Mr. Paul Huet reports

KLONDEX INCREASES FIRE CREEK AND MIDAS MINERAL RESOURCES

Klondex Mines Ltd. has released mineral resource updates for its Fire Creek project and its Midas mine, both in northern Nevada. The updated mineral resource estimates have effective dates of June 30, 2015, and May 31, 2015, for Fire Creek and Midas, respectively.

Mineral resource update highlights

Fire Creek:

• Increased total measured and indicated (M&I) gold-equivalent ounces by 52,800 to 473,300 ounces, up about 13 per cent, net of depletion;
• Increased inferred AuEq ounces by 78,200 to 441,500 ounces, up about 22 per cent, net of depletion.

Midas:

• Increased total M&I AuEq ounces by 35,600 to 561,600 ounces, up about 7 per cent, net of depletion;
• Decreased inferred AuEq ounces by 19,500 to 267,500 ounces, down about 8 per cent, net of depletion.

                           FIRE CREEK MINERAL RESOURCES

Category       Tons     Au    Au     Ag    Ag   AuEq  AuEq     Au     Ag   AuEq
                 (k) (oz/t) (g/t) (oz/t) (g/t) (oz/t) (g/t)  (koz)  (koz)  (koz)

            Gold price of $1,200 (U.S.)/oz and silver price of $19.00 (U.S.)/oz

Measured      132.2  2.049  70.3  1.451  49.7  2.072  71.0  271.0  191.8  273.9
Indicated     330.6  0.595  20.4  0.516  17.7  0.603  20.7  196.7  170.6  199.4
Total M&I     462.8  1.011  34.7  0.783  26.8  1.023  35.1  467.7  362.4  473.3
Inferred    1,064.9  0.410  14.1  0.319  10.9  0.415  14.2  436.2  339.5  441.5

              Gold price of $800 (U.S.)/oz and silver price of $12.67 (U.S.)/oz

Measured      114.0  2.332  80.0  1.645  56.4  2.357  80.8  265.8  187.5  268.7
Indicated     233.2  0.743  25.5  0.618  21.2  0.753  25.8  173.3  144.0  175.5
Total M&I     347.2  1.265  43.4  0.955  32.7  1.280  43.9  439.1  331.6  444.2
Inferred      574.2  0.546  18.7  0.389  13.3  0.552  18.9  313.6  223.6  317.1

 
                             MIDAS MINERAL RESOURCES

Category       Tons     Au    Au     Ag    Ag   AuEq  AuEq     Au      Ag   AuEq
                 (k) (oz/t) (g/t) (oz/t) (g/t) (oz/t) (g/t)  (koz)   (koz)  (koz)

             Gold price of $1,200 (U.S.)/oz and silver price of $19.00 (U.S.)/oz

Measured      386.0  0.404  13.9 10.437 357.8  0.566  19.4  156.1 4,028.3  218.5
Indicated     768.9  0.332  11.4  7.378 253.0  0.446  15.3  255.2 5,672.6  343.1
Total M&I   1,154.9  0.356  12.2  8.400 288.0  0.486  16.7  411.3 9,700.9  561.6
Inferred      856.8  0.238   8.1  4.814 165.1  0.312  10.7  203.5 4,124.9  267.5

               Gold price of $800 (U.S.)/oz and silver price of $12.67 (U.S.)/oz

Measured      270.0  0.510  17.5 12.516 429.1  0.704  24.1  137.8 3,379.3  190.2
Indicated     476.4  0.433  14.8  9.332 320.0  0.577  19.8  206.1 4,446.1  275.0
Total M&I     746.4  0.461  15.8 10.484 359.4  0.623  21.4  343.9 7,825.4  465.1
Inferred      334.8  0.261   8.9  7.132 244.5  0.372  12.7   87.5 2,388.1  124.5

Mineral resources have been calculated using a gold price of $1,200 per troy
ounce and a silver price of $19.00 per troy ounce.
Fire Creek's mineral resources are calculated at a grade thickness cut-off
grade of 1.126 AuEq ounces per ton-feet and a diluted AuEq cut-off grade of
0.256 ounce per ton.
Midas's mineral resources are calculated at a grade thickness cut-off grade
of 0.99 AuEq ounce per ton-feet and a diluted AuEq cut-off grade of 0.225 ounce
per ton.
The minimum mining width is defined as four feet, or the vein true thickness
plus one foot, whichever is greater.
Mineral resources include dilution to achieve mining widths and an additional
10-per-cent unplanned dilution.
Mineral resources include allowance for 5-per-cent mining losses.
Mineral resources are inclusive of mineral reserves.
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.
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.
Mineral resource estimates can be materially affected by environmental,
permitting, legal, title, taxation, socio-economic, marketing, political or
other factors.

Paul Huet, president and chief executive officer, stated: "I am pleased that our 2015 exploration and development programs are performing as expected; invest the necessary capital to replace depletion and extend the mine life of our assets on an annual basis. We are just beginning to understand the true potential of these assets, particularly at Fire Creek where about 93 per cent of our land package remains untested. With the rest of the year's exploration and development programs still ahead of us, we are excited about continuing to unlock the true potential of these deposits."

The Fire Creek mineral resources are based on 836 drill holes totalling 176,934 metres (580,491 feet) and includes data from 147 new drill holes totalling 15,050 m (49,375 feet), completed by Klondex in 2015. In addition to the drilling, the mineral resource estimate also utilizes 2,322 channel samples provided from mining on the structures.

The Midas mineral resources are based on 4,248 drill holes totalling 869,830 m (2,853,772 feet) and includes data from 145 new drill holes totalling 25,984 m (85,248 feet), completed by Klondex in 2015. In addition to the drilling, the mineral resource estimate also utilizes 19,351 channel samples provided from mining on the structures.

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 at Fire Creek and two composites within 200 feet at Midas. 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 (AAL) of Reno, Nev. (all independent laboratories), Dave Francisco Labs of Fallon 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 and Midas sites. 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 result is outside of predetermined limits, the batch is reassayed and the results replace the previous values.

Qualified person

Brian Morris, vice-president, exploration, is the Klondex qualified person, who has reviewed and approved the contents of this press release for the purposes of National Instrument 43-101.

We seek Safe Harbor.