100% ~~mineral~~interest ~~claims~~in ~~totaling~~up ~~10.9~~to ~~km2~~56 ~~(4.2~~quartz ~~mi2). The~~claims ~~property~~in isthe DOM block located 28on kmHunker ~~east~~Dome in the eastern part of ~~Ross~~the ~~River~~Klondike ~~and~~goldfield. On August 8, km2006, ~~south~~Klondike ofStar announced the ~~North Canol~~acquisition ~~Road~~of in the ~~Watson~~exclusive ~~Lake~~option ~~Mining~~to ~~District,~~explore ~~Yukon,~~and ~~Canada.~~purchase ~~The~~the ~~Spice~~J.A.E. ~~Project falls~~claim ~~within~~group ~~the~~on ~~Tintina~~King ~~Gold~~Solomon’s ~~Belt~~Dome ~~that~~bordering ~~hosts~~on ~~numerous~~mineral ~~gold~~claims ~~deposits,~~already ~~producing mines,~~held ~~notably~~by the ~~Fort~~Company. ~~Knox,~~The ~~Pogo~~Company ~~and~~has ~~(former)~~also ~~Brewery~~staked ~~Creek,~~additional asclaims ~~well~~to asfurther ~~active exploration~~consolidate ~~projects~~the property into a single contiguous area.

~~The~~Since ~~property~~1999, ~~has~~a ~~only~~portion ~~been~~of ~~explored~~the ~~since~~property ~~2000,~~has ~~when~~been aexplored ~~regional geochemical survey conducted~~ by ~~the~~KSL Exploration (Yukon) ~~Geological Survey~~Limited, ~~Yukon~~including ~~Government~~drilling, ~~identified strong,~~soil ~~coincident~~sampling ~~gold,~~and ~~silver~~trenching. ~~and~~Before ~~epithermal~~that, ~~pathfinder~~United ~~elements.~~Keno ~~Follow-up geochemical~~Hill ~~sampling~~Mines ~~identified~~Limited, ana ~~open-ended~~longstanding ~~anomalous~~operator ~~zone~~of gold and ~~samples~~silver ~~assayed up~~properties, tosuch ~~13.9~~as ~~grams/tonne~~the ~~gold.~~Elsa Anand IPKeno ~~chargeability~~Hill ~~high~~mines, ~~and~~invested ~~low~~significant ~~resistivity coincides~~effort ~~with~~on the ~~highest~~other ~~geochemical~~portion ~~values.~~of ~~The~~the ~~target~~property. isSignificant aexploration ~~low-sulphidation epithrmal-style~~work ~~gold~~has ~~deposit~~been ~~hosted~~conducted byon ~~rhyolite,~~the ~~similar~~J.A.E. toclaim ~~the~~block ~~Grew~~by ~~Creek property~~successive ~~being~~owners. ~~explored~~Regional 60and kmproject-specific ~~(37.3~~infrastructure ~~mi)~~includes togood ~~the~~seasonal ~~west~~road access.

~~Since~~The ~~acquiring~~area ~~the~~covers ~~Spice~~several ~~properties~~mineralized vein systems, ~~Klondike~~some ~~Star~~shafts ~~has~~and ~~increased~~a ~~exploration efforts~~long tunnel, and inhas been the ~~first~~subject ~~quarter/spring~~of ~~2006~~percussion drilling, asoil ~~staking~~geochemistry ~~program~~and ~~also~~trenching. ~~increased the~~Various ~~land~~broad ~~base~~zones toof 51disseminated ~~mineral~~mineralization ~~claims~~have ~~totaling~~been 10identified.9 ~~square~~The ~~kilometers~~2006 ~~(4.2~~exploration ~~square miles),~~objective anwas ~~increase~~to ofconsolidate ~~63%.~~and ~~Exploration~~ground-truth toprevious ~~date~~exploration ~~has~~results, ~~involved~~advance ~~till,~~knowledge ~~soil,~~of ~~silt and~~the ~~rock~~mineral ~~geochemistry~~resources, ~~hand/blast~~take ~~pitting~~advantage ~~and~~of extensive trenching, ~~ground~~in ~~magnetic~~situ, ~~induced~~ ~~polarization/resistivity~~identify ~~and~~future ~~VLF-EM~~drill ~~geophysical~~targets ~~surveys~~on a systematic and expedited basis, and ~~during~~consolidate the ~~third~~ ~~quarter~~property ~~2006~~and ~~included~~mineral ~~additional~~interests ~~soil~~through ~~geo~~a strategic claim-~~chemistry~~staking program. Activities included detailed mapping, aextensive ~~property evaluation~~chip and soil sampling and geochemistry, ~~the~~evaluation ~~delineation~~of more than 60 existing trenches and assessment of ~~drill~~selected targets, and ~~petrography~~bulk sampling and processing through the Eldorado test plant. A satellite camp was installed to support project operations.

AnThe ~~exploratory~~2006 ~~diamond~~field ~~drilling~~work ~~program~~confirmed the presence of ~~identified~~multiple, ~~targets~~continuous ~~proceeded~~gold-bearing ~~in the~~structures ~~spring~~that ofwarrant ~~2007~~testing by drilling. In ~~Assay~~addition, ~~results~~several ~~are~~significant ~~under~~new ~~review~~gold-in-soil ~~and~~anomalies awere ~~consolidated~~identified ~~property assessment~~in ~~report~~areas iswith ~~being~~no ~~drafted~~apparent prior exploration.

	2nd quarter-end August 31, 2007	1st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q2-end August 31, 2007
Total claims	No change	52	52	32	0	None
Total area	No change	10.9 km2/4.2 mi2	10.9 km2/4.2 mi2	6.7 km2/2.6 mi2	0	None
Exploration activity	No summer activity planned	First-ever diamond drilling conducted on the property	Soil geochemistry and identification of targets for planned drill program			Completion of test drilling program of identified anomalies
Drilling - no. of diamond drill holes and total meters	No change	3 holes totaling 439.5 meters/1,441 feet	Drill targets identified for spring 2007 drill program	0	0	100%
Assay samples	362 core samples					362 core samples
Ownership	No change	Exclusive option for up to 75% ownership	Exclusive option for up to 75% ownership	Exclusive option for up to 75% ownership	0	None

Work at JAE in 2006 included extending the soil geochemical anomaly to the southwest, mapping and chip sampling various new and existing trenches, and processing two bulk samples from the Mitchell and Hunker Dome zones. The Mitchell sample consisted of 5.7 tonnes of rusty schist without quartz veining, and returned 1.3 g/t gold. This indicates potential for bulk mineable material beyond the higher grade veins. The Hunker Dome zone bulk sample consisted of 2.3 tonnes across several narrow quartz veins, and returned 4.0 g/t gold.

~~ULTRA~~Klondike ~~PROJECT~~Star tested claims to the southeast of the JAE area with widespread MMI soil geochemical survey lines, identifying several large areas of gold in soil anomalies, up to 500 meters by 1000 meters. The surveys successfully confirmed some areas with known mineralization, and identified new areas with no evidence of previous exploration.

~~The~~Field ~~Ultra~~work ~~Project~~during isthe anquarter ~~intermediate-stage~~ending ~~base~~August ~~and~~31, ~~precious~~2007, ~~metals exploration~~is ~~project~~further ~~that~~confirming ~~has~~the ~~moved~~presence toof amultiple, ~~drill~~continuous ~~ready~~gold-bearing ~~stage~~structures inthat ~~exploration. Following~~warrant ~~additional~~testing ~~staking~~by indrilling. ~~the~~Work ~~fall~~completed ofto ~~2005~~in ~~and~~2007 ~~the fall of 2006, the Ultra Project~~ consists of ~~416~~detailed ~~mineral~~geological ~~claims~~mapping, ~~totaling~~surveying, ~~81.7~~grid ~~km2~~cutting, ~~(31.6~~trenching, ~~mi2). The~~chip ~~targets~~sampling ~~include VMS zinc-copper-silver-gold~~ and ~~poly-metallic nickel-copper-platinum-palladium-gold.~~bulk ~~Two~~sampling, ~~significant~~as ~~discoveries~~well ~~were announced~~direct ~~following~~circulation ~~assessment~~rotary ~~of 2006 exploration results~~drilling.

