UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  Form 10-Q  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACTS OF 1934  For the quarterly period ended November 30, 2007  Commission File Number 000-30965  KLONDIKE STAR MINERAL CORP. (Exact name of registrant as specified in its charter)  Delaware91-198708(State or other jurisdiction of(I.R.S. EmployerIncorporation or Organization)Identification Number)   Box 20116, 1031  Ten Mile Road Whitehorse, Yukon Y1A 7A2 (Address of principal executive offices)  (800) 579-7580 (Registrant's telephone number, including area code)  (Former name, former address, if changed since last report)  Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, on a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check One)  Large accelerated filer [  ] Accelerated filer [  ] Non-accelerated filer [X]  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes [  ] No [X]    As of November 30, 2007 there were 33,302,497 shares of the registrant's Common Stock, par value $.0001 per share, outstanding.  FORWARD LOOKING STATEMENTS  Some of the information presented in this quarterly report constitutes forward-looking statements within the meaning of the private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about management's expectations for fiscal year 2003 and beyond, are forward looking statements and involve various risks and uncertainties. Although the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge, there can be no assurance that actual results will not differ materially from the Company's expectations. Factors that could cause the actual results to differ materially from expectations are discussed in the Company's Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission.  Item 1. Financial Statements  .              KLONDIKE STAR MINERAL CORPORATION  CONSOLIDATED FINANCIAL STATEMENTS  November 30, 2007                                   .    KLONDIKE STAR MINERAL CORPORATION  November 30, 2007  TABLE OF CONTENTS       FINANCIAL STATEMENTS  CONSOLIDATED BALANCE SHEETS 1 CONSOLIDATED STATEMENTS OF OPERATIONS 2 CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY 3 CONSOLIDATED STATEMENTS OF CASH FLOWS 4   CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5   .    KLONDIKE STAR MINERAL CORPORATION (An Exploration Stage Company) CONSOLIDATED BALANCE SHEETS   [kdsm10qfinalnov3007vjan14002.gif]  The accompanying condensed notes are an integral part of these consolidated interim financial statements. 1


KLONDIKE STAR MINERAL CORPORATION (An Exploration Stage Company) CONSOLIDATED BALANCE SHEETS   [kdsm10qfinalnov3007vjan14004.gif]  The accompanying condensed notes are an integral part of these consolidated interim financial statements. 1


KLONDIKE STAR MINERAL CORPORATION (An Exploration Stage Company) CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY   [kdsm10qfinalnov3007vjan14006.gif]  The accompanying condensed notes are an integral part of these consolidated interim financial statements. 3


KLONDIKE STAR MINERAL CORPORATION (An Exploration Stage Company) CONSOLIDATED STATEMENTS OF CASHFLOWS   [kdsm10qfinalnov3007vjan14008.gif]   The accompanying condensed notes are an integral part of these consolidated interim financial statements. 4    KLONDIKE STAR MINERAL CORPORATION (An Exploration Stage Company) Condensed Notes to the Consolidated Financial Statements November 30, 2007   NOTE 1  DESCRIPTION OF BUSINESS  Klondike Star Mineral Corporation (hereinafter "the Company") is engaged in mineral exploration in the Yukon Territory, Canada.  The Company was originally incorporated in 1999 under the laws of the State of Delaware. The Company was also registered in the Yukon Territory, Canada effective June 22, 2004.  The Company maintains its head office in Whitehorse, Yukon Territory, Canada.  The Company was originally incorporated as Cyberbiz, Inc., later changed its name to Urbanfind, Inc. and again in 2004 changed its name to Klondike Star Mineral Corporation.  The Companys fiscal year-end is the last calendar day of February.  Historically, the Company had been principally engaged in an internet-based business.  Upon its acquisition of certain mining claims in December 2003, the Company began a new exploration stage as a minerals exploration company.  As the Company is in the exploration stage, it has not realized any revenues from operations.  On March 16, 2007, the Company incorporated a wholly owned subsidiary, Klondike Star Canada Inc. (Klondike Star Canada) under the Canada Business Corporations Act.  Klondike Star Canada maintains its head office in Whitehorse, Yukon Territory, Canada.  As of November 30, 2007, Klondike Star Canada had no operation.   NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-K as promulgated by the Securities and Exchange Commission (SEC).  Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements.  These unaudited financial statements should be read in conjunction with the audited financial statements for the year ended February 28, 2007.  In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.  Operating results for the nine-month period ended November 30, 2007 are not necessarily indicative of the results that may be expected for the year ending February 29, 2008.  This summary of significant accounting policies is presented to assist in understanding the financial statements.  The financial statements and notes are representations of the Companys management, which is responsible for their integrity and objectivity.  These accounting policies conform to accounting principles generally accepted in the U.S. and have been consistently applied in the preparation of the financial statements.  Accounting Methods The Companys financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.  Basis of Presentation These consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.  The Company consolidates more-than-50% owned subsidiaries that it controls and entities over which control is achieved through means other than voting rights.  These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Klondike Star Canada Inc. (incorporated under the Canada Business Corporations Act).  All significant transactions and balances among the companies included in the consolidated financial statements have been eliminated.   Concentration of Risk The Company maintains its cash in a commercial bank in Bellevue, Washington, and in a commercial bank in Whitehorse, Yukon Territory.  The account in Washington is guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $100,000.  The Canadian dollar accounts in Yukon Territory are guaranteed by the Canadian Deposit Insurance Corporation (CIDC) up to $100,000 Canadian ($100,000 US dollars at November 30th, 2007).  At November 30, 2007, the Company did not exceed either the FDIC insured or the CIDC insured amount.  Mineral Exploration and Development Costs In accordance with accounting principles generally accepted in the United States of America, the Company expenses lease exploration costs as incurred.  As of November 30, 2007, the exploration costs and mineral rights expensed during the Companys exploration stage have been approximately $45,303,000.  Significant property acquisition payments for active exploration properties are capitalized.  If no minable ore body is discovered, previously capitalized costs are expensed in the period the property is abandoned.  Expenditures to develop new mines, to define further mineralization in existing ore bodies, and to expand the capacity of operating mines, are capitalized and amortized on a units of production basis over proven and probable reserves.  Should a property be abandoned, its capitalized costs are charged to operations.  The Company charges to operations the allocable portion of capitalized costs attributable to properties sold.  Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area.  Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period.  Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Companys financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions which could have a material effect on the reported amounts of the Companys financial position and results of operations.  Going Concern As shown in the financial statements, the Company incurred a net loss of approximately $6,623,000 for the nine months ended November 30, 2007 and has an accumulated deficit of approximately $58,142,000 since inception of the Companys exploration stage (December 8, 2003).  The Company currently has no revenues and no operating mining properties.  These factors indicate that the Company may be unable to continue in existence.  The financial statements do not include any adjustments related to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Managements plans include actively seeking additional capital and management believes that new properties can ultimately be developed to enable the Company to continue its operations.  However, there are inherent uncertainties in mining operations and management cannot provide assurances that it will be successful in its endeavors.  The Companys management believes that it will be able to generate sufficient cash from public or private debt or equity financing for the Company to continue to operate based on current expenditure projections of $11,000,000 for fiscal year ending in 2008.  The Company has approximately $14,000 in cash at November 30, 2007.  NOTE 3  PROPERTY AND EQUIPMENT  Property and equipment are recorded at cost.  Depreciation is calculated using the straight-line method over three to ten years.  The following is a summary of property, equipment, and accumulated depreciation:     Net Book Value February 28, 2007Net Book Value February 28, 2006Balances as at November30, 2007CostAccumulated DepreciationNet Book ValueDepreciable Property and Equipment:Leasehold improvements$ 1,049,365$     330,434$    718,931$   616,788$   207,178Movable structures975,894405,247570,647697,267579,123Vehicles415,505260,289155,216228,869137,185Equipment316,110195,715120,395168,923107,618Heavy equipment290,29328,080262,213276,254-All-terrain vehicles123,606108,05915,54746,44949,322Trailers94,55040,38354,16768,35024,290Computer equipment46,74034,73312,00715,89619,854Computer software21,96617,3384,6287,5657,792Furniture and fixtures19,5279,11610,41113,3408,523Pack horse---10,63214,242Total Depreciable AssetsNon Depreciable Property and Equipment:Gold samples105,574-105,57477,35056,010Total Property and Equipment$ 3,459,130$     1,429,394$  2,029,736$  2,227,683$  1,211,137  Total depreciation expense for the nine months ending November 30, 2007, 2006 and 2005 is $554,401, $404,529 and $256,841 respectively.  