Klondex Provides Exploration Update at Hollister

VANCOUVER, BC--(Marketwired - October 11, 2016) - Klondex Mines Ltd. (TSX: KDX) (NYSE MKT: KLDX) ("Klondex"or the "Company") is pleased to provide an update on recent and historic exploration results at its Hollister Mine in Nevada (see FIGURE 1).

Gloria West Drilling Highlights: (see TABLE 1 below)

• GLOR15-034: 4.18 opt AuEq over 8.4 ft, or 143.3 g/t over 2.6 m
  • Including 18.36 opt AuEq over 1.7 ft, or 629.6 g/t over 0.5 m
• GLOR14-001: 2.42 opt AuEq over 2.2 ft, or 83.1 g/t over 0.7 m
• GLOR14-001: 3.63 opt AuEq over 0.5 ft, or 124.3 g/t over 0.2 m
• GLOR15-006: 3.59 opt AuEq over 1.1 ft, or 123.0 g/t over 0.3 m
• GLOR15-010: 1.39 opt AuEq over 7.2 ft, or 47.8 g/t over 2.2 m
  • Including 2.48 opt AuEq over 3.3 ft, or 85.2 g/t over 1.0 m
• GLOR15-011: 2.20 opt AuEq over 1.4 ft, or 75.6 g/t over 0.4 m
• GLOR15-020: 1.43 opt AuEq over 4.1 ft, or 48.9 g/t over 1.2 m
  • Including 8.07 opt AuEq over 0.7 ft, or 276.7 g/t over 0.2 m
• GLOR15-025: 3.85 opt AuEq over 0.6 ft, or 132.0 g/t over 0.2 m
• GLOR15-026: 2.20 opt AuEq over 2.5 ft, or 75.32g/t over 0.8 m
• GLOR15-032: 3.74 opt AuEq over 1.7 ft, or 128.2 g/t over 0.5 m

A total of 36 underground holes totaling 17,998 ft. (5,486 m) were drilled in 2014 and 2015 by the prior owner and were not previously released. These holes encountered multiple veins and extended the Gloria vein system approximately 800 ft to the West and approximately 300 ft vertically. The Gloria vein system remains open up and down dip and along strike to the West. Klondex intends to infill drill the Gloria vein system in Q4 2016 to develop a Mineral Resource estimate and continue stepping out to the West (see FIGURE 2).

Hatter Graben Historical Drilling Highlights:

• H8-264: 0.54 opt Au over 7.8 ft, or 18.6 g/t over 2.4 m (est. true width of 5.5 ft, or 1.7 m)
• H8-269: 1.77 opt Au over 2.1 ft, or 60.7 g/t over 0.6 m (est. true width of 1.5 ft, or 0.5 m)
• H8-274: 7.8 opt Au over 1.4 ft, or 268.0 g/t over 0.4 m (est. true width of 1.0 ft, or 0.3 m)
• H8-281: 1.4 opt Au over 2.3 ft, or 48.0 g/t over 0.7 m (est. true width of 1.3 ft, or 0.4 m)
• H8-285: 0.47 opt Au over 12.5 ft, or 16.0 g/t over 3.8 m (est. true width of 8.8 ft, or 2.7 m)

The historic drilling program was conducted in 2008. Three holes did not render any significant results. This surface exploration drill program discovered the Hatter Graben vein system, an east-west trending structural zone containing several sub-parallel high grade veins. Results of this program indicate the system is approximately 1,800 ft (~550 m) in strike and approximately 1,200 ft (365 m) vertical extent and open in all directions. Klondex intends to infill the widely spaced drill holes from surface to develop a Mineral Resource estimate.

Mr. Paul Huet, President and CEO commented, "We are extremely excited to be reunited with this important asset. Several members of the Klondex team have significant experience with and knowledge of Hollister. We believe the Gloria and the Hatter Graben zones have significant exploration potential." Mr. Huet continued, "We have successfully completed the consolidation of Fire Creek, Midas and Hollister, three high grade underground mines servicing one central mill at Midas, providing a unique opportunity to capture significant synergies among these operations. This has been a long-term vision and we are extremely proud of our team to be the company to finally accomplish this goal."

