UNITED STATES


SECURITIES AND
EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-QSB

x

[]

Commission File Number 000-30965

KLONDIKE STAR MINERAL
CORPORATION

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(Exact name of small
Business Issuer as specified in its charter)



|**Delaware**                             | **91-1980708**                   
|---------------------------------------- | ---------------------------------
|(State or other jurisdiction of          | (IRS Employer Identification No.)
|incorporation or organization)           |                                  
|                                         |                                  
|P.O. Box 20116,
    1031- 10 Mile Road   |                                  
|**Whitehorse, Yukon, Canada**            | **Y1A 7A2**                      
|(Address of principal executive offices) | (Postal or Zip Code)             



Issuer's telephone number, including area code:

None

(Former name, former address and former fiscal year end, if
changed since last report)

Check whether the issuer (1) 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 issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days [x] Yes [ ]No

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

State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 2,000,000 shares of Series
A, convertible, and 28,435,782 shares of common stock, both $0.0001 par value
outstanding as of November 30, 2006

Transitional Small Business Disclosure Format (check one): [ ]Yes [x] No

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PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-QSB and Item 310 (b) of Regulation
S-B, and, therefore, do not include all information and footnotes necessary for
a complete presentation of financial position, results of operations, cash
flows, and stockholders' equity in conformity with generally accepted accounting
principles. In the opinion of management, all adjustments considered necessary
for a fair presentation of the results of operations and financial position have
been included and all such adjustments are of a normal recurring nature.
Operating results for the three months ended November 30, 2006 are not
necessarily indicative of the results that can be expected for the year ending
February 28, 2007.

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KLONDIKE STAR MINERAL CORPORATION FINANCIAL STATEMENTS
  
  November 30, 2006






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KLONDIKE STAR MINERAL CORPORATION

November 30, 2006



TABLE OF CONTENTS











FINANCIAL STATEMENTS

> BALANCE SHEETS . . . . . . . . . .
>   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
>   . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
>   STATEMENTs OF OPERATIONS  . .
>   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
>   . . . . . . . . . . . . . . . . . . . . . . . 2
>   Statement of Stockholders' Equity 
>   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
>   . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
>   StatementS of Cash Flows  . .
>   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
>   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4



NOTES TO FINANCIAL STATEMENTS . . . .
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.. . . . . . . . . . . . . . . . . . . . 5



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KLONDIKE STAR MINERAL CORPORATION

(An Exploration Stage Company)

BALANCE SHEETS






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

1

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KLONDIKE STAR MINERAL CORPORATION

(An Exploration Stage Company)

STATEMENT OF OPERATIONS






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

2

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KLONDIKE STAR MINERAL CORPORATION

(An Exploration Stage Company)

STATEMENT OF STOCKHOLDERS'
  EQUITY






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

3

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KLONDIKE STAR MINERAL CORPORATION

(An Exploration Stage Company)

STATEMENT OF CASHFLOWS




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

---



KLONDIKE STAR
MINERAL CORPORATION

(An Exploration
Stage Company)

Condensed Notes to
the Financial Statements

November 30, 2006


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.



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-QSB and Regulation S-B 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, 2006. 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 nine-month period ended
November 30, 2006 are not necessarily indicative of the results that may be
expected for the year ending February 28, 2007.



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.

Mineral Exploration and Development Costs

All exploration expenditures are expensed as incurred.
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.

Mineral Properties

Costs of acquiring mineral properties are capitalized by
project area upon purchase of the associated claims. Costs to maintain the
mineral rights and leases are expensed as incurred. When a property reaches the
production stage, the related capitalized costs will be amortized, using the
units of production method on the basis of periodic estimates of ore reserves.

Mineral properties are periodically assessed for impairment
of value and any diminution in value is charged to operations at the time of
impairment. Should a property be abandoned, its unamortized 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 abandoned or sold based on the proportion of claims
abandoned or 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 $7,791,000 for the nine months ended November 30, 2006 and has an
accumulated deficit of approximately $49,266,000 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 expense projections of $11,000,000 for fiscal year
ending in 2007. The Company has approximately $3,744,000 in cash at November 30,
2006.



NOTE 3 - PROPERTY AND EQUIPMENT



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

|                                    | Cost        | Accumulated Depreciation |           | Net Book Value
    November 30, 2006 |             | Net Book Value February 28, 2006
|----------------------------------- | ----------- | ------------------------ | --------- | ------------------------------------ | ----------- | --------------------------------
|                                    |             |                          |           |                                      |             |                                 
|Depreciable Capital Assets:         |             |                          |           |                                      |             |                                 
|Movable structures                  | $ 942,299   |                          | $ 208,672 |                                      | $ 733,627   |                                 
|Leasehold improvements              | 642,933     |                          | 142,748   |                                      | 500,185     |                                 
|Vehicles                            | 395,478     |                          | 133,653   |                                      | 261,825     |                                 
|Equipment                           | 263,213     |                          | 95,043    |                                      | 168,170     |                                 
|All-terrain vehicles                | 123,606     |                          | 66,857    |                                      | 56,749      |                                 
|Trailers                            | 94,550      |                          | 21,473    |                                      | 73,077      |                                 
|Heavy equipment                     | 93,597      |                          | 9,360     |                                      | 84,237      |                                 
|Computer equipment                  | 36,872      |                          | 20,707    |                                      | 16,165      |                                 
|Computer software                   | 19,333      |                          | 10,057    |                                      | 9,276       |                                 
|Furniture and fixtures              | 19,527      |                          | 5,211     |                                      | 14,316      |                                 
|Pack horses                         | 18,057      |                          | 6,522     |                                      | 11,535      |                                 
|Total Depreciable Assets            |             |                          |           |                                      |             |                                 
|                                    |             |                          |           |                                      |             |                                 
|Non Depreciable
    Capital Assets: |             |                          |           |                                      |             |                                 
|Gold samples                        | 77,350      |                          | -         |                                      | 77,350      |                                 
|Total Capital Assets                | $ 2,726,815 |                          | $ 720,303 |                                      | $ 2,006,512 |                                 

Total depreciation expense for the nine months ending November 30, 2006 and
2005 is $404,529 and $256,841 respectively.

NOTE 4 - RELATED PARTY TRANSACTIONS



On occasion, the Company's shareholders 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 $151,779 and $14,465 at November 30, 2006 and February 28,
2006, respectively. During the nine months ended November 30, 2006 the Company
included in mineral exploration expense $890,736 ($205,336 for the nine months
ended November 30, 2005) in transactions with a company controlled by an officer
and director of the Company. The transactions were recorded at fair market
value.



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 $643,000
as of November 30, 2006, have been made to the barn and office.

NOTE 5 - PREFERRED STOCK



The Company is authorized to issue 20,000,000 shares of
$0.0001 par value preferred stock. Each preferred share is 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 November 30, 2006 and February 28,
2006, the Company had 2,000,000 shares of preferred convertible stock issued and
outstanding.



NOTE 6 - 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 November 30, 2006 and February 28, 2006, the Company had
28,435,782 and 25,202,800 shares of common stock outstanding, respectively.



During the year ended February 29, 2004, the Company issued
3,800,000 shares at $1.25 per share of its common stock in connection with the
acquisition of certain mining claims in the Dawson Mining District of Yukon
Territory in Canada. Also, during the year ended February 29, 2004, the Company
sold in a private placement 1,040,000 shares of its common stock at $2.50 per
share for cash and subscriptions receivable of approximately $2,600,000.



During the year ended February 29, 2004, certain Company
shareholders elected to forgive $31,500 of unsecured, long-term debt bearing
interest at 10% per annum. The shareholders also elected to forgive $5,756 of
accrued interest on the debt and $16,156 of accounts payable owed them. The
aggregate amount of $53,412 for shareholder forgiveness has been recorded as a
contribution of capital on the Company's statement of stockholders' equity.



During the year ended February 28, 2005, the Company sold
through private placements 1,090,000 shares of its common stock at $2.50 per
share for total net cash proceeds of $2,371,607.



During the year ended February 28, 2005, the Company issued
200,000 shares of common stock having an intrinsic value of $2.50 per share for
a total value of $500,000 as part of a mineral rights acquisition agreement.



During the year ended February 28, 2006, the Company sold
through private placements 50,000 common shares at $1.25 per share for total
cash proceeds of $62,500; 2,073,000 common shares at $2.50 per share for total
net cash proceeds of $4,574,600; and 1,300,000 common shares at $2.75 per share
for total net cash proceeds of $3,391,700.