NOTE 4  RELATED PARTY TRANSACTIONS  Effective June 2004, the Company signed an agreement for the right of occupancy of a barn and property from one of the directors of the Company and his spouse (the Owner), for the shelter of pack horses and an office.  The right of occupancy term is five years, renewable yearly thereafter.  Rent is $1 per month.  Prior to the expiration of the right of occupancy, the Owner may require the Company at the Companys sole cost and expense, to remove any alterations, installations, additions or improvements made by the Company.  At the expiration of the lease, the Owner is obligated to pay to the occupier the fair market value of the buildings less 75 % and shall be entitled to pay such sum over a 20 year period in equal monthly installments without interest.  Leaseholds improvements, which total approximately $1,049,000 as of November 30, 2007, have been made to the barn and office.  On occasion, the Companys shareholders or directors pay corporate expenses and/or provide services to the Company.  Related party payables are unsecured and non-interest bearing and are due on demand.  Related party payables totaled $65,855, $110,148 and $14,465 at November 30, 2007, February 28, 2007 and February 28, 2006, respectively. During the nine months ending November 30, 2007, the Company included in mineral exploration expense $273,200 ($890,700 for the nine months ended November 30, 2006 and, $205,300 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.  During the quarter ended November 30, 2007, a company controlled by the Companys President and Chief Executive Officer advanced the Company $172,000 (Canadian) under a promissory note agreement, unsecured, non interest bearing, due upon demand, and  repayable in US dollars.  Subsequent to the quarter ended November 30, 2007, the Company repaid the promissory note in full.  The terms of the agreement were modified to allow the repayment of the promissory note in Canadian funds.  NOTE 5  ADVANCE PAYABLE  During the quarter ended August 31, 2007, the Company received funds from two shareholders, originally intended to be short term bridge financing, non interest bearing and with no fixed terms of repayment.  In accordance with US GAAP, the Company has imputed interest on the Advance Payable and has included the imputed interest in Accounts payable and accrued liabilities.  As disclosed in the August 31, 2007 Unaudited Interim Consolidated Financial Statements, the Company intended to issue Common Stock pursuant to the terms and conditions of the Private Placement Memorandum dated February 1, 2007 and updated August 7, 2007, against the Advance Payable, and included the issuance of the Common Stock in Shareholders Equity. The Company was not able to obtain the necessary documentation from the depositors to effect the issuance of Common Stock.  Management has reported the funds as a current liability Advance Payable until the terms and conditions of the Advance Payable are clarified.  NOTE 6  PREFERRED STOCK  The Company is authorized to issue 20,000,000 shares of $0.0001 par value preferred stock.  The Company previously issued 2,000,000 preferred stock convertible to 10 common shares of common stock, non-cumulative and non-dividend bearing.  The Companys board of directors will determine the specific features of each additional issuance of preferred shares.  On January 12, 2007 the Company modified the terms of the issued and outstanding preferred stock.  Each Series A convertible preferred stock (Series A) is convertible into one (1) common stock and one (1) Series B preferred stock; non-cumulative, non-dividend bearing, non-voting and is subordinate to common stock in the event of liquidation, dissolution, or wind-up.  Each Series A shall be convertible, at the holders option, into one common stock and one Series B preferred stock, in the event the Company receives a notice of tender, as defined pursuant to Regulation 14D of the Securities Exchange Act of 1934, to purchase the majority of the issued and outstanding common stock of the Company. The Company shall not issue fractional shares of common stock resulting from conversion; a cash payment in lieu of fractional shares shall be made.  The conversion price shall be adjusted for any common stock dividends, subdivisions, combinations, or other adjustment.  Series B preferred stock is non-dividend bearing, non-convertible into any other class of Company stock, and is not eligible to participate in the distribution of Company assets in the event of liquidation, dissolution, or wind-up.  Each Series B preferred stock is entitled to vote for directors either at special or annual general meetings of shareholders.  Each Series B preferred stock is entitled to vote such number of votes per share as shall equal four (4) shares of common stock.  At November 30 2007, February 28, 2007 and February 28, 2006, the Company had 2,000,000 shares of preferred convertible stock issued and outstanding.  NOTE 7  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, 2007, February 28, 2007 and February 28, 2006, the Company had 33,302,497; 29,035,782 and 25,202,800 shares of common stock issued and outstanding, respectively.  During the nine months ended November 30, 2007, the Company sold through private placements 16,000 common shares at $1.25 per share for total net cash proceeds of $18,000; sold 20,000 common shares at $1.07 per share for total net cash proceeds of $19,260; sold 100,000 common shares at $1.00 per share for total net cash proceeds of $90,000; sold 285,715 common shares at $1.05 per share for total net cash proceeds of $270,000; and sold 45,000 common shares at $1.05 per share for total net cash proceeds of $42,500.  Effective May 29, 2007, the Company issued a private placement memorandum for the issuance of up to 3,000,000 common stock of the Company, at $0.50 per share, under Regulation S, for total estimated cash proceeds of $1,500,000 with the offering expiring on or before July 16, 2007.  As of November 30, 2007, the Company sold 3,600,000 common shares under this private placement memorandum for total net cash proceeds of $1,770,000.  During the nine months ended November 30, 2007, the Company issued a private placement memorandum for the issuance of up to 2,000,000 common stock of the Company, at $0.50 per share, under Regulation S, for total estimated cash proceeds of $1,000,000 with the offering expiring on or before September 30, 2007.  As of November 30, 2007, the Company had not sold shares against this private placement memorandum.  During the nine months ended November 30, 2007, the Company approved a private placement memorandum for the issuance of up to 3,000,000 units of one common stock of the Company and one warrant to purchase one common stock of the Company at $1.50 per share; with the unit price being equal to the 5 day volume average price preceding the date of purchase less $0.10.  As of November 30, 2007, the Company sold 200,000 units under this private placement memorandum.  During the three months ended May 31, 2007, the Company approved a private placement memorandum for the issuance of 13,200,000 shares of common stock at $2.25 per shares under Regulation S, with the offering expiring on or before July 6, 2007.  The Company did not issue shares under this private placement memorandum.  Warrants During the year ended February 28, 2006, the Company executed a private placement memorandum to issue up to 4,000,000 shares of common stock at $2.75 per share with one warrant attached to each share to purchase an additional share at a minimum conversion price of $3.50. Each warrant must be exercised within one year from date of the original investment. Using the Black-Scholes formula, the Company made the following assumptions to value the warrants for the year ended February 28, 2007; risk-free interest rate of 4.5%; volatility of 31%; life of one year; no dividends.  During the nine months ended November 30, 2007, the Company executed a private placement memorandum to issue up to 3,000,000 units of one common stock of the Company and one warrant to purchase one common stock of the company of up to $1.50 per share; with the unit price being equal to the 5 day volume average price preceding the date of purchase less $0.10 with one warrant attached to each share to purchase an additional share at a minimum conversion price of $1.50. Each warrant must be exercised within one year from date of the original investment. Using the Black-Scholes formula, the Company made the following assumptions to value the warrants for the year ended February 28, 2007; risk-free interest rate of 4.75%; volatility of 54.33%; life of one year; no dividends.  Number of WarrantsWeighted Average Remaining LifeAverage Exercise PriceOutstanding and exercisable, February 28, 20061,300,0000.0 years$ 3.50Issued3,032,9820.0 years3.50Exercised--Rescinded or expired(1,300,000)3.50Outstanding and exercisable, February 28, 20073,032,9820.0 years$ 3.50Issued200,0000.9 years1.50Exercised--Rescinded or expired(3,032,982)3.50Outstanding and exercisable, November30, 2007200,0000.9 years$ 1.50    NOTE 8  STOCK-BASED COMPENSATION AND STOCK OPTIONS  During the year ended February 28, 2007, the Company granted options to employees to purchase a total of 250,000 shares of common stock at $2.50 per share. These shares are fully vested and exercisable over a five year term. The Company recognized employee compensation expense of $437,500.   The Company also granted options to consultants to purchase a total of 100,000 shares of common stock at $2.50 per share and recognized $175,000 compensation expense during the year.  In accordance with Statement of Financial Accounting Standards No. 123, the fair value of the options granted was estimated using the Black-Scholes Option Price Calculation.  The following assumptions were made to value the stock options:  Risk-free Interest Rate4.5%Expected Life5 yearsExpected Volatility30.8%Dividends to be paidNil  The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which are fully transferable.  In addition, option valuation models require the input of subjective assumptions including the expected stock price volatility.  Because the Company's employee stock options have characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options.  