Klondex Mines Ltd.

Klondex Mines Ltd. is focusing on the exploration, development and production of its two high-quality gold and silver projects in the mining-friendly jurisdiction of north-central Nevada. The 1200 tpd milling facility is processing mineralized materials from the Midas mine and the Fire Creek project. Midas is fully permitted and has been in operation since 1998. Fire Creek is located ~100 miles south of Midas and is operating an ongoing bulk sampling program that began in 2013. All major infrastructure is in place at Fire Creek.

Expert Comments:

Derek Macpherson, M Partners (1/30/15)
"Klondex Mines Ltd. released an updated resource for its Fire Creek mine. . .a 46% increase in Measured and Indicated gold ounces to 416 Koz (was 284 Koz), while the overall gold ounces increased by 9% to 774 Koz (was 708 Koz). . .we continue to believe there remains significant resource growth potential. . .the company's now demonstrated ability to both convert Inferred ounces and add to the existing resource should provide investors with increased confidence in the long-term potential of this asset. . .we maintain our Buy rating and are increasing our 12-month target price to $4.25 per share."

Barry Allan, Mackie Research Capital (1/30/15)
"Klondex Mines Ltd. has released a resource update on the Fire Creek project, including date from 272 new drill holes totaling 22,353m that were completed over the course of 2014. . .although the overall ounce count at Fire Creek only increased by 10% (net of depletion, and based on $1,200/oz gold and $19/oz silver), the number of ounces that fell in the Measured and Indicated category jumped by 47%, partially due to the upgrading of some ounces that were previously classified as Inferred. . .the discovery and further drilling of veins outside the updated resource is expected to continue to provide high-grade ounces."

Philip Ker, PI Financial (1/30/15)
"Klondex Mines Ltd. announced a positive resource update on its Fire Creek operation, which highlighted a 47% increase in confidence within the Measured and Indicated categories. . .we believe that Fire Creek has blue sky potential to grow beyond the updated resource since it was only generated from exploration on ~7% of the Fire Creek land package."

Ben Kramer-Miller, Seeking Alpha (1/29/15)
"Klondex Mines Ltd. put out an updated resource estimate for its flagship Fire Creek project. . .421,000 oz Measured and Indicated resources assuming a $1,200/oz gold price and 363,000 oz Inferred resources. The ore grade is astronomical with over an ounce of gold per ton in the Measured and Indicated category and over 2 ounces per ton in the Measured category. . .the company continues to be one of the most compelling opportunities in the gold space given its sector-leading high-ore-grade Fire Creek deposit and the potential to produce at its newly acquired Midas deposit, which management recently demonstrated contains nearly as much high-grade gold as Fire Creek."

Hard Asset Investments, Seeking Alpha (1/29/15)
"Klondex Mines Ltd. just announced it has increased its resource estimate at the Fire Creek project by 47%. . .the Fire Creek resource base is larger than what was previously estimated but even larger than what I thought it'd be. . . .between the expansion plan at Midas and increased production from Fire Creek coming soon, it looks like the company's total output could exceed 160 Koz by 2016-2017, up from 2015's estimate of 120–125 Koz."

Derek Macpherson, M Partners (1/29/15)
"Klondex Mines Ltd. announced an updated resource for Fire Creek that saw Measured and Indicated ounces increased by 46% and the overall ounces increased by 9%. . .we continue to believe that the resource at Fire Creek has the potential to grow significantly. We maintain our long-term view on the company and continue to believe that if it executes at both Fire Creek and Midas, the market should start to appreciate the value of these assets."

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