Nevada Gold Explorer Klondex Mines Begins Trading Today On The OTCQX International Tier

Klondex Mines Ltd. (TSX: KDX and OTCQX: KLNDF), a Nevada gold exploration and development company, begins trading today on the OTC market's OTCQX International tier under the symbol “KLNDF.” Trading on OTCQX is intended to leverage Klondex’s existing Toronto Stock Exchange profile and disclosure to provide a more visible and liquid market for its common stock in the U.S.

Blane Wilson, President and CEO of Klondex, commented: "As a Toronto Stock Exchange-listed company, with our principal gold and silver exploration and development operations in Nevada, we wanted to elevate the visibility of our Company and our common stock in the U.S. market. The OTCQX provides a means to achieve this goal, by leveraging our existing disclosure and regulatory compliance in Canada.

“Given our active surface and underground exploration programs, our expected commencement of initial gold production via bulk sampling later this year, and our work toward an update of our gold resource, we believe this is an opportune time to join the OTCQX.”

“OTCQX provides services to companies which enable them to communicate with and engage their investors, while providing them with transparent trading and easy access to company information,” said R. Cromwell Coulson, President and Chief Executive Officer of OTC Markets Group. “We are pleased to welcome Klondex Mines to OTCQX.”

Current financial disclosures and Real-Time Level 2 quotes for Klondex Mines can be found at www.otcmarkets.com. OTC Markets Group Inc. (OTCQX: OTCM) operates the world’s largest electronic marketplace for OTC-traded equities.

Troutman Sanders LLP is serving as Klondex's Principal American Liaison ("PAL") on OTCQX, responsible for providing guidance on OTCQX requirements and U.S. securities laws.

About OTCQX

The OTCQX marketplace is the intelligent marketplace for the best OTC companies. Investor-focused companies use the quality-controlled OTCQX marketplace to offer investors transparent trading, superior information and easy access through their regulated U.S. broker-dealers.

About Klondex Mines Ltd.

Klondex Mines is focused on the exploration and development of its 100% owned Fire Creek gold deposit in North Central Nevada, a very active region for gold exploration and development. Fire Creek is a compelling gold mining prospect located near power, transportation, mining infrastructure and several milling facilities. Fire Creek’s mineral resource is reviewed in the most recent technical report available here with additional disclosure available via SEDAR.

In addition to an active surface exploration program at Fire Creek, Klondex is pursuing an underground exploration and development program through an underground decline. The program is designed to enable more cost effective in-fill drilling of its existing resource from underground stations as well as to allow bulk sampling for metallurgical testing of up to 120,000 short tons of material (limited to 36,500 short tons per year). Bulk sampling is anticipated to commence by the end of the third quarter of 2012.

As of April 23, 2012, Klondex had 46.6 million shares issued and outstanding and 59.1 million shares on a 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, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with 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.

On Behalf of Klondex Mines Ltd.

Blane W. Wilson

President & CEO

Copyright Business Wire 2010