Klondex Encounters High-Grade Mineralization at Hatter Graben; Midas Mill Recovery of Hollister Ore Improving - Seite 2

Mr. Brian Morris, Senior Vice President, Exploration, said, "I am extremely encouraged by the initial results from our first five holes at Hatter Graben. At the onset, we had permitting delays which required us to drill our first three holes from the least optimal locations. We also experienced deviations on some of the initial holes which resulted in intercepting the vein system much deeper than the targeted elevations. Even with all of those challenges, we still encountered multiple veins similar to historical findings." Mr. Morris continued, "The most optimal drill sites are now fully permitted and drilling is ongoing from these locations. We are infilling and stepping to the east in the most desirable elevations where we fully expect robust results."

Midas Mill CIL Modification Update:

During the fourth quarter, the Company made a number of modifications to the new CIL circuit at the Midas mill in order to improve gold recoveries from Hollister ore. A plant trial, in which residual cyanide concentrations were reduced, has shown significant promise to improve gold recoveries and is being optimized. Longer term, the Company expects the gold recoveries from Hollister ore to average between 80% and 90%. In addition, the Company has gained efficiencies in the carbon handling circuit, which has reduced the time required to transition from CIL to Merrill Crowe, optimizing mill throughput.

Assays were performed by American Assay Laboratories of Sparks, Nevada, as directed under the supervision of Klondex staff. This organization is an ISO 17025 accredited independent laboratory.

A description of the data verification methods, quality assurance program and quality control measures applied can be found in the technical report titled "Technical Report and Pre-Feasibility Study for the Hollister Underground Mine", as amended on August 9, 2017 with an effective date of May 31, 2017, which is available under the Company's issuer profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

About Klondex Mines Ltd. (www.klondexmines.com)

Klondex is a 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 four producing mineral properties: the Fire Creek Mine, the Midas Mine and ore milling facility, the Hollister Mine, all of which are located in the state of Nevada, USA, and the True North Mine and mill in Manitoba, Canada. The Company also has a 100% interest in the Aurora mine and ore milling facility (formerly known as Esmeralda), also located in Nevada, USA.