ISS Recommends Klondex Shareholders Vote For Incumbent Klondex Director Slate

Klondex Mines Ltd. (TSX: KDX) announced today that ISS Proxy Advisory
Services, the independent global leader in proxy advisory consulting,
has recommended that shareholders vote FOR Klondex′s entire slate of
six incumbent nominees for the Company′s Board of Directors.

The Klondex slate is set out on the WHITE proxy card. ISS has
recommended that shareholders 'Do Not Vote? for the slate proposed on
the yellow proxy of the dissident shareholder group - led by K2
Principal Fund - who are seeking control of the entire Klondex Board.

In its opinion in support of the incumbent Klondex Board, ISS stated
that as a result of ?changes in 2010 that included the reconstitution
of the board and appointment of key management personnel - whose
guidance has led to significant valuation and operational improvements -
the dissident's case for a majority change of the board is not
compelling.?

ISS also commented that 'K2 has neither demonstrated sufficient
rationale that a wholesale board change is warranted nor presented to
shareholders a detailed plan nor a strategic vision for the company.?

ISS reached these conclusions after speaking to representatives from
both Klondex and the dissident shareholder group.

PROTECT YOUR INVESTMENT IN KLONDEX - FOLLOW THE RECOMMENDATION OF ISS:

VOTE
YOUR WHITE PROXY AND DISCARD THE
YELLOW DISSIDENT PROXY.

For questions or assistance, please call Georgeson at 1-866-676-3009.

Klondex President and COO, Blane Wilson, commented: 'This recommendation
by ISS, a well-respected and independent advisory firm, affirms our view
that Klondex′s current directors are the best choice to represent the
interests of Klondex shareholders. We are committed to moving this
company forward both at Fire Creek and in the realm of corporate
governance and are eager to put behind us the distraction of this battle
for control of Klondex′s destiny.

'We must remind our shareholders, however, that this proxy contest is
not over until final votes are cast. We urge all shareholders to
make an extra effort to vote their shares. They should call Georgeson,
our proxy solicitors, with any voting questions or problems.?

ISS is widely recognized as the leading independent proxy voting and
corporate governance advisory firm in both Canada and the United States.
Its analyses and recommendations are relied upon by hundreds of major
institutional investment firms, mutual funds and fiduciaries throughout
North America.

Permission to disclose the ISS recommendation was neither sought nor
obtained.

Klondex Shareholder Conference Call

Klondex held a shareholder conference call on Tuesday, June 21^st
to review its vision, plans and progress in more detail and to answer
shareholder questions. A replay is available as follows:

YOUR VOTE IS IMPORTANT. VOTE ONLY THE MANAGEMENT WHITE
FORM OF PROXY.

PLEASE DISREGARD THE YELLOW
PROXY.

For questions or assistance, please call Georgeson, 1-866-676-3009.

Shareholder Contacts:

Klondex Mines Ltd.

Bryson
Goodwin, 604-341-1531

brysongoodwin@shaw.ca

or

Jaffoni
& Collins

David Collins, 212-835-8500

KDX@jcir.com