Klondex Mines Ltd. Announces C$21,000,000 Equity Financing

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TSX: KDX

TORONTO, Nov. 15, 2011 /CNW/ - Klondex Mines Ltd.

('Klondex Mines' or the 'Company') announced today that it has entered into an agreement with a syndicate of underwriters lead by GMP Securities L.P. and including Mackie Research Capital Corporation, Jones, Gable & Company Ltd. and Fraser Mackenzie Limited (the 'Underwriters'), pursuant to which the Underwriters have agreed to purchase 8,400,000 units (the 'Units') of the Company, at a price of C$2.50 per Unit (the 'Offering Price') for aggregate gross proceeds to Klondex Mines of C$21,000,000.00 (the 'Offering'). Each Unit will consist of one common share of the Company (a 'Common Share') and one-half of a common share purchase warrant (each whole common share purchase warrant a 'Warrant'). Each Warrant will entitle the holder thereof to acquire one Common Share of the Company at a price of C$3.50 per Warrant for a period of 24 months from the Closing Date.

The Company has agreed to grant the Underwriters an option (the 'Over-Allotment Option') to purchase additional Common Shares and/or additional Warrants, or a combination thereof (collectively, the 'Additional Securities') to cover over-allotments, if any, and for market stabilization purposes. For greater certainty, a maximum of 15%, in the aggregate, of the number of Common Shares and Warrants sold at the Closing may be issued as Additional Securities pursuant to the Over-Allotment Option. The Over-Allotment Option shall be exercisable for a period of 30 days following the Closing Date.  If this option is exercised in full, an additional C$3,150,000.00 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be C$24,150,000.00

The Units will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, except Quebec.

The net proceeds from the Offering are expected to be used for the development of the Fire Creek gold project in Nevada, USA, and ongoing operating and working capital requirements.

The Offering is expected to close on or about November 29, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

THIS IS NOT AN OFFER FOR SALE OR SOLICITATION OF AN OFFER TO BUY, IN THE UNITED STATES OR TO ANY 'U.S. PERSON', AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OF ANY EQUITY SHARES OR ANY OTHER SECURITIES OF THE COMPANY.

About Klondex Mines Ltd. (www.klondexmines.com):

Klondex Mines is focused on the exploration and development of its 100% owned Fire Creek gold deposit in North Central Nevada.  Fire Creek is a compelling gold mining prospect that is located near power, transportation, mining infrastructure and several milling facilities.  For more information on the mineral resource estimates, please refer to Klondex's disclosure available at the SEDAR website.

On Behalf of Klondex Mines Ltd.

Blane W. Wilson

President & CEO

Klondex Mines Ltd.

CONTACT: Investor & Media Contact:

David Collins

Jaffoni & Collins

KDX@jcir.com (212) 835-8500