Klondex Mines Provides Investor Update

VANCOUVER, British Columbia--(BUSINESS WIRE)--Klondex Mines Ltd. (TSX: KDX.TO) today updated investors on recent progress and developments concerning the Company and its 100%-owned Fire Creek property in the Battle Mountain-Eureka Trend in Northern Nevada.

William Solloway, President, stated, “The Fire Creek exploration program has never been more active nor more productive in the past 32 years that Klondex has owned the property. Despite challenged share prices within the junior gold market, we remain excited and optimistic regarding the substantial potential at Fire Creek and the progress of our exploration efforts. We are moving our surface and underground programs ahead as fast as possible, and are pleased to provide a brief update on these and other efforts.

“Finally, we are embarking on an active outreach program in May and June, combining both institutional investor meetings with our participation in the upcoming Hard Assets conference in New York in May and the Vancouver Cambridge House conference in June. We look forward to meeting with investors and updating them on our progress at these venues.”

• Phase 7 Drilling: Klondex is operating one core rig and is in the process of adding two additional core rigs for its Phase 7 surface exploration project at Fire Creek. Phase 7 drilling has been underway since mid-March, and three holes having been completed to date, with quartz intercepts in holes FC0801 and FC0802. Assay results on the initial holes are expected by late May. The Phase 7 program contemplates drilling 40-60 holes between mid-March and mid-December 2008.
• NI 43-101 Update: Klondex announced that it intends to file an update to its Indicated Mineral Resource later this year using drilling results from its full year Phase 6 program in 2007 and the most up-to-date results available from Phase 7 drilling in 2008. The Company’s last resource calculation was announced more than a year and a half ago in September 2006. Since that time Klondex has engaged in a very productive surface-drilling program, completing over forty drill holes with 29 separate intercepts in excess of 0.0.3 ounces per ton. At September 2006, Fire Creek’s NI 43-101 compliant indicated mineral resource was:

• Underground Permitting: In addition to its Phase 7 drilling program, Klondex anticipates receiving by the end of the summer permits necessary to commence work on an underground program which will involve the driving of a 1,437.6 meter decline to access mineralization underground. Once completed, the decline will enable underground in-fill drilling of the resource as well as bulk sampling for metallurgical testing of up to 120,000 tons of material over a three to five year period. Klondex filed its permit applications in March 2007 and revised applications in April 2008. Klondex plans to target its bulk sampling effort at vein mineralization averaging 1-2 ounces per ton, creating the potential to generate substantial cash flows to fund further development of the resource.
• Underground Contractor: As previously announced, Klondex has selected Small Mine Development, LLC (SMD) of Boise, ID as its mining contractor for the underground program at Fire Creek and is currently working with SMD on the overall underground plan as well as the final details of the contract.

As of March 31, 2008, Klondex had 22,989,673 shares issued and cash of approximately CDN $3.18 million invested in Canadian treasury bills and in guaranteed bank accounts.

Richard Kern (P.Geo), Project Manager, 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.

About Klondex Mines Ltd.:

Klondex Mines (TSX: KDX.TO) is a gold exploration company focused on the development and expansion of its high-grade Fire Creek deposit in Nevada, covering 10,708 acres of fee and lease land 100% owned by Klondex. At Fire Creek, Klondex has defined an Indicated Mineral Resource estimated at 1,636,555 tonnes grading 19.88 grams per tonne (0.576 oz/tonne) containing 1,045,738 oz of gold in two separate mineral zones, and has filed for permits to begin bulk sampling for metallurgical testing of up to 120,000 tons of ore. Receipt of these permits is anticipated before the end of the summer.

Fire Creek is located in the Battle Mountain-Eureka Trend in the Northern Nevada Rift, in North Central Nevada, an area of prolific gold production. Klondex currently has two drill rigs working to expand its resource at Fire Creek. The Company was founded over 30 years ago, and its property portfolio consists of four gold exploration projects, all in Nevada. For more information, please visit www.klondexmines.com.

Klondex Mines Ltd.
William J. Solloway
President
or
Investors
Jaffoni & Collins, Inc.
David Collins, Steven Hecht, 212-835-8500
KDX@jcir.com