KlondexMines Ltd. (TSX: KDX) announced today that it has been approved for a Water Pollution Control Permit for its high-grade Fire Creek gold deposit in North Central Nevada. The permit, which authorizes theconstruction and operation of "approved mining facilities in Lander County," will be issued by the Nevada Division of Environmental Protection (NDEP) with an effective date of March1, 2011.

Blane Wilson, President and COO of Klondex, commented,"This is an exciting and enormous milestone in the history of Klondex, as the NDEP permit enables us to commence our underground operations next month. The receipt of the permit would not have been possible without the tremendous efforts of our Nevada staff and our permitting and engineering consultants,Enviroscientists and Knight Piesold, as well as the ongoing cooperation of the NDEP team.

"With the permit confirmed, we arefull speed ahead in mobilizing our mining contractor and Nevada team to commence our underground program, which centers around an over 4,000 foot decline to reach the Main Zone ore body. We look forward to reporting on progress of the decline in the coming weeks."

As of December 31, 2010 Klondex Mines had 36,544,089shares issued and outstanding, 41,319,089 shares on a fully diluted basis, and approximately CDN $8 million in cash.

About Klondex Mines (www.klondexmines.com):

Klondex Mines Ltd. is focused on the exploration and development of its100% owned high-grade Fire Creek gold deposit in North Central Nevada.Fire Creek is a compelling, low-Capex mining prospect that is well located near power, transportation, mining infrastructure and several milling facilities. Klondex plans to initiate an underground exploration and bulk sampling program in Q1 2011,with initial bulk sampling production targeted by year-end 2011.Klondex has identified the following NI 43-101 compliant resource at Fire Creek:

Fire Creek
NI 43-101 Compliant Mineral Resource as of March 30, 2009*
------------------------------------------------------------
Classification Metric Tonnes Grams Gold Total Ounces
Equivalent Gold Equivalent
Per Metric Tonne
-------------- ------------- ---------------- -----------------
Indicated 5,043,033 10.11 1,639,822
-------------- ------------- ---------------- -----------------
Inferred 1,833,423 8.63 508,799
-------------- ------------- ---------------- -----------------
*The resource is approx. 98.3% gold and 1.7% silver and reflects a
cutoff grade of 5
grams per tonne and 60 units of silver equivalent to one unit of
gold.

ON BEHALF OF KLONDEX MINES LTD.
William J. Solloway Blane Wilson
Chairman and CEO President and COO

SOURCE: Klondex Mines Ltd.