Klondex Mines Issued Temporary Water Discharge Permit for Fire Creek, Nevada Gold Project

ELKO, NV and VANCOUVER, BC--(Marketwire - Mar 14, 2013) - Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF), a northern Nevada gold exploration and development company, has been issued a temporary water discharge permit by the Nevada Department of Environmental Protection. The 180-day permit will assist Klondex in managing the underground water treatment system at its Fire Creek gold project in Lander County, Nevada. Klondex is advancing the project towards bulk sampling in the third quarter.

Mike Doolin, Fire Creek's GM, commented, "Based on past experiences of treating 350 gallons per minute water flows within the Northern Nevada Rift, Fire Creek's water needs are lower and quite manageable at 25 gpm. However, the water discharge needs at Fire Creek is a critical path item for the mine's development, and we are appreciative of the NDEP's support of our plans." He continued, "The six month temporary discharge permit gives us ample time to complete our long-term water management solution: a rapid infiltration basin (RIB) system designed to handle up to 3000 gpm water. We are making good progress in the application process to permit the RIB and expect the RIB to be permitted, constructed and operational in 2013."

Paul Huet, Klondex President and CEO, affirmed, "During my career, I've been fortunate to work with the Nevada regulators in building successful mining operations within the Northern Nevada Rift. We're quite pleased to be working with a group that has such a great understanding of the projects and are keen to work with the different mining groups."

About Klondex Mines Ltd. (www.klondexmines.com)
Klondex Mines is focused on the exploration and development of its Fire Creek gold deposit in North Central Nevada. Fire Creek is a compelling gold mining prospect located in a region of prolific gold production that is near power, transportation, mining infrastructure and several milling facilities. As of March 6, 2013 Klondex had 64.4 million shares issued and outstanding, and 85.3 million shares on a fully-diluted basis.

This news release contains forward-looking statements, including about current expectations on the timing of project development. These forward-looking statements entail various risks and uncertainties, are based on current expectations, and actual results may differ materially from those contained in such statements. These risks and uncertainties include, but are not limited to the risks and hazards associated with environmental compliance and permitting for its underground operations. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.

Contact Information:

Paul Huet
President & CEO
Klondex Mines Ltd.

Alison Tullis
Manager, Investor Relations
Klondex Mines Ltd.

Toni Trigiani
Investor Relations
Catalyst Global LLC