During the nine months ended November 30, 2006, the Company
sold through private placements 200,000 common shares at $2.50 per share for
total cash proceeds of $449,990; 3,032,982 common shares and warrants at $2.75
per unit for total net cash proceeds of $7,295,810



From inception as an exploration stage company, the Company
has paid commissions on sale of stock in the amount of $1,875,540.



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. The following
assumptions were made to value the warrants for the nine months ended November
30, 2006; 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          | 0.2 years                       | $ 3.50                
|Issued                                         | 3,032,982          | 0.6 years                       | 3.50                  
|Exercised                                      | -                  |                                 | -                     
|Rescinded or expired                           | (10,000)           |                                 | 3.50                  
|Outstanding and exercisable, November 30, 2006 | 4,322,982          | 0.5 years                       | $ 3.50                





NOTE 7 - STOCK-BASED COMPENSATION AND STOCK OPTIONS

During the year ended February 29, 2004, the Company's board of directors
approved the Stock Compensation Plan, subsequently renamed the "2003 Stock
Incentive Plan for Employees" ("the 2003 plan") to allow up to 2,800,000 shares
of company stock to be issued. This plan enables the Company to grant stock
options to directors, officers, employees and eligible consultants of the
Company. With a duration of 10 years, the plan may be modified without
shareholders' approval. In 2005, the Company amended the 2003 Stock Incentive
Plan for Employees, and authorized a post-effective amendment to the Statement
of Form S-8 Securities.

During the year ended February 28, 2006, the Company's board of directors
approved the 2005 Stock Incentive Plan for Consultants and Advisors ("the 2005
Stock Incentive Plan") to allow up to 2,800,000 shares of company stock to be
issued. This plan enables the Company to grant stock options to eligible
consultants and advisors of the Company. The 2005 plan has a duration of 10
years and may be modified without shareholders' approval.

During the year ended February 28, 2005, the Company granted options, under
the 2003 plan, to purchase a total of 1,200,000 shares of common stock to its
employees and directors at $1.00 per share. During the year ended February 28,
2006, the Company amended the terms of the stock options granted to employees
and directors to allow the options to fully vest upon award. During the year
ended February 28, 2006, the Company granted options to purchase a total of
30,000 shares of common stock to an employee at $2.50 per share. These shares
are fully vested and exercisable over a five year term. The Company recognized
employee compensation expense of $2,793,010 during the year ended February 28,
2006 for all vested options.

During the nine months ended November 30, 2006, 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
nine months.

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 nine months ended November 30, 2006:





|                                                                                                  | 2003 Stock Incentive Plan     | 2005 Stock Incentive Plan       | Total                        
|------------------------------------------------------------------------------------------------- | ----------------------------- | ------------------------------- | -----------------------------
|                                                                                                  | Number of Shares Under Option | Weighted Average Exercise Price | Number of Shares Under Option
|Outstanding
    February 28, 2005                                                                 | 1,200,000                     | $ 1.00                          | -                            
|Granted                                                                                           | 30,000                        | 2.50                            | -                            
|Exercised                                                                                         | -                             | -                               | -                            
|Rescinded or
    expired                                                                          | -                             | -                               | -                            
|Outstanding
    February 28, 2006                                                                 | 1,230,000                     | 1.04                            | -                            
|Granted                                                                                           | 350,000                       | 2.50                            | -                            
|Exercised                                                                                         | -                             | -                               | -                            
|Rescinded or
    expired                                                                          | -                             | -                               | -                            
|Outstanding at
    November 30, 2006                                                              | 1,580,000                     | $ 1.36                          | -                            
|Exercisable at
    November 30, 2006                                                              | 1,580,000                     | $ 1.36                          | -                            
|Weighted average
    fair value of options granted during the nine months ended November 30, 2006 |                               | $ 1.75                          |                              





NOTE 8 - COMMITMENTS AND CONTINGENCIES



Consulting Agreements

On January 4, 2005, the Company entered into a consulting agreement with
Image Point Design ("IPD") to provide project management for media and investor
relation services. Under the terms of the agreement, the Company will pay IPD up
to a maximum of $81,000. Termination of the contract is at the Company's sole
discretion. In addition, the Company agreed to issue 100,000 shares at $2.50 per
share as follows: 50,000 shares issued upon signature of contract and 50,000
shares to be issued no earlier than June 1, 2005. During the year ended February
28, 2006, the Company amended the share option offer to comply with the
Company's 2005 Stock Incentive Plan. At February 28, 2006, no shares had been
issued on account of this agreement. During the nine months ended November 30,
2006, the Company modified the agreement to grant stock options in lieu of
shares.

During the year ended February 28, 2006, the Company approved the granting of
300,000 share options at $2.50 per share for future investor relations services.

During the year ended February 28, 2006, the Company acquired a 100% interest
in placer leases in the Indian River and Montana Creek area, along the southern
edge of the Klondike gold fields. The agreement is subject to a one-time payment
of $28,300 for staking costs and a 10% royalty on future production.

During the year ended February 28, 2006, the Company amended
an agreement originating in October 2004, with a privately held company, which
received the first right of refusal to purchase the majority of gold produced by
Klondike Star from the Klondike Mining District at a 2% discount from the LME
spot price. The right of first refusal is subject to Klondike Star proceeding
through exploration, pre-feasibility, final feasibility and building of a
producing mine on mineral claims in the Klondike Mining District. In
consideration for such rights, the privately held company agreed to purchase
1,000,000 shares of the Company's common stock at $2.50 per share before
February 28, 2006. Klondike Star granted an extension to the privately held
company to purchase the 1,000,000 common shares. Further, subject to the
execution of agreements giving effect to the transactions contemplated in the
agreement, the privately held company shall receive the option to make further
subscriptions for shares, subject to the same terms and conditions, following
completion of the subscription of the first 1,000,000 shares, as follows:

1,000,000 shares at $3.50 by January 25, 2007 
1,000,000 shares at $4.50 by January 25, 2008
1,000,000 shares at $5.50 by January 25, 2009 
1,000,000 shares at $6.50 by January 25, 2010

The shares are subscribed for pursuant to the provisions of
Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D
promulgated by the Securities and Exchange Commission. The offered shares are
restricted shares under the Securities Act of 1933 and the Exchange Act of 1934
and Rule 144 under the Securities Act of 1933. As of November 30, 2006, the
Company entered into negotiations to reactivate the agreement and received cash
towards the purchase of 200,000 common shares at $2.50 per share.

During the year ended February 28, 2006, the Company entered into an
agreement to acquire up to 75% interest in claims covering gold bearing quartz
pebble conglomerate in the Indian River area, along the southern edge of the
Klondike gold fields. The agreement requires cash payments totaling $145,000
over 5 years and certain work commitments to acquire a 55% interest. Producing a
bankable feasibility study and arranging project financing can earn a further
20% interest in the project.

During the year ended February 28, 2006, the Company entered into an
agreement to acquire up to 75% interest in certain claims covering an epithermal
gold target in the Tintina Gold Belt, Yukon, Canada. The agreement requires cash
payments to Klondike Gold Corp. (TSXV:KG) totaling $200,000 over 4 years and
work commitments totaling $500,000 to acquire a 55% interest. Producing a
bankable feasibility study and arranging project financing can earn a further
20% interest in the project.

During the year ended February 28, 2006, the Company entered
into an agreement to acquire up to 75% interest in certain claims covering
several copper-zinc and nickel-platinum group targets in the Kluane Mineral
Belt, Yukon, Canada. The agreement requires cash payments to Klondike Gold Corp.
(TSXV:KG) totaling $265,000 over 5 years and work commitments totaling
$2,225,000 to acquire a 55% interest. Producing a bankable feasibility study and
arranging project financing can earn a further 20% interest in the project.

During the quarter ended May 31, 2006, the Company acquired
from Klondike Source Limited (NSX: KSL) subsidiary, KSL Exploration (Yukon)
Limited, the exclusive right to purchase an undivided 100% interest in one or
more claims in the DOM block located at Hunker Dome block located at Hunker Dome
in the eastern part of the Klondike goldfield. The purchase price for the entire
group of 56 claims is $500,000 CDN. Purchase of any claim or claims will entitle
KSL to a royalty of 2.5% of net smelter returns. At the headwaters of Dominion
Creek, these claims, along with 168 adjacent claims previously staked or held by
Klondike Star Mineral Corporation have been consolidated to establish a new
exploration project known as, the Dominion Project.



