Klondex Mines Begins Drifting At Fire Creek

VANCOUVER, BC - Klondex Mines Ltd. has begun initial drifting on Fire Creek's fourth identified vein, the Hui Wu Vein. The Vein is located 100 ft. west of the main ramp and 50 ft. east of the Karen Vein. The structure was identified as a target during the 2013 drill program, but was not included in the 2013 mineral resource estimate or subsequent Preliminary Economic Assessment, with respect to the Fire Creek project.

Based on current drilling, the known strike length of the Hui Wu Vein is 800 ft. and the known vertical dip extent is 250 ft., remaining open both north and south along strike, and up and down dip.

To date, 37 ft. of exploration development has been completed along strike of the Hui Wu Vein. Face samples range from 31.6 g/t (0.9 opt) Au to 395.9 g/t (11.5 opt) Au. The weighted average grade of samples taken from the Hui Wu Vein is 126.9 g/t (3.7 opt) Au over an average vein width of 3.5 ft. The fully diluted mined grade averaged 60.8 g/t (1.8 opt) Au over an average mining width of 7.4 ft.

Brent Kristof, Klondex Mines COO, commented, "The Fire Creek team has done an exceptional job continuing the drilling, sampling, and mapping program to identify yet another mineralized area. The Hui Wu Vein represents another growth opportunity to be targeted during our 2014 and 2015 exploration and development programs."

Klondex Mines is focused on the exploration, development and production of its two high quality gold and silver projects in the mining-friendly jurisdiction of north central Nevada. The 1200 tpd milling facility is processing mineralized materials from the Midas Mine and the Fire Creek Project. Midas is fully-permitted and has been producing gold and silver since 1998. Fire Creek is located ~100 miles south of Midas and is operating an ongoing bulk sampling program that began in 2013 and is in the process of obtaining the full mining permit. All major infrastructure is in place at Fire Creek.