~~The~~Drilling ~~property~~of is4 ~~located~~holes intotaling ~~southwest~~182.9 ~~Yukon,~~meters/600 42feet kmwas ~~(26.1~~undertaken ~~mi)~~as ~~northwest~~the beginning of ~~Haines~~ ~~Junction~~an effort to more intensively evaluate the area which lie at the headwaters of Dominion, ~~Yukon~~Gold Bottom and Hunker creeks, ~~Canada~~all of which have been significant producers of placer gold, ~~only~~and ~~140~~are kmstill ~~(87~~being miactively mined. This area of the Dominion project hosts at least seven parallel gold – (silver) ~~from~~vein azones ~~deepwater~~within ~~port~~an area of highly anomalous soil geochemistry that measures about 1.5 ~~Ten~~ kilometers/0.9 (miles by 1 kilometer/0.6 mile. Two of these zones, the Mitchell and Sheba have been outlined along hundreds of meters of length by previous exploration efforts since 1900, including numerous trenches and shallow shafts, direct shipping of hand selected silver-rich ore (7.2 ~~miles~~tonnes averaging 6090 g/t silver = 178 oz/ton), ~~west~~soil ofgeochemistry ~~the~~and ~~Alaska~~geophysics. ~~Highway~~Only 3 shallow drill holes, itdirected isat ~~accessible~~the byhigh ~~rough gravel~~grade ~~road~~silver have previously been drilled on the property. ItThe Mitchell zone is ~~near~~well ~~the~~known ~~former~~for ~~nickel-platinum~~impressive ~~Wellgreen~~specimens ~~Mine~~of visible gold, but has never been drilled. ~~Ultra~~It is ~~also in~~expected ~~the~~that ~~same~~further ~~geological~~surface ~~zone~~work ason the ~~world-class~~other ~~zinc-copper-gold~~parallel ~~Windy~~zones ~~Craggy deposit~~will result in ~~northern~~additional ~~British~~drill ~~Columbia~~targets.

InSix ~~February~~bulk ~~2007,~~samples ~~based~~have onbeen ~~the~~collected ~~2006~~and ~~exploration~~processed ~~program,~~at the ~~Company announced~~JAE ~~the~~property ~~discovery~~during ofthe ~~two~~second ~~volcanogenic~~quarter ~~massive~~ending ~~sulphide~~August ~~zones~~31, ~~including~~2007. ~~a major~~The ~~VMS~~samples ~~horizon~~were ~~with~~collected ~~economically~~from ~~interesting~~a ~~grades~~variety ~~and~~of ~~widths.~~targets, ~~The~~including ~~massive sulphide~~major ~~grades up to 3.23% copper~~veins, ~~6.75%~~subsidiary ~~zinc~~veins, ~~17.8 ppm silver~~ and ~~0.15~~pyritic ~~ppm gold~~alteration ~~over~~zones alocated 4near ~~meter thickness~~veins. ~~Maximum~~The ~~values~~large ofsize ~~13.4%~~samples ~~copper,~~(up ~~6.75%~~to ~~zinc,~~7 ~~56 ppm~~tonnes) ~~silver~~are ~~and~~effective ~~0.25~~at ~~pp.~~accurately ~~gold~~indicating ~~were~~the ~~obtained~~grade ~~from one zone. The second zone reported results~~ of ~~11.54%~~these ~~copper~~targets, ~~1514~~which ~~ppm~~contain ~~zinc~~coarse ~~and~~free 7gold.2 ~~ppm silver over a three meter thickness.~~

~~During~~A ~~the~~grid ~~2006~~with ~~exploration~~15 ~~program,~~kilometers/9.3 ~~beep~~miles ~~mat~~of ~~survey~~line ~~was~~has ~~also~~been ~~conducted, along~~cut ~~with~~at ~~hand~~the ~~trenching,~~JAE ~~blast~~property ~~trenching~~for ~~and~~an ~~soil~~IP ~~geo-chemistry~~geophysical survey. ~~Although specific~~The ~~sites~~results ~~were~~of ~~prepared,~~the ~~diamond~~survey ~~drilling~~will ~~was~~be ~~deferred~~integrated ~~due~~with ~~to unavailability~~those of ~~required~~an ~~technical~~IP ~~services~~survey ~~including~~conducted ~~skilled~~on ~~labor~~widely spaced lines at the site in 1990. ~~The property~~IP geophysics is ~~drill-ready~~known ~~based~~from onthe aearlier ~~multi-year~~survey ~~investment~~to inbe ~~prospecting, mapping,~~appropriate ~~sampling~~for this area, ~~airborne~~as ~~and~~the ~~ground~~mineralized ~~geophysical~~quartz ~~surveys~~veins ~~and~~have ~~geochemistry analysis~~gold-rich pyritic haloes which responded well to this method.

~~Klondike~~Soil ~~Star~~geochemical issurveys ~~evaluating~~and ~~the~~other ~~property's~~investigations ~~fit~~were ~~with~~completed ~~the~~in ~~Company's~~select ~~new strategic~~areas ~~plan~~of ~~and~~the ~~discussing~~Dominion ~~next~~project ~~steps~~beyond ~~with~~the ~~joint~~JAE ~~venture~~property, ~~partners~~along towith ~~make~~three ~~a determination~~new ~~about~~trenches ~~whether~~totaling to100 ~~invest in further exploration~~meters..

	2nd quarter-end August 31, 2007	1st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q2-end August 31, 2007
Total claims	No change	416	416	404 claims	0	None
Total area	No change	About 82 km2 or 31.7 mi2	82 km2 or 31.7 mi2	82 km2 or 31.7 mi2	0	None
Drilling	No change	No change	Drill sites prepared	0	0	None
Surface trenching and sampling	No change	No change	152 chip and 265 soil samples, along with hand and blast trenching	86 rock and soil samples	0	Doubling of rock samples and new soil sampling and trenching activity
Ownership	No change	Exclusive option for up to 75% ownership	Exclusive option for up to 75% ownership	Exclusive option for up to 75% ownership	0	None

~~Early~~The major mineralized structures at the JAE property have a well-~~stage~~defined, north- northwesterly trend and steep easterly dip, with local en echelon offsets to the veins. This clearly defined structural setting lends itself to a straight-forward exploration ~~projects:~~approach, with drill targets and hole orientations easily selected. One highlight of the exploration this season has been the rediscovery of substantial mineralized quartz veins that were trenched at some time in the past, but were not recorded in any of the available property assessment reports. A thorough compilation of the existing data has been ongoing for the past two years, as well as conventional and differential GPS surveying of the extensive network of overgrown roads, trails, trenches and vein deposits.

BONANZA PROJECT


	3^rd quarter-end November 30, 2007	2^nd quarter-end August 31, 2007	1^st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q3-end November 30, 2007
Total claims	329	No change	331	331	168	112	Decrease of 2 mineral claims
Total area	61.3 km² or 24 mi²	No change	62.8 km² or 24.2 mi²	62.8 km² or 24.2 mi²	33.5 km² or 13 mi²	23.5 km² or 9 mi²	Minor reduction in area
Ownership	No change except for change to 55% ownership of 95 claims with exclusive option for up to 75%	No change	- 100% ownership of 149 claims - 55% ownership of 97 claims with exclusive option for up to 75% - exclusive option to acquire 100% of 85 claims	- 100% ownership of 149 claims - 55% ownership of 97 claims with exclusive option for up to 75% - exclusive option to acquire 100% of 85 claims	- 100% ownership of 56 claims - 55% ownership with exclusive option of 75% of 112 claims	55% with exclusive option for up to 75% of 112 claims	Minor adjustment
Exploration activity	Trenching (3 totaling 100 meters); 78 chip samples, 209 soil samples; 15 line km grid cut for IP survey in 2008; roads upgraded and drill sites prepared for direct circulation rotary drilling total 112 samples; detailed geological mapping, RTK-GPS and conventional surveying	Trenching (3 totaling 100 meters); 50 chip samples, 209 soil samples; 15 line km grid cut for IP survey in September; roads upgraded and drill sites prepared for direct circulation rotary drilling starting September; detailed geological mapping, RTK-BPS and conventional surveying	Nil	Trenching, mapping, sampling including 2 bulk sampling, soil geochemistry and staking			Full program of activity in progress
Reverse circulation drilling (holes and total meters)	4 holes totaling 182.9 meters/600 feet
Bulk and other sampling	No change	6 bulk samples totaling 34.8 tonnes/30,746 kg	Nil	2 bulk samples totaling 8 tonnes	Nil	Nil	6 bulk samples totaling 34.8 tonnes/30,746 kg

OnSPICE May 19, 2006, Klondike Star acquired a controlling interest in 269 mineral claims in the Klondike region of the Yukon, Canada. Known as the Bonanza Project, the property has been expanded through the re-assignment of additional Company properties in adjacent areas bringing it to 400 mineral claims and 65.6 km2/25.3 mi2. It is located in the heart of the Klondike gold fields and proven gold producing ground, 10 km from Dawson City.PROJECT

~~Since~~During ~~1999,~~the ~~building~~quarter onended ~~previous~~November ~~exploration~~30, ~~efforts~~2007, the ~~majority~~Company completed a review of the ~~property~~ ~~has~~Spice ~~been~~properties ~~explored~~with byrespect ~~KSL~~to ~~Exploration~~its ~~(Yukon)~~exploration ~~Ltd,~~and ainvestment ~~wholly-owned subsidiary~~priorities. ofThe ~~Klondike~~decision ~~Source~~was ~~Limited,~~taken ~~and~~to ~~PacRim~~drop ~~Resources~~the ~~Limited~~project ~~(formerly Barramundi~~in ~~Gold~~order ~~Ltd.)~~to ~~using~~focus ~~advanced-exploration~~efforts ~~techniques~~on Klondike Star’s Lone Star, ~~geological~~Dominion ~~mapping~~ and ~~geochemical~~Indian ~~soil~~River ~~surveys~~gold projects in the Yukon and the Oweinat property in Egypt.