During the quarter ended May 31, 2006, the board of directors modified the
terms of the stock awards to certain consultants to granting of stock options,
fully vesting upon award. The Company has previously recognized $250,000 expense
against these stock awards.

During the quarter ended May 31, 2006, the board of directors approved the
granting of stock options to certain consultants, subject to filing certain
documentation with the Securities and Exchange Commission.



During the quarter ended November 30, 2006, the Company
entered into an agreement with JAE Resources Ltd to acquire a 100% option on
certain quartz claims within the Klondike region, Yukon Canada, with future cash
payments of $35,000 CDN by May 31, 2007; $50,000 CDN by May 31, 2008; $60,000CDN
by May 31, 2009; $80,000 CDN by May 31, 20101; and work commitments totaling
$300,000 CDN on the property before May 31, 2011. The Company is required to pay
a royalty equal to 3% of net smelter returns.



During the quarter ended November 30, 2006 the Company
entered into an agreement with joint ventures collectively referred to as 19651
Yukon Inc. to acquire an option for a 49% interest in certain placer properties
within the Klondike region, Yukon Canada. The option agreement requires future
annual payments of $7,875 CDN by June 29 for the years 2007 to 2010. The Company
is entitled to charge a 15% administration fee on certain exploration work
incurred on the properties.

Warrants

During the year ended February 28, 2006, the Company issued a private
placement memorandum to issue 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. As of November 30, 2006 the Company
has sold 4,332,982 units.

Compliance with Environmental Regulations

The Company's mining activities are subject to laws and regulations
controlling not only the exploration and mining of mineral properties, but also
the effect of such activities on the environment. Compliance with such laws and
regulations may necessitate additional capital outlays, affect the economics of
a project, and cause changes or delays in the Company's activities.

NOTE 9 - SUBSEQUENT EVENTS



Subsequent to the quarter ended November 30, 2006, the
Company paid an additional deposit of approximately $159,000 CDN ($138,000 US)
to acquire certain diamond drilling equipment.

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10-QSB ended November 30, 2006

Management's Discussion and Analysis

As of November 30, 2006, Klondike Star Mineral Corporation is an established
exploration company actively working on eight gold, base and precious metal
properties, totaling approximately 463 km2 or 179 mi2 in
the Yukon, located in the northwest corner of Canada. The Company is developing
extensive surface and subsurface mineralized zones on an about 370 km2
or 143 mi2 land position underlying the site of the world-renowned
Klondike gold producing region. These holdings include, but are not limited to
properties known as the Lone Star Project and the Indian River Placer Project.

Additionally, the Company holds strategic interests in approximately 93 km2
or 36 mi2 of select high potential targets for gold, base and
precious metals in the Watson Lake and Whitehorse mining districts of the Yukon.
These include properties known as the Spice Project in the Watson Lake Mining
District and the Ultra Project in the Whitehorse Mining District.



Description of the Business

From inception as a mineral exploration stage enterprise in December 2003,
the Company has acquired mineral properties, negotiated joint ventures,
established financing arrangements, and planned and conducted exploration
activities involving 8 different projects in the Yukon, Canada.

Mineral exploration and mine development includes such activities as
conventional prospecting, geological/geophysical surveys and research, as well
as excavation, diamond and auger drilling, analysis of core, soil, mini and bulk
samples, milling and testing of processing technologies, mineral resource
assessment, facility construction and maintenance, equipment acquisition and
maintenance, road and access construction, scoping studies and environmental
monitoring for potential mine development.

In 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 eight
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.

Klondike Star is advancing its projects operating under a multi-prong
strategy. This strategy is founded on and features such elements as:

* undertaking mineral exploration and development within a sustainable
    development paradigm;

* selecting and advancing quality mineral exploration projects managed
    and evaluated by a team of qualified industry professionals;

* establishing links with internationally recognized university-based
    geology resources for expertise and access to leading technology in
    geological science;

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

* forging strong relationships with financial professionals in order to
    provide adequate capital investment for its projects with the goal of
    bringing new mining production on-stream in the future;

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

* acquiring and supporting a large and growing shareholder base;

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

* building shareholder value through every aspect of the Company's
    business and operations.

The Company currently has a year-round full-time equivalent labour force of
about 15-20 employees that expands to 60-80 employees, contractors and
consultants during the summer/fall exploration season, with a winter seasonal
labour force of about 10 employees.

Klondike Star Mineral Corporation is listed on the NASD:OTCBB trading under
the symbol "KDSM".

Third Quarter Performance

Highlights for the three-months ending November 30, 2006 include:

Operational

- Completing aggressive exploration programs on Company properties, with some
expansions from planned activity, such as more bulk sampling, an IP geophysical
survey and delineation of new drill target zones on Lone Star Project, and bulk
sampling on the Dominion Project; along with some adjustments from planned
activities, such as a lower level of diamond drilling on Lone Star and Ultra
Projects (both due to North American shortage of drilling resources) and
re-scheduling of diamond drilling on the Spice Project from the winter 2006 to
spring of 2007;

- Expanding the Dominion and Bonanza Projects by 65 mineral claims helping to
further consolidate and strengthen these properties;

- Releasing Lone Star Project diamond drilling results that continue to
increase the estimated mineralized area/resource, without yet defining limits in
any direction, along with the identification of entirely new drill target zones
for future investigation;

- Purchasing a new, flyable diamond drilling rigs, thereby managing a risk
for planned and future exploration objectives;

- Completing the first stage of the test mining program on a selected site on
the Indian River Placer Project; the results validated placer gold estimates
from previous auger drilling and confirmed the justification of an expanded test
mining program in 2007 and ongoing business planning towards mine development;

- Opening the winter exploration base facility, mobilizing crews and
launching the winter auger drilling program at the Indian River Placer Project
with a target of 150-200 holes between November and April 2007.



Financial

- Unaudited loss from continuing operations for the nine months ending
November 30 was approximately $7,790,735 (loss of $0.30 per common share)
(November 30, 2005 - approximately $7,460,403 loss from continuing operation and
$0.33 loss per common share) and cash used in operating activities for the nine
months ended November 30, 2006 was approximately $6,316,280 compared with
approximately $4,377,877 for the nine months ended November 30, 2005;

- During the third quarter, the Company issued $2,375,516 of restricted
common stock and warrants for cash, net of commissions and related expenses,
which was used to finance working capital for current and future exploration
activities;

- The changes in cash flow used in operations from November 2005, to November
2006, are related to the increased number of exploration projects underway in
the third quarter ending November 30, 2006, and the scope of activities on
certain of the projects as compared to November 30, 2005.

Klondike Star Mineral Corporation is an established exploration and
development company actively working on eight gold, base and precious metal
major projects totaling 463 km2 or 179 mi2 in the Yukon,
Canada. The Company is developing extensive surface and subsurface mineralized
zones on a 370 km2 or 143 mi2 land position underlying in
the site of the world-renowned Klondike gold producing region, and 93 km2
or 36 mi2 of select high potential targets in other parts of the
Yukon. During the coming year, the company expects to continue increasing its
land holdings, projects and exploration effort.



|Financial indicators                                                       
|---------------------------------------------------------------------------
|                                                                           
|Total expenses                                                             
|Net loss from continuing
    operations                                    
|Cash raised by financing
    activities                                    
|Cash used in operating
    activities                                      
|Cash and cash equivalents on
    hand                                      
|Net loss per common share: Basic
    and Diluted                           
|Weighted average number of
    common shares outstanding: Basic and diluted
|Cash dividends declared per
    common share                               
|Property, plant and equipment,
    net                                     
|Long-term debt                                                             
|Shareholders' equity                                                       



|Investor relations indicators                                           
|------------------------------------------------------------------------
|                                                                        
|Common shares issued and
    outstanding                                
|Restricted shares                                                       
|Free trading shares                                                     
|Warrants outstanding                                                    
|Share price range                                                       
|Share volume monthly high                                               
|Shareholders                                                            
|Share options authorized and
    unexercised (total in reporting period)

Share price from January 2004 to quarter ended November 30, 2006

(Source: Bell Globemedia Publishing Inc. 2006)

| |  | 
| |  | 













|Ownership
    of mineral rights and resources
|---------------------------------------------
|Project                                      
|Lone Star                                    
|Eldorado Placer                              
|Indian River Placer                          
|Indian River Conglomerate                    
|Spice                                        
|Ultra                                        
|Dominion                                     
|Bonanza                                      

