Mr. John Seaberg reports

KLONDEX ANNOUNCES UPDATED DRILL RESULTS AT TRUE NORTH; DRILLING SUPPORTS EXPANSION OF 710/711 AND COHIBA ZONES

Klondex Mines Ltd. is providing an update on underground drilling at its True North gold mine in Manitoba, Canada. The following drill results are in addition to those included within the mineral reserve and mineral resource estimates released on Sept. 12, 2016.

True North gold mine drilling highlights

• 620-16-013: 0.95 ounce per ton gold over six feet, or 32.7 grams per tonne over 1.8 metres (711);
• 588-16-024: 1.24 ounces per ton Au over five feet, or 42.4 g/t over 1.5 m (711);
• 588-16-028: 0.56 ounce per ton Au over nine feet, or 19.2 g/t over 2.7 m (711);
• And 0.84 ounce per ton Au over five feet, or 28.8 g/t over 1.5 m (711 HW);
• 588-16-018: 0.36 ounce per ton Au over 9.3 feet, or 12.2 g/t over 2.8 m (711);
• And 0.64 ounce per ton Au over eight feet, or 22.1 g/t over 2.4 m (711);
• 967-16-004: 0.19 ounce per ton Au over 12.3 feet, or 6.4 g/t over 3.7 m (Cohiba);
• Including 1.76 ounces per ton Au over one foot, or 60.4 g/t over 0.3 m (Cohiba);
• 967-16-005: 1.10 ounces per ton Au over 11.5 feet, or 37.7 g/t over 3.5 m (Cohiba);
• Including 4.89 ounces per ton Au over 2.4 feet, or 167.7 g/t over 0.7 m (Cohiba).

True North gold mine drilling summary

710/711

Forty-eight underground holes totalling 23,591 feet (7,190.5 m) were drilled during the reporting period. This definition drilling was targeting both the updip and downdip extensions of the 711 zone and the updip extensions of the 710 zone.

These drill results suggest that the mineralization in the 710 and 711 zones continues to extend beyond what has currently been defined.

Cohiba

Twelve underground holes totalling 6,122 feet (1,866 m) were drilled during the reporting period. This definition drilling targeted the downdip extension of the Cohiba zone. These drill results suggest the mineralization in the Cohiba zone continues at depth.

Brian Morris, vice-president of exploration, stated: "The results from the 710/711 drilling show that excellent grades and widths continue updip as well as downdip. This is significant as it directs us to continue to drill this structural trend for potential mineral resource addition and to refine our 2017 mine plan. Additionally, downdip drilling on Cohiba is showing very positive results that may support the economics of additional downdip production at Cohiba."

Assays were performed by TSL Laboratories, an ISO 17025-accredited independent laboratory, and samples were collected and shipped under the supervision of Klondex staff.

A description of the data verification methods, quality assurance program and quality control measures applied can be found in the technical reports titled "Technical Report and Pre-Feasibility Study on the True North Gold Mine, Bissett, Manitoba, Canada," dated Oct. 27, 2016, and with an effective date of June 30, 2016, which is available under the company's issuer profile on SEDAR.

About Klondex Mines

Klondex has 100-per-cent interests in three producing mineral properties: the Fire Creek mine and the Midas mine and ore-milling facility, both of which are located in the state of Nevada, United States, and the True North gold mine (formerly the Rice Lake mine) and mill in Manitoba, Canada. The company also has 100-per-cent interests in two recently acquired projects, the Hollister mine and the Aurora mine and ore-milling facility (formerly known as Esmeralda), also located in Nevada, U.S.

Qualified person

Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a qualified person within the meaning of National Instrument 43-101.

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