Klondex Receives WPCP Permit from State of Nevada; The Tonnage Constraint at Fire Creek is Lifted

VANCOUVER, BC--(Marketwired - June 18, 2015) - Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF) ("Klondex" or the "Company") today reports that the Water Pollution Control Permit (WPCP) for its Fire Creek project (the "Fire Creek Project") is in hand, and the tonnage cap linked to Fire Creek's operations is now lifted. The Company also provides an update on other environmental permitting at the Fire Creek Project, located in north central Nevada, USA.

Tonnage Cap Removed
The Company has received the Notice of Decision (NoD) for the WPCP for the Fire Creek Project from the Nevada Division of Environmental Protection (NDEP), Bureau of Mining Regulation and Reclamation. The NoD removes the 120,000 tonnage limitation, allowing Fire Creek to ramp up to full-production levels. Klondex expects to receive the final permit by the end of June.

Environmental Assessment
The National Environmental Policy Act (NEPA) determination from the Bureau of Land Management (BLM) confirms that an Environmental Assessment (EA) level of NEPA analysis is required to be completed for the Fire Creek Project. Klondex received a letter from the BLM Battle Mountain District confirming the EA level is required to evaluate the Fire Creek Project moving into full-production operations. The letter was issued following the BLM's review of the Plan of Operations document and the required baseline environmental studies to support the proposed mine expansion activities. It is expected that full-production operations will allow Fire Creek to expand mine support facilities, including the construction of a new waste rock storage facility and additional water management ponds. Klondex remains on track to complete the EA within the second half of 2015.

Mike Doolin, Klondex Vice President Business Development commented, "This news represents a milestone for the Fire Creek Project. I would like to recognize the efforts of the regulators and our environmental Manager, Lucy Hill, through this process. Together, they have completed a very detailed, thorough review in a timely manner. Klondex's environmental team continues to demonstrate some of our industry's best standards. Environmental stewardship is a key focus to our company's objectives."