Midas Mine Gold Equivalent Grade Increased

Paul Huet, Klondex President and CEO stated, "As a result of our initial drilling at Midas, we are starting to unlock Midas' potential value. Within the first seven months of purchasing the Midas Mine, we have increased the gold equivalent grade and the total gold equivalent ounces in the mineral resource estimate. This is a major accomplishment for Klondex. The new mineral resource estimate underscores the flexibility of this deposit at lower metal prices. This is just the beginning of our exploration and development at Midas. There are many planned targets that we intend to follow up on over the next 18 months. The Northern Nevada Rift, host to both Fire Creek and Midas, is a unique district to operate in, based on its gold grades and its exploration opportunities."

The Midas mineral resource is contained within sixteen distinct veins, defined by drilling from both surface and underground, and by underground mining. The new mineral resource estimate, with an effective date of August 31, 2014, is based on 4,149 drill holes totaling 2.29 million ft and includes data from 76 new drill holes totaling 41,321 ft, completed by Klondex since acquiring the property earlier this year to August 31, 2014. In addition to the drilling, the mineral resource estimate also utilizes 18,456 channel samples including 749 samples taken by Klondex. The updated mineral resource estimate was calculated using a 10 meters g/t gold equivalent cut-off and includes depletion and sterilization.

Two of the major drivers for increasing the mineral resources are: 1) the ability of Klondex to mine narrower veins with lower waste dilution compared to previous production and 2) positive 2014 drilling results in the remnant areas, which have driven technical evaluation of all historically mined veins at Midas. Since beginning operations in 1998, the Midas Mine has produced over two million ounces of gold and twenty-seven million ounces of silver.