Following is a summary of the status of the stock options during the nine months ended November 30, 2007:  2003 Stock Incentive Plan2005 Stock  Incentive PlanTotalNumber of Shares Under OptionWeighted Average Exercise PriceNumber of Shares Under OptionWeighted Average Exercise PriceNumber of Shares Under OptionWeighted Average Exercise PriceOutstanding February 28, 2004-$       --$        --$        -Granted1,200,0001.00--1,200,0001.00Exercised------Rescinded or expired------Outstanding February 28, 20051,200,0001.00--1,200,0001.00Granted30,0002.50--30,0002.50Exercised------Rescinded or expired------Outstanding February 28, 20061,230,0001.04--1,230,0001.40Granted350,0002.50--350,0002.50Exercised------Rescinded or expired------Outstanding at February 28, 20071,580,0001.36--1,580,0001.36Granted------Exercised------Rescinded or expired------Outstanding at November 30, 20071,580,000$ 1.36-$        -1,580,000$ 1.36Exercisable at November 30, 20071,580,000$ 1.36-$        -1,580,000$ 1.36Weighted average fair value of options granted during the nine months ended November 30, 2007$      -$        -$      -   NOTE 9  SUBSEQUENT EVENTS  Subsequent to the quarter ended November 30, 2007, the Company issued a private placement memorandum dated December 9, 2007 to issue 5,000,000 common shares at $0.10 per share for estimated net cash proceeds of $500,000.  Subsequent to the quarter ended November 30, 2007, the Company issued a private placement memorandum dated December 17, 2007 to issue 2,500,000 common shares at $0.10 per share for estimated net cash proceeds of $250,000. The Company sold 7,500,000 common shares for cash proceeds of $750,000.  Subsequent to the quarter ended November 30, 2007, the Company sold and issued 2,000,000 common shares at $0.50 per share for cash proceeds of $1,000,000.    The accompanying condensed notes are an integral part of these consolidated financial statements. 3     ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations  Overview  Klondike Star Mineral Corporation is an exploration and development enterprise currently with five gold projects totaling about 290 km2 or 112.4 mi2 in the Yukon, located in the northwest corner of Canada underlying the site of the world-renowned Klondike gold producing region; and one gold, iron and multi-mineral project totaling 1,245 km2 or 481 mi2 in the Arab Republic of Egypt.  During the quarter-ended November 30, 2007, the Company completed a review of properties and made determinations about the future of two intermediate and one early stage projects. Inthe year ahead, Klondike Star is focusing on the advanced-stage exploration targets on the Lone Star and Dominion gold properties and the potential Indian River Gold Mine in Canada; while supporting the involvement of our subsidiary, Klondike Star Canada Inc., in world-class mineral exploration prospects in the Arab Republic of Egypt  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. In addition, opportunities in other countries are being actively pursued, including Egypt.  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 nine exploration and development projects: six gold prospects in the Klondike region of the Yukon and two gold, base and precious mineral properties in other parts of the Yukon; and one major exploration project in Egypt. As of November 30, 2007, the Company dropped options on one property in the Klondike (Indian River Quartz) and the two properties in other parts of the Yukon (Ultra and Spice). In support of its mission, Klondike Star has established corporate goals relating to mineral production, capital formation and durable investor relationships, employer of choice, sustainable development and good corporate governance. Following substantive research, workshops and discussions February  June, 2007, the Board approved a formal Strategic Plan setting corporate direction for the next three years. Klondike Star is advancing its projects operating under a multi-prong strategy. This involves a long-term, systematic and results-oriented approach towards exploration research, supported by a scaled expansion of field operations on carefully selected assets, combined with a concurrent investment in planning for potential mine development. The 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 perspective in a manner that meets and exceeds regulatory requirements; and  building shareholder value through every aspect of the Companys business and operations.  Currently, mineral resource exploration and exploitation property rights are located in Canada and the Arab Republic of Egypt On March 16, Klondike Star established Klondike Star Canada Inc., a wholly owned Canadian subsidiary.  The new company was established to support planned growth and development including new mineral exploration and development opportunities in Canada and globally. The Company currently has a year-round full-time equivalent labour force of about 15 employees that expands to 60-70 employees, not including contractors and consultants during the summer/fall exploration season. Klondike Star Mineral Corporation is listed on the NASD.OTCBB trading under the symbol "KDSM".  Overall Performance  Klondike Star Releases 2007 Annual Report The advanced-stage exploration Lone Star hard-rock gold property and the early development-stage Indian River alluvial gold project are featured. In addition, a three-year performance profile charts Klondike Stars growth and development as a mineral exploration and development enterprise. Highlights for the three-months ending November 30, 2007 include:  Operational - completing the evaluation of mineralization for the Indian River gold project and making substantial progress on the business plan for mine development; - completing drilling, exploration and bulk sampling programs on the Lone Star and Dominion gold projects; as well as the third year of the Klondike Research Project led by the University of British Columbias Mineral Deposit Research Unit; - completing a review of mineral exploration and development priorities, resulting in dropping options on three properties to focus on prospects in the Klondike, Yukon, Canada and Egypt; - developing plans and exploration strategies for the commencement of the Oweinat project in Egypt; - release of the 2007 annual report providing detail information on mineral exploration properties, the ownership of mineral rights and resources, financial matters, investor relations and Company operations, as well as a three-year performance profile;  Financial - The unaudited loss from operations for the three months ending November 30, 2007, was $1,944,647 net loss of $0.06 per share, compared to unaudited operating loss of $2,652,651 net loss of $0.10 per share for the three months ending November 30, 2006. The unaudited loss from operations for the nine months ending November 30, 2007, was $6,608,409, net loss of $0.22 per share, compared to unaudited operating loss of $7,751,320 net loss of $0.30 per share for the nine months ending November 30, 2006. - The unaudited cash flow used in operations for the nine months ending November 30, 2007, was $4,583,692 compared to $6,316,280 for the nine months ending November 30, 2006; - The changes in cash flow used in operations from November 2006 to November 2007 are mainly due to reduced drilling activity this year required to complete the Indian River project drilling program, an earlier shutdown of exploration activities due to earlier onset of winter conditions, as well as cost savings achieved in public relations and administration. - During the quarter ending November 30, 2007, the Company raised $230,685 through private placements of common stock.  Financial indicators Nine Months ended November 30, 2007Year-end
February 28, 2007Year-end
February 28, 2006Total expenses$ 6,608,409$  9,967,672$ 8,778,272Net loss from continuing operations$ 6,622,836$10,043,789$ 8,741,926Cash used in operating activities$ 4,583,692$ 8,621,116$ 5,610,326Cash raised by financing activities, net$ 2,563,565$ 9,090,299$ 8,068,568Cash and cash equivalents on hand$ 14,295$ 2,390,876$ 3,514,176Net loss per common share: Basic and Diluted$ (0.06)$ (0.38)$ (0.39)Weighted average number of common shares outstanding: Basic and diluted33,164,49726,512,53822,562,923Cash dividends declared per common share$ 0.00$ 0.00$ 0.00Property, plant and equipment, net book value$2,029,736$ 2,227,683$1,211,137Long-term debt$ 0$ 0$ 0Shareholders equity$39,870$ 4,271,141$ 4,612,131  Investor relations indicators Nine Months ended November 30, 2007Year-end February 28, 2007Year-end February 28, 2006Change from year-end 2007 to quarter-end
November 30, 2007Common shares issued and outstanding33,302,49729,035,78225,202,800Increase of 4,266,715 or 14.7%Restricted shares13,928,5279,943,73418,025,906Increase of 3,984,793 or 40.1%Free trading shares19,373,97019,092,0487,176,894Increase of 281,922 or 1.5%Warrants outstanding and exercisable200,0003,032,9821,300,000Decrease of 2,832,982 or 93.4%Share price range by low and highMonthly range of
$1.00 to $1.75
(Q1);
$0.90 to $1.44 (Q2);
$1.00  to $1.20 (Q3)Monthly range of $1.50 to $3.98Monthly range of $2.75 to $3.40Reduction in price and ranges between low and highShare volume monthly high1,152,165 in Q1; 1,009,940 in Q2; 775,133 in Q34,223,0252,359,551Reduction in monthly highShareholdersAbout 4375About 5550About 4200Decrease of 1175 or 21% since year-end, but an 8.5% increase from Q2 ended August 31, 2007Material event press releases and 8-K reports193622Not applicableShare options authorized and unexercised1,580,0001,580,0001,230,000No change  Share price from February 2004 to period-end November 30, 2007 (Sources: Bell Globemedia Publishing Inc. 2007, OTCBB and Yahoo)  QuarterHigh
Quarterly PriceLow
Quarterly PriceQ2, June - August3.303.00Q3, September - November3.753.05Q4, December - 2005 February3.742.80Q1, 2005 March - May3.702.55Q2, June - August3.152.50Q3, September - November3.852.85Q4, December  2006 February3.502.70Q1, 2006 March - May3.983.00Q2, June - August3.923.50Q3, September - November3.722.50Q4, December  2007 February2.701.50Q1, 2007 March - May1.751.00Q2, 2007 June - August1.440.90Q3, 2007 September - November1.201.00     Exploration and development projects The mineral rights are organized into ninediscrete exploration and development projects. As of November 30, 2007, the Company has 100% or majority ownership interests in five projects in Canada and has been awarded rights to explore and exploit a major exploration property in Egypt.  Property SynopsisProjectExploration stageLocationMetalTotal areaOwnershipCANADAIndian River Placeradvanced and pre-developmentKlondikegold21.1 km2/8.2 mi2100% ownership of 194 placer claims and 3 leases and 49% ownership of 29 placer claimsLone Star QuartzadvancedKlondikegold135.1 km2/52.2 mi255% and exclusive option to acquire up to 75% of 719 mineral claims and crown grantsDominion Quartzintermediate with one advanced targetKlondikegold and silver61.3 km2/24 mi2100% ownership of 149 mineral claims, 55% ownership of 95 claims with exclusive option to acquire 75%, exclusive option to purchase 100% of 85 claimsBonanza QuartzearlyKlondikegold65.6 km2/25.3 mi2100% registered interest in 400 mineral claimsEldorado PlacerearlyKlondikegold6.9 km2/2.7 mi255% ownership and exclusive option to acquire up to 75% ownership in 115 placer claimsEGYPTOweinatearlyEgyptgold and iron ore1,245 km2/481 mi2Exclusive right to explore and exploit, subject to terms of concession agreement  During the quarter-ended November 30, options on the following projects were dropped.  ProjectExploration stageLocationMetalTotal areaOwnershipCANADASpice QuartzintermediateEast Yukongold10.9 km2/4.2 mi2Exclusive option to acquire 75% ownership of 52 mineral claimsUltra QuartzintermediateWest Yukonmultiple precious and base81.7 km2/31.7 mi2Exclusive option to acquire 75% ownership of 416 mineral claimsIndian River QuartzearlyKlondikegold62.1 km2/24 mi2Exclusive option to acquire 75% ownership in 248 claims   Mineral rights indicators1 Nine months ended November 30, 20072nd quarter ended August 31, 20071st quarter ended May 31, 2007Year-end