Future financial condition

Since 2003, the Company has raised capital successfully by way of private
placements. Through recent placements and warrants, the Company expects to have
the resources necessary to expand its exploration program, acquire new
properties and move ahead with mining feasibility planning and development. The
Company has forged strong relationships with financial professionals in order to
provide adequate capital investment for its projects with the goal of bringing
new mining production on-stream in the future. Commencing a placer operation on
the Indian River Placer Project would create a positive cash flow and change the
status of the company to that of a producer.

|Sales of unregistered securities
    by period | Total common shares sold | Total cash value of shares sold ($USD)
|---------------------------------------------- | ------------------------ | --------------------------------------
|Year ended February
    29, 2004               | 1,040,000                | 2,600,000                             
|Year ended February
    28, 2005               | 1,090,000                | 2,725,000                             
|Year ended February
    28, 2006               | 3,423,000                | 8,820,000                             
|Nine months ended
    November 30, 2006        | 3,232,982                | 8,840,700                             



Company policy is to expense mineral rights acquisitions and exploration
activities to prove up resources and reserves as mineral exploration
expenditures. At year-end, the Company owns the right to explore 394 km2,
or 152.1 mi2 of mineral claims and leases. At February 2006 year end,
the Company owned the right to explore 394 km2, or 152.1 mi2
of mineral claims and leases. At the first quarter ended May 31, 2006, the
Company owned the right to explore 439 km2 or 169.2 mi2 of
mineral claims and leases. At the second quarter ended August 31, 2006, the
Company owned the right to explore 463 km2, or 179 mi2 of
mineral claims and leases. At the third quarter ended November 30, 2006, the
Company owned the right to explore approximately 463 km2, or 179 mi2
of mineral claims and leases

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.

Industry and economic affecting performance

The outlook for resource industries is becoming positive, as higher commodity
prices result in a return to profitability for corporations, particularly in the
mines and metals sector. As well, major mining companies are affected by
depletion of their reserves and resources, raising concerns about shortages of
metals for the future.

The outlook for gold is currently favorable, due to the present supply/demand
deficit. Management is of the current opinion that the condition of declining
world gold mine output may not find relief until approximately 2011, when enough
new mines can come on-stream to overcome the depletion of existing mines.



The increasing price of gold and precious metals may result in a new area of
favorable economics in the mining industry. At a time when gold was averaging
$390, subject to certain assumptions, management considered that 1 gram of gold
per tonne of ore may be sufficient to achieve profitability, provided sufficient
scale under specific conditions.  If the future price of gold maintains
current higher levels, it could mean a new understanding of the threshold of
economics for large-scale gold mining operations.

The normal cyclical nature of a metals cycle is often a boom/bust scenario,
often with a 5 year average. Characteristically, major mining companies do not
make capital investment at the top of these cycles, rather at the bottom. Major
mining companies are investing heavily, and repositioning through the
acquisition of other companies and properties, as if this is going to be an
extended long-term cycle. This suggests long-term demand for copper, zinc and
particularly gold.

During the first half of fiscal 2007, the generally sustained strength of the
Canadian dollar relative to the U.S. dollar continued to reduce the exchange
gain on the value of the total expenditures made on company properties in Canada
relative to prior years.

Resource Sector Outlook

There has been substantial activity within the Mines and Metal Sector so far
in 2006.  Many major mining companies have been involved in take-over
battles as the industry consolidates and shapes new 'super' mining giants at the
top of the industry.

Exploration expenditures have increased globally and in all sectors and as
funding increases, particularly in the early part of the year, with high metals
prices and a strong market for mines and metal stocks.  This will lead
towards discoveries and results that will draw attention to the sector and
eventually attract further investment.

The gold price broke out of a range in the mid-$400's in November 2005, and
proceeded through various resistance levels to $500, $540, $570, $610 until it
encountered the $650-$680 distribution, visible back in the early 1980's. 
The brief move above $680 to an intra-day high of $740 was short-lived. 
The sell-off that followed carried gold down to $540, with good base building
between $570 and $650 since.  Management believes that the market price for
gold will remain strong, despite the recent fluctuations, given fundamental
concerns about the demand/supply gap, declining central bank reserves,
persistent currency debasement, geopolitical strife and commodity inflation.

Base metal prices have had similar declines.  The company maintains a
view that market conditions across the board will keep metal prices strong and
lead to higher metal prices in the future.

Risks

Risks related to Company business

The Company's business model may not be sustainable:

The Company began active operations in 2004 as a mineral exploration
enterprise. Although the mineral properties acquired already have had
substantial funds spent on research, exploration and development, including
infrastructure such as roads, exploration camp facilities, core shack and test
mill, the Company expects to incur significant additional development,
exploration and communication expenses in connection with the business. To date,
the Company has generated no revenue. It is expected the Company will continue
to incur operating losses for the foreseeable future, and the Company may never
achieve or sustain profitability. There are no assurances the Company will
effectively build an operating mine.

The Company's future operating results are unpredictable:

Due to the absence of any revenues generated from our business model, and
given the period of expenditures envisioned by our mineral explorations plans
for the next several years, it is foreseeable that the Company may require
further capital injections in order to finance planned exploration activities.

Mineral exploration and development involves a high degree of risk, and few
properties which are explored are ultimately developed into producing mines. The
Company's properties are still in the developmental and testing stages and may
never reach a production stage. The Company's revenue model is dependant upon
identifying and accessing a viable ore body that can prove feasible for
production. The failure to identify and finance such a mine could have
detrimental effects on the Company.

The Company may never generate revenues. Even if the Company does generate
revenues, there is no assurance the Company will ever be profitable.

Operations and management:

A practical operational risk factor relates to the timely availability of
necessary skilled labor and resources through recruitment, contracting or joint
ventures. Although Klondike Star has and continues to invest proactively in
solutions to these risks, one risk that is pervasive in the mineral exploration
industry relates to the shortage of experienced diamond drillers in North
America. Demand is outstripping qualified supply of these technical services so
essential to advancing the understanding of potential mineral resources.
Klondike Star requires diamond drilling capability on a timely basis for four
Projects: Lone Star, Dominion, Spice and Ultra.

In order to achieve its objectives, the Company may add key people to the
management team. The Company requires highly skilled technical, administrative,
fleet management, sales and marketing, accounting, communications, research and
development personnel, who are in high demand and are often subject to competing
offers. As the Company grows, it will continue to need an increased number of
management and support personnel.

Intense competition may affect Company profitability:

The Company faces many competitors that have been in business longer than we
have. These competitors have the advantage of having entered the market earlier
than the Company. There are a number of other projects currently existing in the
Company's market place. These competitors are already accepted in the market
place. The Company may therefore be unable to gain adequate market support to
meet financial projections. The Company cannot assure you that its competitors
will not develop projects that are equal or superior to those of the Company, or
that achieve greater market acceptance.

Risk of equipment failures and loss of proprietary information:

The Company's operations depend on our ability to protect our proprietary
information. Additionally, the Company is dependent upon its consultants and
contractors.

The Company's projects are subject to, in part, damage from potential dangers
such as fire, earthquake, power loss, vandalism, computer viruses,
telecommunications failures and other acts beyond its control. Any temporary or
permanent loss of one or more of these systems or facilities from an accident,
an equipment malfunction, or some other cause could cause a loss. The Company
has taken measures to protect its systems and equipment from these dangers,
however there can be no assurances that these measures will be successful as
planned.

The Company may also be faced with the misappropriation or theft of its
proprietary information. The Company cannot ensure its proprietary information
will not be stolen or otherwise misappropriated. The Company will undertake
legal means to protect its information, but it cannot ensure it will be
successful in such endeavours. The Company may be forced to spend substantial
amounts of money in protecting its proprietary information and/or prosecuting
lawsuits against parties misappropriating such information.

The inability of the Company to adequately protect its assets and properties
could have a materially adverse effect on the financial condition of the
Company.

Rights to mineral claims and leases involve uncertainties:

Rights to surface and subsurface mining properties involve certain inherent
risks due to the difficulties of determining the validity of certain claims, as
well as the potential for problems arising from the frequently ambiguous
conveyance history, characteristic of many mining properties. Although the
Company has taken steps to verify and protect the title to, and ownership
interests and options in, the mineral properties in which it has an interest, in
accordance with industry standards for the current stage of exploration of such
properties, these procedures do not guarantee the Company's rights or interests.
These rights or interests may be subject to unregistered prior agreements or
transfers and be affected by undetected defects.

