Klondex Update on Rice Lake Development Activities - Seite 2

Project development activities continue to advance and are on schedule and within budget. 

Project Development Highlights:

• Rice Lake Project has completed 83 days without a Loss Time Incident.
• The notice to recommence mining and milling operations was approved by the Director of Manitoba Mineral Resources in March, 2016.
• Shaft Project Complete - 100% of the guides have been replaced.
• Track Repair Ongoing - Approximately 1,500 of track has been ditched and repaired at the 2600 level; project is ~55% complete.
• Initiated testing of narrow vein long hole design to reduce dilution.
• New underground shop and new gear storage cut-outs are 80% complete.
• Initial metallurgical testing on existing tailings indicate the tailings can be processed through the existing mill flow sheet.

Mr. Paul Huet, President and CEO commented, "Our progress at the Rice Lake Mine has proceeded better than expected. The results of the Q4 2014 drill program noted above are very encouraging and suggest the opportunity for new high grade discoveries at Rice Lake." Mr. Huet continued, "Our progress in refurbishing the track and the shaft is on budget and on schedule and we are excited about the successful testing of long hole stoping at the mine. We continue to expect to be in a position to announce a production decision in the second half of this year, and we remain grateful to be part of such an exceptional and supportive mining community in Bissett."

Underground drill core samples were assayed on site in the then owner's assay lab using the fire assay method with an AA and gravimetric finish. The quality control and assurance program included the insertion of standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, Saskatchewan and Accurassay Laboratories in Thunder Bay, Ontario. The core lengths are actual lengths as drilled and were not adjusted for the true width of the mineralized zones.

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.

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 two 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, as well as the recently acquired Rice Lake mine and mill in Manitoba, Canada.