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| NEWS [

Klondex Mines Begins Drifting on new Hui Wu Vein at Fire Creek;
Weighted Average of 126.9 g/t (3.7 opt) Gold over a 1.1 Meter (3.5 ft) Vein Width
and 11 Meters (37 ft) Along Strike

Vancouver, BC - August 5, 2014 - Klondex Mines Ltd. (TSX: KDX; OTCQX: KLNDF) today
announced that it began initial drifting on Fire Creeks fourth identified vein,
the Hui Wu (pronounced "wey woo") Vein. The Vein is located 30.5 m (100 ft) west
of the main ramp and 15.2 m (50 ft) east of the Karen Vein (Figure 1 [
The structure was identified as a target during the 2013 drill program (see press
release dated January 21, 2014 [
but was not included in the 2013 mineral resource estimate or subsequent Preliminary
Economic Assessment, with respect to the Fire Creek project (see press release dated,
April 29, 2014 [

Based on current drilling, the known strike length of the Hui Wu Vein is 243.8 m
(800 ft) and the known vertical dip extent is 76.2 m (250 ft), remaining open both
north and south along strike, and up and down dip.

To date, 11 m (37 ft) of exploration development has been completed along strike
of the Hui Wu Vein. Face samples range from 31.6 g/t (0.9 opt) Au to 395.9 g/t
(11.5 opt) Au. The weighted average grade of samples taken from the Hui Wu Vein
is 126.9 g/t (3.7 opt) Au over an average vein width of 1.1 m (3.5 ft). The fully
diluted mined grade averaged 60.8 g/t (1.8 opt) Au over an average mining width
of 2.2 m (7.4 ft). Assay results from samples from the Hui Wu Vein are summarized
and detailed in Table 1, below.

Brent Kristof, Klondex Mines COO, commented, "The Fire Creek team has done an exceptional
job continuing the drilling, sampling, and mapping program to identify yet another
mineralized area. The Hui Wu Vein represents another growth opportunity to be targeted
during our 2014 and 2015 exploration and development programs."

Table 1: Hui Wu Exploration Development

length, feet

vein width, meter

vein width, feet

vein channel, g/t

vein channel, auopt




































5360 Access

5360 Average





5360 Hui total strike



Mark Odell of Practical Mining LLC is the Independent Qualified Person (Nevada PE
13708 and SME 2402150), who has reviewed and approved the contents of this press
release for the purposes of National Instrument 43-101.

Channel assays were analyzed by SGS Minerals Services (Elko, Nevada) and Dave Francisco
Lab (Fallon, Nevada), and drill assays were analyzed by ALS Chemex (Reno, Nevada)
and American Assay Labs (Sparks, Nevada) under Klondex staff supervision. These
are all independent laboratories. Sampling a given face is conducted after the face
location has been washed, measured, mapped in detail and photographed. Continuous
rock-chip channel samples are then collected by Klondex staff directly into 11"
x 17" sample bags from the footwall, vein, and hanging wall. Individual samples
are defined by geology and do not exceed 3 in length in order to better define
the location of grade. Salient features including sample number, channel length,
location on face, rock type, and alteration are documented. Blank samples are inserted
into the sample stream to help monitor QA/QC of the labs. Channel samples and respective
assays are loaded into an Access database, and ultimately visualized in Vulcan where
they are correctly located in space and utilized in resource estimation.

About Klondex Mines Ltd. (

Klondex Mines is focused on the exploration, development and production of its two
high quality gold and silver projects in the mining-friendly jurisdiction of north
central Nevada. The 1200 tpd milling facility is processing mineralized materials
from the Midas Mine and the Fire Creek Project. Midas is fully-permitted and has
been producing gold and silver since 1998. Fire Creek is located ~100 miles south
of Midas and is operating an ongoing bulk sampling program that began in 2013 and
is in the process of obtaining the full mining permit. All major infrastructure
is in place at Fire Creek.

For More Information

Klondex Mines Ltd.

Paul Huet

President & CEO


Alison Tullis,

Manager, Investor Relations


Cautionary Note Regarding Technical Information and Forward-looking Information

A production decision at the Midas mine was made by previous operators of the mine
prior to the completion of the acquisition of the Midas project by Klondex and Klondex
made a decision to continue production subsequent to the acquisition. This decision
by Klondex to continue production and, to the knowledge of Klondex, the production
decision made by the previous operator were not based on a feasibility study of
mineral reserves demonstrating economic and technical viability prepared in accordance
with National Instrument 43-101. Readers are cautioned that there is increased uncertainty
and higher risk of economic and technical failure associated with such production

This news release contains certain information that may constitute forward-looking
information under applicable Canadian securities legislation, including but not
limited to information about the timing and success of exploration drilling, sampling
and mapping activities and the development of the Fire Creek project. This forward-looking
information entails various risks and uncertainties that are based on current expectations,
and actual results may differ materially from those contained in such information.
These uncertainties and risks include, but are not limited to, the strength of the
global economy; the price of gold; operational, funding and liquidity risks; the
degree to which mineral resource estimates are reflective of actual mineral resources;
the degree to which factors which would make a mineral deposit commercially viable
are present; the risks and hazards associated with underground operations; and the
ability of Klondex to fund its substantial capital requirements and operations.
Risks and uncertainties about the Companys business are more fully discussed in
the Companys disclosure materials filed with the securities regulatory authorities
in Canada and available at Readers are urged to read these materials.
Klondex assumes no obligation to update any forward-looking information or to update
the reasons why actual results could differ from such information unless required
by law.

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