~~KSL~~The ~~Exploration~~Spice ~~(Yukon)~~Project ~~Limited~~was ~~considers~~an ~~the~~intermediate-stage ~~property~~gold exploration project that has moved to ~~have~~an aexploratory ~~number~~diamond drilling phase. As of ~~prospects~~ onNovember 30, 2007, the ~~basis~~Spice Project consisted of ~~reasonably~~52 ~~well-defined~~mineral ~~geochemical~~claims ~~gold~~totaling ~~anomalies~~10.9 ~~In an~~km2 ~~independent~~(4.2 ~~geologist's~~mi2). ~~report,~~The ~~KSL~~property ~~(Yukon)~~is ~~Limited~~located ~~reported~~28 ~~that:~~km ~~"These surveys~~east ~~have~~of ~~identified~~Ross ~~several~~River ~~prospective~~and ~~targets~~8 ~~with~~km ~~potential~~south ~~for~~of ~~hosting large~~the ~~tonnage,~~North ~~primary~~Canol ~~gold~~Road ~~mineralization~~in the Watson Lake Mining District, Yukon, Canada." ~~(Roy~~The ~~Cox~~Spice &Project ~~Associates~~falls within the Tintina Gold Belt that hosts numerous gold deposits, ~~November~~producing 10mines, ~~2003~~ notably the Fort Knox, Pogo and (former) Brewery Creek, as well as active exploration projects.

~~Klondike~~The ~~Star~~property has ~~initiated~~only been explored since 2000, when a ~~preliminary~~regional ~~exploration~~geochemical ~~program~~survey ~~including consolidation~~conducted ofby ~~mapping~~the Yukon Geological Survey, ~~sampling~~Yukon ~~results~~Government, ~~and~~identified ~~all~~strong, ~~accessible~~coincident ~~assessment~~gold, ~~work on~~silver ~~the~~and ~~property~~epithermal pathfinder elements. ~~Mineral~~Follow-up ~~claim~~geochemical ~~staking~~sampling ~~was~~identified ~~undertaken~~an inopen-ended ~~the~~anomalous ~~third~~zone ~~quarter~~and ~~ended November~~samples ~~30,~~assayed ~~2006,~~up to ~~supplement~~13.9 ~~the~~grams/tonne ~~property~~gold. ~~During~~An ~~the~~IP ~~quarter~~chargeability ~~ending~~high ~~August 31,~~and ~~2007,~~low resistivity coincides with the ~~Company~~highest ~~recovered~~geochemical ~~and~~values. ~~processed~~The ~~previously~~target ~~untested~~is ~~diamond~~a ~~drill core~~low-sulphidation ~~from~~epithrmal-style 6gold ~~holes~~deposit ~~and~~hosted ~~commenced~~by arhyolite, ~~soil~~similar ~~sampling~~to ~~program~~the Grew Creek property being explored 60 km (37.3 mi) to the west.

	2nd quarter-end August 31, 2007	1st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Change from year-end 2007 to Q2-end August 31, 2007
Total claims	No change	400	308	0	Claims re-assigned from Lone Star Project
Total area	No change	65.6 km2 or 25.3 mi2	47.0 km2 or 18.1 mi2	0	Area of re-assigned claims
Drilling	Untested diamond drill core from 6 holes totaling 1358 meters/5044 feet recovered	Nil	Nil	0	Untested diamond drill core from 6 holes totaling 1358 meters/5044 feet recovered
Sampling	74 soil samples	Nil	Nil	0	74 soil samples
Assay	1,127 core samples	Nil	Nil	0	1,127 core samples
Ownership	No change	100% of 308 claims and 55% and exclusive option to acquire up to 75% of 92 claims	100% registered	0	Ownership in claims re-assigned from Lone Star Project

Since acquiring the Spice properties, Klondike Star increased exploration efforts, and in the first quarter/spring 2006, a staking program expanded the land base to 51 mineral claims totaling 10.9 square kilometers (4.2 square miles), an increase of 63%. Exploration involved till, soil, silt and rock geochemistry, hand/blast pitting and trenching, ground magnetic, induced polarization/resistivity and VLF-EM geophysical surveys, and during the third quarter 2006 included additional soil geo-chemistry, a property evaluation, the delineation of drill targets and petrography. An exploratory diamond drilling program of identified targets proceeded in the spring of 2007. Assay results and highlights of a consolidated property assessment report will be released when available.

INDIAN RIVER CONGLOMERATE PROJECT


	3^rd quarter-end November 30, 2007	2^nd quarter-end August 31, 2007	1^st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q3-end November 30, 2007
Total claims	No change	No change	52	52	32	0	None
Total area	No change	No change	10.9 km²/4.2 mi²	10.9 km²/4.2 mi²	6.7 km²/2.6 mi²	0	None
Exploration activity	No change	No summer activity planned	First-ever diamond drilling conducted on the property	Soil geochemistry and identification of targets for planned drill program			Completion of test drilling program of identified anomalies
Drilling - no. of diamond drill holes and total meters	No change	No change	3 holes totaling 439.5 meters/1,441 feet	Drill targets identified for spring 2007 drill program	0	0	100%
Assay samples	No change	362 core samples					362 core samples
Ownership	Option dropped	No change	Exclusive option for up to 75% ownership	Exclusive option for up to 75% ownership	Exclusive option for up to 75% ownership	0	Project dropped in entirety

~~The~~ULTRA Indian River Quartz Project is an early-stage gold exploration property for the Company. The property is located 40 km (24.9 mi) from Dawson City in the heart of the Klondike gold-producing region of the Yukon and the Tintina Gold Belt spanning Alaska and the Yukon. Access to the region is by good gravel road. PROJECT

~~Additional~~During ~~geological~~the ~~mapping,~~quarter ~~rock~~ended ~~and~~November ~~soil~~30, ~~sampling and geochemistry analysis~~2007, ~~trenching~~the ~~and~~Company completed a ~~magnetometer~~review ~~survey~~of ~~were~~the ~~completed~~Ultra ~~from~~properties ~~May~~with respect to ~~September~~ ~~2005~~its exploration and investment priorities. ~~Auger~~The ~~drilling~~decision ~~provided~~was ~~bedrock~~taken ~~samples~~to ~~between~~drop ~~January~~the ~~and April~~project ~~2005.~~in ~~This~~order ~~work~~to ~~built~~focus efforts on ~~extensive~~Klondike ~~reconnaissance~~Star’s ~~and~~Lone ~~geological mapping~~Star, ~~bulk~~ ~~sampling,~~Dominion ~~diamond~~and ~~drilling~~Indian ~~and~~River ~~core~~gold ~~analysis,~~projects ~~and~~in ~~geochemical~~the ~~surveys completed~~Yukon byand ~~previous~~the ~~exploration~~Oweinat ~~companies~~property in Egypt.

~~During~~The ~~2006,~~Ultra ~~additional~~Project ~~baseline work~~ was ~~undertaken~~an tointermediate-stage ~~consolidate~~base and ~~ground-truth~~ ~~previous~~precious metals exploration ~~results,~~project ~~with~~that ~~the~~has ~~focus~~moved onto ~~two~~a ~~claim~~drill ~~blocks~~ready stage in exploration. ~~The~~ ~~first~~Following ~~involved~~additional anstaking ~~eastern~~in ~~extension~~the fall of 2005 ~~soil~~ and ~~rock~~the ~~sampling~~fall ~~done~~of ~~to determine~~2006, the ~~presence~~Ultra ofProject ~~gold~~consists ~~anomalies~~of on416 ~~the~~mineral ~~property~~claims ~~(Reka~~totaling ~~claim block)~~81.7 ~~The second~~km2 (~~RMB~~31.6 ~~claim block~~mi2). ~~pursued~~The ~~2005~~targets ~~rock~~include ~~chip~~VMS ~~assays~~zinc-copper-silver-gold ~~with~~and ~~elevated~~poly-metallic ~~PGM values, targeting~~ nickel-copper-platinum-palladium-gold. ~~group~~Two ~~minerals~~significant todiscoveries ~~identify~~were ~~any~~announced ~~PGM,~~following asassessment ~~well~~of as2006 ~~Ni,~~exploration ~~Cu and Au targets~~results.

~~Mineral~~The ~~claims~~property ~~with~~is ~~low~~located ~~probability~~in southwest Yukon, 42 km (26.1 mi) northwest of ~~having~~Haines ~~exploration~~Junction, ~~value~~Yukon, ~~were~~Canada, ~~released~~ only 140 km (87 mi) from a deepwater port. Ten kilometers (6.2 miles) west of the Alaska Highway, it is accessible by rough gravel road. It is near the former nickel-platinum Wellgreen Mine. Ultra is also in the ~~final~~same ~~quarter~~geological ofzone as the ~~year~~world-~~ended~~class ~~February~~zinc-copper-gold ~~28,~~Windy ~~2007~~Craggy deposit in northern British Columbia.

