Underwriters Exercise Over-Allotment Option

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

TORONTO, Dec. 9, 2011 /CNW/ - Klondex Mines Ltd.

('Klondex Mines' or the 'Company') announced today that (the underwriters of the Company's public offering which closed on November 29, 2011 (the 'Offering'), have exercised, in part, the over-allotment option.  As a result the Company has issued an additional 1,001,400 common shares (the 'Common Shares') and an additional 630,000 common share purchase warrants (the 'Warrants'). Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of C$3.50 per Warrant for a period of 24 months from November 29, 2011. The syndicate for the Offering was led by GMP Securities L.P. and included Mackie Research Capital Corporation, Jones, Gable & Company Limited and Fraser Mackenzie Limited. On the exercise of the over-allotment option, the Company received gross proceeds of C$2,532,463 for total gross proceeds of the Offering of approximately C$23.5 million.

The net proceeds from the Offering are expected to be used for the development of the Fire Creek gold project in Nevada, USA, and ongoing operating and working capital requirements.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in the United States or to, or for the account or benefit of, 'U.S. persons' (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended). The Common Shares and Warrants described in this news release (and any common shares of the Company issued upon exercise of the Warrants) have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered, sold or delivered in the United States or to, or for the account or benefit of, U.S. persons absent an exemption from registration.

About Klondex Mines Ltd. (www.klondexmines.com):

Klondex Mines is focused on the exploration and development of its 100% owned Fire Creek gold deposit in North Central Nevada.  Fire Creek is a compelling gold mining prospect that is located near power, transportation, mining infrastructure and several milling facilities.  For more information on the mineral resource estimates, please refer to Klondex's disclosure available at the SEDAR website.

On Behalf of Klondex Mines Ltd.

Blane W. Wilson

President & CEO

Klondex Mines Ltd.

CONTACT: Investor &Media Contact:

David Collins

Jaffoni & Collins

KDX@jcir.com (212) 835-8500