Mr. Brian Morris reports

KLONDEX DRILLING AT FIRE CREEK INTERCEPTS 13.5 OPT (461.6 G/T) OVER 11.5 FEET (3.5 METRES); BEGINS DEVELOPMENT FOR LONG HOLE STOPING ON HUI WU VEIN

Klondex Mines Ltd. has provided an update on recent drilling and development on the Hui Wu vein at its Fire Creek project in northern Nevada.

Highlights of Hui Wu vein:

• 13.5 ounces per ton (461.6 grams per tonne) gold equivalent over 11.5 feet (3.5 metres) -- FCU-0214;
• 5.1 ounces per ton (174.3 grams per tonne) gold equivalent over 3.2 feet (one metre) -- FCU-0328;
• 64.0 ounces per ton (2,194.7 grams per tonne) gold equivalent over 1.1 feet (0.3 metre) -- FCU-0357;
• 1.5 ounces per ton (52.7 grams per tonne) gold equivalent over 12.3 feet (3.7 metres) -- FCU-0213;
• 2.1 ounces per ton (72.0 grams per tonne) gold equivalent over 4.4 feet (1.3 metres) -- FCU-0360.

Drill assays from 19 core holes drilled in 2015 were recently received indicating significant gold intercepts in the north end of the Hui Wu vein. These holes, targeting the Hui Wu vein and Joyce vein, were predominately drilled east from the north end of the Karen vein. Based on the assay results, it was determined that the Hui Wu could be accessed and developed along the vein.

Development began in April near the north end of the Hui Wu vein and was excavated north 139 feet (42.4 metres) along the vein. The average fully diluted grade mined was one ounce per ton gold equivalent (34.5 grams per tonne) over an average sill width of seven feet (2.1 metres) compared with the modelled mineral resource grade of 0.47 ounce per ton gold equivalent (16.1 grams per tonne) in the Hui Wu vein (see Fire Creek prefeasibility study, with an effective date of Dec. 31, 2014). Development of a top cut for long-hole stoping of the Hui Wu vein began in May.

Brian Morris, Klondex vice-president, exploration, comments: "These results continue to demonstrate the high-grade nature of the Fire Creek deposit and its exploration opportunity. Assay results from development on the Hui Wu vein compare favourably to the predicted M&I mineral resource grade of 0.47 ounce per ton gold equivalent. Additionally, the recent drilling was not included in the mineral reserve estimates but is expected to be included in the updated mine plans for Q3. We are continuing the exploration drift to the north, as per schedule, with drill results expected to be released in the second half of 2015."

Drill and channel assays were performed by ALS Chemex or American Assay Laboratories of Sparks, Nev. (both independent laboratories), using fire assay with gravimetric finish as directed under the supervision of Klondex staff. A description of the data verification methods, quality assurance program and quality control measures applied is found in the technical report titled, "Preliminary Feasibility Study for the Fire Creek Project, Lander County, Nevada," with an effective date of Dec. 31, 2014, which is available under the company's issuer profile on SEDAR.

Qualified person

Mark Odell of Practical Mining LLC 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.

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