To the knowledge of Klondex, vein samples were analyzed by either metallic screen or standard fire assay procedures and QA/QC results were within acceptable limits. Assays were performed by ALS Chemex of Reno, Nevada, an ISO 17025 accredited independent laboratory. The historical data was verified by Klondex's technical team led by Brian Morris, Vice President of Exploration of Klondex and a "qualified person" within the meaning of National Instrument 43-101 ("NI 43-101").

About Klondex Mines Ltd. (www.klondexmines.com)
Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine (formerly the Rice Lake Mine) and mill in Manitoba, Canada. The Company also has 100% interests in two recently acquired projects, the Hollister mine and the Aurora (formerly known as Esmeralda) mine and ore milling facility, also located in Nevada, USA.

Qualified Person
Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a "qualified person" within the meaning of NI 43-101.

Cautionary Note Regarding Forward-looking Information
This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian and United States securities legislation (collectively, "forward-looking information"), including but not limited to the exploration potential at the Hollister Mine, future exploration plans of Klondex and any synergies that may be captured by Klondex as a result of the consolidation of Fire Creek, Midas and Hollister. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial capital requirements and operations. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada and United States available at www.sedar.com and www.sec.gov, respectively. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.

TABLE 1: Gloria West Drill Program - Complete Results
Hole ID		Azi		Incl		TD		From		To		Length		Au Grade		Ag Grade		AuEq Grade		From		To		Length		Au Grade		Ag Grade		AuEq Grade
						(ft)		(ft)		(ft)		(ft)		(oz/st)		(oz/st)		(oz/st)		(m)		(m)		(m)		(g/Tonne)		(g/Tonne)		(g/Tonne)		Vein
GLOR14-001		357		-45		1244		897.5		900.0		2.5		1.187		3.44		1.235		273.6		274.3		0.8		40.69		118.09		42.33		Gloria
and								1006.0		1007.4		1.4		0.338		6.92		0.434		306.6		307.1		0.4		11.60		237.19		14.89		Gloria
and								1046.0		1048.5		2.5		1.694		2.55		1.730		318.8		319.6		0.8		58.09		87.27		59.30		Gloria
and								1056.0		1061.0		5.0		0.246		0.72		0.256		321.9		323.4		1.5		8.42		24.77		8.76		Gloria
and								1102.5		1103.4		0.9		0.428		4.23		0.487		336.0		336.3		0.3		14.68		145.11		16.70		Gloria
and								1148.8		1151.0		2.2		2.168		18.36		2.422		350.2		350.8		0.7		74.32		629.50		83.05		Gloria
and								1158.5		1161.0		2.5		0.965		5.55		1.042		353.1		353.9		0.8		33.08		190.15		35.72		Gloria
and								1186.7		1187.2		0.5		3.363		19.00		3.626		361.7		361.9		0.2		115.29		651.52		124.33		Gloria
GLOR14-002		347		-45		1334		968.0		969.8		1.8		0.638		1.30		0.656		295.0		295.6		0.5		21.86		44.40		22.48		Gloria
and								1031.3		1032.4		1.1		2.456		8.99		2.580		314.3		314.7		0.3		84.12		308.00		88.39		Gloria
and								1110.9		1112.5		1.6		0.864		1.00		0.878		338.6		339.1		0.5		29.60		34.30		30.07		Gloria
and								1183.6		1186.2		2.6		0.525		1.39		0.544		360.8		361.6		0.8		17.98		47.72		18.64		Gloria
