Mr. Paul Huet reports

KLONDEX REPORTS SOLID FIRST QUARTER OPERATING RESULTS WITH 57,633 GEOS MINED; REITERATES FULL YEAR PRODUCTION GUIDANCE OF 210,000 - 225,000 GEOS

Klondex Mines Ltd. has released its preliminary operating results for the first quarter of 2017 for its Nevada and Canadian operations.

First quarter 2017 operating highlights and annual outlook

• Mined a total 57,633 gold equivalent ounces (1), in line with company expectations;
• Produced and sold a total of 34,454 and 33,737 gold equivalent ounces, respectively;
• In Nevada, ore from Fire Creek was stockpiled due to heavy snowfall limiting the company's ability to transport ore to the Midas mill;
• Built a significant stockpile in Nevada of 30,890 tons at an average grade of 0.94 gold equivalent ounce per ton containing 29,142 gold equivalent ounces (2). This is an increase of approximately 18,000 tons from the end of 2016. These tons will be processed at the Midas mill in the second quarter;
• Forward sold 20,000 of the stockpiled gold ounces in the first quarter at an average realized price of $1,250 per ounce;
• As planned, the company continued to ramp up True North in Canada toward full production, which is expected to occur in the second half of the year;
• The company's initial mineral resource estimate at Hollister is expected to be completed in the second quarter. Development work continued with ore silling in the Gloria zone; stockpiled ore is expected to be processed at the Midas mill in the third quarter;
• The company remains on track to meet its annual production guidance of 210,000 to 225,000 gold equivalent ounces, up 36 per cent from 2016;
• The company will report its financial results for the first quarter of 2017 after market close on Thursday, May 4, 2017.

(1) Mined ounces are calculated using tons hauled to surface multiplied by the assays from production sampling.

(2) End-of-month surveys are used to account for tonnage. Grade of material is based on weighted average of representative samples taken during mining. A metallurgical balance, using mined and milled numbers, is performed to determine final stockpile balances.

Paul Huet, president and chief executive officer, commented: "Despite difficult weather conditions in Nevada, our underground mining activities performed as expected in the first quarter. We have built a substantial stockpile at the Midas mill that will be processed in the second quarter. First quarter production was largely from two mines, Fire Creek and Midas, in Nevada. Our True North and Hollister operations will contribute more in the second half of the year as they continue to ramp up towards full production. We are well positioned to deliver on our annual companywide production guidance of 210,000 to 225,000 gold equivalent ounces."

                                       FIRST QUARTER 2017 OPERATING RESULTS

                                       Fire Creek      Midas   Hollister   Nevada total  True North      Total

Ore tons mined                             31,730     40,153       6,950         78,833      28,686    107,519
Average gold equivalent
mined grade (oz/ton) (1)                     1.19       0.35        0.29           0.68        0.14       0.54
Gold equivalent mined
(ounces) (1)                               37,605     14,065       2,047         53,717       3,916     57,633
Gold mined (ounces)                        37,193      9,279       1,885         48,357       3,916     52,273
Silver mined (ounces)                      28,258    328,767      11,142        368,167           -    368,167
Ore tons milled                            21,659     39,308           -         60,967      28,936     89,903
Average gold equivalent mill
head grade (oz/ton) (1)                      0.95       0.32           -           0.55        0.14       0.41
Average gold mill head
grade (oz/ton)                               0.94       0.22           -           0.47        0.14       0.37
Average silver mill head
grade (oz/ton) (2)                           0.84       7.43           -           5.09           -       3.45
Average gold recovery rate (%)              93.4%      92.0%          -%          93.0%       96.1%      93.4%
Average silver recovery rate (%) (2)        83.2%      84.2%          -%          84.2%          -%      84.2%
Gold equivalent produced (ounces) (1)      19,201     11,453           -         30,654       3,800     34,454
Gold produced (ounces)                     18,981      7,873           -         26,854       3,800     30,654
Silver produced (ounces)                   15,109    245,989           -        261,098           -    261,098
Gold equivalent sold (ounces) (1)          16,540     12,782           -         29,322       4,415     33,737
Gold sold (ounces)                         16,378      8,781           -         25,159       4,400     29,559
Silver sold (ounces)                       11,145    274,855           -        286,000       1,000    287,000

(1) Gold equivalent ounces and grades are computed as the applicable gold ounces/grade plus the
silver ounces/grade divided by a gold equivalent ounce ratio. Gold equivalent ounce ratios are computed by 
dividing the average realized gold price per ounce by the average realized silver price per ounce received by 
the company in the respective period.
(2) The company does not track this silver statistic at True North due to silver being trivial to that 
operation.

Fire Creek and Midas in Nevada

At Fire Creek and Midas, the company mined 71,883 ore tons in the first quarter at an average mined head grade of 0.72 gold equivalent ounce per ton. First quarter 2017 production in Nevada was impacted by heavy snowfall that limited the ore mined from Fire Creek from being transported to the Midas mill. As such, the company shut down the mill for just over two weeks to perform preventative maintenance originally scheduled for later in the year. The company's mining activity performed as planned which resulted in 51,670 gold equivalent ounces mined. The company built a significant ore stockpile containing 29,142 gold equivalent ounces at the end of the first quarter. The Midas mill has excess processing capacity so the stockpiled ounces will be processed in the second quarter of the year.

Hollister in Nevada

At Hollister, sill development work began in the Gloria zone. The company expects tons mined and mill head grades to progressively increase throughout the year as it transitions to bulk mining in the form of long-hole, cut-and-fill and selective shrink stoping. Stockpiled ore is expected to be processed at the Midas mill in the third quarter after metallurgical testwork is completed.

Infill drilling in the Gloria zone continues. During the first quarter, the company completed 31 drill holes totalling 11,775 feet. Results are pending and the company expects to generate a preliminary mineral resource and reserve estimate in the second and third quarter, respectively.

True North in Canada

At True North in Canada, the mine continues to ramp up toward full production. First quarter production was primarily from lower-grade areas on the 16 level and the 2603 ramp where development was already in place. The company also experienced lower-than-expected underground equipment availability in the first quarter and consequently accelerated planned mill maintenance originally scheduled to occur later in the year.

The company expects 2017 production and grades to progressively increase throughout the year as mining activity moves to the higher grade 710 incline and decline zones, with 2017 production heavily weighted in the second half of the year.

2017 guidance

The company reiterates its 2017 consolidated production guidance of 210,000 to 225,000 gold equivalent ounces. Two thousand seventeen production is weighted more heavily in the second half of the year as True North and Hollister continue to ramp up toward full production.

Webcast and conference call

Klondex will report its financial results for the first quarter of 2017 after market close on Thursday, May 4, 2017. A conference call and webcast will be held the following morning on Friday, May 5, 2017, at 10:30 a.m. ET/7:30 a.m. PT. The conference call telephone numbers are listed below.

Canada and United States toll-free dial-in number:  1-800-319-4610

Toronto:  1-416-915-3239

International:  1-604-638-5340

Callers should dial in five to 10 minutes prior to the scheduled start time and ask to join the Klondex call. The webcast will be available on the company's website.

About Klondex Mines Ltd.

Klondex is a well-capitalized, 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 and the Midas mine and ore milling facility, both of which are located in the state of Nevada, U.S., and the True North gold mine (formerly known as the Rice Lake mine) and mill in Manitoba, Canada. The company also has 100-per-cent interests in two recently acquired projects, the Hollister mine and the Aurora mine and ore milling facility (formerly known as Esmeralda), also located in Nevada, U.S.

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