February 28, 2007Year-end
February 28, 2006Year-end
February 28, 2005Change from
year-end 2007 to period-end November 30,2007Exploration projects699862Decrease of 2 projectsQuartz mining claims144821662166216619211753Decrease of 718 or 33.1%Total area of quartz claims and crown grants262 km2/101.5 mi2418.3/161.5418.3/161.5418.3 km2/161.5 mi2352 km2/
135.9 mi2239 km2(estimate)/
92.3 mi2Decrease of  156.3 km2/60 mi2Placer mining claimsNo change338 plus 3 leases338 plus 3 leases329 plus 43 mi of leases300 plus 43 miles of leases114 plus 60 miles of leasesIncrease of 9 claims or 2.7% and significant release of annual leasesTotal area of placer claims and leasesNo changeNo change28 km2/10.9 mi243.9 km2/17 mi242 km2/
16.2 mi221 km2 (estimate)/
8.1 km2Decrease of 15.9 or 36.1%Total area of mining concessionsNo change338 plus 3 leases338 plus 3 leases000Awarded Oweinat concession in Egypt  Note 1: The mining claim and total areas for year-end February 28, 2007, have been adjusted to reflect changes resulting from the re-allocation of claims between projects and to ensure reasonable and appropriate comparisons with current year data. These changes are made throughout this report.  Operational indicators 3rd quarter ended November 30, 20072nd  quarter ended August 31, 20071st quarter ended May 31, 2007Year-end February 28, 2007Year-end February 28, 2006Change from
year-end 2007 to
Q3 ended November 30, 2007Health and safety incidents05, 2 with lost time01 with lost time; 2 incident with no injury or lost time; 3 vehicle incidents with no injuries or lost time; 1 incident for geophysical contractor2 vehicle accidents, no injuries or lost timeDecrease of 2 overallEnvironmental incidents00000No change  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.  Early development-stage projects:  INDIAN RIVER PLACER PROJECT  The Indian River Placer Project is an early development-stage placer gold property. It is located 40 km from Dawson City in the heart of the Klondike gold-producing region of the Yukon, Canada. The Companys objective is to develop a large-scale placer mine.  The Indian River Placer Project consists of223 mineral claims plus 3 leases totaling 21.1 km2 (8.2 mi2). The Indian River is emerging as one of the active areas of new investment and productive placer mining in the Klondike region. With the exception of a 49% interest in a small group of 29 claims acquired in the second quarter ending August 31, 2006, Klondike Star holds 100% ownership of the project.  During the 2005-2006 winter drilling program, the Company completed 184 holes (double the 2004-2005 drilling) for a cumulative total of 274 holes or 2,426 meters. The winter drilling recovered gold from 90% of the holes, with gold recovered from 100% of the holes drilled in the main target area along the Indian River. In 2005, drilling resulted in gold recovery from 87% of the holes drilled.  During 2006, bulk sampling and testing of conventional processing technology (for throughput and gold recovery) proceeded alongside a business planning study to determine the economic viability of the mineralized area. Test mining is being supervised by an established Canadian firm specializing in mine engineering and processing technology. Initial results from the first stage of test mining were announced in November 2006. The Company believes the test mining results at this one site correlate the general findings of the previous drill-holes on the site. The grade indicated by auger drilling is only an indication of true grade, and in the Companys opinion, it must be checked and calibrated by test mining. The test resulted in the recovery of 45.08 ounces of raw placer gold. A conventional sluicing system was used to assess throughput and gold recovery, and the findings will be used in mine planning. To support expanded exploration activity and in anticipation of potential mine development, Klondike Star completed upgrading and extension of the access road and installed a 12-person camp.  A major auger drilling initiative was launched late November, 2006 and carried on almost continuously until wrapped up in September.  343 holes were completed. 602 holes totaling 4,566 meters/14,797 feet have now been drilled on the property and gold recovery determined. Gold was recovered from nearly 100% of the holes in the main target area.  Results from the drilling program have allowed the acceleration of technical efforts to delineate, model and assess the mineralized zone. Drill lines were completed at 1000 foot intervals with holes 100 feet apart along the drill lines spanning the complete width of the initial target zone. In July, the drilling program shifted to infill drilling of lines at 500 foot intervals to facilitate detailed mine planning and increase confidence in the calculation of probable mineral reserves based on the mineralization identified for recovery.  The target zone forms a wedge that is 300 meters/984 feet at the beginning and broadens to a width of over 1,500 meters/4,921 feet. To date, the mineralized zone extends over a distance of more than 3 kilometers/1.9 miles) and remains open to expansion to the east and south. Gold appears to be consistently distributed within this broad area with gold values present across the entire width of the property. The fineness of the gold tested out at 82.27%.  To further calibrate drilling results, increase levels of confidence in the estimation of mineralization, test mining methods and water management design requirements, bulk sampling operations started in 2006 using selected heavy equipment and an industry-standard 5 trommel. One test site was completed in 2006 processing 7249 cubic meters of material for 45.08 ounces of raw gold. (Press Release #24-2006, November 30, 2006). During the 2007 summer exploration season, a second representative site was completed with an area of 1,624 square yards of which 6200 cubic yards were processed for 32.83 troy ounces of gold. Test mining is being supervised by an established Canadian firm specializing in mine engineering and processing technology. The experienced gained from the bulk sampling operations has contributed to the design of the proposed mining process. Key criteria for low-cost mining operations include reducing energy requirements, new methods for handling the mineralized and non-mineralized materials, and effective water and environmental management practices. Following regulatory and public assessment under the Yukon Environmental and Socio-Economic Act, the Yukon government Department of Energy, Mines and Resources has formally authorized the development and operation of an Indian River placer mine by Klondike Star. This approval provides the direction to regulatory agencies for the detailed water and mining land use permits expected to be issued in the near future.  A comprehensive business plan based on a 10-year minimum mine-life is nearing completion. The mine planning team includes a senior mining process engineer with a leading Canadian engineering firm, and expertise in construction, economic analysis, financial, energy supply and Yukon-specific placer gold mining.It will comply with the U.S. Securities and Exchange Commission requirements for assessment and reporting of mineral reserves. The plan providing the information necessary for a mine development decision is expected to be considered by the Board of Directors. Subject to financing, this could allow for production to commence as early as 2008.  In October 2007 a senior professional engineer with experience as a mine manager and extractive metallurgist was appointed mine development manager for the proposed Indian River gold project.  3rd quarter-end November 30, 20072nd quarter-end August 31, 20071st quarter-end May 31, 2007Year-end February 28, 2007Year-end February 28, 2006Change from
year-end 2007 to Q3-end November 30, 2007Total claimsNo changeNo change223 and 3 leases214 claims and 17 leases185 claims and 17 leasesIncrease of 9 claims due to staking or 4% and decrease in one year leases as ground determined to be of limited valueTotal areaNo changeNo changeAbout 21.1 km2 (8.2 mi2)37.0 km2 (14.3 mi2)35 km2 (13.5 mi2)Decrease of 15.9 km2 (6.1 mi2) or 42.7%Drilling - no. of auger drill holes and total metersNo change187 holes totaling 1,173 meters/3,847 feet15 holes totaling 86 meters/282 feet after spring break-up141 holes totaling 967 meters/3,173 feet (winter season December  April)184 holes totaling 2,426 meters/7,959 feet (winter season December - April)Increases cumulative drilling to 602 holes totaling 4,566 meters/14,797 feetBulk samplingNo changeTwo sites prepared; one with area of 1,624 square yards of which 6200 cubic yards were processedPreparation of 2 test mining sites initiated1 site of 7,249 cubic yards processedNoneAdditional test mining site processedOwnershipNo changeNo change100% ownership of 194 claims and 3 leases and 49% ownership of 29 claims100% ownership of 185 claims and 17 leases and 49% ownership of 29 claims100%Increase in 100% ownership of 9 claims; low value placer leases allowed to lapse  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 719 mineral claims and crown grants totaling 135.1 km2(52.2 mi2). Lone Star is the largest project of five in the gold-producing Klondike region of Yukon, Canada.  The property is situated in the Tintina Gold Belt which spans Alaska and the Yukon and includes producing mines and major deposits. The Lone Star Project is located 20 km (12.4 mi) from Dawson City and is accessible by summer-maintained, graded gravel roads linking to the Klondike Highway. First assembled by Canadian mine-finder Richard Hughes, the initial 500 mineral claims in the Klondike 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 719 mineral claims and crown grants, constructed a 65-person exploration complex, with core processing and milling infrastructure on site, and completed extensive soil, chip and bulk sampling, diamond drilling, IP (induced polarization) geophysical surveys, assay and other analysis.  