======================================================================= Re: News - Wednesday, May 11, 2011 Klondex Mines Ltd.

Clarifies Technical Disclosure, To Prepare Fire Creek Report ======================================================================= Vancouver, BC -- May 11, 2011 -- Klondex Mines Ltd.

(TSX: KDX) ("Klondex" or the "Company") announced today that as a result of a review by the British Columbia Securities Commission (BCSC) Klondex is issuing the following news release to clarify its disclosures regarding its Fire Creek property located near Elko, Nevada.

National Instrument 43-101 ("NI 43-101") compliance issues occur in the March 30, 2009 technical report "Updated Report on the Fire Creek Gold Property, Lander Co., Nevada" on SEDAR, (the "2009 Report") and were also present on the Companys previous website, in corporate presentations, and in investor relations materials. New technical report being prepared The Companys annual information form of March 31, 2011 disclosed material exploration activity since the 2009 Report and thereby triggered the requirement under NI 43-101 to file a new technical report concurrent with the AIF.

Klondex intends to prepare and file the report within 30 days. Klondex clarifies that mineral resource estimates and information about an underground bulk-sampling project, disclosed in the 2009 Report and elsewhere, are unsupported by a compliant NI 43-101 technical report, contrary to NI 43-101.

Klondex cautions that the resource estimates, and expected positive results of the bulk processing, should not be relied upon until they have been independently verified and supported by an updated independent technical report.

If, because of the new report, there are material changes in resource estimates, or other material changes, the Company will promptly announce the results. The Companys 2011 PDAC presentation illustrated new models of veins done by SRK Consulting.

However, Klondex clarifies it has not received new resource estimates, as defined by NI 43-101, since the 2009 report. Retraction of economic analyses On its website, in interviews or presentations available via its website and incorporated by reference in the Companys press release of November 5, 2010, the Company referred to results of preliminary economic analysis of bulk sampling.

The analysis included gold production estimates, cash flow from bulk sampling, net operating cash flow, operating margins, and economic analysis in terms of $/share based on discounted gold metal value.

The Companys 2011 PDAC presentation and an investor presentation on its website disclosed economic analysis exceeding that of the initial bulk sampling program, including increases in annual gold production in 2012 and 2013, and cash flow for a longer-term mine plan based on a $1300 gold price.

Klondex hereby retracts all the referenced economic analyses.

When the Company receives an initial preliminary assessment as defined by NI 43-101, it will promptly disclose the results and file a technical report as required by NI 43-101. Correction of noncompliant disclosure of mineral resources Non-compliance issues on the Companys prior website included one instance where the inferred resource was termed an "Inferred Mineral Reserve", and more frequent reference to mineral resources as "ore" or an "ore body." The use of reserve and "ore" was inappropriate because the Company has not completed a prefeasibility study, which is the minimum requirement to demonstrate the economic viability implied by such terms.

The previous website and a corporate presentation disclosed total resources by combining inferred resources with other classes, contrary to NI 43-101.

The Company has corrected its website resource disclosure to comply with NI 43-101. In those instances where the Company has retracted, revised, clarified or updated previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain. Klondex is committed to bringing its technical and other disclosure into compliance as quickly as possible and continues to dedicate significant internal resources to prepare and verify the information contained in its public disclosures. Richard Kern, M.Sc.

P.

Geo, a Director of Klondex, is the Qualified Person responsible for the accuracy of this news release in compliance with NI 43-101. About Klondex Mines (www.klondexmines.com): Klondex Mines Ltd.

is focused on the exploration and development of its 100% owned high-grade Fire Creek gold deposit in North Central Nevada.

Fire Creek is a mining prospect that is located near power, transportation, mining infrastructure and several milling facilities. ON BEHALF OF KLONDEX MINES LTD.

William J.

Solloway Chairman and CEO Blane Wilson President and COO # # # Investor Contacts: Bryson Goodwin Klondex Mines Ltd. (604) 341-1531 David Collins Jaffoni & Collins (212) 835-8500 ======================================================================= Copyright (c) 2011 KLONDEX MINES LIMITED (KDX) All rights reserved.

For more information visit our website at http://www.klondexmines.com/ or send mailto: ----------------------------------------------------------------------- To Unsubscribe from this email list, click here: http://www.klondexmines.com/s/Unsubscribe.asp? =======================================================================