Additional capital may be needed:

The Company requires substantial working capital to fund its business. The
Company will need to raise additional funds through public or private financing.
Selling additional stock could dilute the equity interests of the Company's
stockholders. If the Company borrows money, it will have to pay interest and may
also have to agree to restrictions on its operating flexibility. The borrowing
of additional monies may put a strain on the Company and its ability to develop
and or expand.

Risks related to the mineral exploration and production industry

Commodity cycles:

The Company's projects are characterized by rapidly changing market cycles,
extensive research and new mine introductions. The Company believes that its
future success will depend in part upon its ability to continue to enhance its
existing properties and to advance one or more projects to a production
decision. As a result, the Company expects to continue to make a significant
investment in exploration research and development, subject to the availability
of working capital. The Company presently has limited working capital and is
dependent upon its ability to raise further working capital to conduct its work.

Mineral exploration and development involves a high degree of risk and few
properties which are explored are ultimately developed into producing mines.
There can be no assurance that the Company will be able to advance its
properties to a production decision. The failure of the Company to develop new
mines and finance them to production successfully and in a timely manner could
adversely affect the Company's competitive position, financial condition and
results of operation.

Adoption of new laws and government regulations relating to the mining
industry could harm the Company's business:

The Company's business is subject to various local, territorial, provincial,
First Nations, national and international laws that affect mining and the
building of new mines. Other laws and regulations related to health, safety,
working conditions, environment, land and water use, and other related laws and
regulations may also affect the Company.

The Company relies upon various mining land use permits and water licenses to
operate and grow the business. As the regulatory agencies change and introduce
new requirements, the Company may incur difficulties in acquiring such permits
and licenses in the future, which could adversely affect future development of
the Company's properties.

There can be no assurances that governmental action will not adversely affect
the Company and its business.

Health and safety risks:

Health and safety for employees and contractors is a known risk factor for
any mineral exploration and development business. Despite an uncompromising
commitment to superior safety performance and healthy workplace, incidents can
and do happen with the potential for material consequences.

Under the guidance of the Board Environment, Health and Safety Committee, the
Company has established policy and guidelines, and employs industry best
practices to address this risk effectively and efficiently. Klondike Star
Mineral Corporation has an uncompromising commitment to superior safety
performance and a healthy work place.

Environmental and permitting risks:

The Company also relies upon various mining land use permits and water
licenses to operate and expand the business. As the regulatory agencies change
and introduce new requirements, the Company may incur difficulties in acquiring
such permits and licenses in the future, which could adversely affect future
development of the Company's properties. The J.A.E. claim block acquired as an
expansion of the Dominion Project during the second quarter came with an
existing mining land use permit. The Indian River placer properties acquired in
the second quarter came with the benefit of both mining land use permits and
water use authorization.

Company policy is based on the view that solid environmental performance
within a sustainable development approach is a leading indicator of a
well-managed, efficient and competitive corporation acting in the best interests
of its business, its shareholders, its employees and the communities in which it
operates.

Dependence upon third parties:

The Company is reliant, in part, upon third parties for its success. The
Company may utilize third parties to assist in the exploration and development
work, communications, management and financial consulting and other services.
The Company cannot ensure the actions of one or more third parties will not
adversely affect its business.

Additional business risks:

The occurrence of any of the foregoing, alone or in combination, may cause
our business to fail and result in the loss of your entire investment. Even if
the business avoids the foregoing, our success may still be impeded by the
following: (a) the Company may be accused of infringing the proprietary rights
of third parties; or (b) the Company may enter into strategic relationships that
fail to provide anticipated benefits.

Corporate governance matters

During the year-ended February 28, 2006, the Board of Directors and
management strengthened corporate governance through the establishment of
charters and guidelines for the Board of Directors, a new Audit Committee and a
new Environment, Health and Safety Committee. The company developed and adopted
new bylaws, new policies and introduced rigorous management practices, including
the Code of Business Conduct and Ethics. In the first quarter ended May 31,
2006, action plans were developed and approved for implementation of the Health
and Safety Policy and the Environment and Sustainable Development Policy. In the
third quarter ended November 30, 2006, a Company disclosure and director
compensation policies were adopted.

The Annual Meeting of Shareholders was held on November 15, 2006, at
Bellevue, Washington. The Shareholders elected the Board members to additional
terms, approved the increase in the authorized common stock to 120,000,000 and
reappointed Williams & Webster as independent auditors of the Company.

The Board of Directors met twice during the third quarter to address such
matters as the Annual Meeting of Shareholders, proposed disclosure policy and
guidelines, initiation of a strategic planning process, quarterly SEC filings,
financing and the 2006 annual report.

The Audit Committee met twice during the third quarter to address such
matters as implementation of Section 404 of the Sarbanes-Oxley Act (including
top down assessment of internal controls), preparations for year-end audit,
quarterly SEC filings, implementation of the Code of Business Conduct and
Ethics, the annual meeting with independent auditor, and plan for implications
of the Company's change to accelerated filing status and exit from the small
business reporting system.

The Environment, Health and Safety Committee met once during the third
quarter to consider quarterly management reports on implementation of the
Environment and Sustainable Development Action Plan and the Occupational Health
& Safety Action Plan, review regulatory inspection reports and industry best
practices, results of the first aid, fuel and emergency response assessments,
and examine operating permits and authorizations as part of a Company-wide risk
management review.

Exploration and development projects overview

Seven of eight Company exploration projects are situated in the Tintina Gold
Belt that spans Alaska, and Yukon and the Northwest Territories in Canada.

Six of eight exploration projects are located in the historic and still
active gold-producing region of the Klondike Plateau in the Dawson Mining
District, Yukon.

Two projects are advanced-stage exploration and early development projects:

* Lone Star Project;

* Indian River Placer Project.

Three projects are drill-ready, intermediate-stage exploration projects:

* Spice Project;

* Ultra Project;

* Dominion Project.

Three projects are early-stage exploration projects:

* Indian River Conglomerate Project;

* Eldorado Placer Project;

* Bonanza Project.

The summer/fall exploration season on seven projects concluded towards the
end of October. Consolidated assessments of results along with planning for the
2007 exploration season are in progress. The arrangement to option mining on the
Eldorado Placer Project to an experienced placer miner was cancelled in the
second quarter, and following a review of options, discussions with other
parties were initiated in the third quarter.

Following an assessment of alternatives for increasing the company's capacity
to meet its planned and future diamond drilling requirements, the Company
acquired a newly constructed, flyable diamond drilling rigs and has initiated
plans to hire and train local crews on a phased basis. This initiative is
anticipated to give Klondike Star more capacity, flexibility and control over
its drilling programs. These resources would be in addition to those currently
provided by another supplier.

Klondike Star is continuing to work towards industry-standard mineral
resource assessments and scoping studies for the Lone Star and Indian River
Placer projects.

|Mineral rights indicators                       
|------------------------------------------------
|Q3 ended November 30, 2006                      
|Exploration projects                            
|8                                               
|Quartz mining claims                            
|2396                                            
|Total area of quartz claims
    and crown grants
|418.3 km2 or 161.5 mi2                          
|Placer mining claims                            
|No change                                       
|Total area of placer claims
    and leases      
|No change                                       



|Mineral resources and
    reserves
|----------------------------------
|Project                           
|Lone Star                         
|Indian River Placer               
|Dominion                          
|Bonanza                           
|Spice                             
|Ultra                             
|Indian River Quartz               
|Eldorado Placer                   



|Exploration
    and development stage by project (Footnote 1)
|-------------------------------------------------------------
|                                                             
|Lone Star                                                    
|Indian River Placer                                          
|Dominion                                                     
|Bonanza                                                      
|Spice                                                        
|Ultra                                                        
|Indian River Conglomerate                                    
|Eldorado Placer                                              



|Operational indicators                         
|-----------------------------------------------
|                                               
|Diamond drill holes and total
    meters (feet)
|Auger drill holes and total
    meters (feet)  
|Surface trenching and sampling                 
|Assay and other analysis                       
|Health and safety incidents                    
|Environment-al incidents                       

Footnote 1: Definitions of exploration stage

Where a project fits on the spectrum of exploration and development is in
part a matter of judgment exercised by management;

Early stage exploration - grass roots prospecting, mapping, analysis of
regional/site geology, trenching and chip sampling, staking of claims possibly
with a few holes drilled with useful results;

Intermediate stage exploration - exploration continues including
mini-bulk sampling, soil chemistry, geophysical surveys and analysis as
appropriate with more holes drilled with useful results;

Advanced stage exploration - full-scale bulk sampling, mineral assessment
establishes resource development potential, scoping or pre-feasibility study
completed or nearing completion with positive results, environmental baseline
research and assessment in progress;

Early development - bulk sampling and test mining, on-site testing of
processing technology for throughput and mineral recovery; decision made to
proceed with pre- or full feasibility study in progress or completed; scoping of
environmental assessment and permitting completed and necessary steps initiated;

Development - environmental assessment completed, permits obtained,
financing lined up, construction to begin in the next 6 - 12 months; or mine
under construction through commissioning;

Production - operating mine with sales and revenue.