incl								1183.6		1184.3		0.7		1.471		3.33		1.517		360.8		361.0		0.2		50.39		114.00		51.97		Gloria
GLOR15-003		22		39		413		293.2		294.5		1.3		0.820		10.20		0.961		89.4		89.8		0.4		28.13		319.00		32.55		Gloria
GLOR15-004		18		0		380		192.5		194.8		2.3		1.825		1.67		1.848		58.7		59.4		0.7		62.57		57.20		63.37		Gloria
and								261.5		263.1		1.6		0.157		1.30		0.175		79.7		80.2		0.5		5.39		44.40		6.01		Gloria
and								320.5		321.0		0.5		3.439		13.20		3.622		97.7		97.8		0.2		117.92		413.00		123.65		Gloria
and								357.2		358.3		1.1		0.132		27.70		0.516		108.9		109.2		0.3		4.53		866.00		16.54		Gloria
GLOR15-005		20		-24		380		212.0		212.7		0.7		1.534		1.55		1.556		64.6		64.8		0.2		52.59		53.20		53.33		Gloria
and								289.7		290.2		0.5		0.113		0.22		0.116		88.3		88.5		0.2		3.86		7.60		3.97		Gloria
and								303.0		306.0		3.0		0.332		3.00		0.374		92.4		93.3		0.9		11.40		100.00		12.78		Gloria
GLOR15-006		17		46		425		238.2		238.7		0.5		1.332		6.00		1.415		72.6		72.8		0.2		45.66		218.00		48.68		Gloria
and								270.0		271.1		1.1		3.542		3.30		3.588		82.3		82.6		0.3		121.45		109.00		122.97		Gloria
and								331.8		332.4		0.6		0.531		1.53		0.552		101.1		101.3		0.2		18.20		52.50		18.93		Gloria
GLOR15-007		18		34		401		182.5		184.9		2.4		0.645		0.62		0.654		55.6		56.4		0.7		22.13		21.30		22.43		Gloria
and								270.2		271.4		1.2		0.153		20.30		0.434		82.4		82.7		0.4		5.25		695.00		14.89		Gloria
GLOR15-008		21		15		379		247.2		247.7		0.5		0.123		9.20		0.251		75.3		75.5		0.2		4.20		316.00		8.58		Gloria
and								260.0		260.5		0.5		0.137		2.16		0.167		79.2		79.4		0.2		4.69		74.10		5.72		Gloria
and								324.6		325.1		0.5		0.200		8.90		0.323		98.9		99.1		0.2		6.87		304.00		11.09		Gloria
GLOR15-009		18		-11		430		146.7		147.4		0.7		0.671		0.57		0.679		44.7		44.9		0.2		23.00		19.40		23.27		Gloria
and								162.4		163.6		1.2		0.224		0.21		0.227		49.5		49.9		0.4		7.67		7.30		7.77		Gloria
and								272.0		275.3		3.3		0.240		0.95		0.254		82.9		83.9		1.0		8.24		32.64		8.69		Gloria
and								279.4		280.2		0.8		0.170		12.80		0.347		85.2		85.4		0.2		5.84		440.00		11.94		Gloria
GLOR15-010		19		40		426		147.3		154.5		7.2		1.319		5.41		1.394		44.9		47.1		2.2		45.22		184.98		47.79		Gloria
incl								147.3		150.6		3.3		2.340		10.38		2.484		44.9		45.9		1.0		80.23		355.00		85.16		Gloria
and								272.8		276.6		3.8		0.500		16.96		0.735		83.1		84.3		1.2		17.12		582.42		25.20		Gloria
GLOR15-011		18		26		377		134.9		136.0		1.1		2.110		4.60		2.174		41.1		41.5		0.3		72.33		157.00		74.50		Gloria
and								236.3		237.7		1.4		2.164		2.88		2.204		72.0		72.5		0.4		74.19		98.80		75.56		Gloria
and								243.7		244.4		0.7		0.113		0.33		0.118		74.3		74.5		0.2		3.88		11.40		4.04		Gloria
and								337.0		338.0		1.0		0.424		4.20		0.482		102.7		103.0		0.3		14.53		144.00		16.53		Gloria
GLOR15-012		19		-21		350						No Significant Intercepts												No Significant Intercepts
GLOR15-013		355		4		328		93.9		95.0		1.1		0.495		0.58		0.503		28.6		29.0		0.3		16.97		19.90		17.25		Gloria
and								178.0		179.8		1.8		0.266		0.28		0.270		54.3		54.8		0.5		9.12		9.70		9.26		Gloria
and								241.7		243.0		1.3		1.083		2.06		1.112		73.7		74.1		0.4		37.13		70.50		38.11		Gloria
GLOR15-014		14		46		425		70.0		71.3		1.3		0.572		0.93		0.585		21.3		21.7		0.4		19.60		31.90		20.04		Gloria
