Mr. John Seaberg reports

KLONDEX INTERCEPTS ~36 OPT AU OVER 2.8 FEET AT FIRE CREEK; CONTINUES TO DEFINE MINERALIZATION TO THE WEST AND SOUTH OF MIDAS

Klondex Mines Ltd. is providing an update on surface and underground drilling at the Fire Creek project and Midas mine, both located in northern Nevada. The following drill results are in addition to those included in the mineral resources released on Sept. 16, 2015, and mineral reserves released on Dec. 3, 2015.

Fire Creek project drilling highlights:

• FCU-0484: 35.99 ounces per ton gold over 2.8 feet, or 1,233.9 grams per tonne over 0.9 metre (Joyce vein);
• Including 93.90 ounces per ton Au over one foot, or 3,220.1 g/t over 0.30 m;
• FCU-0470: 3.05 ounces per ton Au over 5.3 feet, or 104.7 g/t over 1.6 m (Karen vein);
• FCU-0442: 2.80 ounces per ton Au over three feet, or 95.9 g/t over 0.9 m (Karen vein);
• FCU-0433: 4.51 ounces per ton Au over two feet, or 154.5 g/t over 0.6 m (vein 46);
• FCU-0507A: 1.29 ounces per ton Au over seven feet, or 44.3 g/t over 2.1 m (Karen vein).

Midas mine -- West zone drilling highlights:

• DMC-0280: 5.40 ounces per ton gold-equivalent over 1.2 feet, or 186.3 g/t over 0.4 m (Rico vein);
• DMC-0290: 1.73 ounces per ton AuEq over 4.5 feet, or 59.4 g/t over 1.4 m (Midas trend);
• DMC-0284: 0.50 ounce per ton AuEq over two feet, or 16.4 g/t over 0.6 m (Midas trend).

Midas mine -- South zone drilling highlights:

• DMC-0292: 0.11 ounce per ton AuEq over 40.5 feet, or 3.7 g/t over 12.3 m (Trinity);
• Including 0.39 ounce per ton AuEq over four feet, or 13.3 g/t over 1.2 m;
• DMC-0292: 0.05 ounce per ton AuEq over 60.5 feet, or 1.6 g/t over 18.4 m (Trinity);
• DMC-0293: 0.22 ounce per ton AuEq over 23.5 feet, or 7.6 g/t over 7.2 m (Trinity);
• Including 0.61 ounce per ton AuEq over five feet, or 21.0 g/t over 1.5 m;
• Including 0.54 ounce per ton AuEq over two feet, or 18.4 g/t over 0.6 m.

Brian Morris, vice-president, exploration, stated: "I am very pleased with the excellent results from our exploration and infill drilling programs at both projects. These results are significant as they indicate additional mineralization at our properties. This data was not included in our mineral resource and reserve updates released earlier in the year. The underground drilling results at Fire Creek continue to extend known veins, while also discovering new mineralized structures to the west and north of the main veins.

"At Midas, these results are extremely positive for us. We expect that the West and South zones will be the future of mining at Midas, and these current drill intercepts add to the positive results we announced on Oct. 8."

In the Trinity zone to the south at Midas, the drill results continue to support the existence of a large gold system where the mineralization is widely disbursed with a core of high-grade pods. This discovery is significant because the mineralization could potentially be the southern extension of the Colorado Grande structure, only in the form of a disseminated, highly oxidized breccia system rather than a narrow vein epithermal system.

Fire Creek project

A total of 38,956 feet (11,874 m) of underground drilling were completed from 75 core drill holes at Fire Creek in the second half of 2015. The intent of this drilling program was to infill and extend previously defined mineralization both vertically and laterally, and to explore for new high-grade veins to the west. Drilling is continuing, and the mineralization remains open in all directions.

Midas mine

A total of 10,910 feet (3,325 m) of surface drilling were completed from 11 core drill holes in the West and South zones at Midas in the second half of 2015. Drilling in the West and South zones was intended to test historic vein drill intercepts and to expand the current mineral resources in these areas.

Assays were performed by American Assay Laboratories of Sparks, Nev., and ALS Chemex of Reno, Nev., both of which are ISO 17025-accredited independent laboratories, 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 reports titled "Preliminary Feasibility Study for the Midas Mine, Elko County, Nevada," amended on April 2, 2015, and with an effective date of Aug. 31, 2014, and "Preliminary Feasibility Study for the Fire Creek Project, Lander County, Nevada," with an effective date of Dec. 31, 2014, which are available under the company's issuer profile on SEDAR.

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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