~~Klondike~~In ~~Star~~February is2007, ~~evaluating~~based on the ~~property's~~2006 ~~fit~~exploration ~~with~~program, the ~~new~~Company ~~strategic~~announced ~~plan,~~ the ~~known~~discovery of two volcanogenic massive sulphide zones including a major VMS horizon with economically interesting grades and ~~projected~~widths. ~~geological~~The ~~potential~~massive insulphide ~~light~~grades ofup ~~exploration~~to ~~experience~~ 3.23% copper, 6.75% zinc, 17.8 ppm silver and ~~the~~0.15 ~~Klondike~~ppm ~~Research~~gold ~~Project~~over ~~being~~a ~~undertaken~~4 bymeter Uthickness.B Maximum values of 13.C4% copper, 6.'s75% ~~Mineral~~zinc, ~~Deposit Research~~56 ~~Unit~~ppm silver and ~~discussing~~0.25 ~~next~~pp. ~~steps~~gold ~~with~~were ~~joint~~obtained ~~venture~~from ~~partners~~one tozone. ~~make~~The ~~a determination~~second ~~about~~zone ~~whether~~reported toresults ~~invest~~of in11.54% ~~further~~copper, ~~exploration~~1514 ppm zinc and 7.2 ppm silver over a three meter thickness.

	2nd quarter-end August 31, 2007	1st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q2-end August 31, 2007
Total claims	No change	248	248 claims	205 claims	0	None
Total area	No change	62.1 km2 or 24.0 mi2	62.1 km2 or 24.0 mi2	67.3 km2 or 26 mi2	0	None
Drilling - no. of auger drill holes	No change	No change	No change	49 holes (winter season January - April)	0	None
Surface trenching and sampling	No change	No change	16 rock samples, 20 soil samples	8 trenches totaling 1128 m3 (1,475 yd3), 12 test pits, 52 rock samples, 333 soil samples	0	None
Assay and other analysis	No change	No change	Not available	36 rock samples, 333 soil samples	0	None
Ownership	No change	Exclusive option for up to 75%	Exclusive option for up to 75%	Exclusive option for up to 75%	0	None

During the 2006 exploration program, beep mat survey was also conducted, along with hand trenching, blast trenching and soil geo-chemistry. Although specific sites were prepared, diamond drilling was deferred due to unavailability of required technical services including skilled labor. The property is drill-ready based on a multi-year investment in prospecting, mapping, sampling, airborne and ground geophysical surveys and geochemistry analysis.

~~ELDORADO~~As ~~PLACER~~of ~~PROJECT~~the quarter-ended August 31, 2007, Klondike Star initiated an evaluation of the property’s fit with the Company’s new strategic plan, exploration priorities; and discussion of next steps with joint venture partners.

Located 20 km from Dawson City, Yukon, Canada, the Eldorado Placer Project is a placer gold project situated within the boundaries of the Lone Star Project. The placer mineral claims (surface) overlap some of Lone Star's quartz mineral claims (subsurface).


	3^rd quarter-end November 30, 2007	2^nd quarter-end August 31, 2007	1^st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q3-end November 30, 2007
Total claims	No change	No change	416	416	404 claims	0	None
Total area	No change	No change	About 82 km²/31.7 mi²	82 km²/31.7 mi²	82 km²/31.7 mi²	0	None
Drilling	No change	No change	No change	Drill sites prepared	0	0	None
Surface trenching and sampling	No change	No change	No change	152 chip and 265 soil samples, along with hand and blast trenching	86 rock and soil samples	0	None
Ownership	Option dropped	No change	Exclusive option for up to 75% ownership	Exclusive option for up to 75% ownership	Exclusive option for up to 75% ownership	0	Project dropped in entirety

~~The property is in the heart of a longstanding gold~~Early-~~producing~~stage area. There are many placer mines operating in the general vicinity. The claims were originally assembled by Canadian mine-finder Richard Hughes and optioned to the Company in December 2003. The property has known placer gold potential. However, the Company has not itself conducted substantive exploration ~~work to date. Over the last two years the right to conduct placer mining on the property has been optioned to an experienced Klondike placer miner and this arrangement was expected to continue.~~ projects:

~~Following~~BONANZA an assessment in the second quarter ended August 31, 2006, the Company has terminated this arrangement and taken direct responsibility for the project. Currently, consideration is being given to entering into a joint venture with an experienced Yukon placer miner to develop the property in 2008.PROJECT

	2nd quarter-end August 31, 2007	1st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q2-end August 31, 2007
Total claims	No change	115 claims	115 claims	115 claims	114 claims	None
Total area	No change	6.9 km2 or 2.7 mi2	6.9 km2 or 2.7 mi2	6.9 km2 or 2.7 mi2	6.5 km2 estimated or 2.5 mi2	None
Ownership	No change	55% and exclusive option to acquire up to 75%	55% and exclusive option to acquire up to 75%	55% and exclusive option to acquire up to 75%	55% and exclusive option to acquire up to 75%	None

On May 19, 2006, Klondike Star acquired a controlling interest in 269 mineral claims in the Klondike region of the Yukon, Canada. Known as the Bonanza Project, the property has been expanded through the re-assignment of additional Company properties in adjacent areas bringing it to 400 mineral claims and 65.6 km²/25.3 mi². It is located in the heart of the Klondike gold fields and proven gold producing ground, 10 km from Dawson City.

~~Future~~Since ~~financial~~1999, ~~condition~~building on previous exploration efforts, the majority of the property has been explored by KSL Exploration (Yukon) Ltd, a wholly-owned subsidiary of Klondike Source Limited, and PacRim Resources Limited (formerly Barramundi Gold Ltd.) using advanced-exploration techniques, geological mapping and geochemical soil surveys.

~~Since~~KSL ~~2003,~~Exploration ~~the~~(Yukon) ~~Company~~Limited ~~has~~considers ~~raised~~the ~~capital~~property ~~successfully~~to byhave ~~way~~a number of ~~private placements.~~prospects ~~Through~~on ~~recent placements,~~ the ~~Company~~basis ~~expects~~of toreasonably ~~have~~well-defined ~~the~~geochemical ~~resources necessary~~gold toanomalies. ~~maintain~~In ~~its~~an ~~exploration~~independent ~~programs.~~geologist’s ~~The~~report, ~~Company~~KSL ~~has~~(Yukon) ~~forged~~Limited ~~strong relationships~~reported ~~with~~that: ~~financial~~“These ~~professionals~~surveys inhave ~~order~~identified toseveral ~~provide~~prospective ~~adequate~~targets ~~capital investment~~with potential for ~~its~~hosting ~~projects~~large ~~with~~tonnage, ~~the~~primary ~~goal~~gold ofmineralization.” ~~bringing~~(Roy ~~new~~Cox ~~mining~~& ~~production on-stream~~Associates, inNovember ~~the~~10, ~~future~~2003).

AsKlondike ofStar ~~August 31, 2007, the Company~~ has ~~material~~initiated ~~commitments~~a ~~for~~preliminary ~~capital expenditures~~exploration inprogram ~~future~~including ~~years~~consolidation ~~in support~~ of ~~the~~mapping, ~~Oweinat~~sampling ~~project~~results, inand ~~the~~all ~~Arab Republic~~accessible ofassessment ~~Egypt~~work ~~acting~~on ~~through~~ the ~~wholly-owned subsidiary, Klondike Star Canada Inc~~property. ~~Pursuant~~Mineral toclaim ~~Klondike~~staking ~~Star's~~was ~~2008~~undertaken ~~business~~in ~~plan,~~the ~~resources~~third ~~are targeted~~quarter toended ~~corporate~~November ~~development~~30, ~~priorities.~~2006, ~~Private placement initiatives currently in progress are expected~~ to ~~raise~~supplement ~~additional~~the ~~funds in a timely manner~~property.

~~The~~During ~~business plan for developing~~ the ~~Indian~~quarter ~~River~~ending ~~Placer~~August ~~Mine~~31, ~~currently~~2007, ~~being prepared by~~ the Company ~~includes~~recovered ~~capital~~ and ~~cash~~processed ~~flow~~previously ~~requirements~~untested ~~for~~diamond ~~2008. Commencing~~drill ~~placer~~core ~~mining~~from on6 ~~the~~holes ~~advanced-stage Indian River Placer Project would create positive cash flow~~ and ~~change~~commenced ~~the~~a ~~status~~soil ofsampling ~~the company to that of a producer~~program.

Company policy is to expense mineral rights acquisitions and exploration activities to prove up resources and reserves as mineral exploration expenditures. Typically, the mineral exploration industry is cyclical, based upon the price of commodities and the demand for certain metals. The Company considers that it has entered this business at a time that is favorable within a long term commodity inflation cycle, and that it can sustain an enterprise in the field of mineral exploration and mining production.


