Mr. Paul Huet reports

KLONDEX INCREASES MINERAL RESOURCE ESTIMATE AT FIRE CREEK

Klondex Mines Ltd. has provided an update to the mineral resource estimate at its 100-per-cent-owned Fire Creek project in Nevada. The technical report, with an effective date of Dec. 31, 2014, is to be prepared by Practical Mining LLC and will be posted on the Klondex website and SEDAR within 45 days of the date of this news release.

    
                        FIRE CREEK MINERAL RESOURCES

Category    Tons     Au    Au    Ag    Ag   AuEq   AuEq   AuEq     Ag     Au  
              (k)  oz/t   g/t  oz/t   g/t   oz/t    g/t    koz    koz    koz  
Case 1
Measured    93.0   2.28  78.2  1.73  59.3   2.31   79.2  214.5  160.8  212.0 
Indicated  284.4   0.72  24.7  0.57  19.5   0.72   24.7  206.1  163.4  203.5 
           -----   ----  ----  ----  ----   ----   ----  -----  -----  -----
M+I        377.4   1.10  37.7  0.86  29.5   1.11   38.1  420.5  324.2  415.5 
Inferred   840.0   0.43  14.7  0.38  13.0   0.43   14.7  363.3  320.8  358.3 
Case 2
Measured    82     2.55  87.4  1.93  66.2   2.58   88.5  211    157    209  
Indicated  216     0.86  29.5  0.66  22.6   0.87   29.8  188    143    186  
           -----   ----  ----  ----  ----   ----   ----  -----  -----  -----
M+I        297     1.33  45.6  1.01  34.6   1.34   45.9  399    300    395  
Inferred   546     0.54  18.5  0.46  15.8   0.54   18.5  297    249    293  

Case 1: mineral resources estimated at a gold price of $1,200 (U.S.) per 
ounce and silver price of $19 (U.S.) per ounce
Case 2: mineral resources estimated at a gold price of $800 (U.S.) per ounce 
and silver price of $12.67 (U.S.) per ounce
Notes:
1. Mineral resources are estimated at metallurgical recoveries of 94 per 
cent and 92 per cent, respectively.                                     
2. Mineral resources have been estimated at a cut-off grade thickness of    
1.126 ounces per ton-feet.
3. Mineral resources include the planned dilution necessary to achieve the 
minimum mining width of four feet. 
4. Mineral resources include allowances of 5 per cent mining losses and 10
per cent additional unplanned dilution.
5. Mineral resources, which are not mineral reserves, do not have 
demonstrated economic viability. The estimate of mineral resources may be   
materially affected by environmental, permitting, legal, title, socio-      
political, marketing or other relevant issues.
6. The quantity and grade of reported inferred mineral resources in this    
estimation are uncertain in nature, and there is insufficient exploration to
define these inferred mineral resources as an indicated or measured mineral 
resource, and it is uncertain if further exploration will result in 
upgrading them to an indicated or measured mineral resource category.       

Paul Huet, Klondex's president and chief executive officer, stated: "We are extremely pleased with the success of our 2014 infill and exploration drill programs. Our team achieved a 47-per-cent growth in measured and indicated mineral resources. To promote sustainability within the company, we stress the importance of adding to each mineral resource as we progress with the bulk sampling program. Our team is dedicated to the future growth of Klondex. Looking to 2015, we are confident that Klondex is well capitalized to complete our planned $33-million exploration and development programs at Fire Creek and Midas."

Brian Morris, Klondex's new vice-president, exploration, elaborated: "The underground exploration drill program primarily focused on the delineation of veins east and west of the main decline. As a result of this drilling, several new favourable veins and structures were intersected which require additional drilling to further delineate and advance."

Klondex's plan for 2015 includes extending the underground infrastructure 304.8 metres (1,000 feet) to the north and at depth to the south by 442 metres (1,450 feet) lateral and 91.5 metres (300 feet) vertical. This is expected to provide the necessary new drill platforms required to improve Klondex's understanding of the mineralization north and south. In addition, Klondex will also drill the vertical extents of several veins to gain additional information of the deposit. The updated Fire Creek mineral resource estimate, with an effective date of Dec. 31, 2014, is based on 689 drill holes totalling 161,945 metres (531,322 feet) and includes data from 272 new drill holes totalling 22,353 metres (73,335 feet), completed by Klondex in 2014. In addition to the drilling, the mineral resource estimate also utilizes 1,553 channel samples provided from trial mining on the structures. The updated mineral resource estimate was calculated using a 1.126-ounce-per-ton-foot cut-off, and includes depletion and sterilization.

Mineral resource assumptions

Classification of the mineral resource as measured, indicated or inferred was done based on the number of drill and channel sample composites used and the average distance from the block to the composites. For measured mineral resources, a block must have used four composites within a distance of 40 feet. For indicated mineral resources, a block must have used three composites within 100 feet, and inferred mineral resources must have two composites within 300 feet. The search orientation ellipse was maintained approximately parallel to each vein. Gold and silver values were estimated independently.

Drill and channel assays were performed by ALS Chemex and SGS Laboratories of Elko, Nev., or American Assay Laboratories of Reno, Nev. (all independent laboratories), Dave Francisco Labs of Fallon or the Pinson lab using fire assay with gravimetric finish as directed under the supervision of Klondex staff. Drill samples cited in this news release were obtained from drilling by independent contractor American Drilling of Spokane, Wash., under the direction of Klondex staff. Logging, splitting and sampling are conducted at the Fire Creek site. Standards and blanks are inserted every 20 samples or at least one per hole. Duplicates are generated by the lab and reassayed. Quality assurance/quality control samples are tracked and if a results is outside of predetermined limits the batch is reassayed and the results replace the previous values.

Qualified person

Mark Odell of Practical Mining is the independent qualified person (Nevada PE 13708 and SME 2402150) who has reviewed and approved the contents of this press release for the purposes of National Instrument 43-101.

We seek Safe Harbor.