VANCOUVER, British Columbia - Klondex Mines Ltd. (TSX: KDX) resumed surface drilling yesterday on its 100%-owned “Fire Creek” gold property in North Central Nevada. The drilling, part of the program recommended in the Company's March 2009 NI 43-101-compliant resource update, will further test the two high-grade gold vein sets which make up the Main Zone and which are primary targets for Klondex's planned bulk sampling initiative. Later this month Klondex anticipates the grant of permits by the U.S. Bureau of Land Management which will allow initiation of underground exploration.

Initially, five holes totaling 1,890 meters (6,200 feet) will be drilled to test high-grade zones on the two north-northwest striking gold-bearing structures which make up the Main Zone. The holes are intended to confirm above average grades reported in previous drill intercepts as well as to demonstrate continuity in these locations. A map showing the planned holes is available at www.klondexmines.com/s/News.asp.

Robert Sibthorpe, Klondex's Technical Director, commented, “Recent funding enables Klondex to embark on a focused drill program to further confirm our bulk sampling targets. At the same time, we anticipate the near-term granting of permits to allow our underground program to move forward. We continue to believe that near term catalysts – permitting, drill results and the initiation of our underground program - as well as the long-term opportunity we see for Fire Creek, make a REJECTION of Silvercorp's unsolicited bid the best decision for our shareholders at this time.

“We believe shareholders should allow the management team that has built this 1.6 million-ounce indicated gold resource over five years - for a cost of just over CDN $13.00 per ounce - to initiate its planned underground exploration and bulk sampling program. By following the course Klondex has outlined, we believe shareholders have the potential to see a far better return on their investment than that offered by the Silvercorp's all-stock offer. Shareholders need ‘do nothing' to foil Silvercorp's predatory bid and preserve their full upside in Klondex's potential.”

Discussion of Drilling Targets:

Two proposed holes (P1 and P5 as shown on the accompanying map) will test the Main Zone along the 350m and 400m North profiles in the Main Zone. Proposed hole P1 will test the hole FC0417 intercept grading 95.2 gpt (grams per metric ton) gold and 53.5 gpt silver over an estimated true width* of 3.81 meters (including 411 gpt gold and 236.0 gpt silver over 0.76 meters) and the intercept from FC0512 grading 16.8 gpt gold and 54.4 gpt silver over 2.66 m on Vein M2. This hole will also test for the up dip extension of the intercept reported in FC0513 of 40.1 gpt gold and 105.4 gpt silver over 2.66 m on Vein M1. Proposed hole P5 will be drilled 50 meters to the north of P1 and will test the intercepts from FC0403 (30.3 gpt gold and 21.8 gpt silver over 2.44 m) and FC0502 (20.8 gpt gold and 19.5 gpt silver over 6.1 m), both on Vein M1.

Some 200 to 250 meters to the south, a set of three proposed holes (P2, P3 and P4) will test the high grade area on Vein M1 characterized by previously reported high-grade intercepts such as FC0413 (182.5 gpt gold and 156.0 gpt silver over 1.22m), FC0621 (24.6 gpt gold and 16.2 gpt silver over 8.54m), FC0419 (14.2 gpt gold and 14.0 gpt silver including 76.0 gpt gold and 76.9 gpt silver over 2.44m) and FC0619 (30.1 gpt gold and 24.3 gpt silver over 6.1m, 60.9 gpt gold and 31.5 gpt silver over 2.8m and 64.2 gpt gold and 30.5 gpt silver over 1.2m).

*All widths reported above are true widths generally estimated to be 50-80% of reported widths.

About Klondex Mines:

Klondex Mines Ltd. is a gold exploration company focused on the development and expansion of its 100%-owned, high-grade Fire Creek deposit in Nevada which consists of 11,098 acres of fee land and unpatented mining claims. In March 2009 Klondex defined and disclosed in a technical report entitled “Updated Report on the Fire Creek Gold Property Lander Co., Nevada” dated March 30, 2009, an Indicated Mineral Resource at Fire Creek estimated at 5,043,033 tonnes grading 10.11 grams per metric ton (gpt) containing 1,639,822 ounces of gold equivalent and an Inferred Mineral Resource Estimated at 1,833,423 tonnes grading 8.63 gpt for 508,799 ounces of gold equivalent. The Fire Creek deposit is classified as a “bonanza” grade epithermal gold deposit characterized by high-grade drill intervals including 1.52 meters grading 411 grams (13 oz.) per metric ton in hole FC0417. 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.

Fire Creek is located in North Central Nevada, an area of prolific gold production, at the intersection of the Battle Mountain-Eureka Trend and the Northern Nevada Rift. The Company was founded over 35 years ago, and its property portfolio consists of four gold exploration projects, all in Nevada. 75-80 percent of Klondex's known resource is on private land. For more information, please visit www.klondexmines.com.

Cautionary Statement:

This news release may contain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included in this news release, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.