Exploration results and professional analysis to date indicate that the Lone Star Project represents an extensive mineralized area with a large-tonnage, low-medium grade gold target 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.  A full-scale scoping study is in progress to assess the economic viability of the Lone Star mineral deposit, provide a baseline assessment of environmental and socio-economic considerations for development permitting applications, establish mine design concepts, analyze options to address key factors (energy, water supply, reclamation), and identify capital and operating cost estimates.  During the May to October, 2006 summer exploration program, the focus was on diamond drilling, bulk sampling, and ground and airborne geophysical surveys along with continuation of the sponsored Klondike Research Project with the Canadian University of British Columbia Mineral Deposit Research Unit (UBC MDRU). 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. New infrastructure, including a camp accommodation annex, a fitness and recreation centre, and expanded kitchen and dining facilities were constructed in the vicinity of the Eldorado Camp.  Progressive exploration results, including the discovery of a new target, the JF Zone, were announced between December 2006 and February 2007. A progress report on scoping study findings to date was released in March 2007 (filed with the SEC as an 8-K report, dated March 21, 2007) and updated in November 2007 (filed with the SEC as an 8-K report, dated November 19, 2007). A summary report on the UBC MDRU geological studies on the Klondike region was released in March 2007.  Field work conducted in the 2007 exploration season continues to confirm and advance a number of promising gold targets at the Lone Star project. After completing structural and delineation drilling on the Lone Star zone last year, diamond and rotary circulation drilling proceeded on the Buckland zone and the Pioneer zone. These are among nine known major exploration targets on the expansive 135.1 km2/52.2 mi2 property. Ongoing work on the Lone Star Project includes bulk sampling, trenching, soil geochemistry, preparations for additional IP surveying and detailed geological mapping.  The first diamond drill target tested this year was the Buckland zone, an area which has returned multiple intersections of gold mineralization for previous operators, but which has not been drilled by Klondike Star. This zone lies about one kilometre/0.62 miles south of the Lone Star zone and 0.5 kilometers/0.31 miles southeast of the Nugget zone, and occupies an area roughly 800 meters/2624.7 feet by 300 meters/984.3 feet. The Buckland zone lies between Emile Gay Gulch and Oro Grande gulch, which have been significant producers of placer gold and are still being mined. Five holes were completed in a fence which cuts across the centre of the zone, and tests the best IP anomalies identified by geophysical surveys in 2006. A total of 846 meters/2774 feet have been drilled in the holes completed and samples sent for analysis.  The direct circulation rotary drill targeted the Pioneer zone, which lies about 700 meters/2296.6 feet southeast of the Lone Star zone. The Pioneer zone was the focus of underground exploration for gold in the same era as the Lone Star mine (ca. 1911). Only 3 holes have previously been drilled in this area, with hole 87R-47 returning 0.60 g/t gold over 50 meters/164 feet. A fence of six holes was drilled, starting from above the Pioneer shaft and progressing northward downslope into a linear IP anomaly identified in 2006 which is thought to be the eastward extension of the Lone Star zone. This target is 200 meters/656.2 feet wide and at least 550 meters/1804.5 feet long; the holes planned here represent a 400 meter/1312.3 foot step-out to the known Lone Star zone. Six holes totaling 523 meters/1715 feet were completed and samples sent for analysis.  A 15 line-km grid was cut with soils and IP survey completed, along with 200 meters of new trenching.  Five bulk samples have been processed from the Lone Star zone in 2007. These samples were collected from the southern end of trench 87TR-16, and continue to extend the sampling of this area reported in 2006 (Press Release #3-2007: Klondike Star Releases Bulk Sampling Results Including 1.33 G/T Over 24 Meters). The 2006 work at this site included 10 contiguous bulk samples which cut the zone over a 67 meter/219.8 foot length, and which proved the zone to be continuously mineralized. The 5 samples collected in 2007 extend this trend an additional 30 meters/98.4 feet.  A first bulk sample test from a trench near the Pioneer zone was completed and a small bulk test from the 310 zone also processed. The 310 zone is a continuous, narrow vein located about 1500 meters/4921.3 feet southwest of Eldorado Creek on the Lone Star property. This vein has returned chip samples up to 1.12 g/t gold over 1.32 meters/4.3 feet.  A cut-line grid totalling 20 line-kilometers has been completed in preparation for geophysical surveys at the JF zone. A detailed soil geochemical survey, with samples collected at 25 meter/82 foot intervals on lines spaced 100 meters/328.1 feet apart was undertaken on this grid. An extension to the discovery trench was completed, and an area immediately south of the JF zone grid that had not previously been geochemically sampled has been tested with 299 samples over a 1 kilometer/0.62 mile square area.  Klondike Star, in conjunction with the University of British Columbia Mineral Deposit Research Unit, has been developing an exploration model for this area that combines an improved understanding of the structural geology with compilation of other data, including airborne geophysics, geochronology, petrology and placer gold characteristics and distribution. A geological map at 1:10,000 scale has been produced for the Eldorado Dome - Lone Star ridge area. A detailed map of the Lone Star zone at 1:1,000 scale is also being produced by company geologists.  Klondike Stars objective for the 2007 season at the Lone Star property is to be able to significantly advance the Buckland, JF and Pioneer targets, to improve the overall understanding and assessment of the scope mineralization on the property, and to extend the Lone Star zone a substantial distance to the east.  The Lone Star is an advanced-stage hard-rock exploration project in the legendary Klondike gold-producing region, Yukon, Canada. An in-depth scoping study is progressing towards scheduled release on or about December 2007.   3rd quarter-end November 30, 20072nd quarter-end August 31, 20071st quarter-end May 31, 2007Year-end
February 28, 2007Year-end
February 28, 2006Year-end
February 28, 2005Change from
year-end 2007 to Q3-end November 30, 2007Total claims and crown grantsNo changeNo change7197191056500NoneTotal areaNo changeNo change135.1 km2/52.2 mi2135.1 km2/52.2 mi2152 km2/58.7 mi2100 km2 estimated/38.6 mi2NoneDrilling - no. of diamond drillingNo change5 holes totaling 846 meters/2,774 feetNil23 holes totaling 2,892 meters/9,488 feet; 17 holes totaling 2,100 meters/6,890 feet32 holes totaling 4830 meters/15,846 feet05 holes totaling 846 meters/2,774 feetDirect circulation rotary drilling6 holes totaling 523 meters/1715 feetNot availableNilNilNilNil3 holes totaling 294 meters/965 feetBulk sampling, surface trenching and sampling8 bulk samples totaling 40.6 tonnes/40,596kg, 65 chips (rocks), 1045 soil samples, 15 line-km grid cut with soils and IP survey completed. 200 meters new trenching.6 bulk samples totaling 34.7 tonnes/34,713 kg; 26 chips (rocks), 679 soil samples; 15 line-km cut grid with soils every 25 meters, ready for IP survey in SeptemberNil16 bulk samples totaling 78 tonnes; trenching; 640 chip samples, 393 soil samples; 3 IP geophysical grids totaling 35 km or 21.7 mi of line; 470 rock samples, and 134 soil samples14 trenches totaling 2858 m3/3,738 yd3,
421 soil samples, 551 trench samples, 23 rock samples and 57 bulk chip samples17 trenches totaling 1,300 m3/1,700 yd3, 1,024 rock samples, 1,165 soil samples6 bulk samples totaling 34.7 tonnes/34,713 kg; 26 chips (rocks), 679 soil samples; 15 line-km cut grid with soils every 25 meters, ready for IP survey in SeptemberAssay and other analysis878 core samples and 327 rotary samples878 core samples and 7 rotary samplesNil2866 core samples shipped for assay; 1,883 core samples shipped for assay5095 core samples from drilling and core fire assays (1st round) at 1250 samples, trench ICP totaled 551 samples and 92 trench fire assays1165 soil samples by ICP; also refer to the 2004 assessment report878 core samples and 7 rotary samplesOwnershipNo changeNo changeNo change55% with exclusive option up to 75%55% with exclusive option up to 75%55% with exclusive option up to 75%None  Intermediate-stage exploration projects:  DOMINION PROJECT An intermediate-stage gold and silver exploration project at the headwaters of Dominion Creek, the Dominion Project includes an advanced exploration stage target at the JAE claims, as well as a large area with little previous exploration. Of Klondike Stars six hard-rock Yukon projects, the Dominion ranks second in importance after the Lone Star project. The property is comprised of 331 mineral claims involving an area of 62.8 square kilometres/24.3 square miles, including the Mitchell zone, Sheba zone, Dome Lode and Lloyd zone. All zones extend over large areas with excellent opportunity for the existence of multiple mineralized zones, along both strike and dip. They belong to a class of structures which have potential for large, medium-to-low grade, gold bearing ore bodies. Klondike Star holds 100% or majority interest in 246 claims and an additional exclusive option to purchase an undivided 100% interest in 85 claims acquired in the first quarter ending May 31, 2006 and the second quarter ending August 31, 2006. 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 additional claims to further consolidate the property into a single contiguous area.  Since 1999, a portion of the property has been explored by KSL Exploration (Yukon) Limited, including drilling, soil sampling and trenching. Before that, United Keno Hill Mines Limited, a 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 2006 exploration objective was 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 and soil sampling and geochemistry, evaluation of more than 60 existing trenches and assessment of selected targets, and bulk sampling and processing through the Eldorado test plant. A satellite camp was installed to support project operations.  