Klondex Mines Announces Repricing of Lender Warrants to Purchase 1.4 Million Common Shares

Klondex Mines Ltd. (TSX: KDX), which is focused on the exploration and
development of its 100% owned Fire Creek gold deposit in North Central
Nevada, announced today an agreement to reprice1,400,000 unlisted common
share purchase warrants of the Company. The warrants were issued to
Waterton Global Value Fund L.P. (the 'Lender?) on April 5, 2011 in
conjunction with a US$20 million gold loan facility provided to help
fund development at Klondex′s Fire Creek project.

Each warrant was originally exercisable to acquire a Klondex common
share at a price of C$3.99 at any time on or before April 5, 2015. The
warrants, if exercised within 18 months of issuance (the 'Initial
Exercise Period?), would also earn an equal number of new warrants
exercisable until April 5, 2016 at the higher of 115% of the 5-day
volume weighted average price at the time of the issuance, or C$5.00,
whichever is greater.

Pursuant to an agreement reached on June 15, 2011, Klondex has agreed to
amend the terms of the warrants to reduce the exercise price to C$2.76
per common share (the five-day volume weighted average price on that
date) as consideration for the Lender agreeing to waive any default
under the loan agreement as a result of certain National Instrument
43-101 compliance issues related to the Company′s March 30, 2009
technical report. An updated technical report, which incorporates
results from Klondex′s 2009 and 2010 drill programs, is currently being
prepared. The Lender also agreed to accelerate the expiry date of the
Initial Exercise Period by four months from October 5, 2012 to June 5,
2012.

The Lender deals at arm′s length to Klondex. The repricing of the
warrants has been approved by the Toronto Stock Exchange and will be
effective the tenth business day following the date of this release.

About Klondex Mines Ltd. (www.klondexmines.com):

Klondex Mines is focused on the exploration and development of its 100%
owned Fire Creek gold deposit in North Central Nevada. As of July 21,
2011, Klondex had 37.0million shares issued and outstanding and 43.6
million shares on a diluted basis.

Investor Contacts:

Klondex Mines Ltd.

Bryson Goodwin,
604-341-1531

brysongoodwin@shaw.ca

or

Jaffoni
& Collins

David Collins, 212-835-8500

KDX@jcir.com