Klondex Mines Completes $9 Million Bought Deal Private Placement

Klondex Mines Ltd. (TSX: KDX), a high-grade Nevada gold explorationcompany
moving into underground development for a bulk sampling program,
announced today that it has completed its previously announced bought
deal private placement. A syndicate of underwriters led by NCP Northland
Capital Partners Inc. and including Mackie Research Capital Corporation
and Wellington West Capital Markets Inc. have completed the sale of
4,000,000 common shares priced at $2.25 per share for gross proceeds of
$9 million. The shares have been placed primarily with institutional
investors.

Net proceeds from the offering will be used for ongoing exploration and
site work at Klondex′s Fire Creek property in Nevada as well as for
general working capital purposes. Klondex is also seeking to complete a
gold-backed financing intended to fully fund its contemplated
underground program at Fire Creek.

Klondex has completed approximately half of its 29-hole, 2010 surface
drilling program at Fire Creek and is also actively engaged in surface
work to prepare Fire Creek for a planned underground decline to provide
access for in-fill drilling and bulk sampling of the resource.

After giving effect to the private placement, as of November 10, 2010
Klondex Mines has 36,544,089 shares issued and outstanding and
41,319,089 shares on a fully diluted basis.

This press release is not an offer or a solicitation of an offer of
securities for sale in the United States.The common shares of
Klondex have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from
registration.

About Klondex Mines (www.klondexmines.com):

Klondex Mines Ltd. is focused on the exploration and development of its
100% owned high-grade Fire Creek gold deposit in North Central Nevada.
Fire Creek is a compelling, low-Capex mining prospect that is well
located near power, transportation, mining infrastructure and several
milling facilities. Klondex has identified the following NI 43-101
compliant resource at Fire Creek:

Investor:

Klondex Mines Ltd.

Bryson Goodwin,
604-341-1531

brysongoodwin@shaw.ca