Klondex Announces Updated Mineral Resource Estimate at True North; ~32% Increase in M&I Mineral Resource, ~45% Increase in Inferred Mineral Resource - Seite 2

The True North Mineral Resources Estimate is based on 7,877 drill holes totaling 4,937,265 ft (1,504,878 m) and includes data from 131 new drill holes totaling 59,268 ft (18,065 m), completed by Klondex since May 2016. In addition to the drilling, the Mineral Resource Estimate also includes 29,124 channel samples provided from mining on the mineralized structures.

The updated Mineral Resource Estimate was prepared under the supervision of P&E Mining Consultants Inc.

Mineral Resource Assumptions
Classification of the Mineral Resource Estimate as Measured, Indicated or Inferred was done based on the number of drill and channel sample composites used and the average distance from the block to the composites. For the Measured Mineral Resource, a block must have used a minimum of four composites within a distance of 50 feet. For an Indicated Mineral Resource, a block must have used a minimum of four composites within 100 feet, and an Inferred Mineral Resource must have used a minimum of four composites within 500 feet. The search orientation ellipse was maintained approximately parallel to each vein. Only gold values were estimated at True North.

Drill interval assays for True North were performed by TSL Laboratories Inc. of Saskatoon, Saskatchewan (independent laboratory). Channel sample assays were performed by Klondex's in-house laboratory at True North, using fire assaying with gravimetric finish and check samples were sent to TSL Laboratories Inc. of Saskatoon, Saskatchewan.

Drill samples cited in this news release for True North were acquired by independent drilling contractors under the direction of Klondex staff. Standards and blanks were inserted every 20 samples or at least one per hole in the case where there are less than 20 samples in a hole. Duplicates are generated by the lab and re-assayed internally. QA/QC samples are tracked and if a result plots outside of predetermined QA/QC gate limits, the batch is re-assayed and the new results replace the previous values.

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 known as 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 mine and ore milling facility (formerly known as Esmeralda), also located in Nevada, USA.