Klondex Mines Ltd.
TSX VENTURE : KDX

Klondex Mines Ltd.

January 20, 2006 13:47 ET

Klondex Mines Ltd.: High Grade 'Feeder Vein' Intercept Grading 0.49 oz/ton Gold over 20 feet at Far North Zone, Fire Creek, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 20, 2006) - THIS RELEASE IS NOT FOR DISTRIBUTION TO U. S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Klondex Mines Ltd. (TSX VENTURE:KDX). The company has received assays results from an additional 6 holes from Phase 4 drilling at its 100%-owned Fire Creek property in the Battle Mountain-Eureka Trend in Northern Nevada.

Drill holes FC0522 through 0524 were drilled to test a steeply west dipping vein target known as the Far North Zone which was discovered during Phase 2 drilling in 2004. The mineralization in this area is characterized by wider, lower grade zones than the Main and West Veins some 400 meters to the south. Previously reported drill hole FC04-18 returned an interval grading 3.75 gpt gold over 51.8 meters from the Far North Zone. Drill holes FC0522 and 0523 and FC0524 confirmed the continuity of the thick intervals here and drilling on Section 950N may have located a "feeder' structure for this mineralization.FC0522 reported an interval of 0.49 opt gold over 20 feet (16.7 gpt over 6.1 meters) within a broader zone of 0.177 opt over 120 feet (6.06 gpt over 31.6 meters).

Drill holes FC0521 and FC0528 were drilled on Section 450N to test for the northern extension of the Main Vein system. While hole FC0521 encountered only the West Vein Zone, hole FC0528 intersected six 5 to 15 foot thick veins grading greater than 0.25 oz/ton within broad, ore grade intervals. The best intercept is 15 feet averaging 0.40 oz/ton gold and 0.52 oz/ton silver.

The Company considers the current drill results to be very positive because;

- the grade and thicknesses of the Far North Zone were confirmed. This is a separate mineralized system from the Main and West Zones and is open in all directions. The grades here are generally lower than the high grade Main and West Zones but the grades and thicknesses indicated may be amenable to underground bulk mining techniques.

- the drilling results from the Section 450N indicate that both the Main and West Zones are open to the North

Results for 17 holes totaling 24,314 feet (7,413m) have now been received from Phase 4 planned for 25-30 holes totaling 30,000 to 40,000 feet (9,000-12000m). The objectives of the program are to test continuity of mineralization within the known zones of mineralization and expand the resource along strike.

After the Christmas break, drilling has resumed on the Far North zone and the northern extension of the Main, Middle and West veins. Due to weather delays drilling is now expected to proceed at least through February, 2006.

Further results from Phase 4 will be released as received. An updated location map is posted on the corporate website.

The Company has received bids for underground development from mining contractors and is considering commencement of permitting activities required for the inclusion of underground excavation, drilling and bulk sampling during the next Phase of exploration at Fire Creek. The favorable topography at Fire Creek would facilitate access to all Target Zones through a simple decline from the south rather than a more expensive shaft or spiral ramp.



--------------------------------------------------------------------
FIRE CREEK PROPERTY SUMMARY DRILLING RESULTS PHASE 4 DH 0521-0524,
0528, 0529
--------------------------------------------------------------------
Total
SECTION HOLE # Azimuth Dip Depth From To
--------------------------------------------------------------------
Meters N. Degrees Degrees Feet Feet Feet
--------------------------------------------------------------------
950mN FC0522 75 -45 1300 985.0 995.0
--------------------------------------------------------------------
1010.0 1020.0
--------------------------------------------------------------------
1040.0 1160.0
--------------------------------------------------------------------
including 1040.0 1060.0
--------------------------------------------------------------------
950mN FC0523 75 -45 1299 795.0 850.0
--------------------------------------------------------------------
1107.5 1122.5
--------------------------------------------------------------------
1140.0 1175.0
--------------------------------------------------------------------
950mN FC0529 75 -47 1300
--------------------------------------------------------------------
850mN FC0524 75 -45 1300 910.0 925.0
--------------------------------------------------------------------
980.0 1020.0
--------------------------------------------------------------------
450mN FC0521 75 -45 1500 985.0 1010.0
--------------------------------------------------------------------
450mN FC0528 75 -45 1400 1045.0 1075.0
--------------------------------------------------------------------
1120.0 1260.0
--------------------------------------------------------------------
including 1160.0 1190.0
--------------------------------------------------------------------


--------------------------------------------------------------------
SECTION Interval Gold Values Silver Values Vein Zone
Meters N. Ft/m GPT Oz/ton GPT Oz/ton
--------------------------------------------------------------------
950mN 10/3.05 3.30 0.096 less less
than 0.50 than 0.01 Far North
--------------------------------------------------------------------
10/3.05 1.78 0.052 2.75 0.08 Far North
--------------------------------------------------------------------
120/31.6 6.06 0.177 6.79 0.20 Far North
--------------------------------------------------------------------
20/6.1 16.68 0.487 9.85 0.29 Far North
--------------------------------------------------------------------
950mN 55/16.8 3.40 0.099 less less
than 0.50 than 0.01 Far North
--------------------------------------------------------------------
15/4.6 6.54 0.191 3.53 0.10 Far North
--------------------------------------------------------------------
35/10.7 3.62 0.106 1.13 0.03 Far North
--------------------------------------------------------------------
950mN No + 5.0 gpt values Main
--------------------------------------------------------------------
850mN 15/4.6 4.34 0.127 2.42 0.07 Far North
--------------------------------------------------------------------
40/12.2 4.77 0.139 5.13 0.15 Far North
--------------------------------------------------------------------
450mN 25/7.6 4.00 0.117 2.50 0.07 West
--------------------------------------------------------------------
450mN 30/9.15 4.10 0.120 7.38 0.22 Middle
--------------------------------------------------------------------
140/42.7 5.07 0.148 11.03 0.32 Main
--------------------------------------------------------------------
30/9.15 10.70 0.312 13.43 0.39 Main
--------------------------------------------------------------------
True widths are estimated to be 50-75% of reported intervals.
--------------------------------------------------------------------


The Company currently has a working capital position of $CDN 3.25 million and 17,151,317 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.

ON BEHALF OF KLONDEX MINES LTD.

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.

Contact Information