Mr. Paul Huet reports

KLONDEX ANNOUNCES NEW OPEN PIT MINERAL RESOURCE ESTIMATE AT FIRE CREEK; TOTAL INDICATED OF 1.1M AUEQ OZ AND INFERRED OF 1.1M AUEQ OZ

Klondex Mines Ltd. has provided an initial open-pit mineral resource estimate for its Fire Creek mine located in northern Nevada, United States, which incorporates the results from the 2017 open-pit surface and underground exploration drill programs. This mineral resource estimate is in addition to the company's previously announced underground mineral resources. Klondex plans to provide a complete mineral reserve and resource update, for all sites, during the first quarter of 2018.

Fire Creek open-pit mineral resource highlights:

• Total indicated mineral resource estimate of 42.9 million tons grading 0.026 gold equivalent ounce per ton (0.88 Au Eq gram per tonne) for a total of 1.1 million Au Eq ounces;
• Total inferred mineral resource estimate of 31.7 million tons grading 0.035 Au Eq o/t (1.19 Au Eq g/t) for a total of 1.1 million Au Eq ounces;
• This initial mineral resource estimate excludes all underground mineral resources reported at Fire Creek, however there is potential to mine relatively higher-grade underground resources, outside the underground mine plan, from surface;
• The open-pit mineralization is open to the north, south and west;
• The company will remain focused on mining and further delineating the high-grade underground veins while looking for strategic alternatives to advance and develop the bulk tonnage open-pit mineral resource.

                       FIRE CREEK OPEN PIT MINERAL RESOURCE ESTIMATE
                                   
Category     Tons      Au      Au      Ag      Ag    Au Eq   Au Eq       Au      Ag    Au Eq
               (M)   (o/t)   (g/t)   (o/t)   (g/t)    (o/t)   (g/t)    (Moz)   (Moz)    (Moz)

Indicated    42.9   0.025    0.87   0.055    1.88    0.026    0.88    1.093   2.350    1.105  
Inferred     31.7   0.034    1.17   0.091    3.12    0.035    1.19    1.085   2.882    1.101  

1. Mineral resources are calculated at a gold price of $1,400 (U.S.) per ounce and a silver price 
of $19.83 (U.S.) per ounce.
2. Metallurgical recoveries for gold and silver are 65 per cent and 30 per cent respectively for 
oxide mineralization and 60 per cent and 25 per cent respectively for mixed mineralization.
3. One ounce of gold is equivalent to 183.53 ounces of silver.                             
4. Mineral resources include 10-per-cent dilution and 5-per-cent mining losses.
5. Cut-off grades for the mineral resources are 0.01 o/t Au Eq.
6. The effective date for the mineral resource is Nov. 30, 2017.
7. Mineral resources which are not mineral reserves have not yet demonstrated economic viability. 
The estimate of mineral resources may be materially affected by environmental, permitting, legal, 
title, taxation, socio-political, marketing or other relevant issues.
8. The quantity and grade of reported inferred resources in this estimation are uncertain in nature 
and there has been insufficient exploration to define these inferred 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.
9. The mineral resources in this press release were estimated using the Canadian Institute of Mining, 
Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and 
Guidelines prepared by the CIM standing committee on reserve definitions and adopted by CIM Council.

Paul Huet, president and chief executive officer, commented: "The results of this initial open-pit drill program are extremely exciting for Klondex. We believe that the addition of these open-pit mineral resources has the potential to significantly extend Fire Creek's mine life." Mr. Huet continued: "Fire Creek continues to demonstrate it is a world-class property and we now have data suggesting the underground and open-pit potential is robust with the possibility for these resources to significantly expand with our continued district exploration programs. We will continue to maximize the full value of this asset for our shareholders. Management will continue to focus our efforts on the higher-grade, underground mineralization while exploring and evaluating strategic alternatives to advance and develop the open-pit potential of this asset."

In 2017, a total of 21 surface and 10 underground core drill holes were drilled for a total of 14,758 feet (4,498 metres). This drilling targeted wide zones of low-grade mineralization above the high-grade vein system currently in production, with the intent to develop a bulk minable resource. Also included in these new resources is historical drilling conducted since 2004, which consists of 1,474 surface and underground drill holes totalling 1,022,240 ft (311,578 m).

A technical report in support of the mineral resource estimate described herein and prepared in accordance with National Instrument 43-101 will be filed on SEDAR and EDGAR within 45 days from the date hereof.

Assays were performed by American Assay Laboratories of Sparks, Nev., as directed under the supervision of Klondex staff. This organization is an ISO 17025-accredited independent laboratory.

Qualified person

Scientific and technical information in this press release has been reviewed and approved by Mark Odell, PEng (Nevada licence No. 13708) of Practical Mining LLC, an independent qualified person within the meaning of National Instrument 43-101.

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 four producing mineral properties: the Fire Creek mine, the Midas mine and ore milling facility, the Hollister mine, all of which are located in the state of Nevada, and the True North mine and mill in Manitoba, Canada. The company also has a 100-per-cent interest in the Aurora mine and ore milling facility, also located in Nevada.

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