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Klondex Mines Provides Update on Underground Drilling at Fire Creek Mine

Klondex Mines Ltd. (TSX: KDX) (NYSE MKT: KLDX) ("Klondex" or the "Company") is pleased to provide an update on underground drilling at its Fire Creek Mine ("Fire Creek") located in northern Nevada, USA. The following drill results are not included within the mineral reserve and mineral resource estimates released on September 14, 2016. These results will be included in the next mineral reserve and mineral resource update.

Fire Creek Mine Underground Drilling Highlights: (see TABLE 1 for complete results)

  • FCU-0714: 96.92 opt Au over 1.7 ft., or 3,322.8 g/t over 0.5 m -- Joyce Vein
  • FCU-0692: 1.47 opt Au over 8.0 ft., or 50.3 g/t over 2.4 m -- Joyce Vein
  • FCU-0689: 1.08 opt Au over 18.3 ft., or 37.0 g/t over 5.6 m -- Joyce/Vonnie Vein Intersection
  • FCU-0709: 0.84 opt Au over 33.0 ft., or 28.9 g/t over 10.1 m -- Karen/Honeyrunner Vein Intersection
  • FCU-0716: 0.45 opt Au over 53.8 ft., or 15.3 g/t over 16.4 m -- Vein 31

KEY POINTS: (FIGURE 1)
Forty one underground core holes totaling 35,494.5 ft. (10,818.7 m) were drilled during this reporting period.

Drilling targeted the northern and down dip extensions of Vein 31, Honeyrunner and Karen veins around the northern-most area of the mine workings. These drill holes intersected both exceptional widths and grades and support the continuity of mineralization along these structures. Notable results from drill holes FCU-0709 and FCU-0716 suggest that the structures may converge into a wider, high grade zone of mineralization just north of our existing workings.

Drilling results from FCU-0692, FCU-0689 and FCU-0704 extended the Joyce and Vonnie veins down dip, and FCU-0714 indicates the potential for two high-grade structures at depth suggesting the eastern most structure is on the edge of another high-grade ore shoot on the Vonnie vein.

Drilling to the northeast of the North Main Haulage continued to develop and upgrade the mineral resource on veins 9 and 16.

Mr. Brian Morris, Vice President, Exploration said, "These outstanding results from our underground drilling at Fire Creek continue to demonstrate the significant potential of this mineral resource to expand as we step out along strike and vertically." Mr. Morris continued, "These wide mineralized zones to the north may offer significant positive impacts on future production by offering opportunities to employ bulk mining techniques."

Assays were performed by ALS Chemex of Reno, Nevada, as directed under the supervision of Klondex staff. This organization is an ISO 17025 accredited independent laboratory.

A description of the data verification methods, quality assurance program and quality control measures applied can be found in the technical report titled, "Technical Report for the Fire Creek Project, Lander County, Nevada," dated March 28, 2016 and with an effective date of June 30, 2015 which is available under the Company's issuer profile on SEDAR at www.sedar.com.

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