High Grade Extensions Of Veins At Fire Creek

RENO, NV – Klondex Mines Ltd. reported an update on underground drilling at its Fire Creek Mine located in northern Nevada. The following drill results are not included within the mineral reserve and mineral resource estimates released on September 14, 2016. These results will be included in the next mineral reserve and mineral resource update.

Fire Creek Mine Underground Drilling Highlights: FCU-0714: 96.92 opt Au over 1.7 ft., or 3,322.8 g/t over 0.5 m – Joyce Vein; FCU-0692: 1.47 opt Au over 8.0 ft., or 50.3 g/t over 2.4 m – Joyce Vein; FCU-0689: 1.08 opt Au over 18.3 ft., or 37.0 g/t over 5.6 m – Joyce/Vonnie Vein Intersection; FCU-0709: 0.84 opt Au over 33.0 ft., or 28.9 g/t over 10.1 m – Karen/Honeyrunner Vein Intersection; and FCU-0716: 0.45 opt Au over 53.8 ft., or 15.34 g/t over 16.4 m – Vein 31. Forty one underground core holes totaling 35,494.5 ft. were drilled during this reporting period.

Drilling targeted the northern and down dip extensions of Vein 31, Honeyrunner and Karen veins around the northern-most area of the mine workings. These drill holes intersected both exceptional widths and grades and support the continuity of mineralization along these structures. Notable results from drill holes FCU-0709 and FCU-0716 suggest that the structures may converge into a wider, high grade zone of mineralization just north of our existing workings.

Drilling results from FCU-0692, FCU-0689 and FCU-0704 extended the Joyce and Vonnie veins down dip, and FCU-0714 indicates the potential for two high-grade structures at depth suggesting the eastern most structure is on the edge of another high-grade ore shoot on the Vonnie vein.

Drilling to the northeast of the North Main Haulage continued to develop and upgrade the mineral resource on veins 9 and 16.

Brian Morris, Vice President, Exploration said, “These outstanding results from our underground drilling at Fire Creek continue to demonstrate the significant potential of this mineral resource to expand as we step out along strike and vertically. These wide mineralized zones to the north may offer significant positive impacts on future production by offering opportunities to employ bulk mining techniques.” Assays were performed by ALS Chemex of Reno, Nevada, as directed under the supervision of Klondex staff.