Klondex Mines Ltd. Provides Update on Offering

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Further to the press release of Klondex Mines Ltd. (TSX:KDX) ("Klondex", or the "Company") dated November 2, 2012 with respect to, among other things, the brokered private placement financing (the "Equity Offering") of non-transferable subscription receipts of the Company (the "Subscription Receipts"), the Company confirms that K2 & Associates Investment Management Inc., a significant shareholder of the Company, will subscribe for 2,390,588 Subscription Receipts under the Equity Offering. The total number of common shares issued to and made issuable to insiders of the Company in a six month period will now be 4,398,429, representing approximately 9.3% of the issued and outstanding common shares of the Company and as a result, in accordance with the rules of the Toronto Stock Exchange (the "TSX"), common shares held by insiders of the Company will not be excluded from the shareholder approval required for the issuance of the common shares under the Equity Offering.

As noted in the press release dated November 2, 2012, the Equity Offering remains subject to the receipt of all required regulatory approvals, including, without limitation, the approval of the TSX. The Company confirms that the Equity Offering is still on schedule to close on or about November 20, 2012.

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

Klondex is focused on the exploration and development of its Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling gold mining prospect located in a region of prolific gold production that is near power, transportation, mining infrastructure and several milling facilities. As of October 30, 2012, Klondex had 47.3 million shares issued and outstanding, and 59.6 million shares on a fully-diluted basis.

This news release contains forward-looking statements, including about current expectations on the timing of the Equity Offering. These forward-looking statements entail various risks and uncertainties, are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the ability to successfully complete the Equity Offering, the approval of the shareholders of the Company of the Equity Offering, the approval of the TSX, 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; the risks and hazards associated with underground operations. Risks and uncertainties about Klondex's business are more fully discussed in Klondex'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 statement or to update the reasons why actual results could differ from such statements unless required by law.

On Behalf of Klondex Mines Ltd.

Paul Huet, President & CEO