Klondex Announces Receipt for Final Prospectus

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 28, 2016) - Klondex Mines Ltd. (TSX:KDX)(NYSE MKT:KLDX) ("Klondex" or the "Company") is pleased to announce that it has obtained a receipt (the "Receipt") for its final short form prospectus dated November 28, 2016 (the "Prospectus") filed with the securities regulatory authorities in each of the provinces of Canada, except Quebec. The Prospectus qualifies the distribution of 25,900,000 common shares of the Company (the "Common Shares") issuable upon the exercise or deemed exercise of 25,900,000 special warrants of the Company (the "Special Warrants") issued by the Company upon the conversion of 25,900,000 subscription receipts of the Company (the "Subscription Receipts") previously issued by the Company. As previously announced, the Subscription Receipts were issued on a "bought deal" private placement basis on August 18, 2016 through a syndicate of underwriters led by GMP Securities L.P. and BMO Capital Markets and including Canaccord Genuity Corp., Clarus Securities Inc., RBC Capital Markets, M Partners Inc., Dundee Securities Ltd., HSBC Securities (Canada) Inc., Mackie Research Capital Corporation, National Bank Financial Inc., Paradigm Capital Inc., PI Financial Corp, Rodman & Renshaw a unit of H.C. Wainwright & Co., LLC and Haywood Securities Inc. In accordance with the terms of the indenture governing the Special Warrants, each Special Warrant entitles the holder thereof to receive, upon exercise or deemed exercise thereof and for no additional consideration, one Common Share.

All unexercised Special Warrants will be deemed to be exercised on December 1, 2016. Following the deemed exercise, holders of Special Warrants should contact their broker to ensure the underlying Common Shares have been properly credited to their account (other than certain holders who will receive physical certificates representing Common Shares).

A copy of the Prospectus and the Receipt are available on SEDAR under the Company's profile at www.sedar.com.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities.