Klondex Mines Raises C$595,000 via Warrant Exercise by Largest Shareholder; Receives Proceeds From First Shipment With Newmont of C$1.8mm

VANCOUVER, BC--(Marketwired - Sep 23, 2013) - Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF), a Nevada gold exploration and development company, announced today that its largest shareholder, The K2 Principal Fund L.P. ("K2"), has exercised warrants to purchase 500,000 common shares of Klondex ("Common Shares") for C$1.19 per share, generating total proceeds to Klondex of C$595,000.

The warrants were subject to early expiry should the daily volume-weighted average price of the Common Shares on the Toronto Stock Exchange exceed the exercise price by 35% for 10 consecutive trading days. Common Shares issued pursuant to the warrant exercise are subject to a four-month plus one day hold period per Canadian securities laws. The warrants were issued to K2 in conjunction with K2 providing Klondex a C$1.99M bridge loan facility in July 2013.

Reflecting the warrant exercise, K2 and its affiliates own 9,831,864 Klondex Common Shares, or approximately 14.9% of the issued and outstanding Common Shares. On a fully diluted basis, K2's ownership represents approximately 13.6% of Klondex's fully diluted Common Shares outstanding.

Klondex also confirms it has received approximately C$1.8M from the processing of its first shipment of mineralized material to Newmont (see press release dated July 26, 2013). Processing began on Klondex's second shipment of material on September 18, 2013.

Klondex President and CEO, Paul Huet commented, "We are pleased to have the continued support of K2, whose counsel and guidance have been extremely valuable in transforming Klondex over the past year. Proceeds from their warrant exercise and the proceeds received from our first shipment of mineralized material will provide us with additional capital to continue exploration and development at Fire Creek for the foreseeable future. "

About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration and development of its high-grade Fire Creek gold deposit in North-Central Nevada. Fire Creek is a compelling gold project located in a mining-friendly jurisdiction, near major producers, power, transportation, mining infrastructure and milling facilities. Giving effect to the K2 warrant exercise, on September 18, 2013, Klondex had 66.0mm shares issued and outstanding and 88.4mm shares, fully diluted.