Klondex Mines Begins Drifting on New Hui Wu Vein at Fire Creek; Weighted Average of 126.9 g/t (3.7 opt) Gold Over a 1.1 Meter (3.5 ft) Vein Width and 11 Meters (37 ft) Along Strike

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 5, 2014) - Klondex Mines Ltd. (TSX:KDX)(OTCQX:KLNDF) today announced that it began initial drifting on Fire Creek's fourth identified vein, the Hui Wu (pronounced "wey woo") Vein. The Vein is located 30.5 m (100 ft) west of the main ramp and 15.2 m (50 ft) east of the Karen Vein (Figure 1). The structure was identified as a target during the 2013 drill program (see press release dated January 21, 2014), but was not included in the 2013 mineral resource estimate or subsequent Preliminary Economic Assessment, with respect to the Fire Creek project (see press release dated, April 29, 2014).

Based on current drilling, the known strike length of the Hui Wu Vein is 243.8 m (800 ft) and the known vertical dip extent is 76.2 m (250 ft), remaining open both north and south along strike, and up and down dip.

To date, 11 m (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 1.1 m (3.5 ft). The fully diluted mined grade averaged 60.8 g/t (1.8 opt) Au over an average mining width of 2.2 m (7.4 ft). Assay results from samples from the Hui Wu Vein are summarized and detailed in Table 1, below.

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."

Table 1: Hui Wu Exploration Development
length, feet	vein width, meter	vein width, feet	vein channel, g/t	vein channel, auopt
265-271	2.0	6.4	114.50	3.34
261-265	0.6	1.9	80.05	2.33
257-261	1.5	4.9	159.88	4.66
252-257	0.8	2.5	395.95	11.55
247-252	1.2	3.8	92.03	2.68
241-247	0.7	2.3	31.59	0.92
234-241	0.8	2.6	52.5	1.53
5360 Access
5360 Average	1.1	3.5	126.87	3.70
5360 Hui total strike	11.0	37.0

Mark Odell of Practical Mining LLC is the Independent Qualified Person (Nevada PE 13708 and SME 2402150), who has reviewed and approved the contents of this press release for the purposes of National Instrument 43-101.