Mr. Paul Huet reports

KLONDEX ANNOUNCES $14 MILLION BOUGHT DEAL FINANCING

Klondex Mines Ltd. has entered into an agreement with a syndicate of underwriters led by GMP Securities LP, and including RBC Dominion Securities Inc., M Partners Inc., Industrial Alliance Securities Inc., Dundee Securities Ltd. and Mackie Research Capital Corp., which has agreed to purchase, on a bought-deal basis, seven million common shares of the company at a price of $2 per share, for total gross proceeds of $14-million. The underwriters will also have the option, exercisable in whole or in part, at any time up to 30 days after the closing of the offering, to purchase up to an additional 1.05 million shares to cover the underwriters' overallotment position. In the event that the option is exercised in its entirety, the total gross proceeds of the offering will be $16.1-million.

The net proceeds of the offering are expected to be used for the accelerated exploration and development at the Midas gold project and Fire Creek gold project, and for working capital and general corporate purposes.

The shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada (other than the province of Quebec), pursuant to National Instrument 44-101, Short Form Prospectus Distributions, and in the United States, on a private-placement basis, pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended.

The offering is expected to close on or about July 30, 2014. Closing of the offering is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.

We seek Safe Harbor.