Mr. John Seaberg reports

KLONDEX ANNOUNCES SIGNIFICANT HIGH GRADE EXTENSIONS OF VEINS AT FIRE CREEK; INTERCEPTS 96.92 OPT GOLD OVER 1.7 FEET

Klondex Mines Ltd. is providing an update on underground drilling at its Fire Creek mine located in northern Nevada, United States. The following drill results are not included within the mineral reserve and mineral resource estimates released on Sept. 14, 2016. These results will be included in the next mineral reserve and mineral resource update.

Fire Creek mine underground drilling highlights (see full drill results table on the company's website)

• FCU-0714: 96.92 ounces per ton gold over 1.7 feet, or 3,322.8 grams per tonne over 0.5 metre -- Joyce vein;
• FCU-0692: 1.47 ounces per ton Au over 8.0 feet, or 50.3 g/t over 2.4 m -- Joyce vein;
• FCU-0689: 1.08 ounces per ton Au over 18.3 feet, or 37.0 g/t over 5.6 m -- Joyce/Vonnie vein intersection;
• FCU-0709: 0.84 ounce per ton Au over 33.0 feet, or 28.9 g/t over 10.1 m -- Karen/Honeyrunner vein intersection;
• FCU-0716: 0.45 ounce per ton Au over 53.8 feet, or 15.3 g/t over 16.4 m -- vein 31.

Key points

Forty-one underground core holes totalling 35,494.5 feet (10,818.7 m) were drilled during this reporting period.

Drilling targeted the northern and downdip 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 the company's existing workings.

Drilling results from FCU-0692, FCU-0689 and FCU-0704 extended the Joyce and Vonnie veins downdip, 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, Nev., as directed under the supervision of Klondex staff. This organization is an ISO 17025-accredited independent laboratory.

A description of the data verification methods, quality assurance program and quality control measures applied can be found in the technical report titled, "Technical Report for the Fire Creek Project, Lander County, Nevada," dated March 28, 2016, and with an effective date of June 30, 2015, which is available under the company's issuer profile on SEDAR.

About Klondex Mines Ltd.

Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development and production in a safe, environmentally responsible and cost-effective manner. The company 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 known as 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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