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Klondex Provides Update on Underground Drilling at True North Gold Mine in Manitoba, Canada

Klondex Mines Ltd. (TSX: KDX) (NYSE MKT: KLDX) ("Klondex" or the "Company") is pleased to provide an update on underground drilling at its True North Gold Mine ("True North") in Manitoba, Canada. The following drill results are in addition to those included within the mineral reserve and mineral resource estimates released on September 12, 2016.

True North Gold Mine Drilling Highlights (see TABLE 1 for complete results):

  • 620-16-013: 0.95 opt Au over 6.0 ft, or 32.7 g/t over 1.8 m (711)
  • 588-16-024: 1.24 opt Au over 5.0 ft, or 42.4 g/t over 1.5 m (711)
  • 588-16-028: 0.56 opt Au over 9.0 ft, or 19.2 g/t over 2.7 m (711)
    • And 0.84 opt Au over 5.0 ft, or 28.8 g/t over 1.5 m (711 HW)
  • 588-16-018: 0.36 opt Au over 9.3 ft, or 12.2 g/t over 2.8 m (711)
    • And 0.64 opt Au over 8.0 ft, or 22.1 g/t over 2.4 m (711)
  • 967-16-004: 0.19 opt Au over 12.3 ft, or 6.4 g/t over 3.7 m (Cohiba)
    • Including 1.76 opt Au over 1.0 ft, or 60.4 g/t over 0.3 m (Cohiba)
  • 967-16-005: 1.10 opt Au over 11.5 ft, or 37.7 g/t over 3.5 m (Cohiba)
    • Including 4.89 opt Au over 2.4 ft, or 167.7 g/t over 0.7 m (Cohiba)

True North Gold Mine Drilling Summary (FIGURE 1):

710/711:
48 underground holes totaling 23,591 ft (7,190.5 m) were drilled during the reporting period. This definition drilling was targeting both the up-dip and down-dip extensions of the 711 zone and the up-dip extensions of the 710 zone.

These drill results suggest that the mineralization in the 710 and 711 zones continues to extend beyond what has currently been defined.

Cohiba:
12 underground holes totaling 6,122 ft (1,866 m) were drilled during the reporting period. This definition drilling targeted the down-dip extension of the Cohiba zone. These drill results suggest the mineralization in the Cohiba zone continues at depth.

Brian Morris, Vice President Exploration stated, "The results from the 710/711 drilling show that excellent grades and widths continue up-dip as well as down-dip. This is significant as it directs us to continue to drill this structural trend for potential mineral resource addition and to refine our 2017 mine plan." Mr. Morris continued, "Additionally, down-dip drilling on Cohiba is showing very positive results that may support the economics of additional down-dip production at Cohiba."

Assays were performed by TSL Laboratories, an ISO 17025 accredited independent laboratory, and samples were collected and shipped under the supervision of Klondex staff.

A description of the data verification methods, quality assurance program and quality control measures applied can be found in the technical reports titled "Technical Report and Pre-Feasibility Study on the True North Gold Mine, Bissett, Manitoba, Canada", dated October 27, 2016 and with an effective date of June 30, 2016 which is available under the Company's issuer profile on SEDAR at www.sedar.com.

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