Mr. Paul Huet reports

KLONDEX RECOVERS 107,860 AU EQUIVALENT OUNCES IN FIRST YEAR OF PRODUCTION

Klondex Mines Ltd. has provided its 2014 annual production and its operations guidance for 2015 at its Midas and Fire Creek projects.

 
                                    Q1       Q2       Q3       Q4   Total 2014
Underground operations
Tons mined                      22,370   54,659   54,842   48,950      180,821
Processing
Tons milled                     21,727   46,047   54,743   49,327      171,844
Au grade opt                     0.541    0.382    0.637    0.471        0.509
Ag grade opt                      7.73     7.38     6.95    11.05         8.34
Au ounces recovered             13,545   17,093   33,339   22,262       86,239
Ag ounces recovered            158,372  325,018  364,435  517,761    1,365,586
Au equivalent ounces
recovered (1)                   16,052   22,239   39,109   30,460      107,860
Au ounces sold                   3,369   20,293   23,166   26,272       73,100
Ag ounces sold                  58,053  343,025  315,504  400,706    1,117,288
Au equivalent ounces sold (1)    4,288   25,724   28,162   32,617       90,791

(1) Au equivalent ounces used a 63.15:1 silver-to-gold ratio.

Paul Andre Huet, Klondex president and chief executive officer, commented: "Our fourth-quarter results capped an exceptional year for Klondex. Actual production results for 2014 exceeded our original budgeted ounces by over 25 per cent. Solid performances at both operations demonstrate our teams' ability to deliver and sustain operations while generating free cash flow, both of which are critical to the growth of the company."

He continued: "Looking forward to 2015, we have increased our operations target by approximately 15 per cent to 120,000 to 125,000 gold equivalent ounces. We enter 2015 with momentum, the right people, and the confidence to execute our exploration, development and production plans. We are well positioned to execute the company's strategy to optimize operations and grow both resources."

Klondex will report its financial results for the fourth quarter and full year 2014 on Tuesday, March 24, 2015, followed by a conference call on Wednesday, March 25, 2015.

Klondex is conducting its final review of the updated Fire Creek mineral resource estimate, which is expected to be released by the end of January, 2015.

We seek Safe Harbor.