	3^rd quarter-end November 30, 2007	2^nd quarter-end August 31, 2007	1^st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Change from year-end 2007 to Q3-end November 30, 2007
Total claims	No change	No change	400	308	0	Claims re-assigned from Lone Star Project
Total area	No change	No change	65.6 km² or 25.3 mi²	47.0 km² or 18.1 mi²	0	Area of re-assigned claims
Drilling	No change	Untested diamond drill core from 6 holes totaling 1358 meters/5044 feet recovered	Nil	Nil	0	Untested diamond drill core from 6 holes totaling 1358 meters/5044 feet recovered
Sampling	No change	74 rock chips	Nil	Nil	0	74 soil samples
Assay		1,127 core samples	Nil	Nil	0	1,127 core samples
Ownership	No change	No change	100% of 308 claims and 55% and exclusive option to acquire up to 75% of 92 claims	100% registered	0	Ownership in claims re-assigned from Lone Star Project

~~Ongoing~~INDIAN ~~financing~~RIVER ~~activities~~CONGLOMERATE are targeted existing and new investor markets with specific private investment opportunities. During the quarter, the February 1, 2007, a private placement memorandum (Regulation D) for the sale of common shares priced at the closing price (OTCBB) on the date of purchase was extended to October 31, 2007. An April 6, 2007, private placement memorandum (Regulation S) for sale of common shares priced at $2.25 to a major potential investor was cancelled. The May 29, 2007, private placement memorandum (Regulation S) for the sale of 4 million shares at $0.50 was extended to August 31st and fully subscribed. The June 3, 2007, private placement memorandum (Regulation S) for the sale of 2 million shares at $0.50 terminates September 30, 2007. The August 8, 2007, private placement memorandum (Regulation S) allows for the purchase of up to 3,000,000 units (a unit equals one common share and one warrant for the purchase of common shares at $1.50) at the 5 day volume averaged price preceding the date of purchase minus $0.10. PROJECT

~~Gold~~During ~~market~~the ~~outlook~~quarter ended November 30, 2007, the Company completed a review of the Indian River quartz (conglomerate) properties with respect to its exploration and investment priorities. The decision was taken to drop the project in order to focus efforts on Klondike Star’s Lone Star, Dominion and Indian River gold projects in the Yukon and the Oweinat property in Egypt.

~~Indications~~The ~~are~~Indian ~~that~~River ~~global~~Quartz ~~mineral~~Project ~~exploration~~is ~~spending~~an ~~will reach a new high~~early-~~water~~stage ~~mark~~gold inexploration ~~2007~~property for the ~~fifth straight year in a row~~Company. InThe aproperty ~~press~~is ~~release issued~~located ~~September~~40 ~~10,~~km ~~2007, Metals Economics Group has advised that worldwide mineral exploration spending~~ (~~excluding~~24.9 ~~ferrous metal and uranium~~mi) ~~will~~from ~~range between~~Dawson ~~$US9.3~~City ~~billion and $US9.7 billion for calendar 2007. With worldwide exploration spending totaling $US7.5 billion~~ in ~~2006,~~the ~~spending~~heart inof ~~2007~~the ~~has increased~~Klondike bygold-producing ~~approximately~~region ~~$US2~~of ~~billion~~the ~~between~~Yukon ~~2006~~ and ~~2007. Not only an indicator of~~ the ~~vibrancy~~Tintina ofGold ~~overall~~Belt ~~mineral~~spanning ~~industry~~Alaska ~~health,~~and the ~~increase~~Yukon. ~~in exploration~~Access ~~spending is expected~~ to ~~lead to new mineral discoveries which in turn help draw attention to~~ the ~~sector~~region ~~and~~is ~~eventually~~by ~~attract~~good ~~further investment~~gravel road.

~~The~~Additional ~~outlook~~geological ~~for~~mapping, ~~the~~rock ~~price~~and ofsoil ~~gold~~sampling ~~continues~~and togeochemistry beanalysis, ~~favorable.~~trenching Soand ~~far~~a inmagnetometer ~~2007, gold~~survey ~~prices~~were ~~have~~completed ~~remained~~from ~~above~~May ~~the~~to ~~$US600~~September ~~mark,~~2005. ~~reaching~~Auger adrilling ~~low~~provided ~~for~~bedrock ~~the~~samples ~~period of~~between ~~$US608~~January inand ~~early~~April ~~January~~2005. ~~Gold~~This ~~prices~~work ~~broke~~built ~~through~~on ~~the~~extensive ~~$US700~~reconnaissance ~~barrier~~and ~~on September~~geological 7mapping, ~~and~~bulk ~~remained~~sampling, ~~above~~diamond ~~$US700~~drilling toand ~~months'~~core ~~end~~analysis, ~~reaching~~and ageochemical ~~high~~surveys ~~for~~completed ~~the year~~by ofprevious ~~$US743~~exploration ~~on September 28~~companies.

~~Gold~~During ~~Price~~2006, ~~January~~additional 1baseline work was undertaken to consolidate and ground-truth previous exploration results, ~~2000~~with the focus on two claim blocks. The first involved an eastern extension of 2005 soil and rock sampling done to ~~October~~determine 2the presence of gold anomalies on the property (Reka claim block). The second (RMB claim block) pursued 2005 rock chip assays with elevated PGM values, ~~2007:~~targeting platinum group minerals to identify any PGM, as well as Ni, Cu and Au targets.

AtMineral ~~the~~claims ~~outset~~with oflow ~~2007,~~probability ~~gold~~of ~~price~~having ~~forecasts~~exploration byvalue ~~GFMS~~were ~~Ltd.~~released ~~and~~in ~~TD Economics suggested that prices would range between $US643 and $US675 to~~ the ~~end~~final ~~of calendar~~quarter ~~2007. (Sources: GFMS Ltd. Gold Survey 2006 Update 2, January 2007 cites $US 643 over period~~ of ~~January~~the 1,year-ended ~~2007 to June 30, 2007; and, TD Economics Quarterly Commodity Price Report,~~ February 528, 2007 ~~cites $US 650 - 675 over period of April 1, 2007 to December 31, 2007)~~. ~~To the end of September 2007, gold prices have averaged $665, making good on both start-of-year forecasts.~~

~~Both~~During ~~GFMS~~the ~~Ltd.~~quarter ~~and~~ended TDAugust ~~Economics~~31, ~~remain~~Klondike ~~bullish~~Star oninitiated ~~gold prices to~~ the ~~end~~evaluation of ~~2007.~~ ~~GFMS Ltd. expects~~ the ~~price~~property’s offit ~~gold~~with ~~to average $US690 in~~ the ~~second~~new ~~half of~~strategic ~~calendar 2007. (Source: GFMS Ltd. Gold Survey 2007 Update 1~~plan, ~~September~~the ~~2007). TD~~known ~~Economics~~and ~~expressed~~projected angeological ~~even~~potential ~~higher~~in ~~degree~~light of ~~optimism~~exploration inexperience ~~its~~and ~~September~~the ~~27 Weekly~~Klondike ~~Commodity~~Research ~~Price~~Project ~~Report~~being ~~where~~undertaken itby ~~forecasts that~~ the ~~price of gold will finish calendar 2007 at $US775~~U. ~~(Source: TD Economics Weekly Commodity Price Report, September 27, 2007)~~B. ~~The three-year moving average for the price of gold to the end of September 2007 was $US552~~C. ~~(Source:~~Mineral ~~World~~Deposit ~~Gold~~Research ~~Council, London PM Fix over period of October 2004 to September 2007)~~Unit.

KSMD management continues to believe that the market price for gold will remain strong. A severely weakened US dollar and continuing geo-political strife are expected to bolster the traditional safe-haven status of gold leading to increasing investment demand for the metal.


	3^rd quarter-end November 30, 2007	2^nd quarter-end August 31, 2007	1^st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q2-end August 31, 2007
Total claims	No change	No change	248	248 claims	205 claims	0	None
Total area	No change	No change	62.1 km² or 24.0 mi²	62.1 km² or 24.0 mi²	67.3 km² or 26 mi²	0	None
Drilling - no. of auger drill holes	No change	No change	No change	No change	49 holes (winter season January - April)	0	None
Surface trenching and sampling	No change	No change	No change	16 rock samples, 20 soil samples	8 trenches totaling 1128 m³(1,475 yd³), 12 test pits, 52 rock samples, 333 soil samples	0	None
Assay and other analysis	No change	No change	No change	Not available	36 rock samples, 333 soil samples	0	None
Ownership	Option dropped	No change	Exclusive option for up to 75%	Exclusive option for up to 75%	Exclusive option for up to 75%	0	Project dropped in entirety

~~Corporate~~ELDORADO ~~governance~~PLACER ~~matters~~PROJECT

InLocated ~~the~~20 ~~first~~km ~~quarter~~from ~~ended~~Dawson ~~May~~City, 31Yukon, ~~2007~~Canada, ~~a Company Whistleblower Policy was adopted and action plans for~~ the ~~year-ended~~Eldorado ~~February~~Placer ~~29,~~Project ~~2008,~~is ~~were~~a ~~developed and~~placer ~~approved~~gold ~~for~~project ~~implementation~~situated ofwithin the ~~Health~~boundaries ~~and~~of ~~Safety Policy and~~ the ~~Environment~~ ~~and~~Lone ~~Sustainable~~Star ~~Development Policy~~Project. InThe ~~the~~placer ~~second~~mineral ~~quarter~~claims ~~ended August~~(surface) ~~31,~~overlap ~~2007,~~some ~~Klondike~~of Lone Star'’s ~~Board~~quartz ofmineral ~~Directors~~claims ~~formally approved the Strategic Plan, 2007-2009 and Planning and Management Guidelines~~(subsurface).

