Klondex Mines Updated Technical Report Generates Indicated Mineral Resource of 1.65 Million Ounces of Gold Plus Inferred Mineral Resource of 0.46 Million Ounces of Gold at Fire Creek Project in Nevada

Klondex Mines Ltd. (TSX: KDX; 'Klondex?) has received an updated
technical report on its 100%-owned Fire Creek gold property in the
Battle Mountain-Eureka Trend in Northern Nevada. The report, prepared in
compliance with National Instrument 43-101 ('NI 43-101?), outlines the
following resource:

'The updated Indicated Mineral Resource at a 4 gram per tonne cut-off
produced an indicated resource estimate of 5,176,050 tonnes at 9.9 gpt
for 1,647,052 ounces of gold with an average interval true width of 6.7
meters. The cut-off grade also resulted in an inferred resource estimate
of 1,732,810 tonnes grading 8.22 gpt for 458,084 ounces of gold.?

Unlike the last resource completed in 2009, which used a gold equivalent
comprised of gold and silver, the updated resource includes only gold.
Despite the elimination of silver, the current Indicated Mineral
Resource′s 1,647,052 gold ounces are slightly higher than the 2009
Indicated Mineral Resource total gold equivalent (gold + silver; 60
ounces of silver equal one ounce of gold) of 1,639,822 ounces using a 5
gram per tonne (gpt) cut-off. The updated resource is reviewed in the
table below. For more detailed information on the updated mineral
resource estimates, please refer to Klondex′s disclosure which will be
available shortly on the SEDAR website (www.sedar.com).

During 2009 and 2010, 14 holes were drilled to in-fill known
mineralization, eight holes were drilled to extend the known zones along
strike and 13 holes were drilled to test new geophysical targets.
In-fill drilling reduced the updated Indicated Mineral Resource slightly
while extension drilling south of the Main resource increased this
resource modestly. Although drilling of geophysical targets has found
several new vein zones including veins east of Main and south of Far
North, these mineralized intercepts could not be included in the updated
Indicated Mineral Resource because drilling density is not yet
sufficient.

The mineral resources mentioned in the updated 43-101 report have the
meanings given to such terms by the Canadian Institute of Mining,
Metallurgy and Petroleum as the CIM Definition Standards on Mineral
Resources and Mineral Reserves, as amended. This report is an update to
the report received in March 2009 and is based on information from site
examinations and a review and interpretation of existing data and
documents from previous mineral exploration programs. Klondex provided
all available reports and data records from files that have been
collected from previous exploration efforts by other mining companies
and documents generated by Klondex exploration.

The updated report entitled 'Updated Technical Report and Resource
Estimation on the Fire Creek Gold Property, Lander Co., Nevada? by
Edwin Ullmer, M.S., (P.Geo) of Westminster, Colorado, Wesley Raven,
B.Sc., (P.Geo) of Vancouver, British Columbia and Gary Hawthorn, B.Sc.,
(P.Eng) of North Vancouver, British Columbia will be filed on SEDAR.

Each of Edwin Ullmer, Wesley Raven, and Gary Hawthorn is an Independent
Qualified Person as required under NI 43-101 and has reviewed and
approved the technical information contained in this press release.

All sample preparation, including crushing, grinding and preparation of
the assay pulps, as well as sample analysis, was performed by ALS/Chemex
in their Nevada facilities.

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 August 31,
2011, Klondex had 37.0 million shares issued and outstanding and 42.9
million shares on a diluted basis.

On Behalf of Klondex Mines Ltd.

Blane W. Wilson

President & CEO

Investor & Media Contact:

Jaffoni & Collins

David
Collins, 212-835-8500

KDX@jcir.com