VANCOUVER, British Columbia -- Klondex Mines Ltd. (TSX: KDX) (“Klondex” or “KDX”) announced today that it has received initial permits from the US Bureau of Land Management (BLM) for its underground confirmation program at Fire Creek, its high-grade gold deposit in North Central Nevada. The approvals also pave the way for Klondex to extend to the south its Main Zone surface exploration program. To complete the permitting process, Klondex must post a reclamation bond, finish additional site work at Fire Creek and secure Nevada state approvals. KDX now anticipates the permitting process will be completed between April and June of 2010.

William Solloway, President of Klondex Mines Ltd., commented, “The receipt of BLM permits progresses Fire Creek's confirmation drilling program and Main Zone extension drilling plans and is the product of a nearly three year-effort.”

The Fire Creek underground program will include about 3,000 meters of decline tunneling to access Main Zone mineralization. This access facilitates more cost effective in-fill drilling of KDX's resource to improve the geologic model of Main Zone gold mineralization, while also enabling bulk sampling. Small Mine Development Co. of Boise, Idaho has been selected to engineer and effect the underground work.

As of September 30, 2009, KDX had 30,964,089 shares issued and outstanding and 34,879,089 shares on a fully diluted basis and cash of approximately CDN $4.4 million and working capital of CDN $3.8 million.

About Klondex Mines:

Klondex Mines Ltd. is a high-grade gold exploration company pursuing a hybrid exploration and underground development business model. Klondex is focused on the development of its high-grade Fire Creek gold deposit in North Central Nevada where it has identified the following NI 43-101 compliant resource:

*Fire Creek's gold equivalent resource is approximately 98.3% gold and 1.7% silver and reflects a cutoff grade of 5 grams per tonne, with 60 units of silver equivalent to one unit of gold.

For more information, please visit www.klondexmines.com.

Richard Kern (P.Geo), of Reno, Nevada, a qualified person as defined under National Instrument 43-101and has reviewed and approved the technical information contained in this press release.

ON BEHALF OF KLONDEX MINES LTD.