~~Effective~~The ~~March~~property ~~16,~~is ~~2007,~~in ~~Klondike~~the ~~Star~~heart ~~Mineral~~of ~~Corporation~~a (longstanding gold-producing area. There are many placer mines operating in the ~~"Company") incorporated~~general avicinity. ~~wholly~~The ~~owned~~claims were originally assembled by Canadian ~~subsidiary~~mine-finder ~~company,~~Richard ~~Klondike~~Hughes ~~Star~~and ~~Canada Inc.,~~optioned ~~under~~to the ~~Canada~~Company ~~Business~~in ~~Corporations~~December ~~Act~~2003. The ~~new~~property ~~company~~has known placer gold potential. However, the Company has ~~been established~~not itself conducted substantive exploration work to ~~support~~date. ~~planned~~Over ~~growth~~the ~~and~~last ~~development~~two ~~including~~years ~~new~~the ~~mineral exploration~~right ~~and~~to ~~development~~conduct ~~opportunities~~placer inmining ~~Canada~~on the property has been optioned to an experienced Klondike placer miner and ~~globally~~this arrangement was expected to continue.

~~ITEM~~Following 3.an ~~Quantitative~~assessment in the second quarter ended August 31, 2006, the Company has terminated this arrangement and ~~Qualitative~~taken ~~Disclosures~~direct ~~about~~responsibility ~~Market~~for ~~Risk~~the project. Currently, consideration is being given to entering into a joint venture with an experienced Yukon placer miner to develop the property in 2008.

The Company's functional currency is U.S. dollars. Monetary assets and liabilities of the Company's foreign operations are translated into U.S. dollars at the exchange rates as of the balance sheet date. Results of operations from monetary revenues and expenses are translated at the average exchange rates during the period, with non-monetary revenues and expenses translated at the exchange rate in effect at the time of acquisition of the underlying non-monetary asset or liability. Realized gains and losses from foreign currency transactions are reflected in the results of operations.


	2^nd quarter-end August 31, 2007	1^st quarter-end May 31, 2007	Year-end February 28, 2007	Year-end February 28, 2006	Year-end February 28, 2005	Change from year-end 2007 to Q2-end August 31, 2007
Total claims	No change	115 claims	115 claims	115 claims	114 claims	None
Total area	No change	6.9 km² or 2.7 mi²	6.9 km² or 2.7 mi²	6.9 km² or 2.7 mi²	6.5 km² estimated or 2.5 mi²	None
Ownership	No change	55% and exclusive option to acquire up to 75%	55% and exclusive option to acquire up to 75%	55% and exclusive option to acquire up to 75%	55% and exclusive option to acquire up to 75%	None

~~ITEM~~Future 4.financial ~~Controls and Procedures~~ condition

AsSince ~~of August 31~~2003, ~~2007~~the ~~("evaluation~~Company ~~date"),~~has ~~Company~~raised ~~management~~capital ~~has~~successfully ~~reviewed the~~by ~~effectiveness~~way of ~~disclosure~~private ~~controls~~placements and ~~procedures~~Management ~~(as~~expects ~~defined~~to inhave ~~Rule 13a-15(e) or 15d-15(e) promulgated under~~ the ~~Securities~~resources ~~and~~necessary ~~Exchange~~to ~~Act~~maintain ~~of 1934,~~its asexploration ~~amended)~~programs. The Company has ~~developed~~forged ~~and~~strong ~~implemented~~relationships awith ~~number~~financial ~~of policies~~professionals ~~and~~in ~~procedures~~order to ~~assist~~provide inadequate ~~the~~capital ~~consistent~~investment ~~application~~for ofits ~~internal controls.~~projects ~~This~~with ~~includes~~ the ~~Board~~goal of ~~Directors~~bringing ~~Charter,~~new ~~the~~mining ~~Audit~~production ~~Committee Charter,~~on-stream ~~the~~in ~~Code of Business Ethics and Conduct, and~~ the ~~Authorization Policy~~future. ~~During~~ the quarter ended May 31, 2007, Klondike Star adopted a formal Whistleblower Policy and for the quarter ended August 31, approved Planning and Management Guidelines supporting Board and management planning, reporting and accountability processes.

~~The~~As ~~Company~~of ~~has~~November ~~financial~~30, ~~reporting~~2007, ~~procedures~~the inCompany ~~place~~has tomaterial ~~assist~~commitments infor ~~ensuring reliable~~capital ~~and~~expenditures ~~accurate~~in ~~information~~future isyears ~~provided~~in tosupport ~~shareholders~~of ~~and~~the ~~potential investors~~Oweinat ~~and~~project toin ~~ensure~~the ~~compliance~~Arab ~~with~~Republic ~~financial~~of ~~reporting~~Egypt toacting ~~regulatory oversight~~through ~~bodies. At~~ the ~~same time, during preparation of the 10~~wholly-~~Q filing~~owned ~~to August 31~~subsidiary, ~~2007,~~Klondike ~~Management~~Star ~~identified~~Canada ~~an internal control weakness in reporting information on the sales of unregistered securities between periodic reports~~Inc. ~~The~~Pursuant ~~Company~~to ~~believes~~Klondike ~~the~~Star’s ~~weakness~~2008 ~~occurred when it exited the small~~ business ~~filing~~ ~~system~~plan, ~~and~~resources ~~the~~are ~~threshold~~targeted ~~for~~to ~~reporting sales was reduced. Management~~corporate ~~filed~~development apriorities. Private ~~Form~~placement ~~8-K~~initiatives oncurrently ~~Item~~in ~~3.02~~progress ~~and~~are ~~has~~expected ~~updated internal procedures~~ to ~~ensure~~raise ~~timely~~additional ~~reporting~~funds in ~~the~~a ~~future~~timely manner.

~~Notwithstanding~~The business plan for developing the ~~foregoing~~Indian ~~event,~~River Gold Mine currently being prepared by the Company includes capital and cash flow requirements for 2008. Commencing placer mining on the advanced-stage Indian River Placer Project would create positive cash flow and change the status of the company to that of a producer.

~~As of August 31, 2007, the~~ Company ~~also~~policy ~~maintains~~is ato ~~system~~expense ofmineral ~~internal accounting~~rights ~~controls~~acquisitions ~~that~~and isexploration ~~designed~~activities to ~~provide~~prove ~~assurance~~up ~~that~~resources ~~assets~~and ~~are safeguarded~~reserves ~~and~~as ~~that~~mineral ~~transactions~~exploration ~~are~~expenditures. ~~executed~~Typically, inthe ~~accordance~~mineral ~~with~~exploration ~~management's authorization~~industry ~~and~~is ~~properly~~cyclical, ~~recorded.~~based ~~This~~upon ~~system~~the isprice ~~continually~~of ~~reviewed~~commodities and ~~is augmented~~the bydemand ~~written~~for ~~policies~~certain ~~and~~metals. ~~procedures~~The ~~and~~Company ~~the~~considers ~~careful~~that ~~selection~~it ~~and training~~has ofentered ~~qualified~~this ~~personnel.~~business ~~During~~at ~~the~~a ~~three-month~~time ~~period~~that ~~ended~~is ~~August~~favorable ~~31, 2007,~~within ~~there~~a ~~were~~long noterm ~~significant~~commodity ~~changes~~inflation tocycle, ~~this~~and ~~system~~that ofit ~~internal~~can ~~controls~~sustain or an enterprise in ~~other~~the ~~factors~~field ~~that~~of ~~could~~mineral ~~significantly~~exploration ~~affect~~and ~~those~~mining ~~controls~~production.

InOngoing ~~anticipation~~financing ofactivities ~~the~~are ~~requirement~~targeted toexisting ~~complete~~ and ~~disclose~~new ~~Management's assessment~~investor ~~regarding~~markets ~~internal~~with ~~controls~~specific ~~over~~private ~~financial~~investment ~~reporting~~opportunities. inDuring the ~~annual report~~quarter ~~for~~ended ~~the~~November ~~year-ended~~30, 2007, the February 291, ~~2008~~2007, a private placement memorandum (Regulation D) for the ~~Audit~~sale ~~Committee~~of ~~has~~common ~~approved~~shares ~~a project~~priced ~~charter~~at ~~including~~the ~~terms~~closing price (OTCBB) on the date of ~~reference~~purchase was extended to October 31, ~~deliverables~~2007. An April 6, ~~timetable~~2007, ~~and establishment~~private placement memorandum (Regulation S) for sale of acommon ~~steering~~shares ~~committee~~priced at $2.25 to ~~review~~a ~~compliance~~major ~~with~~potential ~~sections~~investor ~~302~~was ~~and 404~~cancelled. ofThe ~~Sarbanes-Oxley~~May ~~Act~~29, of2007, ~~2002~~private placement memorandum (~~SOX~~Regulation S) for the sale of 4 million shares at $0.50 was extended to August 31st and ~~expedite~~fully ~~necessary~~subscribed. ~~remediation~~The June 3, ~~if any~~2007, private placement memorandum (Regulation S) was issued for the sale of 2 million shares at $0.50. The ~~Company's~~August ~~objective~~8, is2007, ~~not~~private ~~merely~~placement tomemorandum ~~comply~~(Regulation ~~with~~S) ~~these~~allows ~~requirements, but~~for tothe ~~use~~purchase ~~them~~of asup to 3,000,000 units (a ~~catalyst~~unit toequals ~~examine~~one ~~financial,~~common ~~management~~share and ~~operational processes~~one ~~and~~warrant ~~programs~~for ~~through~~the purchase of common shares at $1.50) at the ~~organization~~5 day volume averaged price preceding the date of purchase minus $0.10. ~~Management~~Effective ~~believes~~September ~~that executing~~4, 2007, a ~~SOX~~private ~~compliance~~placement ~~initiative~~memorandum ~~that~~(Regulation ~~seeks~~S) to ~~improve~~support ~~processes~~Klondike ~~and programs~~Star ~~throughout~~Canada’s exploration investment in the ~~Company~~Arab ~~will~~Republic ~~achieve~~of aEgypt ~~net~~for ~~benefit~~up into ~~terms~~3,000,000 shares at the 5 day volume averaged price preceding the date of ~~improved risk~~purchase ~~management~~minus $0.10, ~~operational~~for ~~efficiency~~total ~~and~~estimated ~~effectiveness~~proceeds between $3,000,000 and ~~enhanced shareholder~~$3,750,000, ~~confidence~~was issued with the offering expiring on or before February 29, 2008.

