Klondex Mines Ltd.

Klondex Mines Ltd.

May 16, 2006 08:00 ET

Klondex Mines Ltd. Receives High Grade Drill Intercept of 0.75 oz/ton Gold Over 20 Feet

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 16, 2006) -


Klondex Mines Ltd. (TSX VENTURE:KDX). The company has received assays results from an additional 2 holes from Phase 4 drilling at its 100%-owned Fire Creek property in the Battle Mountain-Eureka Trend in Northern Nevada.

Holes FC 06-08 and FC 06-05 were drilled to test steeply west-dipping veins in the Far North Zone. Drill Hole FC 06-08 returned an interval of 0.75 oz/ton (28.5 gpt) gold over 20 feet (6.13m) between 895-915 feet on Section 750N. This intercept is 100 meters to the south of the previously reported high grade interval on Section 850N from FC 05-25 of 0.40 opt over 40 feet. Drill Hole FC 06-05, the most westerly hole drilled on Section 950N failed to return high grade values but detected the vein set with an intercept of 1.26 gpt (0.037 opt) over 22.9 meters (75 feet) between 1020 and 1095 feet.

These holes now indicate that the Far North Zone has a strike length of at least 400 meters and comprises three and perhaps four, mineralized structures which are open in all directions.

It is estimated that true widths are approximately 75% of reported widths for these holes.

A plan map setting out hole locations is attached to a copy of this news release available on the Company's website at www.klondexmines.com under "News".

The Company has also submitted six metallurgical samples for testing. Samples C1, C2, C3 and C4 were taken from drill intercepts in the Main/West resource area where a NI 43-101 compliant resource estimation of 1,779,196 tons grading 0.328 opt (583.081 oz gold) was reported in May, 2005. Samples C5 and C6 were taken from drill core from the Far North Zone where heavier concentrations of sulfides including arsenopyrite have been observed. Results from this testing will be reported as received.

The Company currently has a working capital position of approximately $CDN 9,215,000 and 20,777,571 shares are currently issued and outstanding.

Richard Kern (P.Geo) of Reno, Nevada, is the Company's qualified person on the project as required under NI 43-101and has reviewed the technical information contained in this press release.

Klondex has in place a rigorous QA/QC program consistent with National Instrument 43-101 and using best industry practice. ALS Chemex Labs of Reno, Nevada is responsible for all the Klondex Mine's assaying.

Klondex Mines was founded in 1974 and is a Tier two exploration company listed on the TSX Venture Exchange under the symbol " KDX". The company's property portfolio contains five gold exploration projects all in Nevada. A description of these projects, including maps and photographs can be viewed on the company website at: www.klondexmines.com


William Solloway, President

Bob Sibthorpe, Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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