Klondex Mines Underground Development Yields 1,465 Tons of 32.7 g/t Gold

ELKO, NV - Klondex Mines Ltd. reported that its underground development program, targeting the Joyce and Vonnie structures within the Main Zone of its Fire Creek project, yielded 1,329 tones (1,465 tons) of mineralized material last month at an average grade of 32.7 g/t (0.95 opt) gold. Underground development at the Fire Creek project over the last three months has yielded 3,249 tones (3,582 tons) of mineralized material averaging 75.4 g/t (2.20 opt) Au.

Klondex continued to develop on the Joyce (5370N and 5400S) structure and on the Vonnie (5370N and 5400S) structure during July. A total of 240 samples were taken from these work areas and submitted for assay. Gold grades ranged from 0.2 g/t Au to 400 g/t Au (0.005 opt Au to 11.690 opt Au) over a vein width ranging from of 0.1 m to 0.7 m (0.2 ft to 2.4 ft).

Paul Huet, Klondex President and CEO, stated, "Through our underground development program, we continue to see very encouraging gold grades and are gaining an excellent understanding of the geology, structure and gold mineralization of the Fire Creek deposit. We've made tremendous progress over the past year as a direct result of our dedicated team, and I'm thankful for their devotion to Klondex and to advancing the Fire Creek project."