~~PART~~Gold IImarket outlook

~~OTHER~~Indications ~~INFORMATION~~are that global mineral exploration spending will reach a new high-water mark in 2007 for the fifth straight year in a row. In a press release issued September 10, 2007, Metals Economics Group has advised that worldwide mineral exploration spending (excluding ferrous metal and uranium) will range between $US9.3 billion and $US9.7 billion for calendar 2007. With worldwide exploration spending totaling $US7.5 billion in 2006, spending in 2007 has increased by approximately $US2 billion between 2006 and 2007. Not only an indicator of the vibrancy of overall mineral industry health, the increase in exploration spending is expected to lead to new mineral discoveries which in turn help draw attention to the sector and eventually attract further investment.

~~ITEM~~The 1outlook for the price of gold continues to be favorable. ~~Legal~~So ~~Proceedings~~far in 2007, gold prices have remained above the $US600 mark, reaching a low for the period of $US608 in early January. Gold prices broke through the $US700 barrier on September 7 and remained above $US700 to the end of November, reaching a high over the first eleven months of 2007 of $US841 on November 8.

~~There~~Gold ~~are~~Price, noJanuary ~~pending~~1, or2000 ~~material legal proceedings~~ to ~~which~~December ~~the Registrant is a party or of which any of its property is subject. Klondike Star has secured the assets of a diamond drilling company for reasons of safety~~13, ~~non-performance and non-payment of its employees by the contractor.~~2007:

[kdsm10qfinalnov3007vjan14011.gif]

~~ITEM~~At 1Athe outset of 2007, gold price forecasts by GFMS Ltd. ~~Risk~~and ~~Factors~~TD Economics suggested that prices would range between $US643 and $US675 to the end of calendar 2007. (Sources: GFMS Ltd. Gold Survey 2006 Update 2, January 2007 cites $US643 over period of January 1, 2007 to June 30, 2007; and, TD Economics Quarterly Commodity Price Report, February 5, 2007 cites $US 650 - 675 over period of April 1, 2007 to December 31, 2007). To the end of November, 2007, gold prices have averaged $US687, making good on both start-of-year forecasts.

~~There~~Both ~~are~~GFMS noLtd. ~~material~~and ~~changes~~TD ~~from~~Economics remain bullish on gold prices to the ~~risk~~end ~~factors~~of ~~previously~~2007. ~~disclosed~~GFMS in Ltd. expects the ~~Form~~price ~~10-K~~of ~~report~~gold ~~for~~to average $US690 in the ~~year-ended~~second ~~February~~half ~~28,~~of calendar 2007. (Source: GFMS Ltd. Gold Survey 2007 Update 1, ~~with~~September ~~respect~~2007). TD Economics continues to ~~Canadian~~ ~~operations~~express an even higher degree of optimism. ~~Although~~In ~~Klondike~~its ~~Star~~December is10, ~~commencing~~2007 ~~mineral~~Weekly ~~exploration and~~Commodity ~~exploitation~~Price inReport, ~~the~~TD ~~Arab~~Economics ~~Republic~~stood firm on its expectation that the price of ~~Egypt~~gold ~~through~~will ~~its~~finish ~~wholly-owned~~calendar ~~Canadian subsidiary,~~2007 ~~Klondike~~at ~~Star~~$US775. ~~Canada~~(Source: ~~Inc~~TD Economics Weekly Commodity Price Report, December 10, 2007). ~~additional~~The ~~risk~~three-year ~~factors~~moving ~~are~~average ~~foreseen~~for the price of gold to the end of November 2007 was $US572. ~~They include~~(Source: World Gold Council, London PM Fix over period of December 2004 to November 2007).

~~Risks~~With ~~related~~regard to ~~Company~~the ~~business~~current situation for gold prices, TD Economics has noted that “virtually all key drivers have lined up in favour of bullion.” (Source: TD Economics Quarterly Commodity Price Report, November 23, 2007). Downward pressure on the US dollar, increased global financial uncertainty, solid jewellery demand and surprisingly strong crude oil prices are all cited by TD Economics as reasons why gold prices have been fluctuating around the $US800 level in recent weeks. With a tapering in the US dollar downswing anticipated in the months ahead, TD Economics has forecast that “…gold prices are likely [to] trade in a range of US$740-US$800 in 2008.” (Source: TD Economics Quarterly Commodity Price Report, November 23, 2007).

~~Rights~~Corporate togovernance ~~mineral claims and leases involve uncertainties:~~matters

~~Rights~~In tothe ~~surface~~first ~~and~~quarter ~~subsurface~~ended ~~mining~~May ~~properties~~31, ~~involve~~2007, ~~certain~~a ~~inherent risks~~Company ~~due~~Whistleblower toPolicy ~~the~~was ~~difficulties~~adopted ofand ~~determining~~action plans for the ~~validity~~year-ended ofFebruary ~~certain~~29, ~~claims~~2008, ~~as well~~were asdeveloped ~~the~~and ~~potential~~approved for ~~problems~~implementation ~~arising from the frequently ambiguous conveyance history, characteristic~~ of ~~many mining properties. Although~~ the ~~Company~~ ~~has~~Health ~~taken~~and ~~steps~~Safety toPolicy ~~verify~~ and ~~protect~~ the ~~title~~Environment ~~to,~~ and ~~ownership interests~~Sustainable ~~and~~Development ~~options~~Policy. In in the ~~mineral~~second ~~properties~~quarter inended ~~which~~August it31, ~~has an interest~~2007, ~~in accordance~~Klondike ~~with~~Star’s ~~industry~~Board ~~standards for the current stage~~ of ~~exploration~~Directors offormally ~~such properties,~~approved ~~these procedures do not guarantee~~ the ~~Company's~~Strategic ~~rights~~Plan, or2007-2009 ~~interests. These~~and ~~rights~~Planning ~~or interests may be subject to unregistered prior agreements or transfers~~ and beManagement ~~affected by undetected defects~~Guidelines.

~~International~~The ~~operations~~Annual ~~involve~~Meeting ~~complexities:~~of Shareholders held on December 4, 2007 approved the appointment of a fifth director for a two year term and the appointment of the Company’s independent auditor, PMB Helin Donovan.

~~Mineral~~Effective ~~exploration~~March is16, a2007, ~~relatively~~Klondike ~~new~~Star ~~area~~Mineral ofCorporation ~~activity~~(the ~~for~~"Company") ~~investment~~incorporated ~~in the~~a ~~Arab~~wholly ~~Republic~~owned ofCanadian ~~Egypt.~~subsidiary company, Klondike Star Canada Inc., ~~will~~under bethe ~~learning~~Canada ~~how~~Business toCorporations ~~do business effectively in the region~~Act. ~~There~~The isnew acompany ~~degree~~has ofbeen ~~business~~established ~~risk~~to ~~and uncertainty~~support ~~associated~~planned ~~with~~growth ~~operating in Egypt~~ and ~~implementing~~development aincluding ~~major~~new mineral exploration and ~~exploitation~~development ~~concession~~opportunities ~~agreement~~ in an orderly and effective manner, while the government is concurrently modernizing investment and mining laws and practices. While persons affiliated with the Company have experience in Egypt, the Company has never undertaken exploration programs in a country outside of Canada, and ~~will be required to rely on local expertise for some of its undertakings~~globally.

~~International~~ITEM ~~political~~3. ~~uncertainties:~~Quantitative and Qualitative Disclosures about Market Risk

~~While~~The ~~Egypt~~Company’s ~~has~~functional ~~benefited~~currency ~~from~~is ~~political~~U.S. ~~stability,~~dollars. Monetary assets and liabilities of the ~~Middle~~Company’s ~~East~~foreign ~~region has~~operations ~~seen~~are ~~increasing~~translated ~~instability~~into U.S. Ifdollars ~~such~~at ~~instability~~the ~~continues~~exchange torates ~~increase~~as in of the ~~region~~balance sheet date. Results of operations from monetary revenues and expenses are translated at the average exchange rates during the period, itwith ~~may~~non-monetary ~~adversely~~revenues ~~affect~~and expenses translated at the ~~ability~~exchange rate in effect at the time of acquisition of the underlying non-monetary asset or liability. Realized gains and losses from foreign ~~companies~~currency totransactions ~~begin mining~~are reflected in the results of operations.