Advanced-stage exploration projects

LONE STAR PROJECT

The Lone Star Project is an advanced-stage gold exploration property that is
being studied for potential mine development. The Project consists of 1056
mineral claims and crown grants totalling 152 km2 (58.7 mi2). Lone Star is the
largest project of six in the gold-producing Klondike region of Yukon, Canada.

The property is situated in the Tintina Gold Belt spanning Alaska and the
Yukon that includes producing mines and major deposits. The Lone Star Project is
located 20 km from Dawson City and is accessible by summer-maintained, graded
gravel roads linking with the Klondike Highway.

First assembled by Canadian mine-finder Richard Hughes, the initial 500
mineral claims in the Klondike (now called the Lone Star Project) were optioned
to Klondike Star in December 2003. It is the site of the former producing Lone
Star Mine (1912-14) and decades of previous exploration.

Since acquiring the property, the Company has become the majority owner and
operator, increased the size of the project from 500 to 1056 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. Diamond drilling is delineating the extent of the known gold
bearing ore body in the primary zones of interest, including the Lone Star and
extensions, the Buckland between Gay Gulch and 27 Pup, and the Nugget Zone above
Oro Grande Gulch.

On-site exploration infrastructure includes living accommodation, kitchen,
dining and fitness facilities, a bulk sampling test plant, core shack, ancillary
buildings and tent frames. A gravel airstrip exists on the claim block at
Eldorado Creek just below the main exploration facility.

Exploration results and professional analysis to date indicates the Lone Star
Project represents an extensive mineralized area with a large-tonnage, low-grade
gold resource augmented by higher grade zones that warrants an expanded
exploration 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. Assay results from the
2005, exploration season were released sequentially October 6, 2005, to January
24, 2006. During the May to October, 2006, summer exploration program, the focus
was on diamond drilling and bulk sampling, as well as an aerial-geophysical
survey. A full-scale scoping study to assess the economic viability of the
mineral deposit remains in progress.

|                                                           | Q3 ended November 30, 2006                                                                                                                          | Q2 ended August 31, 2006                                                                        | Q1 ended
    May 31, 2006 | Year-end February 28, 2006                                                                                                                         | Year-end February 28, 2005                                                            | Change from 2006 year-end to Q 3 ended November 30, 2006                                                                                           
|---------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- | ------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------
|Total claims and crown grants                              | No change                                                                                                                                           | No change                                                                                       | No change                 | 1056                                                                                                                                               | 500                                                                                   | None                                                                                                                                               
|Total area                                                 | No change                                                                                                                                           | No change                                                                                       | No change                 | 152 km2 or 58.7 mi2)                                                                                                                               | 100 km2 estimated or
    38.6 mi2                                                     | None                                                                                                                                               
|Drilling - no. of diamond
    drill holes and total meters | 23 holes totaling 2,892 meters
    or 9,488 feet                                                                                                    | 17 holes totaling 2,100 meters
    or 6,890 feet                                                | No change                 | 32 holes totaling 4830 meters or
    15,846 feet                                                                                                   | 0                                                                                     | Drilling did not achieve target
    due to unavailability of diamond drilling capability and shortage of skilled
    labor                         
|Surface trenching and
    sampling                         | 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 | Trenching not available, bulk
    samples not available, 470 rock samples, and 134 soil samples | No change                 | 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 | Substantive increase in bulk
    sampling; completion of IP survey                                                                                 
|Assay and other analysis                                   | 2866 core samples shipped for
    assay                                                                                                             | 1,883 core samples shipped for
    assay                                                        | No change                 | 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                | The threshold for assay
    requirements was adjusted based on prior year experience, thus significantly
    reducing the volume of assay required.
|Ownership                                                  | No change                                                                                                                                           | No change                                                                                       | No change                 | 55% with exclusive option up to
    75%                                                                                                            | 55% with exclusive option up to
    75%                                               | None                                                                                                                                               

During the year-ended February 28, 2006, the stage of exploration moved to
advanced exploration including diamond drilling, bulk sampling and on-site
processing, and the initiation of a scoping study.

Assay results from the 2005 exploration season were released sequentially
October 6, 2005 - January 24, 2006, and the majority of the results from the
2006 season were released in Q3.

The 2006 summer exploration program ran May through October as planned.
Diamond drilling, bulk sampling, as well as a major geophysical survey proceeded
alongside a scoping study to further delineate the potential mineral
resource/reserve and assess the economic viability of the mineral deposit. New
infrastructure, including a camp accommodation annex, a fitness and recreation
centre, and expanded kitchen and dining facilities have been constructed in the
vicinity of the Eldorado Camp.

The drilling program was designed to further delineate the extent of the
known gold bearing ore body in the primary zones of interest, including the Lone
Star and extensions, the Buckland between Gay Gulch and 27 Pup, and the Nugget
zone above Oro Grande Gulch. Due to lack of diamond drilling capability,
drilling did not keep pace and steps were taken to address this, including an
extended season and acquisition of a company owned diamond drill.

The exploration program was supplemented with an IP geophysical survey and
extensive bulking sampling. A consolidated analysis is in progress.

INDIAN RIVER PLACER PROJECT

The Indian River Placer Project is an advanced-stage placer gold exploration
property. It is located 40 km from Dawson City in the heart of the Klondike
gold-producing region of the Yukon, Canada. The goal is to develop a large-scale
placer mine.

The Indian River Placer Project consists of 214 mineral claims plus 17
leases, totaling 37 km2 or 14.3 mi2. The Indian River is
emerging as one of the most active areas of new investment and productive placer
mining in the Klondike region. Klondike Star Mineral Corporation holds 100%
ownership of 185 claims and 17 leases, as well as 49% interest in 29 additional
claims acquired in the second quarter.

During the 2005/06 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.

During 2006 the shift was made from winter exploration (drilling) to bulk
sampling/test mining and pre-production business planning to determine the
economic viability of the mineral deposit. Using a newly acquired trommel, 2006
summer bulk sampling and test processing was conducted on one site prepared for
this purpose through stripping, clearing and permitting. Test mining was
supervised by an established Canadian firm specializing in mine engineering and
processing technology. Additional upgrading of the access road was completed, a
camp set-up, and stripping of additional bulk sample test sites undertaken as
preparation for the 2007 test mining program.

The objective is to develop a large-scale placer mine.



|                                                         | Q3 ended November 30, 2006                              | Q2 ended August 31, 2006                                                      | Year-end February 28, 2006                                                         | Year-end February 28, 2005                                                      | Change from 2006 year-end to Q 3 ended November 30, 2006           
|-------------------------------------------------------- | ------------------------------------------------------- | ----------------------------------------------------------------------------- | ---------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | -------------------------------------------------------------------
|Total claims                                             | No change                                               | 214 claims and 17 leases                                                      | 185 claims and 17 leases                                                           |                                                                                 | Increase of 29 claims or 16%                                       
|Total area                                               | No change                                               | 37.0 km2 (14.3 mi2)                                                           | 35 km2 (13.5 mi2)                                                                  |                                                                                 | Increase of 2 km2 (0.8 mi2)
    or 5.7%                            
|Drilling - no. of auger drill holes and
    total meters | No change, winter drilling program commencing
    in Q4 | No change                                                                     | 184 holes totaling 2,426 meters or 7,959 feet
    (winter season December - April) | 90 holes totaling 811 meters or 2,661 feet
    (winter season December - April) | No change                                                          
|Bulk sampling                                            | 1 site of 7,249 cubic yards processed                   | None                                                                          | None                                                                               |                                                                                 | Completion of initial phase of first-ever bulk
    sampling program
|Ownership                                                | No change                                               | 100% ownership of 185 claims and 17 leases and
    49% ownership of 29 claims | 100%                                                                               |                                                                                 | Addition of 49% ownership in block of 29 claims                    



Intermediate-stage exploration projects

SPICE PROJECT

The Spice Project is an intermediate-stage gold exploration project that has
moved to a drill ready stage of exploration. As of November 30, 2006, the Spice
Project consists of 51 mineral claims totaling 10.9 km2 (4.2 mi2
). The property is located 28 km east of Ross River and 8 km south of the North
Canol Road in the Watson Lake Mining District, Yukon, Canada. The Spice Project
falls within the Tintina Gold Belt that hosts numerous gold deposits, producing
mines, notably the Fort Knox, Pogo and (former) Brewery Creek, as well as active
exploration projects.

