Klondex Provides Update on 2017 Underground Drill Results at Fire Creek Mine

Klondex Mines Ltd. is pleased to provide an update on the 2017 underground drill results at its Fire Creek Mine located in northern Nevada, USA. The following drill results are not included in the current Mineral Resource estimate.

Fire Creek Mine Underground Drilling Highlights: (see TABLE 1 for complete results)

North

• FCU-0749: 0.91 opt Au over 6.3 ft, or 31.21 g/t over 1.9 m - Honeyrunner/Vein 59
• FCU-0738: 1.12 opt Au over 1.3 ft, or 38.50 g/t over 0.4 m - Karen
• FCU-0769: 0.77 opt Au over 17.3 ft, or 26.25 g/t over 5.3 m - Honeyrunner/Vein 55
• FCU-0711: 0.32 opt Au over 32.5 ft, or 10.95 g/t over 9.9 m - Honeyrunner

Up-Dip

• FCU-0850: 1.61 opt Au over 5.0 ft, or 55.13 g/t over 1.5 m - Joyce
• FCU-0752: 2.68 opt Au over 1.5 ft, or 91.81 g/t over 0.5 m - Vein 31
• FCU-0804: 1.32 opt Au over 1.3 ft, or 45.33 g/t over 0.4 m - Honeyrunner
• FCU-0780: 0.45 opt Au over 31.2 ft, or 15.48 g/t over 9.5 m - Vein 21

South

• FCU-0822: 3.56 opt Au over 1.5 ft, or 122.01 g/t over 0.5 m - Vein 39
• FCU-0821: 1.70 opt Au over 1.3 ft, or 58.22 g/t over 0.4 m - Vein 39
• FCU-0733: 1.60 opt Au over 1.0 ft, or 55.01 g/t over 0.3 m - Vein 45
• FCU-0823A: 0.84 opt Au over 11.8 ft, or 28.69 g/t over 3.6 m - Vein 39/Joyce
  Including 1.66 opt Au over 2.2 ft, or 56.81 g/t over 0.7 m and
  Including 3.33 opt Au over 1.3 ft, or 114.01 g/t over 0.4 m

Key Points: (FIGURE 1)
Assay results have been received for 165 underground drill holes totaling 127,720 ft (38,929.1 m). This drilling focused primarily on increasing the confidence level in the current Mineral Resource estimate as well as extending mineralization to the north, south and up-dip. Assay results continue to support high grade mineralization continuity along strike and vertically.

North (FIGURE 2)
Drilling continued to test the northern and down dip extensions of veins 31, Honeyrunner and Karen from the northern most portion of the mine workings. Results show high grades and wide drilled widths offering an opportunity for future bulk tonnage mining. Continuous mineralization on multiple veins has been extended to the north along strike by approximately 750 ft (228.6 m) and 500 ft (152.4 m) down dip.