~~Risks~~ITEM ~~related~~4. toControls ~~the mineral exploration~~ and ~~production industry~~Procedures

~~Adoption~~As of ~~new~~November ~~laws~~30, 2007 (“evaluation date”), Company management has reviewed the effectiveness of disclosure controls and ~~government~~procedures ~~regulations~~(as ~~relating~~defined in Rule 13a-15(e) or 15d-15(e) promulgated under the Securities and Exchange Act of 1934, as amended). The Company has developed and implemented a number of policies and procedures to assist in the ~~mining industry~~consistent ~~could~~application ~~harm~~of internal controls. This includes the ~~Company's~~Board ~~business~~of Directors Charter, the Audit Committee Charter, the Code of Business Ethics and Conduct, and the Authorization Policy. During the quarter ended May 31, 2007, Klondike Star adopted a formal Whistleblower Policy and for the quarter ended August 31, approved Planning and Management Guidelines supporting Board and management planning, reporting and accountability processes.

The Company's ~~business~~has isfinancial ~~subject~~reporting toprocedures ~~various~~in ~~Egyptian~~place ~~and~~to ~~Canadian~~assist ~~local, territorial,~~in ~~provincial,~~ensuring ~~First~~reliable ~~Nations, national~~ and ~~international~~accurate ~~laws~~information ~~that affect~~is ~~mining~~provided ~~and the building of new mines. Other laws and regulations related~~ to ~~health,~~shareholders ~~safety, working conditions, environment, land~~ and ~~water~~potential ~~use,~~investors and ~~other~~ ~~related~~to ~~laws~~ensure ~~and~~compliance ~~regulations~~with ~~may~~financial ~~also~~reporting ~~affect~~to ~~the~~regulatory ~~Company~~oversight bodies.

~~ITEM~~Management 2.has ~~Unregistered~~concluded ~~Sales~~that ofcompany ~~Equity~~disclosure ~~Securities~~controls and ~~Use~~procedures are effective for timely gathering, analyzing and disclosing the information disclosed in reports filed under the Securities Exchange Act of ~~Proceeds~~1934. There have been no significant changes made in our internal controls or in other factors that could significantly affect our internal controls, in a negative manner, subsequent to the evaluation date.

Sales of unregistered securities by period	Exemption from registration	Total common shares sold	Total warrants issued and outstanding convertible into common shares1	Total cash value of shares sold ($USD)
Year ended February 29, 2004	Rule 506, Regulation D	1,040,000	0	2,600,000
Year ended February 28, 2005	Rule 506, Regulation D	1,090,000	0	2,725,000
Year ended February 28, 2006	Rule 506, Regulation D	3,423,000	1,300,000	8,029,068
Year ended February 28, 2007	Rule 506, Regulation D	3,752,982	3,032,982	9,090,299
1st quarter ended May 31, 2007	Rule 506, Regulation D and Regulation S	0	2,042,982	0
2nd quarter ended August 31, 2007	Rule 506, Regulation D and Regulation S	3,921,715	773,000	2,191,400

As of November 30, 2007, the Company maintains a system of internal accounting controls that is designed to provide assurance that assets are safeguarded and that transactions are executed in accordance with management's authorization and properly recorded. This system is continually reviewed and is augmented by written policies and procedures and the careful selection and training of qualified personnel. During the three-month period ended November 30, 2007, there were no significant changes to this system of internal controls or in other factors that could significantly affect those controls.

~~ITEM~~In 3anticipation of the requirement to complete and disclose Management’s assessment regarding internal controls over financial reporting in the annual report for the year-ended February 29, 2008, the Audit Committee approved a project charter including terms of reference, deliverables, timetable and establishment of a steering committee to review compliance with sections 302 and 404 of Sarbanes-Oxley Act of 2002 (SOX) and expedite necessary remediation, if any. ~~Defaults~~The ~~upon~~Company’s ~~Senior~~objective ~~Securities~~is not merely to comply with these requirements, but to use them as a catalyst to examine financial, management and operational processes and programs throughout the organization. Management believes executing a SOX compliance initiative that seeks to improve processes and programs throughout the Company will achieve a net benefit in terms of improved risk management, operational efficiency and effectiveness, and enhanced shareholder confidence.

~~None~~PART II

~~ITEM~~OTHER ~~4. Submission of Matters to a Vote of Securities Holders~~INFORMATION

~~None~~ITEM 1. Legal Proceedings

~~ITEM~~There 5.are ~~Other~~no ~~Information~~pending or material legal proceedings to which the Registrant is a party or of which any of its property is subject.

~~The~~ITEM ~~following~~1A. ~~announcements,~~Risk made by press release and distributed over various wire services, the Company website and shareholder and potential investor distribution, may have qualified for disclosure on a Form 8-K during the quarter ended August 31, 2007:Factors

There are no material changes from the risk factors previously disclosed in the Form 10-K report for the year-ended February 28, 2007, with respect to Canadian operations, except for those disclosed and discussed in the Form 10-Q for the quarter-ended August 31, 2007 with respect to the appreciation in the value of the Canadian dollar relative to the U.S. dollar and the commencement of mineral exploration and exploitation in the Arab Republic of Egypt through its wholly-owned Canadian subsidiary, Klondike Star Canada Inc.

ByITEM ~~means of a Form 8-K, , the Company reported a change in its certifying accountant~~2. ~~Effective~~Unregistered ~~September~~Sales 13, 2007, the Company dismissed its principal accountant, Williams & Webster, P.S. and appointed PMB Helin Donovan as its principal accountant. Williams & Webster's audit report dated May 25, 2007 on our financial statements for the most recent fiscal years ended February 28, 2007 and February 28, 2006 did not contain an adverse opinion or disclaimer of ~~opinion,~~ orEquity ~~qualification~~Securities ~~or modification as to uncertainty, audit scope, or accounting principles. In connection with the audits of our financial statements for the most recent years ended February 28, 2007, 2006~~ and ~~2005,~~Use ~~and in the subsequent interim periods through the date~~ of resignation, there were no disagreements, resolved or not, with Williams & Webster on any matters of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of William & Webster would have caused William & Webster to make reference to the subject matter of the disagreement in connection with their report on the financial statements for such years.Proceeds

ITEM 6. Exhibits


Sales of unregistered securities by period	Exemption from registration	Total common shares sold	Total warrants issued and outstanding convertible into common shares	Total cash value of shares sold ($USD)
Year ended February 29, 2004	Rule 506, Regulation D	1,040,000	0	2,600,000
Year ended February 28, 2005	Rule 506, Regulation D	1,090,000	0	2,725,000
Year ended February 28, 2006	Rule 506, Regulation D	3,423,000	1,300,000	8,029,068
Year ended February 28, 2007	Rule 506, Regulation D	3,752,982	3,032,982	9,090,299
1^st quarter ended May 31, 2007	Rule 506, Regulation D and Regulation S	0	0	0
2^nd quarter ended August 31, 2007	Rule 506, Regulation D and Regulation S	3,921,715	0	2,191,400
3^rd quarter ended November 30, 2007	Rule 506, Regulation D and Regulation S	345,000	200,000	299,250

~~Exhibits~~ITEM 3. Defaults upon Senior Securities

~~31 Rule 13a-41(a)/15d-14(a) Certificates~~None

32ITEM ~~Section~~4. ~~1350~~Submission ~~Certifications~~of Matters to a Vote of Securities Holders

~~SIGNATURES~~During the quarter ended November 30, 2007, a definitive proxy statement (reference Form DEFR14A -- Revised definitive proxy soliciting materials filed 2007-10-11) was distributed to shareholders for the Annual Meeting of Shareholders held December 4, 2007. Shareholders approved the appointment of a fifth director for a two year term and the appointment of the Company’s independent auditor, PMB Helin Donovan (reference Form 8-K filed December ?, 2007 for tabulation of voting).

~~Pursuant~~ITEM to5. ~~the~~Other ~~requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.~~Information

~~KLONDIKE~~The ~~STAR~~following ~~MINERAL~~announcements ~~CORPORATION~~made by press release and distributed over wire services, the Company website and through electronic distribution lists to investors and interested parties, may have qualified for disclosure on a Form 8-K during the quarter ended November 30, 2007:

~~By , President~~ -

~~Date:~~Klondike ~~October~~Star 22Exploring New Lone Star Gold Targets, ~~2007~~September 6, 2007

~~By , Vice President, Operations~~ -

~~Date:~~Klondike ~~October~~Star 22Dominion Gold Project Update, ~~2007~~September 13, 2007

Klondike Star Appoints Manager For Indian River Gold Project, October 23, 2007

Mine Prospects Advance for Klondike Star’s Indian River Gold Project with 2007 Exploration Results, October 30, 2007

Klondike Star Releases 2007 Annual Report, November 8, 2007.

ITEM 6. Exhibits

Exhibits

Rule 13a-41(a)/15d-14(a) Certificates

Section 1350 Certifications

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

KLONDIKE STAR MINERAL CORPORATION

, President

Date: January 10, 2008

, Vice President, Operations

Date: January 10, 2008

Filing Compare · KLONDIKE STAR MINERAL CORP