Klondex Mines Achieves Two Major Milestones for Fire Creek; Maiden Shipment to Newmont and Electrifies Fire Creek

ELKO, NV and VANCOUVER, BC--(Marketwired - Aug 12, 2013) - Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF), a Nevada gold exploration and development company, is pleased to announce the successful completion of two major milestones at its Fire Creek Project: the first shipment of mineralized material delivered to Newmont Mining Corp. for processing, and the conversion of Fire Creek to electrical grid power from generator power.

The initial shipment of 1000 tons of Fire Creek material to Newmont began on August 5, 2013. Processing is scheduled to begin today. As previously announced on July 26, 2013, Klondex expects to receive payment for this shipment in the third quarter.

The power line is now fully connected and energized by way of the Klondex-owned substation built in 2012. The substation was connected to the NV Energy electrical grid earlier this year. As a result of this achievement, Klondex expects increased efficiencies in its development work, in addition to a significant reduction in unit cost for electricity.

Mike Doolin, Fire Creek General Manager, stated, "We're extremely pleased with the timely progress the team is making during this pivotal year for Klondex. Processing the Fire Creek material through Newmont's milling facility allows us the opportunity to monetize the mineralized material from the underground development program."

He continued, "Energizing Fire Creek with grid power allows greater flexibility and support for our increasing power needs as we continue to develop Fire Creek. Assuming our consumption increases on average by 30% and the unit cost decreases to $0.12/kWh, we expect to realize a savings of approximately 25% of the current power costs."

About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration and development of its Fire Creek gold deposit in North-Central Nevada. Fire Creek is a compelling gold project located in a mining-friendly jurisdiction, near major producers, power, transportation, mining infrastructure and its milling facility. At August 12, 2013, Klondex had 64.4M shares issued and outstanding and 86.8M shares, fully diluted.

This news release contains certain information that may constitute forward-looking information under applicable Canadian securities legislation, including information about the magnitude and quality of the Fire Creek Project the results of exploration and metallurgical sampling at the Fire Creek Project, the Company's intention and ability to monetize mineralized material, timing of the updated mineral resource estimate at the Fire Creek Project and the bulk sampling program. This forward-looking information entails various risks and uncertainties are based on current expectations, and actual results may differ materially from those contained in such information. These risks and uncertainties include, but are not limited to the risks and hazards associated with environmental compliance and permitting for its underground operations, 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. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com. 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.