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Klondex Mines Names Paul Andre Huet, Who Led the Midas and Hollister Underground Gold Mines, as President, CEO and Director

13.09.2012  |  Business Wire


Klondex Mines Ltd. (TSX: KDX and OTCQX: KLNDF) today is pleased to
announce the appointment of mining executive Paul Andre Huet as
President, Chief Executive Officer and Director of the Company. On the
Board of Directors, Mr. Huet takes the place of Walied Soliman who has
served Klondex as an interim Director since late June.


An expert in narrow vein gold mining, Mr. Huet brings over 25-years of
experience in high-grade mining. His underground, gold mine development
and operating experience will add value to Klondex and its Fire Creek
underground gold project in North Central Nevada. Mr. Huet served as
General Manager at the Hollister mine for five years leading the team in
building and permitting the operation. Mr. Huet was also Mine Manager at
Newmont′s Midas Mine and served in several roles during his seven-year
tenure. Both Hollister and Midas are near Fire Creek. Mr. Huet comes to
Klondex from Premier Gold Mines Limited, where he served as Chief
Operating Officer and oversaw that company′s gold projects, which
include the Cove and Saddle projects in Nevada and the narrow high-grade
Hardrock Mine along the Trans Canada highway.


Mr. Huet replaces William Matlack, who has served as Klondex′s interim
CEO since July 2012 and will remain on Klondex′s Board. In late June,
Klondex elected a new Board of Directors that collectively controls over
8 million Klondex common shares. The Board is focused on refining the
strategic direction and senior leadership of the Company, with Mr.
Huet′s appointment being a major step in the process.


Klondex Interim Chairman, Blair Schultz, commented, 'Attracting Paul
Huet to Klondex and Fire Creek is a huge win for the Company. Paul
brings directly relevant experience, leadership and accomplishment
across all aspects of the development of high-grade underground vein
gold mines in Nevada. In addition, he has impressive corporate-level
strategic development, management and finance experience. Importantly,
he shares our enthusiasm for Fire Creek′s long-term potential, having
gained a solid knowledge of the project through his participation in
outside evaluations of the deposit over the years. We feel he is the
perfect choice to lead Klondex and the Fire Creek project going forward.


'On behalf of Klondex, I would also like to thank Walied Soliman as well
as Robert Buchan for their willingness to support Klondex and serve on
the Board on an interim basis. Their input was very helpful to our
consideration of Klondex′s strategy and direction.?


Mr. Huet has supervised Mine Operations, Mine Engineering, Geology and
Mine Safety in Nevada. His responsibilities have ranged from managing
mine engineering and geology groups, coordinating teams of mining and
milling staff, designing and implementing mine and mill production
plans, and acquiring and complying with full-scale mining permits.


He led Great Basin Gold′s Hollister Mine in Nevada from start-up to the
production of over 100,000 gold ounces per year. He also led the
Hollister team in building the mine, buying and refurbishing the mill,
and securing all necessary Federal and State permits. In this regard he
has worked closely with the U.S. Bureau of Land Management, State of
Nevada agencies, and the U.S. Mine Safety and Health Administration.


Mr. Huet earned an Honors degree in Mining Engineering Technology from
Haileybury School of Mines in Ontario and an Executive MBA from the
Stanford University School of Business. He was appointed as a director
for the Nevada Mining Association in Jan. 2011. Mr. Huet currently
serves as a Director of Source Exploration Corp. (TSX-V: SOP).


In conjunction with his joining Klondex and to align Mr. Huet′s
compensation with shareholders′ interests, the Board has agreed to issue
equity incentives comprised of a grant of 20,000 restricted Klondex
Common Shares and 3-year options to purchase: 300,000 shares of Klondex
at an 'Option Price? of C$1.20 per share; 210,000 shares at C$1.44 (20%
premium to the Option Price); 210,000 shares at C$1.68 (40% premium to
the Option Price).

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


Klondex Mines is focused on the exploration and development of its Fire
Creek gold deposit in North Central Nevada. Fire Creek is a compelling
gold mining prospect located in a region of prolific gold production
that is near power, transportation, mining infrastructure and several
milling facilities. As of September 12, 2012, Klondex had 47.3 million
shares issued and outstanding, and 59.3 million shares on a fully
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.

Blair Schultz

Chairman

Investor & Media:

Catalyst Global LLC

David
Collins, Toni Trigiani

212-924-9800

KDX@catalyst-ir.com



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