The 2006 field work confirmed the presence of multiple, continuous gold-bearing structures that warrant testing by drilling. In addition, several significant new gold-in-soil anomalies were identified in areas with no apparent prior exploration.  Work at JAE in 2006 included extending the soil geochemical anomaly to the southwest, mapping and chip sampling various new and existing trenches, and processing two bulk samples from the Mitchell and Hunker Dome zones.  The Mitchell sample consisted of 5.7 tonnes of rusty schist without quartz veining, and returned 1.3 g/t gold.  This indicates potential for bulk mineable material beyond the higher grade veins.  The Hunker Dome zone bulk sample consisted of 2.3 tonnes across several narrow quartz veins, and returned 4.0 g/t gold.  Klondike Star tested claims to the southeast of the JAE area with widespread MMI soil geochemical survey lines, identifying several large areas of gold in soil anomalies, up to 500 meters by 1000 meters.  The surveys successfully confirmed some areas with known mineralization, and identified new areas with no evidence of previous exploration. Field work during the quarter ending August 31, 2007, is further confirming the presence of multiple, continuous gold-bearing structures that warrant testing by drilling. Work completed to in 2007 consists of detailed geological mapping, surveying, grid cutting, trenching, chip sampling and bulk sampling, as well direct circulation rotary drilling. Drilling of 4 holes totaling 182.9 meters/600 feet was undertaken as the beginning of an effort to more intensively evaluate the area which lie at the headwaters of Dominion, Gold Bottom and Hunker creeks, all of which have been significant producers of placer gold, and are still being actively mined. This area of the Dominion project hosts at least seven parallel gold  (silver) vein zones within an area of highly anomalous soil geochemistry that measures about 1.5 kilometers/0.9 miles by 1 kilometer/0.6 mile. Two of these zones, the Mitchell and Sheba have been outlined along hundreds of meters of length by previous exploration efforts since 1900, including numerous trenches and shallow shafts, direct shipping of hand selected silver-rich ore (7.2 tonnes averaging 6090 g/t silver = 178 oz/ton), soil geochemistry and geophysics. Only 3 shallow drill holes, directed at the high grade silver have previously been drilled on the property. The Mitchell zone is well known for impressive specimens of visible gold, but has never been drilled. It is expected that further surface work on the other parallel zones will result in additional drill targets. Six bulk samples have been collected and processed at the JAE property during the second quarter ending August 31, 2007. The samples were collected from a variety of targets, including major veins, subsidiary veins, and pyritic alteration zones located near veins. The large size samples (up to 7 tonnes) are effective at accurately indicating the grade of these targets, which contain coarse free gold. A grid with 15 kilometers/9.3 miles of line has been cut at the JAE property for an IP geophysical survey. The results of the survey will be integrated with those of an IP survey conducted on widely spaced lines at the site in 1990. IP geophysics is known from the earlier survey to be appropriate for this area, as the mineralized quartz veins have gold-rich pyritic haloes which responded well to this method. Soil geochemical surveys and other investigations were completed in select areas of the Dominion project beyond the JAE property, along with three new trenches totaling 100 meters.. Klondike Star, in conjunction with the University of British Columbia Mineral Deposit Research Unit has been developing an exploration model for this area that combines an improved understanding of the structural geology with compilation of other data including airborne geophysics, geochronology, petrology and placer gold characteristics and distribution. A geological map at 1:20,000 scale has been produced for this area. The major mineralized structures at the JAE property have a well-defined, north- northwesterly trend and steep easterly dip, with local en echelon offsets to the veins. This clearly defined structural setting lends itself to a straight-forward exploration approach, with drill targets and hole orientations easily selected. One highlight of the exploration this season has been the rediscovery of substantial mineralized quartz veins that were trenched at some time in the past, but were not recorded in any of the available property assessment reports. A thorough compilation of the existing data has been ongoing for the past two years, as well as conventional and differential GPS surveying of the extensive network of overgrown roads, trails, trenches and vein deposits. 3rd quarter-end November 30, 20072nd quarter-end August 31, 20071st quarter-end May 31, 2007Year-end February 28, 2007Year-end February 28, 2006Year-end February 28, 2005Change from
year-end 2007 to Q3-end November 30, 2007Total claims329No change331331168112Decrease of 2 mineral claimsTotal area61.3 km2 or 24 mi2No change62.8 km2 or 24.2 mi262.8 km2 or 24.2 mi233.5 km2 or 13 mi223.5 km2 or 9 mi2Minor reduction in areaOwnershipNo change except for change to 55% ownership of 95 claims with exclusive option for up to 75%No change- 100% ownership of 149 claims
- 55% ownership of 97 claims with exclusive option for up to 75%
- exclusive option to acquire 100% of 85 claims- 100% ownership of 149 claims
- 55% ownership of 97 claims with exclusive option for up to 75%
- exclusive option to acquire 100% of 85 claims- 100% ownership of 56 claims - 55% ownership with exclusive option of 75% of 112 claims55% with exclusive option for up to 75% of 112 claimsMinor adjustmentExploration activityTrenching (3 totaling 100 meters); 78 chip samples, 209 soil samples; 15 line km grid cut for IP survey in 2008; roads upgraded and drill sites prepared for direct circulation rotary drilling total 112 samples; detailed geological mapping, RTK-GPS and conventional surveyingTrenching (3 totaling 100 meters); 50 chip samples, 209 soil samples; 15 line km grid cut for IP survey in September; roads upgraded and drill sites prepared for direct circulation rotary drilling starting September; detailed geological mapping, RTK-BPS and conventional surveyingNilTrenching, mapping, sampling including 2 bulk sampling, soil geochemistry and stakingFull program of activity in progressReverse circulation drilling (holes and total meters)4 holes totaling 182.9 meters/600 feetBulk and other samplingNo change6 bulk samples totaling 34.8 tonnes/30,746 kgNil2 bulk samples totaling 8 tonnesNilNil6 bulk samples totaling 34.8 tonnes/30,746 kg  SPICE PROJECT  During the quarter ended November 30, 2007, the Company completed a review of the Spice properties with respect to its exploration and investment priorities. The decision was taken to drop the project in order to focus efforts on Klondike Stars Lone Star, Dominion and Indian River gold projects in the Yukon and the Oweinat property in Egypt.  The Spice Project was an intermediate-stage gold exploration project that has moved to an exploratory diamond drilling phase. As of November 30, 2007, the Spice Project consisted of 52 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. The target is a low-sulphidation epithrmal-style gold deposit hosted by rhyolite, similar to the Grew Creek property being explored 60 km (37.3 mi) to the west.  Since acquiring the Spice properties, Klondike Star increased exploration efforts, and in the first quarter/spring 2006, a staking program expanded the land base to 51 mineral claims totaling 10.9 square kilometers (4.2 square miles), an increase of 63%. Exploration involved till, soil, silt and rock geochemistry, hand/blast pitting and trenching, ground magnetic, induced polarization/resistivity and VLF-EM geophysical surveys, and during the third quarter 2006 included additional soil geo-chemistry, a property evaluation, the delineation of drill targets and petrography. An exploratory diamond drilling program of identified targets proceeded in the spring of 2007. Assay results and highlights of a consolidated property assessment report will be released when available.  3rd quarter-end November 30, 20072nd quarter-end August 31, 20071st quarter-end May 31, 2007Year-end February 28, 2007Year-end February 28, 2006Year-end February 28, 2005Change from
year-end 2007 to Q3-end November 30, 2007Total claimsNo changeNo change5252320NoneTotal areaNo changeNo change10.9 km2/4.2 mi210.9 km2/4.2 mi26.7 km2/2.6 mi20NoneExploration activityNo changeNo summer activity plannedFirst-ever diamond drilling conducted on the propertySoil geochemistry and identification of targets for planned drill programCompletion of test drilling program of identified anomaliesDrilling - no. of diamond drill holes and total metersNo changeNo change3 holes totaling 439.5 meters/1,441 feetDrill targets identified for spring 2007 drill program00100%Assay samplesNo change362 core samples362 core samplesOwnershipOption droppedNo changeExclusive option for up to 75% ownershipExclusive option for up to 75% ownershipExclusive option for up to 75% ownership0Project dropped in entirety  ULTRA PROJECT  During the quarter ended November 30, 2007, the Company completed a review of the Ultra properties with respect to its exploration and investment priorities. The decision was taken to drop the project in order to focus efforts on Klondike Stars Lone Star, Dominion and Indian River gold projects in the Yukon and the Oweinat property in Egypt.  The Ultra Project was 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 and the fall of 2006, the Ultra Project consists of 416 mineral claims totaling 81.7 km2 (31.6 mi2). The targets include VMS zinc-copper-silver-gold and poly-metallic nickel-copper-platinum-palladium-gold. Two significant discoveries were announced following assessment of 2006 exploration results.  The property is located in southwest Yukon, 42 km (26.1 mi) northwest of Haines Junction, Yukon, Canada, only 140 km (87 mi) from a deepwater port. Ten kilometers (6.2 miles) west of the Alaska Highway, it is accessible by rough gravel road. It is near the former nickel-platinum Wellgreen Mine. Ultra is also in the same geological zone as the world-class zinc-copper-gold Windy Craggy deposit in northern British Columbia.  In February 2007, based on the 2006 exploration program, the Company announced the discovery of two volcanogenic massive sulphide zones including a major VMS horizon with economically interesting grades and widths. The massive sulphide grades up to 3.23% copper, 6.75% zinc, 17.8 ppm silver and 0.15 ppm gold over a 4 meter thickness. Maximum values of 13.4% copper, 6.75% zinc, 56 ppm silver and 0.25 pp. gold were obtained from one zone. The second zone reported results of 11.54% copper, 1514 ppm zinc and 7.2 ppm silver over a three meter thickness.  During the 2006 exploration program, beep mat survey was also conducted, along with hand trenching, blast trenching and soil geo-chemistry. Although specific sites were prepared, diamond drilling was deferred due to unavailability of required technical services including skilled labor. The property is drill-ready based on a multi-year investment in prospecting, mapping, sampling, airborne and ground geophysical surveys and geochemistry analysis.  As of the quarter-ended August 31, 2007, Klondike Star initiated an evaluation of the propertys fit with the Companys new strategic plan, exploration priorities; and discussion of next steps with joint venture partners.  3rd quarter-end November 30, 20072nd quarter-end August 31, 20071st quarter-end May 31, 2007Year-end
