Mr. Mike Beckstead reports

KLONDEX ANNOUNCES SECURITYHOLDER APPROVAL OF PROPOSED ACQUISITION BY HECLA

Klondex Mines Ltd.'s shareholders and securityholders approved the proposed statutory plan of arrangement with Hecla Mining Company at the Klondex annual and special meeting of securityholders held today. Under the approved plan of arrangement, Hecla will acquire all of the issued and outstanding Klondex shares.

Of the Klondex shareholders who voted, approximately 99.62 per cent of Klondex shareholders voted in favour of the special resolution approving the plan of arrangement. Of the Klondex shareholders and securityholders who voted, approximately 99.61 per cent of Klondex shareholders and securityholders (voting as a single class) voted in favour of the special resolution approving the plan of arrangement. All matters presented for approval at the meeting were duly authorized and approved, as follows:

• Approval of the arrangement by special resolution of the Klondex shareholders and securityholders;
• Approval of a share option plan for Havilah;
• Election of all management nominees to the board of directors of the company for the ensuing year or for the period up to the effective time of the arrangement;
• Appointment of PricewaterhouseCoopers LLP as auditors of the company for the ensuing year and authorization of the directors to fix their remuneration;
• Approval of a non-binding advisory resolution on the company's approach to executive compensation.

Detailed voting results for the election of directors were as displayed in the table.

Name              Shares voted for   % voted for   Shares withheld   % withheld

Rodney Cooper          121,262,375         98.98%        1,252,579        1.02%     
Mark Daniel            116,114,429         94.78%        6,400,525        5.22%     
James Haggarty         121,262,137         98.98%        1,252,817        1.02%     
Richard J. Hall        121,130,372         98.87%        1,384,582        1.13%     
Paul Huet              121,026,444         98.79%        1,488,510        1.21%     
William Matlack        119,014,878         97.14%        3,500,076        2.86%     
Charles Oliver         121,078,547         98.83%        1,436,407        1.17%     
Blair Schultz          120,847,691         98.64%        1,667,263        1.36%     
                                                                   

Subject to customary closing conditions in accordance with the plan of arrangement, the transaction is expected to close on or about July 20, 2018.

In connection with the closing of the plan of arrangement, Klondex is expected to concurrently complete the spinout of its Canadian assets into Havilah Mining Corp., a newly formed company to be listed on the TSX Venture Exchange. The TSX-V listing application and other important disclosure pertaining to Havilah are available on SEDAR under Havilah's issuer profile.

About Klondex Mines Ltd.

Klondex is a junior-tier gold and silver mining company focused on exploration, development and production in a safe, environmentally responsible, and cost-effective manner. The company has 100-per-cent interests in three producing mineral properties: the Fire Creek mine, the Midas mine and ore milling facility, and the Hollister mine, all of which are located in the state of Nevada, United States. The company also has a 100-per-cent interest in the True North mine and mill in Manitoba, Canada, and the Aurora mine and ore milling facility, located in Nevada, U.S.

We seek Safe Harbor.