The property has only been explored since 2000, when a regional geochemical
survey conducted by the Yukon Geological Survey, Yukon Government, identified
strong, coincident gold, silver and epithermal pathfinder elements. Follow-up
geochemical sampling identified an open-ended anomalous zone and samples assayed
up to 13.9 grams/tonne gold. An IP chargeability high and low resistivity
coincides with the highest geochemical values.

A first quarter 2006 staking initiative on the Spice Project increased the
land base. Exploration activity during the third quarter included additional
soil geo-chemistry and targeting for a drilling program. The property is drill
ready and a diamond drilling program of identified targets will proceed in the
Spring of 2007. The target is a low-sulphidation epithermal-style gold deposit
hosted by rhyolite, similar to the Grew Creek property 60 km to the west,
currently being explored by another exploration company.

|                                                           | Q3 ended November 30, 2006                                                    | Q2 ended August 31, 2006 | Q1 ended May 31, 2006 | Year-end February 28, 2006                   | Year-end February 28, 2005 | Change for 2006 year-end to Q3 ended November 30, 2006                            
|---------------------------------------------------------- | ----------------------------------------------------------------------------- | ------------------------ | --------------------- | -------------------------------------------- | -------------------------- | ----------------------------------------------------------------------------------
|Total claims                                               | No change                                                                     | No change                | 51                    | 32                                           | 0                          | 19 additional claims or 59.4%                                                     
|Total area                                                 | No change                                                                     | No change                | 10.9 km2 or 4.2 mi2   | 6.7 km2 or 2.6 mi2                           | 0                          | Increase in area of 62.7%                                                         
|Exploration activity                                       | Soil geochemistry and
    identification of targets for planned drill program |                          |                       |                                              |                            | Additional property evaluation
    and specific plans for diamond drilling program
|Drilling - no. of diamond
    drill holes and total meters | Drill targets identified for
    spring 2007 drill program                    | No change                | No change             | 0                                            | 0                          | None                                                                              
|Ownership                                                  | No change                                                                     | No change                | No change             | Exclusive option for up to 75%
    ownership | 0                          | New acquisition in 2006                                                           

ULTRA PROJECT

The Ultra Project is an intermediate-stage base and precious metals
exploration project that has moved to a drill ready stage in exploration.
Following additional staking in the fall of 2005, the Ultra Project consists of
404 mineral claims totaling 82 km2 (31.7 mi2). The targets
include VMS zinc-copper-silver-gold and poly-metallic
nickel-copper-platinum-palladium-gold.

The property is located in the Kluane Mountains, 42 km northwest of Haines
Junction, Yukon, Canada, only 140 km from a deepwater port. Only 10 km west of
the Alaska Highway, it is accessible by rough gravel road. It is near the former
nickel-platinum Wellgreen Mine and an area optioned recently by Falconbridge
Limited (a leading producer of copper and nickel with investments in zinc).
Ultra is also in the same geological zone as the world-class zinc-copper-gold
Windy Craggy deposit in northern British Columbia.

The property is drill-ready based on a multi-year investment in prospecting,
mapping, sampling, airborne and ground geophysical surveys and geochemistry
analysis. The first drilling target is key VMS-style copper-zinc-silver-gold
anomalies that will help to identify the source, distribution and scope of
massive sulphide boulders that are up to 19 tons with assays of 2.1% copper,
5.1% zinc and 25 grams/tonne silver. The second drilling target is for
polymetallic magmatic nickel-copper-platinum-palladium-gold. The Frohberg
showing assayed up to 5.5 grams/tonne platinum, 13.5 grams/tonne palladium, 4.1%
copper and 1.7% nickel; and other outcrop samples assayed at 4.4% nickel and 2.3
grams/tonne of platinum group elements.

|                                   | Q3 ended November 30, 2006                                             | Q2 ended August 31, 2006 | Q1 ended May 31, 2006 | Year-end February 28, 2006                   | Year-end February 28, 2005 | Change from 2006 year-end to Q3 ended November 30, 2006                  
|---------------------------------- | ---------------------------------------------------------------------- | ------------------------ | --------------------- | -------------------------------------------- | -------------------------- | -------------------------------------------------------------------------
|Total claims                       | No change                                                              | No change                | No change             | 404 claims                                   | 0                          | None                                                                     
|Total area                         | No change                                                              | No change                | No change             | 82 km2 or 31.7 mi2                           | 0                          | None                                                                     
|Drilling                           | Drill sites prepared                                                   | No change                | No change             | 0                                            | 0                          | None                                                                     
|Surface trenching and
    sampling | 152 chip and 265 soil samples,
    along with hand and blast trenching | Not available            | No change             | 86 rock and soil samples                     | 0                          | Doubling of rock samples and new
    soil sampling and trenching activity
|Ownership                          | No change                                                              | No change                | No change             | Exclusive option for up to 75%
    ownership | 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.

DOMINION PROJECT

An intermediate-stage gold exploration project at the headwaters of Dominion
Creek, the Dominion Project consists of 224 claims totaling 51 km2
(29.7 mi2). Klondike Star holds 100% or majority interest in 174
claims and an additional exclusive option to purchase an undivided 100% interest
in 85 claims acquired in the first and second quarters ended August 31, 2006.

On April 27, 2006, the Company announced the acquisition from Klondike Source
Limited's (KSL) subsidiary, KSL Exploration (Yukon) Limited, of the exclusive
right to purchase an undivided 100% interest in up to 56 quartz claims in the
DOM block located on Hunker Dome in the eastern part of the Klondike goldfield.
On August 8, 2006, Klondike Star announced the acquisition of the exclusive
option to explore and purchase the J.A.E. claim group on King Solomon's Dome
bordering on mineral claims already held by the Company. The Company has also
staked an additional 118 claims to further consolidate the property into a
single contiguous area.

Since 1999, a portion of the property was explored by KSL Exploration (Yukon)
Limited, a wholly owned subsidiary of Klondike Source Limited, including
drilling, soil sampling and trenching. Before that, United Keno Hill Mines
Limited, longstanding operator of gold and silver properties, such as the Elsa
and Keno Hill mines, invested significant effort on the other portion of the
property. Significant exploration work has been conducted on the J.A.E. claim
block by successive owners. Regional and project-specific infrastructure
includes good seasonal road access.

