Klondex Initiates High-Grade Gold Resource Update to Include Two Years of Exploration Data

Klondex Treasurer Exercises Options to Purchase 150,000 Shares

Klondex Mines Ltd. (TSX: KDX), a gold exploration company, announced today that it is in the process of preparing an NI 43-101-compliant resource update for its 100%-owned Fire Creek high-grade gold property in the Battle Mountain-Eureka Trend in Northern Nevada. The update, which is expected to be filed in the first quarter of 2009, will incorporate the results from two productive years of surface drilling at Fire Creek.

Klondex's 2007 and 2008 drilling programs at Fire Creek encountered many high-grade intercepts. This exploration activity more than doubled the strike length of the Main Zone mineralization from 1,969 feet to 3,937 feet; increased the strike length of the Far North Zone mineralization by 50%, from 984 feet to 1,486 feet, and established the New North Zone mineralization with a strike length of 656 feet.

As of September 2006, Klondex had defined an NI 43-101-compliant Indicated Mineral Resource at Fire Creek estimated at 1,636,555 tonnes grading 19.88 grams per tonne (0.576 oz/ton) and containing 1,045,738 oz of gold across the Far North and Main mineral zones.

Klondex is in the final stages of analysis of its exploration drilling results from the past two years and is updating its indicated resource model to demonstrate the impact of the drilling activity. Edwin Ullmer, M.S., (P.Geo) of Westminster, Colorado, an Independent Qualified Person as required under NI 43-101, has been retained to review and approve the technical information to be included in the Company's updated resource calculation which will be filed on SEDAR.

Richard Kern, Project Manager, commented, "Our drilling programs at Fire Creek have made important strides in expanding the potential scope of the Fire Creek gold indicated resource. With Phase 7 drilling complete, now is an opportune time to incorporate the new data and develop an updated resource projection. We are confident that the results of this process will demonstrate an attractive return from the investments we have made in exploration drilling. We look to complete this project as quickly as possible in the early part of next year."

Option Exercise:

Klondex also reported that on November 25, 2008 Brendan Donohoe, a Director and Treasurer of the Company, purchased 150,000 shares of Klondex at a price of CDN $0.65, pursuant to the exercise of share incentive options slated to expire November 28, 2008. The options were exercised at a price in excess of the trading price on the day of exercise; Klondex's common stock closed at CDN $0.61 the day of exercise. Subsequent to the exercise, Mr. Donohoe holds 779,776 common shares of Klondex and options to acquire a further 225,000 common shares of Klondex.

Underground Permitting and Financing Update:

Klondex anticipates receiving initial permits for underground operations early in 2009 Pending receipt of all required permits and securing required financing to fund the effort, Klondex intends to drive a 4,715 foot decline to access mineralization underground. Klondex is engaged in a range of dialogues regarding possible funding options for the underground program, but given capital market challenges, the timing and success of this process is hard to predict. Klondex does not intend to proceed with additional surface or underground exploration programs until it is able to raise the required capital on sufficiently attractive terms. Until that time, the company plans to suspend exploration efforts and actively manage its overhead costs so as to preserve cash.

The decline project would enable underground in-fill drilling of the resource as well as bulk sampling for metallurgical testing of up to 120,000 tons of material over a three to five years. Klondex would target its bulk sampling effort within vein mineralization averaging 1-2 oz/ton gold, creating the potential to generate substantial cash flows to fund further development of the resource.

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.

About Klondex Mines Ltd.:

Klondex Mines (TSX: KDX) is a gold exploration company focused on the development and expansion of its high-grade Fire Creek deposit in Nevada, covering 10,708 acres of fee and lease land 100% owned by Klondex. In September 2006 Klondex has defined an Indicated Mineral Resource at Fire Creek estimated at 1,636,555 tonnes grading 19.88 grams per tonne (0.576 oz/ton) containing 1,045,738 oz of gold in two separate mineral zones. Fire Creek is located in the Battle Mountain-Eureka Trend in the Northern Nevada Rift, in North Central Nevada, an area of prolific gold production. The Company was founded over 30 years ago, and its property portfolio consists of four gold exploration projects, all in Nevada. Eighty percent of Klondex' known resource is on private land. For more information, please visit www.klondexmines.com.

On Behalf of Klondex Mines Ltd. "William J. Solloway" "Richard Kern" President Project Manager

SOURCE: Klondex Mines Ltd.

Investors: Jaffoni & Collins Incorporated David Collins, Ratula Roy 212-835-8500 This email address is being protected from spambots. You need JavaScript enabled to view it.