Klondex Discovers High-Grade Gold Vein In Nevada  

VANCOUVER, BC – Klondex Mines Ltd. reported new high-grade gold intercepts from its exploration-drilling program at its Fire Creek property in North Central Nevada. Results are based on assays for the remaining nine holes (6 core and 3 RC) of the Company’s 20-hole drill program for 2010.

Drilling Highlights:  RC drilling (FC1014RC) discovered a new high-grade vein 150 meters (500 feet) south of the southern end of the Far North resource. The vein averages 10.76 g/t gold over a true width of 6.1 meters (0.31 oz/ton Gold over 20 feet), including 41.25 g/t over 1.2 meters true width (1.21 oz/ton over 4.0 feet). New gold-bearing shears (<5 g/t gold) have been found north of Main Zone and southwest of New North Zone, extending the scope of these zones. In-fill drilling in the Main Zone yielded the highest gold assays of the year. FC1019 averages 43.16 g/t over a true width of 2.4 meters (1.26 oz/ton over 8.0 feet), including 75.85 g/t gold and 207.00 g/t silver over a true width of 1.2 meters (2.22 oz/ton gold and 6.0 oz/ton silver over 4 feet). Our surface exploration program continues to discover new high-grade veins while extending the boundaries and potential of the Fire Creek resource,said Blane Wilson, President and COO, with ten new high-grade intercepts found by our 2010 drilling program. There are numerous IP and other targets still to pursue, and we also plan to drill a few deeper holes from surface to test our vein systems at depth. We expect to resume surface exploration this spring once the snow subsides and we are able to complete surface road surveys required by the BLM. Regarding Klondex’s underground program, Mr. Wilson added, We remain on-track to initiate our underground exploration and bulk sampling program in March. We believe our permits are in the final stages of issuance, and our underground contractor SMD has been on site preparing to initiate the decline upon receipt of regulatory approvals. Given this timing, we expect Klondex can start its first bulk sample late in the fourth quarter of this year. We continue to believe that our progression from pure exploration to a hybrid model of exploration and production via bulk sampling should create value for our shareholders. Klondex’s 2010 drilling program consisted of 12,198 feet/3,718 meters of core and 16,045 feet/4,891 meters of RC drilling. 12 core holes targeted in-fill of the existing resource or previous IP hits and 8 RC holes targeted IP anomalies. Recent results include four in-fill drill holes designed to show continuity of veins and to supply additional data prior to starting underground development. Data from the 2009 and 2010 drilling programs has not yet been incorporated into Klondex’s NI 43-101 mineral resource, last updated in March 2009. The company’s address is Suite 600, 595 Howe St., Vancouver, BC V6C 2T5: (604) 662-3902, fax: (604) 662-3904.