🕐10.03.10 - 22:08 Uhr

KDX Reports Permitting Progress and Reviews its Strategic Significance



======================================================================= Re: News - Wednesday, March 10, 2010 KDX Reports Permitting Progress and Reviews its Strategic Significance ======================================================================= A personal letter from the president of Klondex Mines Ltd.

on Permitting, a Key Strategic Asset of the CompanyDear KDX Investor, I wanted to take a moment to give you a personal update on the incredibly positive and significant changes occurring at Klondex.

We are making huge strides forward on our deliverables and big additions to both management and marketing.

Please look to future news releases as we advance through 2010.

The primary purpose of this letter is to explain in some detail the importance of our accomplishments and our underground permitting successes to date. In late December 2009, Klondex successfully secured permits from the U.S.

Bureau of Land Management (BLM) for our underground confirmation program at Fire Creek.

This in itself is a mighty accomplishment for Klondex as it clearly underscores our transition from an exploration company with proven resources in the ground into a hybrid company focused on underground production AND continued exploration.

We feel the importance of this distinction will be graphically demonstrated over the next 12 months as previously uninterested investors begin to position themselves into the Klondex shareholder base.

The BLM approvals also pave the way for Klondex to extend to the south its Main Zone surface exploration program.

This is very good news as it gives us the opportunity to build upon our already substantial 1.64 million ounce NI 43-101 compliant indicated gold resource and our 0.5 million ounces of inferred gold resource. To ensure the timely completion of the permitting process, Klondex has posted the required $1.4 million reclamation bond, and we have executed a $258,000 contract with Western Cultural Resource Management to complete a required Archeological Site Study which, weather permitting, should begin in the next few weeks.

Klondex must also secure final state approvals, including approval from the Nevada Department of Environmental Protection.

The Nevada state permit is expected to enter the public comment stage in the next few weeks, and we are excited to report that we continue to anticipate receipt of final permits between April and June 2010. The permits will enable Klondex to pursue bulk sampling and processing of 120,000 tons of high-grade ore (limited to 36,500 tons per year). Given a target grade of one ounce per ton, the bulk sampling initiative could enable Klondex to produce approximately 120,000 ounces of gold with a current market value before production costs of over $120 million.

With approximately 36.2 million diluted shares outstanding, this represents an enormous opportunity for our Company.

To initiate the underground program, the permits will allow Klondex to drive 3,000 meters of decline tunneling to access our Main Zone mineralization. This access will facilitate more cost effective exploratory and in-fill drilling of KDXs resource to expand and improve the geologic model of Main Zone gold mineralization.

This should support our efforts to build our NI 43-101-compliant resource and give us the ability to initiate appropriate underground mine planning. After careful consideration and concerted negotiation, Klondex has chosen to proceed with Small Mine Development Co.

(SMD) of Boise, Idaho to engineer and perform the underground development and bulk sampling work.

SMD is a highly respected underground mining contractor with substantial high-grade gold mining experience and in-depth knowledge. Their understanding of our project and the local geology will ensure we extract the ore and produce gold at the lowest possible cost.

The excellent and very convenient location of our high-grade deposit at Fire Creek gives Klondex a number of choices for processing the approximately one ounce per ton ore we will target.

Currently we are reviewing several regional mills where after a short truck ride our ore could be milled on a contract basis.

Klondex is very sensitive to our shareholders and to limiting dilution, so we are focused on financing future requirements for this program with the least dilution possible. In summary, we believe KDXs permitting program is creating substantial value for our shareholders.

If you would like a more detailed and personal review please feel free to contact me or my team to set up a time convenient for you.

We are also available to meet with you today, the final day of the PDAC show in Toronto.

Our booth number is 2835. Finally, for a window on the true scope and effort behind the permitting process, we have provided some additional background below. Kindest regards,
William J.

Solloway President Klondex Mines Ltd. Background on Scope of Permitting Process Years expended to date: Approximately 3 years; initial permits filed March 2007 Permits received to date: BLM Environmental Assessment. Amended Plan of Operations. Permit for Reclamation and Surface and Underground Exploration Contractors utilized: Enviroscientists, Inc -- leading environmental consulting firm focused on resource permitting.

www.enviroincus.com Knight Pi�sold -- leading global consulting engineers and environmental scientists.

www.knightpiesold.com SRK - international consulting practice in earth and water resource industries.

www.SRK.com Western Cultural Resource Management .

is a full service cultural resource consulting firm.

www.wcrminc.com Regulatory bodies involved: U.S.

Bureau of Land Management (BLM) Nevada Department of Environmental Protection (NDEP) Consultant fees to date: $586,000 Estimated KDX man-hours to date 2,300 hours across 3 professionals Estimated # of regulatory meetings 20
Klondex Reports Progress on Permitting for Its Underground Program
Vancouver, British Columbia -- March 10, 2010 - Klondex Mines Ltd. (TSX: KDX) announced today an update on permitting for its underground development program focused on bulk sampling and exploration drilling. KDX has posted a U.S.

$1.4 reclamation bond required pursuant to the Companys U.S.

Bureau of Land Management permits (BLM) issued in late December 2009.

To fund the bond without issuing common stock at current levels, Klondex has secured a U.S.

$1.4 million loan facility bearing interest at 6% per year.

KDX has also executed a contract with Western Cultural Resource Management (WCRM) to perform archeological site work also required pursuant to KDXs BLM permits.

The WCRM work will commence in the next few weeks, assuming suitable weather, and should be completed within six weeks thereafter.

Klondex continues to anticipate the receipt of remaining state permits for its underground program between April and June 2010. William Solloway, Klondexs President, commented, "We believe investors have yet to realize the significant accomplishment and value being created through our permitting process.

Permitting is amongst the most difficult hurdles faced by mining companies.

Once completed, it will enable KDX to graduate from a focus solely on exploration to a dual focus on exploration and production/cash generation, via bulk sampling. Our progress in permitting clearly demonstrates to investors that we are delivering on our commitments and entering an exciting new stage in our corporate development.

With our recent management appointments, we are very well positioned to execute on our underground program during 2010 and to secure greater investor awareness and appreciation for the value and potential of our high-grade gold resource at Fire Creek." About Klondex Mines (www.klondexmines.com): Klondex Mines Ltd.

is focused on bringing into production, via bulk sampling, its 100% owned high-grade Fire Creek gold deposit in North central Nevada.

Fire Creek is centrally located near power and transportation and represents a compelling mining prospect.

Klondex has identified the following NI 43-101 compliant resource:
* Fire Creek has a gold-to-silver ratio of approximately 1:1, indicating the resource is approximately 98.3% gold and 1.7% silver.

Reflects a cutoff grade of 5 grams per tonne and 60 units of silver equivalent to one unit of gold. ON BEHALF OF KLONDEX MINES LTD. "William Solloway" President Investor Contacts: Bryson Goodwin Klondex Mines Ltd.

(604) 341-1531 David Collins Jaffoni & Collins (212) 835-8500 View News Release in PDF Format: Associated File: http://www.klondexmines.com/i/pdf/KDX-nr-3-10-10.pdf 23 KB in size, approx.

5 seconds to download at 56.6Kbps ======================================================================= Copyright (c) 2010 KLONDEX MINES LIMITED (KDX) All rights reserved.

For more information visit our website at http://www.klondexmines.com/ or send mailto: =======================================================================



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