The area covers several mineralized vein systems, some shafts and a long
tunnel, and has been the subject of percussion drilling, soil geochemistry and
trenching. Various broad zones of disseminated mineralization have been
identified. The objective is to consolidate and ground-truth previous
exploration results, advance knowledge of the mineral resources, take advantage
of extensive trenching in situ, identify future drill targets on a systematic
and expedited basis, and consolidate the property and mineral interests through
a strategic claim staking program. Activities included detailed mapping,
extensive chip/soil sampling, assessment of selected targets among the 65
existing trenches, and bulk sampling and processing through the Eldorado test
plant (total of 8 tonnes). A satellite camp was installed to support project
operations and a site prepared for a planned expansion in 2007.

|                     | Q3 ended November 30, 2006                                                                                                                                                                              | Q2 ended August 31, 2006                                                                                                                                                                                | Q1 ended May 31, 2006                                                                                                                                                                                  | Year-end February 28, 2006                                                                   | Year-end February 28, 2005                                | Change from year-end 2006 to Q3 ended November 30, 2006                         
|-------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------- | --------------------------------------------------------- | --------------------------------------------------------------------------------
|Total claims         | 371                                                                                                                                                                                                     | 345                                                                                                                                                                                                     | 224                                                                                                                                                                                                    | 168                                                                                          | 112                                                       | claims or %                                                                     
|Total area           | 62.8 km2 or 24.2 mi2                                                                                                                                                                                    | 67.4 km2or 26 mi2                                                                                                                                                                                       | 45 km2 or 17.4 mi2                                                                                                                                                                                     | 33.5 km2 or 13 mi2                                                                           | 23.5 km2 or 9 mi2                                         | 29.3 km2 or 11.2 mi2
    or 87.5%                                               
|Ownership            | - 100% ownership of 174 claims- 55% ownership of 112 claims with exclusive option for up to 75%
    - exclusive option to acquire 100% of 56 claims
    - exclusive option to acquire 100% of 29 claims | - 100% ownership of 148 claims- 55% ownership of 112 claims with exclusive option for up to 75%
    - exclusive option to acquire 100% of 56 claims
    - exclusive option to acquire 100% of 29 claims | - 100% ownership of 56 claims- 55% ownership of 112 claims with exclusive option for up to 75%
    - exclusive option to acquire 100% of 56 claims
    - exclusive option to acquire 100% of 29 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 | - 100% ownership of 174 claims- exclusive option for 100% ownership of 56 claims
|Exploration activity | Trenching, mapping, sampling
    including 2 bulk sampling, soil geochemistry and staking                                                                                                               | Trenching, mapping, soil
    geochemistry                                                                                                                                                               |                                                                                                                                                                                                        |                                                                                              |                                                           | First year of comprehen-sive
    exploration program                            
|Bulk Sampling        | 2 bulk samples totaling 8 tonnes                                                                                                                                                                        | None                                                                                                                                                                                                    |                                                                                                                                                                                                        |                                                                                              |                                                           | Completion of initial phase of
    first-ever bulk sampling                     



Early-stage exploration projects

INDIAN RIVER CONGLOMERATE PROJECT

The Indian River Quartz Project is an early-stage gold exploration property
for the Company. The property is located 40 km 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.

Additional geological mapping, rock and soil sampling and geochemistry
analysis, trenching and a magnetometer survey were completed May - September
2005. Auger drilling provided bedrock samples in January - April 2005. This work
added to extensive reconnaissance and geological mapping, bulk sampling, diamond
drilling and core analysis, geochemical surveys completed by previous
exploration companies.

During 2006, additional baseline work was undertaken to consolidate and
ground-truth previous exploration results. Mineral claims with low probability
of having exploration value were released.

Company progress

|                                    | Q3 ended November 30, 2006 | Q1 ended May 31, 2006 and Q2 ended August 31, 2006 | Year-end February 28, 2006                                                                  | Year-end February 28, 2005 | Change from 2006 year-end to Q3 ended November 30, 2006
|----------------------------------- | -------------------------- | -------------------------------------------------- | ------------------------------------------------------------------------------------------- | -------------------------- | -------------------------------------------------------
|Total claims                        | 179 claims                 | No change                                          | 205 claims                                                                                  | 0                          | 26 claims or 12.7% were released in Q3                 
|Total area                          | 62.1 km2 or 24.0 mi2       | No change                                          | 67.3 km2 or 26 mi2                                                                          | 0                          | Reduction of 5.2 km2 or 2 mi2                          
|Drilling - no. of auger drill holes | No change                  | No change                                          | 49 holes (winter season January - April)                                                    | 0                          | None                                                   
|Surface trenching and sampling      | Not available              | 16 rock samples, 20 soil samples                   | 8 trenches totaling 1128 m3(1,475
    yd3), 12 test pits, 52 rock samples, 333 soil samples | 0                          | Modest exploration activity to date                    
|Assay and other analysis            | Not available              | Not available                                      | 36 rock samples, 333 soil samples                                                           | 0                          | None                                                   
|Ownership                           | No change                  | No change                                          | Exclusive option for up to 75%                                                              | 0                          | None, although total project area reduced              



ELDORADO PLACER PROJECT

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).

The property is in the heart of a longstanding gold-producing 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. Following a second quarter assessment 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 2007.

|             | Q3 ended November 30, 2006 | Q1 ended May 31, 2006 and Q2 ended August 31, 2006 | Year-end February 28, 2006                    | Year-end February 28, 2005                    | Change from 2006 year-end to Q3 ended November 30, 2006
|------------ | -------------------------- | -------------------------------------------------- | --------------------------------------------- | --------------------------------------------- | -------------------------------------------------------
|Total claims | No change                  | No change                                          | 115 claims                                    | 114 claims                                    | None                                                   
|Total area   | No change                  | No change                                          | 6.9 km2 or 2.7 mi2                            | 6.5 km2 estimated or 2.5 mi2                  | None                                                   
|Ownership    | No change                  | No change                                          | 55% and exclusive option to acquire up to 75% | 55% and exclusive option to acquire up to 75% | None                                                   



BONANZA PROJECT

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 totals 40.1 km2 (15.5 mi2). It is
located in the heart of the Klondike gold fields and proven gold producing
ground, 10 km from Dawson City.

Since 1999, building on previous exploration efforts, the property has been
explored by KSL (Yukon) Ltd. and PacRim Resources Limited (formerly Barramundi
Gold Ltd.) using advanced-exploration techniques, geological mapping and
geochemical soil surveys.

KSL Exploration (Yukon) Limited considers the property to have a number of
prospects on the basis of reasonably well-defined geochemical gold anomalies. In
an independent geologist's report, KSL (Yukon) Limited reported that, "These
surveys have identified several prospective targets with potential for hosting
large tonnage, primary gold mineralization." (Roy Cox & Associates, November 10,
2003).

Although recently acquired, Klondike Star has initiated a preliminary
exploration program including consolidation of mapping, sampling results, and
all accessible assessment work on the property. Mineral claim staking was
undertaken in the third quarter to supplement the property.

|             | Q3 ended November 30, 2006 | Q2 ended August 31, 2006 | Q1 to May 31, 2006   | Year-end February 28, 2006 | Year-end February 28, 2005 | Change from year-end 2006 to Q3 ended November 30, 2006   
|------------ | -------------------------- | ------------------------ | -------------------- | -------------------------- | -------------------------- | ----------------------------------------------------------
|Total claims | 308                        | No change                | 269                  | 0                          | 0                          | New acquisition with 39 additional claims
    staked in Q3
|Total area   | 47.0 km2 or 18.1 mi2       | No change                | 40.1 km2 or 15.5 mi2 | 0                          | 0                          | New acquisition increased by 5.9 km2
    or 2.6 mi2 in Q3 
|Ownership    | No change                  | No change                | 100% registered      | 0                          | 0                          | New acquisition                                           



Item 3. Control and Procedures



(a) Evaluation of Disclosure Controls and Procedures.

An evaluation made at the end of the period covered by this report was
performed under the supervision and with the participation of the Company's
president, chief executive officer ("CEO") and the chief financial officer
("CFO"), or persons performing similar functions, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures to
insure that the Company records, processes, summarizes and reports in a timely
and effective manner the information required to be disclosed in reports filed
with or submitted to the Securities and Exchange Commission. Based on that
evaluation, the Company's management, including the CEO and CFO, concluded that
the Company's disclosure controls and procedures were effective in timely
bringing to their attention material information related to the Company required
to be included in the Company's periodic Securities and Exchange Commission
filings. Since the date of this evaluation, there have been no significant
changes in the Company's internal controls or in other factors that could
significantly affect those controls.

(b) Changes in Internal Controls Over Financial Reporting.

There have been no significant changes in internal control over financial
reporting that occurred during the fiscal period covered by this report that
have materially affected or are reasonably likely to materially affect the
Company's internal control over financial reporting.



PART 2 - OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None

Item 3. Defaults upon Senior Securities

None

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8-K

Exhibits:

| | 31 | Certifications of Chief Executive Officer and
    Chief Financial Officer under Rule 13a-14(a)/15d-14(a) | Included
| | -- | -------------------------------------------------------------------------------------------------------- | --------
| | 32 | Certifications under Section 1350                                                                        | Included

Reports on Form 8-K: No current reports were filed during the quarter
ended August 31, 2006.

On November 7, 2006, the Company filed a Current Report on Form 8-K, item
1.01.

On November 27, 2006, the Company filed a Current Report on Form 8-K, Item
5.02.



SIGNATURES

In accordance with 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

Date: January 12, 2007

By:*__________________________*

Hans Boge, President

---