and								242.1		245.6		3.5		0.695		2.62		0.731		73.8		74.9		1.1		23.82		89.74		25.06		Gloria
incl								244.5		245.6		1.1		1.384		3.70		1.435		74.5		74.9		0.3		47.46		127.00		49.22		Gloria
and								305.0		305.6		0.6		1.126		4.55		1.189		93.0		93.1		0.2		38.60		156.00		40.76		Gloria
GLOR15-015		12		27		381		54.5		55.5		1.0		0.620		0.72		0.630		16.6		16.9		0.3		21.26		24.60		21.61		Gloria
and								190.9		192.5		1.6		0.178		1.36		0.197		58.2		58.7		0.5		6.10		46.60		6.75		Gloria
and								257.9		262.7		4.8		0.349		3.83		0.403		78.6		80.1		1.5		11.99		131.27		13.81		Gloria
and								269.7		273.7		4.0		0.526		3.78		0.579		82.2		83.4		1.2		18.06		129.62		19.85		Gloria
GLOR15-016		11		-17		325		83.9		85.1		1.2		0.238		0.66		0.247		25.6		25.9		0.4		8.17		22.70		8.48		Gloria
and								171.4		172.1		0.7		0.371		0.37		0.376		52.2		52.5		0.2		12.73		12.60		12.91		Gloria
and								225.3		226.8		1.5		1.095		0.98		1.109		68.7		69.1		0.5		37.53		33.70		38.00		Gloria
and								247.5		253.0		5.5		0.226		0.80		0.237		75.4		77.1		1.7		7.75		27.43		8.13		Gloria
GLOR15-017		191		3.6		452						No Significant Intercepts												No Significant Intercepts
GLOR15-018		12		40		415		174.7		175.6		0.9		0.467		1.13		0.483		53.2		53.5		0.3		16.00		38.80		16.54		Gloria
and								276.6		280.3		3.7		1.208		28.47		1.602		84.3		85.4		1.1		41.41		976.00		54.94		Gloria
GLOR15-019		12		21		350		157.8		158.3		0.5		0.393		1.12		0.408		48.1		48.2		0.2		13.47		38.30		14.00		Gloria
and								265.5		266.0		0.5		0.126		3.10		0.169		80.9		81.1		0.2		4.33		107.00		5.81		Gloria
GLOR15-020		11		-1		325		214.0		218.5		4.5		0.844		0.86		0.856		65.2		66.6		1.4		28.93		29.73		29.35		Gloria
incl								217.4		218.5		1.1		3.191		3.10		3.234		66.3		66.6		0.3		109.39		107.00		110.87		Gloria
and								226.7		227.3		0.6		0.175		1.11		0.190		69.1		69.3		0.2		6.01		38.10		6.54		Gloria
and								229.0		233.1		4.1		1.407		1.28		1.425		69.8		71.0		1.2		48.24		44.09		48.86		Gloria
incl								232.4		233.1		0.7		7.987		5.90		8.069		70.8		71.0		0.2		273.84		203.00		276.65		Gloria
GLOR15-021		11		-26		350						No Significant Intercepts												No Significant Intercepts
GLOR15-022		11		44		417		171.7		172.7		1.0		1.384		1.93		1.411		52.3		52.6		0.3		47.46		66.00		48.38		Gloria
and								271.7		272.8		1.1		0.190		37.20		0.706		82.8		83.1		0.3		6.50		1277.00		24.21		Gloria
GLOR15-023		9		27		375		203.1		205.6		2.5		0.385		9.10		0.511		61.9		62.7		0.8		13.20		313.00		17.54		Gloria
and								244.3		245.0		0.7		0.193		2.34		0.225		74.5		74.7		0.2		6.63		80.10		7.74		Gloria
GLOR15-024		10		2.5		1300		187.0		190.1		3.1		0.704		2.00		0.732		57.0		57.9		0.9		24.12		68.63		25.08		Gloria
incl								187.0		188.0		1.0		1.573		2.81		1.612		57.0		57.3		0.3		53.93		96.40		55.26		Gloria
GLOR15-025		10		-14		327		178.8		179.4		0.6		3.830		1.43		3.850		54.5		54.7		0.2		131.32		48.90		132.00		Gloria
and								189.3		190.0		0.7		0.159		1.91		0.186		57.7		57.9		0.2		5.45		65.60		6.36		Gloria
and								196.0		196.5		0.5		0.106		0.92		0.119		59.7		59.9		0.2		3.65		31.60		4.09		Gloria
GLOR15-026		350		19		450		182.4		184.9		2.5		2.119		5.60		2.197		55.6		56.4		0.8		72.66		192.00		75.32		Gloria
