Klondex Identifies Six Previously Unknown Gold Vein Structures and Extends Main Vein System to the South in Its Fire Creek Nevada Development Program

Klondex Mines Ltd. (TSX: KDX), announced that to date its 2010
exploration drilling program has identified six previously unknown gold
vein structures and intercepted several new gold bearing shears at its
Fire Creek property in North Central Nevada. Today′s results are based
on assays received from 11 of 15 completed holes as surface drilling
continues. Klondex has completed 9,573 feet/2,198 meters of core and
12,710 feet/3,874 meters of RC drilling. Six of 11 holes are step out
drilling to test known IP anomalies while five holes were in-fill,
testing known mineralization. Results are reviewed below and on a drill
plan map on the KDX
website.

Klondex′s 2010 surface drilling program has identified a new vein
between the Main and Far North Zones (FC1007RC), two new veins within
the Far North Zone (FC1003B), strong veining near the north end of the
New North Zone (FC1004) and extended the Main Zone vein system 100
meters to the south (FC1012RC, FC1013RC, FC1016). Follow-up drilling of
the new veins and vein shears will be required to further demonstrate
their significance. Results from this year′s program, as well as last
year′s productive 15-hole program (totaling 20,221 feet/6,163 meters)
are not yet included in KDX′s 43-101 resource, last updated in March
2009.

Blane Wilson, President and COO, commented: 'Surface drilling at Fire
Creek continues to be very productive, delivering new veins and
intercepts while also growing the geographical scope of the Fire Creek
resource. We continue to balance our exploration efforts with in-fill
core drilling of known mineralized areas with the testing of IP targets
through RC drilling. Given the onset of winter weather at Fire Creek, we
expect to suspend further RC drilling in the near term but plan to
continue our core drilling into late January or beyond.

'We expect to initiate underground operations in 2011, though surface
exploration will remain a priority for the Company. Our current surface
exploration program covers four square miles, and we are confident it
can lead the way to expanding our resource and additional underground
development.?

DRILL HOLE DESCRIPTIONS:

FC1001 Drilled above and 200 feet west of FC0914RC intercept (two
intercepts of +9.0 g/t Au). Crossed shear zone 1260-1350 feet with gold
up to 0.9 g/t.

FC1002B Tested east and 200 feet below FC0914 intercept. Shear
zone 1190-1360 feet with gold high of 2.6 g/t.

FC1003B Drilled untested western portion of Far North vein
system. A single vein hit to the north became 3
strong veins in this hole within a 230 feet thick zone running 1.6-1.8
g/t gold.

FC1004 Drilled near the northern end of the New North Vein
system. A strong vein was intersected 6.5 meters
true width averaging 9.95 g/t gold or 1.1 meters assaying 33.00 g/t gold.

FC1005B Drilled to target northern Main. The hole intersected
gold-bearing shears at 800-900 feet (in Latite tuff), 1150-1200,
1310-1350 and 1430-1460 feet. The gold high is 3.1 g/t.

FC1006RC This hole targeted an IP anomaly 1300 feet (400 meters)
north of Main. A shear zone with anomalous gold up to 0.7 g/t was
intersected from 670 to 710 feet.

FC1007RC This hole targeted an IP anomaly over northern Main west
of where FC1006RC tested. This hole discovered a
new vein and 3 gold bearing shears located between northern Main and Far
North (950-1020, 1070-1110, 1320-1370 feet). The vein runs 5.14
g/t gold over a true width of 1.1 meters.

FC1010RC This hole was drilled to test an IP anomaly over east
Main. It intersected a mineralized shear bordering a basalt dike from
1320-1460 feet with a high of 1.4 g/t gold.

FC1012RC Drilled as part of a two hole fence testing the south
extension of Main and an IP anomaly to the east, this hole intersected a
wide gold bearing shear zone from 400-580 feet. High gold for the
interval is 0.8 g/t.

FC1013RC The second of the 2 hole fence with FC1012 this hole was
drilled from further west. The hole intersected
one vein (1.1 meters true width of 4.79 g/t gold) within a gold bearing
shear from 560-660 feet. This extends the Main vein system a further 50
meters south from FC1016.

FC1016 Drilled at 45 degrees the hole intersected 28 meters true
width of 1.88 g/t gold from 360 to 490 feet depth. Within this is an
intercept of 4.3 meters true width of 4.99 g/t gold. This
hole extends the Main vein zone 50 meters south.

After giving effect to the private placement, as of November 10, 2010
Klondex Mines had 36,544,089 shares issued and outstanding, 41,319,089
shares on a fully diluted basis, and approximately CDN $9 million in
cash.

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:

Richard Kern (P.Geo), of Reno, Nevada, a qualified person as defined
under National Instrument 43-101 and has reviewed and approved the
technical information contained in this press release.

Klondex Mines Ltd.

Bryson Goodwin, 604-341-1531

brysongoodwin@shaw.ca

or

Jaffoni
& Collins

David Collins, 212-835-8500

KDX@jcir.com