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Press release from Business Wire

Nevada Gold Explorer Klondex Mines Announces Interim CEO And Revised Operating Plan at Fire Creek

Monday, July 16, 2012

Nevada Gold Explorer Klondex Mines Announces Interim CEO And Revised Operating Plan at Fire Creek16:01 EDT Monday, July 16, 2012 VANCOUVER, British Columbia (Business Wire) -- Klondex Mines Ltd. (TSX: KDX and OTCQX: KLNDF), a Nevada gold exploration company, announced today that Klondex Directors William “Bill” Matlack and Blair Schultz have been named Interim CEO and Chairman, respectively. Mr. Matlack replaces Blane Wilson, who resigned as Klondex's President and CEO. Klondex also announced a revised operating plan for its Fire Creek gold project in Northern Nevada. After a thorough internal review of the Fire Creek operations, the Board has unanimously decided to defer commencement of the bulk sample program. Efforts will focus on further exploration and on advancement of the Fire Creek resource model and geology. Both the surface and underground drill programs are continuing, with assays pending on a number of holes. While the bulk sample would have provided important data regarding the continuity and metallurgy of a small portion of the deposit, the Board believes Klondex and its prospects are better served by data acquired through closely spaced, underground definition drilling over a much broader area of the deposit. Klondex and its consultant, Micon International, continue to work on an updated National Instrument 43-101 compliant technical report. The report will incorporate new drilling data from 2011 through mid 2012 and is targeted for completion in Q3 2012. Klondex Chief Geologist and Project Manager Steven L. McMillin, along with Micon Senior Geologist Thomas C. Stubens, are serving as Qualified Persons in supervising the update. Mr. Matlack, commented, “I strongly believe in the potential of Fire Creek and share the Board's view that our principal focus should be on increasing our understanding of its geology/mineralization, rock mechanics, and metallurgy. With that knowledge, we will be better prepared to make decisions on the long-term development of the resource, with the goal to enhance the value of Fire Creek. I look forward to working with the Klondex team as we advance the project.” A slate of seven new directors (listed here) with a range of mining industry and business expertise was elected at the Company's AGM on June 28th. Members of the Board include nominees of shareholders who in aggregate control over eight million shares of Klondex common stock. William Matlack Mr. Matlack is a veteran geologist and metals and mining investment banker with Scarsdale Equities LLC. Over his 20-year career in industry, working primarily with Santa Fe Pacific Gold Corp. (now Newmont Mining) and Gold Fields, Mr. Matlack was involved in several world-class gold discoveries in Nevada and California. Blair Schultz Mr. Schultz, who has over 11 years of experience evaluating M&A transactions in the mining space, is Vice President and Head of Special Situation Analytics, Portfolio Management & Trading at K2 & Associates Investment Management Inc. in Toronto. K2 controls approximately 6.8 million shares of Klondex common stock. Mr. Schultz previously worked for Canada Life, TD Securities, Trimark and Perigee Investment Counsel in the areas of debt private placements, interest rate derivatives and equity research. About Klondex Mines Ltd. (www.klondexmines.com): Klondex Mines is focused on the exploration of its 100%-owned Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling gold mining prospect located near power, transportation, mining infrastructure and several milling facilities. As of July 16, 2012, Klondex had approximately 47.0 million shares issued and outstanding and 59.1 million shares on a diluted basis. This news release contains forward-looking statements, including about current expectations on the timing of project development. 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 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 the Company's business are more fully discussed in the Company'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.William MatlackInterim-CEO Catalyst Global LLCDavid Collins or Antonia Trigiani, 212-924-9800KDX@catalyst-ir.com