and								249.0		249.5		0.5		1.396		7.00		1.493		75.9		76.0		0.2		47.86		241.00		51.20		Gloria
and								397.0		397.6		0.6		0.364		7.30		0.465		121.0		121.2		0.2		12.47		250.00		15.93		Gloria
GLOR15-027		190		5		452						No Significant Intercepts												No Significant Intercepts
GLOR15-028		12		43		375		159.7		162.5		2.8		0.182		0.20		0.185		48.7		49.5		0.9		6.24		7.00		6.33		Gloria
and								204.3		207.0		2.7		0.529		27.54		0.911		62.3		63.1		0.8		18.13		944.89		31.24		Gloria
and								218.0		222.9		4.9		1.296		60.15		2.130		66.4		67.9		1.5		44.42		2061.67		73.01		Gloria
incl								220.9		222.9		2.0		2.773		147.10		4.813		67.3		67.9		0.6		95.06		5042.00		164.97		Gloria
GLOR15-029		11		-4		350		125.5		126.5		1.0		0.303		0.54		0.310		38.3		38.6		0.3		10.40		18.40		10.65		Gloria
and								163.5		166.3		2.8		0.134		1.18		0.150		49.8		50.7		0.9		4.58		40.40		5.14		Gloria
GLOR15-030		11		-30		350		200.0		200.6		0.6		0.225		0.22		0.228		61.0		61.1		0.2		7.71		7.40		7.81		Gloria
and								211.5		213.2		1.7		0.122		2.02		0.150		64.5		65.0		0.5		4.17		69.10		5.13		Gloria
GLOR15-031		11		33		400		130.0		130.6		0.6		0.165		3.30		0.211		39.6		39.8		0.2		5.66		112.00		7.21		Gloria
and								134.0		136.4		2.4		0.127		5.20		0.199		40.8		41.6		0.7		4.35		177.00		6.80		Gloria
and								146.4		146.9		0.5		0.148		0.83		0.159		44.6		44.8		0.2		5.07		28.40		5.46		Gloria
GLOR15-032		12		11		850		109.1		113.5		4.4		0.376		0.33		0.380		33.3		34.6		1.3		12.89		11.44		13.05		Gloria
incl								109.1		110.5		1.4		1.054		0.76		1.065		33.3		33.7		0.4		36.13		26.10		36.49		Gloria
and								122.0		123.7		1.7		3.653		6.20		3.739		37.2		37.7		0.5		125.25		213.00		128.21		Gloria
GLOR15-033		13		-18		375		136.1		147.0		10.9		0.358		0.59		0.366		41.5		44.8		3.3		12.28		20.20		12.56		Gloria
incl								146.5		147.0		0.5		1.009		0.68		1.018		44.7		44.8		0.2		34.60		23.20		34.92		Gloria
GLOR15-034		13		-35		375		200.2		208.6		8.4		4.093		6.24		4.180		61.0		63.6		2.6		140.35		214.14		143.31		Gloria
incl								203.0		204.7		1.7		17.990		26.90		18.363		61.9		62.4		0.5		616.80		923.00		629.60		Gloria
GLOR15-035		349		13		1301		99.4		100.4		1.0		0.999		0.80		1.010		30.3		30.6		0.3		34.26		27.30		34.64		Gloria
and								108.0		117.0		9.0		0.696		3.05		0.739		32.9		35.7		2.7		23.88		104.76		25.33		Gloria
incl								108.0		112.0		4.0		1.445		6.61		1.536		32.9		34.1		1.2		49.53		226.70		52.67		Gloria
GLOR15-036		190		7		405						No Significant Intercepts												No Significant Intercepts

*Calculated gold equivalent ratio 72.12:1

*intercepts are not true widths

Attachment Available: http://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Gloria_Sig_Intercepts_FINAL-ef5ea3892eb0a02b964c1d9e47cb040f.pdf
Attachment Available: http://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Figure_1_Hollister_Exploration_PR-4726d77f4319adcd9ecf607cdfc413b4.pdf
Attachment Available: http://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Figure_2_for_Hollister_Exploration_PR-00e441b8e5c48d68b5922460a0aad804.pdf

For More Information
John Seaberg
Senior Vice President, Investor Relations and Corporate Development
O: 775-284-5757
M: 303-668-7991
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