February 28, 2007Year-end
February 28, 2006Year-end
February 28, 2005Change from
year-end 2007 to Q3-end November 30, 2007Total claimsNo changeNo change416416404 claims0NoneTotal areaNo changeNo changeAbout 82 km2/31.7 mi282 km2/31.7 mi282 km2/31.7 mi20NoneDrillingNo changeNo changeNo changeDrill sites prepared00NoneSurface trenching and samplingNo changeNo changeNo change152 chip and 265 soil samples, along with hand and blast trenching86 rock and soil samples0NoneOwnershipOption droppedNo changeExclusive option for up to 75% ownershipExclusive option for up to 75% ownershipExclusive option for up to 75% ownership0Project dropped in entirety  Early-stage exploration projects:  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 has been expanded through the re-assignment of additional Company properties in adjacent areas bringing it to 400 mineral claims and 65.6 km2/25.3 mi2. It is located in the heart of the Klondike gold fields and proven gold producing ground, 10 km from Dawson City.  Since 1999, building on previous exploration efforts, the majority of the property has been explored by KSL Exploration (Yukon) Ltd, a wholly-owned subsidiary of Klondike Source Limited, and PacRim Resources Limited (formerly Barramundi Gold Ltd.) using advanced-exploration techniques, geological mapping and geochemical soil surveys.  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).  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 ended November 30, 2006, to supplement the property.  During the quarter ending August 31, 2007, the Company recovered and processed previously untested diamond drill core from 6 holes and commenced a soil sampling program.  3rd quarter-end November 30, 20072nd quarter-end August 31, 20071st quarter-end May 31, 2007Year-end February 28, 2007Year-end February 28, 2006Change from
year-end 2007 to Q3-end November 30, 2007Total claimsNo changeNo change4003080Claims re-assigned from Lone Star ProjectTotal areaNo changeNo change65.6 km2 or 25.3 mi247.0 km2 or 18.1 mi20Area of re-assigned claimsDrillingNo changeUntested diamond drill core from 6 holes totaling 1358 meters/5044 feet recoveredNilNil0Untested diamond drill core from 6 holes totaling 1358 meters/5044 feet recoveredSamplingNo change74 rock chipsNilNil074 soil samplesAssay1,127 core samplesNilNil01,127 core samplesOwnershipNo changeNo change100% of 308 claims and 55% and exclusive option to acquire up to 75% of 92 claims100% registered0Ownership in claims re-assigned from Lone Star Project  INDIAN RIVER CONGLOMERATE PROJECT  During the quarter ended November 30, 2007, the Company completed a review of the Indian River quartz (conglomerate) properties with respect to its exploration and investment priorities. The decision was taken to drop the project in order to focus efforts on Klondike Stars Lone Star, Dominion and Indian River gold projects in the Yukon and the Oweinat property in Egypt.  The Indian River Quartz Project is an early-stage gold exploration property for the Company. The property is located 40 km (24.9 mi) from Dawson City in the heart of the Klondike gold-producing region of the Yukon and the Tintina Gold Belt spanning Alaska and the Yukon. Access to the region is by good gravel road.  Additional geological mapping, rock and soil sampling and geochemistry analysis, trenching and a magnetometer survey were completed from May to September 2005. Auger drilling provided bedrock samples between January and April 2005. This work built on extensive reconnaissance and geological mapping, bulk sampling, diamond drilling and core analysis, and geochemical surveys completed by previous exploration companies.  During 2006, additional baseline work was undertaken to consolidate and ground-truth previous exploration results, with the focus on two claim blocks. The first involved an eastern extension of 2005 soil and rock sampling done to determine the presence of gold anomalies on the property (Reka claim block). The second (RMB claim block) pursued 2005 rock chip assays with elevated PGM values, targeting platinum group minerals to identify any PGM, as well as Ni, Cu and Au targets.  Mineral claims with low probability of having exploration value were released in the final quarter of the year-ended February 28, 2007.  During the quarter ended August 31, Klondike Star initiated the evaluation of the propertys fit with the new strategic plan, the known and projected geological potential in light of exploration experience and the Klondike Research Project being undertaken by the U.B.C. Mineral Deposit Research Unit.  3rd quarter-end November 30, 20072nd quarter-end August 31, 20071st quarter-end May 31, 2007Year-end February 28, 2007Year-end February 28, 2006Year-end February 28, 2005Change from
year-end 2007 to Q2-end August 31, 2007Total claimsNo changeNo change248248 claims205 claims0NoneTotal areaNo changeNo change62.1 km2 or 24.0 mi262.1 km2 or 24.0 mi267.3 km2 or 26 mi20NoneDrilling - no. of auger drill holesNo changeNo changeNo changeNo change49 holes (winter season January - April)0NoneSurface trenching and samplingNo changeNo changeNo change16 rock samples, 20 soil samples8 trenches totaling 1128 m3(1,475 yd3), 12 test pits, 52 rock samples, 333 soil samples0NoneAssay and other analysisNo changeNo changeNo changeNot available36 rock samples, 333 soil samples0NoneOwnershipOption droppedNo changeExclusive option for up to 75%Exclusive option for up to 75%Exclusive option for up to 75%0Project dropped in entirety  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 an assessment in the second quarter ended August 31, 2006, the Company has terminated this arrangement and taken direct responsibility for the project. Currently, consideration is being given to entering into a joint venture with an experienced Yukon placer miner to develop the property in 2008. 2nd quarter-end August 31, 20071st quarter-end May 31, 2007Year-end February 28, 2007Year-end February 28, 2006Year-end February 28, 2005Change from
year-end 2007 to Q2-end August 31, 2007Total claimsNo change115 claims115 claims115 claims114 claimsNoneTotal areaNo change6.9 km2  or 2.7 mi26.9 km2  or 2.7 mi26.9 km2  or 2.7 mi26.5 km2 estimated or 2.5 mi2NoneOwnershipNo change55% and exclusive option to acquire up to 75%55% and exclusive option to acquire up to 75%55% and exclusive option to acquire up to 75%55% and exclusive option to acquire up to 75%None  Future financial condition  Since 2003, the Company has raised capital successfully by way of private placements and Management expects to have the resources necessary to maintain its exploration programs. 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.  As of November 30, 2007, the Company has material commitments for capital expenditures in future years in support of the Oweinat project in the Arab Republic of Egypt acting through the wholly-owned subsidiary, Klondike Star Canada Inc. Pursuant to Klondike Stars 2008 business plan, resources are targeted to corporate development priorities.  Private placement initiatives currently in progress are expected to raise additional funds in a timely manner.  The business plan for developing the Indian River Gold Mine currently being prepared by the Company includes capital and cash flow requirements for 2008. Commencing placer mining on the advanced-stage Indian River Placer Project would create positive cash flow and change the status of the company to that of a producer.  Company policy is to expense mineral rights acquisitions and exploration activities to prove up resources and reserves as mineral exploration expenditures. Typically, the mineral exploration industry is cyclical, based upon the price of commodities and the demand for certain metals. The Company considers that it has entered this business at a time that is favorable within a long term commodity inflation cycle, and that it can sustain an enterprise in the field of mineral exploration and mining production.  Ongoing financing activities are targeted existing and new investor markets with specific private investment opportunities. During the quarter ended November 30, 2007, the February 1, 2007, a private placement memorandum (Regulation D) for the sale of common shares priced at the closing price (OTCBB) on the date of purchase was extended to October 31, 2007. An April 6, 2007, private placement memorandum (Regulation S) for sale of common shares priced at $2.25 to a major potential investor was cancelled. The May 29, 2007, private placement memorandum (Regulation S) for the sale of 4 million shares at $0.50 was extended to August 31st and fully subscribed. The June 3, 2007, private placement memorandum (Regulation S) was issued for the sale of 2 million shares at $0.50. The August 8, 2007, private placement memorandum (Regulation S) allows for the purchase of up to 3,000,000 units (a unit equals one common share and one warrant for the purchase of common shares at $1.50) at the 5 day volume averaged price preceding the date of purchase minus $0.10. Effective September 4, 2007, a private placement memorandum (Regulation S) to support Klondike Star Canadas exploration investment in the Arab Republic of Egypt for up to 3,000,000 shares at the 5 day volume averaged price preceding the date of purchase minus $0.10, for total estimated proceeds between $3,000,000 and $3,750,000, was issued with the offering expiring on or before February 29, 2008.  