Klondex Announces Updated Mineral Resource Estimate at True North; ~32% Increase in M&I Mineral Resource, ~45% Increase in Inferred Mineral Resource

RENO, NV--(Marketwired - March 29, 2017) - Klondex Mines Ltd. (TSX: KDX) (NYSE MKT: KLDX) ("Klondex" or the "Company") is pleased to announce a Mineral Resource Estimate update for its True North Gold Mine ("True North") in Manitoba, Canada, which incorporated our assayed drill results subsequent to our acquisition of the property and with an effective date of February 14, 2017.

Mineral Resource Estimate Highlights (see TABLE 1):

• Total Measured and Indicated ("M&I") Mineral Resource Estimate of 1,797k tons grading 0.216 opt (7.40 g/t)(388,000 Au oz), an increase of ~32% Au ounces from the September 2016 Mineral Resource Estimate
• Total Inferred Mineral Resource Estimate of 3,676k tons grading 0.182 opt (6.24 g/t)(668,000 Au oz), an increase of ~45% Au ounces from the September 2016 Mineral Resource Estimate
• An increase in the grade of both M&I and Inferred Mineral Resource Estimates of 2% and 10%, respectively
• Continued to extend mineralization in the 710 and 711 zones (see FIGURE 1)
• Addition of the Deep East zone located within the SAM unit near the bottom of the current mine workings
• Continued growth of the Cohiba resource through drilling of down dip extension

TABLE 1: True North Mineral Resource Estimate

Category	Tons (k)	Au opt	Au g/t	Au k oz
Measured	521	0.220	7.54	115
Indicated	1,276	0.214	7.34	273
Total M&I	1,797	0.216	7.40	388
Inferred	3,676	0.182	6.24	668

1. Mineral Resource Estimate is inclusive of Mineral Reserves.
2. Gold Price US$ 1,400 per oz.
3. Exchange Rate: C$ to US$: 0.80.
4. Mine and Mill Cost C$141.52 per ton.
5. Process recovery 94%.
6. Cut-off grade 0.090 opt Au (3.09 grams per tonne).
7. CIM definitions were followed for the Mineral Resource Estimate.
8. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
9. The effective date for True North mineral resources is February 14, 2017.

Paul Huet, President and CEO stated, "True North continues to evolve into an important asset in our portfolio. We believed our initial Mineral Resource Estimate was just the beginning and this update confirms that belief. Using the results from our own drilling program post acquisition, we continue to unlock the true potential of this asset by adding ounces at depth with additional tons at higher grades."