Klondex Mines Ltd. is engaged in exploring, developing and acquiring gold and silver properties in Nevada.  Klondex holds mineral interests in four separate gold properties located in prime areas of northern Nevada's gold mining corridor, with total land holdings in excess of 21 square miles.

Klondex’s principal gold property is its 100% owned Fire Creek Property located near Crescent Valley in Lander County, Nevada. Fire Creek comprises 11,208 acres (17.5 square miles) of leasehold and fee land along the Northern Nevada Rift in North Central Nevada.  It is well located in the Crescent Valley area of the Battle Mountain gold belt between the past producing Mule Canyon Mine to the north and the world-class Pipeline and Cortez gold deposits to the south.  Fire Creek is easily accessible via Federal and state roads and the surrounding area is rich in mining personnel, services and equipment.

Since initiating surface exploration activity on its own in 2004 (previous efforts were executed via joint venture partners), Klondex has identified an NI 43-101 compliant Indicated Mineral Resource of 1.65 million ounces of gold and an Inferred Mineral Resource of 0.46 million ounces of gold.  The Company is currently pursuing a two-pronged strategy of surface exploration drilling in addition to an underground exploration and development program.  Klondex has secured U.S. Bureau of Land Management and Nevada State permits that designate it as a "Small Scale Facility."  The permits allow Klondex to pursue the bulk sampling and processing of up to 120,000 short tons of mineralized material, limited to no more than 36,600 tons per year.  Given the grades it has encountered at Fire Creek, Klondex believes bulk sampling has the potential to generate meaningful cash flow for the company.

The underground program is being pursued via a 1,113 meter (3,650 foot) decline being driven from surface to access underground mineralization.  The decline was started in late April 2011.

Klondex is led by an experienced team of mining industry management and possesses a revitalized, independent Board of Directors that includes several mining industry executives with 20 or more years of experience.  The Company prides itself on its long history of financial and operational discipline that have enabled it to progress thus far while keeping share dilution to a minimum.

Klondex was founded in 1974 and went public in 1975 following the acquisition of the Fire Creek property, via a Vancouver-based shell company.   Klondex is listed on the Toronto Stock Exchange under the symbol 'KDX’ and its shares also trade in the U.S. on the Other OTC under the symbol “KLNDF." As of December 31, 2011 Klondex had 46.4 million shares issued and outstanding and 59.0 million shares on a diluted basis.
(Updated 1/4/12)