Gold market outlook  Indications are that global mineral exploration spending will reach a new high-water mark in 2007 for the fifth straight year in a row. In a press release issued September 10, 2007, Metals Economics Group has advised that worldwide mineral exploration spending (excluding ferrous metal and uranium) will range between $US9.3 billion and $US9.7 billion for calendar 2007. With worldwide exploration spending totaling $US7.5 billion in 2006, spending in 2007 has increased by approximately $US2 billion between 2006 and 2007. Not only an indicator of the vibrancy of overall mineral industry health, the increase in exploration spending is expected to lead to new mineral discoveries which in turn help draw attention to the sector and eventually attract further investment.  The outlook for the price of gold continues to be favorable. So far in 2007, gold prices have remained above the $US600 mark, reaching a low for the period of $US608 in early January. Gold prices broke through the $US700 barrier on September 7 and remained above $US700 to the end of November, reaching a high over the first eleven months of 2007 of $US841 on November 8.  Gold Price, January 1, 2000 to December 13, 2007: [kdsm10qfinalnov3007vjan14011.gif]  At the outset of 2007, gold price forecasts by GFMS Ltd. and TD Economics suggested that prices would range between $US643 and $US675 to the end of calendar 2007. (Sources: GFMS Ltd. Gold Survey 2006 Update 2, January 2007 cites $US643 over period of January 1, 2007 to June 30, 2007; and, TD Economics Quarterly Commodity Price Report, February 5, 2007 cites $US 650 - 675 over period of April 1, 2007 to December 31, 2007). To the end of November, 2007, gold prices have averaged $US687, making good on both start-of-year forecasts.  Both GFMS Ltd. and TD Economics remain bullish on gold prices to the end of 2007. GFMS Ltd. expects the price of gold to average $US690 in the second half of calendar 2007. (Source: GFMS Ltd. Gold Survey 2007 Update 1, September 2007). TD Economics continues to express an even higher degree of optimism. In its December 10, 2007 Weekly Commodity Price Report, TD Economics stood firm on its expectation that the price of gold will finish calendar 2007 at $US775. (Source: TD Economics Weekly Commodity Price Report, December 10, 2007). The three-year moving average for the price of gold to the end of November 2007 was $US572. (Source: World Gold Council, London PM Fix over period of December 2004 to November 2007).  With regard to the current situation for gold prices, TD Economics has noted that virtually all key drivers have lined up in favour of bullion. (Source: TD Economics Quarterly Commodity Price Report, November 23, 2007). Downward pressure on the US dollar, increased global financial uncertainty, solid jewellery demand and surprisingly strong crude oil prices are all cited by TD Economics as reasons why gold prices have been fluctuating around the $US800 level in recent weeks. With a tapering in the US dollar downswing anticipated in the months ahead, TD Economics has forecast that gold prices are likely [to] trade in a range of US$740-US$800 in 2008. (Source: TD Economics Quarterly Commodity Price Report, November 23, 2007).  Corporate governance matters  In the first quarter ended May 31, 2007, a Company Whistleblower Policy was adopted and action plans for the year-ended February 29, 2008, were developed and approved for implementation of the Health and Safety Policy and the Environment and Sustainable Development Policy.  In the second quarter ended August 31, 2007, Klondike Stars Board of Directors formally approved the Strategic Plan, 2007-2009 and Planning and Management Guidelines.  The Annual Meeting of Shareholders held on December 4, 2007 approved the appointment of a fifth director for a two year term and the appointment of the Companys independent auditor, PMB Helin Donovan.  Effective March 16, 2007, Klondike Star Mineral Corporation (the "Company") incorporated a wholly owned Canadian subsidiary company, Klondike Star Canada Inc., under the Canada Business Corporations Act. The new company has been established to support planned growth and development including new mineral exploration and development opportunities in Canada and globally.  ITEM 3. Quantitative and Qualitative Disclosures about Market Risk  The Companys functional currency is U.S. dollars. Monetary assets and liabilities of the Companys foreign operations are translated into U.S. dollars at the exchange rates as of the balance sheet date. Results of operations from monetary revenues and expenses are translated at the average exchange rates during the period, with non-monetary revenues and expenses translated at the exchange rate in effect at the time of acquisition of the underlying non-monetary asset or liability.  Realized gains and losses from foreign currency transactions are reflected in the results of operations.  ITEM 4. Controls and Procedures  As of November 30, 2007 (evaluation date), Company management has reviewed the effectiveness of disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) promulgated under the Securities and Exchange Act of 1934, as amended). The Company has developed and implemented a number of policies and procedures to assist in the consistent application of internal controls. This includes the Board of Directors Charter, the Audit Committee Charter, the Code of Business Ethics and Conduct, and the Authorization Policy. During the quarter ended May 31, 2007, Klondike Star adopted a formal Whistleblower Policy and for the quarter ended August 31, approved Planning and Management Guidelines supporting Board and management planning, reporting and accountability processes.  The Company has financial reporting procedures in place to assist in ensuring reliable and accurate information is provided to shareholders and potential investors and to ensure compliance with financial reporting to regulatory oversight bodies.  Management has concluded that company disclosure controls and procedures are effective for timely gathering, analyzing and disclosing the information disclosed in reports filed under the Securities Exchange Act of 1934. There have been no significant changes made in our internal controls or in other factors that could significantly affect our internal controls, in a negative manner, subsequent to the evaluation date.  As of November 30, 2007, the Company maintains a system of internal accounting controls that is designed to provide assurance that assets are safeguarded and that transactions are executed in accordance with management's authorization and properly recorded. This system is continually reviewed and is augmented by written policies and procedures and the careful selection and training of qualified personnel. During the three-month period ended November 30, 2007, there were no significant changes to this system of internal controls or in other factors that could significantly affect those controls.  In anticipation of the requirement to complete and disclose Managements assessment regarding internal controls over financial reporting in the annual report for the year-ended February 29, 2008, the Audit Committee approved a project charter including terms of reference, deliverables, timetable and establishment of a steering committee to review compliance with sections 302 and 404 of Sarbanes-Oxley Act of 2002 (SOX) and expedite necessary remediation, if any. The Companys objective is not merely to comply with these requirements, but to use them as a catalyst to examine financial, management and operational processes and programs throughout the organization. Management believes executing a SOX compliance initiative that seeks to improve processes and programs throughout the Company will achieve a net benefit in terms of improved risk management, operational efficiency and effectiveness, and enhanced shareholder confidence.  PART II OTHER INFORMATION  ITEM 1. Legal Proceedings  There are no pending or material legal proceedings to which the Registrant is a party or of which any of its property is subject.  ITEM 1A. Risk Factors  There are no material changes from the risk factors previously disclosed in the Form 10-K report for the year-ended February 28, 2007, with respect to Canadian operations, except for those disclosed and discussed in the Form 10-Q for the quarter-ended August 31, 2007 with respect to the appreciation in the value of the Canadian dollar relative to the U.S. dollar and the commencement of mineral exploration and exploitation in the Arab Republic of Egypt through its wholly-owned Canadian subsidiary, Klondike Star Canada Inc.  ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds  Sales of unregistered securities by periodExemption from registrationTotal common shares soldTotal warrants issued and outstanding convertible into common sharesTotal cash value of shares sold ($USD)Year ended February 29, 2004Rule 506, Regulation D1,040,00002,600,000Year ended February 28, 2005Rule 506, Regulation D1,090,00002,725,000Year ended February 28, 2006Rule 506, Regulation D3,423,0001,300,0008,029,068Year ended February 28, 2007Rule 506, Regulation D3,752,9823,032,9829,090,2991st quarter ended May 31, 2007Rule 506, Regulation D and Regulation S0002nd quarter ended August 31, 2007Rule 506, Regulation D and Regulation S3,921,71502,191,4003rd quarter ended November 30, 2007Rule 506, Regulation D and Regulation S345,000200,000299,250  ITEM 3. Defaults upon Senior Securities  None  ITEM 4. Submission of Matters to a Vote of Securities Holders  During the quarter ended November 30, 2007, a definitive proxy statement (reference Form DEFR14A -- Revised definitive proxy soliciting materials filed 2007-10-11) was distributed to shareholders for the Annual Meeting of Shareholders held December 4, 2007. Shareholders approved the appointment of a fifth director for a two year term and the appointment of the Companys independent auditor, PMB Helin Donovan (reference Form 8-K filed December ?, 2007 for tabulation of voting).  ITEM 5. Other Information  The following announcements made by press release and distributed over wire services, the Company website and through electronic distribution lists to investors and interested parties, may have qualified for disclosure on a Form 8-K during the quarter ended November 30, 2007: - Klondike Star Exploring New Lone Star Gold Targets, September 6, 2007 - Klondike Star Dominion Gold Project Update, September 13, 2007 - Klondike Star Appoints Manager For Indian River Gold Project, October 23, 2007 - Mine Prospects Advance for Klondike Stars Indian River Gold Project with 2007 Exploration Results, October 30, 2007 - Klondike Star Releases 2007 Annual Report, November 8, 2007.  ITEM 6. Exhibits  Exhibits 31 Rule 13a-41(a)/15d-14(a) Certificates 32 Section 1350 Certifications  SIGNATURES  Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.  KLONDIKE STAR MINERAL CORPORATION  [kdsm10qfinalnov3007vjan14012.jpg] By  , President Date: January 10, 2008   [kdsm10qfinalnov3007vjan14013.jpg] By , Vice President, Operations Date: January 10, 2008