NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Klondex Mines Ltd. (TSX: KDX) (“Klondex”, or the “Company”) is pleased to announce the closing of its previously announced fully-marketed best efforts private placement (the “Equity Offering”) of 16,984,046 units (“Units”) at a price of C$1.35 per Unit for gross proceeds of C$22,928,462. A syndicate of agents, led by GMP Securities L.P. and including MGI Securities Inc., RBC Dominion Securities Inc., Fraser Mackenzie Limited and Mackie Research Capital Corporation (collectively, the “Agents”) acted as agents under the Equity Offering. Each Unit is comprised of one common share in the capital of the Company (a “Unit Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Unit Warrant”). Each Unit Warrant entitles the holder to purchase one common share at a price of C$1.75 until November 20, 2014. In the event that, following four months and one day after November 20, 2012, the volume weighted average trading price of the Company’s common shares on the Toronto Stock Exchange (the “TSX”) exceeds C$2.50 for a period of 20 consecutive trading days, the Company may, within five days of such an occurrence, give written notice to the holders of the Unit Warrants of the accelerated expiry of the Unit Warrants, and thereafter the Unit Warrants will expire on the date which is 30 days after the date of the notice to the Unit Warrant holders. The Company intends to complete its previously announced non-brokered offering of senior unsecured notes (the “Notes”) in the principal amount of up to US$7,000,000 (the “Committed Amount”) by way of private placement (the “Debt Offering”) on or about November 23, 2012. In consideration for making available the Committed Amount, the Company will issue to the subscribers under the Debt Offering up to an aggregate of 525,000 common share purchase warrants of the Company (the “Note Warrants”). Each Note Warrant will entitle the holder to purchase one common share of the Company at a price of C$1.55, subject to adjustment. If, for a period of 20 consecutive trading days prior to the expiry of the respective Note Warrants, the closing price of the Company’s common shares on the TSX exceeds C$2.79, the Company may, within 30 days of such an occurrence, give written notice to the holders of the Note Warrants that the Note Warrants will expire on the date which is 30 days after the date of the notice to the Note Warrant holders.