Klondex Mines Ltd.

Klondex Mines Ltd.

August 11, 2005 14:42 ET

Klondex Mines Ltd.: Phase 4 Drilling in Progress at Fire Creek

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 11, 2005) -


Klondex Mines Ltd. (TSX VENTURE:KDX) (the "Company") announces that Phase 4 drilling is in progress at the Fire Creek gold Property located in the Battle Mountain - Eureka Trend in northern Nevada. Three holes totaling 1,375 meters in length will be completed from established drill pads. Drill holes FC05-10 and FC05-11 will test for Main and West Vein mineralization in the Far North area, and FC05-12 will be drilled to a depth of 760 meters to test for favourable stratigraphy and extensions of the Main Vein. When the Plan of Operations permit is received by the Company an additional 25 to 30 holes will be drilled from the newly permitted sites for an estimated 12,200 meters. The primary objective of this program will be resource expansion rather than in-fill drilling. 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 previously announced an Inferred Mineral Resource of 583,081 ounces of gold (as defined by NI 43-101) at Fire Creek of 556,342 short tons grading 0.720 oz/ton of gold (500,708 tonnes grading 24.83 g/t) for 400,529 ounces, and an additional lower grade Indicated Resource of lower grade mineralization of 1,222,854 short tons grading 0.149 oz/ton (1,100,567 tonnes grading 5.10 g/t) for an additional 182,552 ounces.

Technical data from previous drill campaigns at Fire Creek is being reviewed under Confidentiality Agreements by six senior mining companies, one of which is conducting metallurgical testing on Fire Creek drill core.

The Company has received the results from a drill program conducted on its Reef Property located in western Nevada about 100 miles east-southeast of Reno. 320 meters of reverse circulation drilling in six holes tested for possible down drip extensions of gold mineralization present in veins at surface. Alteration zones from 1.5 meters to 4.5 meters in width associated with the fault-vein zones were encountered but the highest gold value was 1.34 g/t over a 1.5 meter interval. No future work is planned for the property at this time.

The Company currently has a working capital position of $4.3 million and 15,651,317 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 theses 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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