MANITOBA MINING AND MINERALS

CONVENTION 2016
NOVEMBER 16 -1 8, 2016

CAUTIONARY NOTES
Cautionary Note Regarding Forward-Looking Information
This presentation contains certain information that may constitute forward-looking information under applicable Canadian and U.S. securities legislation, including
but not limited to information about results of exploration, development, mining, evaluation activities, results of reclamation activities, the estimation or realization
of mineral resources and mineral reserves, the timing and amount of estimated future production, the making of future production decisions, expectations
regarding realization of synergies relating to Klondex's projects, the timing and receipt of required permits and approvals, capital expenditures, costs and timing of
the development of new mineral deposits, requirements for additional capital, the sufficiency of working capital and liquidity, and the future prices of precious and
base metals. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially
from those contained in such information. 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 and mineral reserve estimates are reflective o f actual mineral resources and mineral
reserves; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazar ds associated with underground
operations; and the ability of Klondex to fund its substantial capital requirements and operations. Risks and uncertainties a bout the Companys business are more
fully discussed in the Companys disclosure materials filed with the securities regulatory authorities in Canada and the U.S. and available at www.sedar.com and
www.SEC.gov, respectively. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the
reasons why actual results could differ from such information unless required by law.
U.S. Cautionary Note Regarding the Use of Mining Terms
This presentation has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S.
securities laws. All resource and reserve estimates included in this presentation have been prepared in accordance with NI 43-101. NI 43- 101 is a rule developed by
the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral
projects. These standards differ significantly from the mineral reserve disclosure requirements of the U.S. Securities and Exchange Commission (the SEC) set out in
industry guide 7. In particular, the SECs industry guide 7 applies different standards in order to classify mineralization as a reserve. As a result, the definitions of
proven and probable reserves used in NI 43-101 differ from the definitions in SEC industry guide 7. Under SEC standards, mineralization may not be classified as a
reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve
determination is made. This presentation also uses the terms resources, measured resources, indicated resources and inferred resources. United states
investors are advised that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. Mineral resources that are
not mineral reserves do not have demonstrated economic viability. United States investors are cautioned not to assume that all or any part of measured or indicated
resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be
mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States
investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of
contained ounces in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that
does not constitute reserves by SEC standards as in- place tonnage and grade without reference to unit measures. Consequently, reserve and resource information
contained in this presentation is not comparable to similar information that would generally be disclosed by U.S. companies in accordance with the rules of the SEC.
Qualified Person
Brian Morris, Vice President, Exploration of Klondex Mines is a "qualified person" as defined by National Instrument 43-101 Standards of Disclosure for Mineral
Projects (NI 43-101) and has reviewed and is responsible for the technical information contained in this presentation.

GAINING SCALE IN NORTH AMERICA

GROWING PRODUCTION PROFILE, STRONG UPSIDE POTENTIAL

Three Flagship
Assets in Nevada;
Aurora provides
additional optionality
3

Consolidating in
Northern Nevada three mines
serviced by one central mill

True North developing

into our third significant
operation in North America

TRUE NORTH HISTORY & LOCATION

San Antonio Mine started in 1931

Historic production in the San Antonio (SAM) of

1.5 million oz
In 1994, A-Shaft was deepened to 26L
1994 Rea Gold (Rea) purchased True North
Current Mill built in 1997 by Rea
1998 Harmony Gold Inc. acquired the mine
2005 San Gold was formed and purchased the
property
January 2016 Klondex Mines Ltd. announced the
acquisition of True North
4

RICE LAKE & RED LAKE BELT GEOLOGY

The Rice Lake Deposit is hosted within the Rice Lake Belt and has produced roughly
1.6M oz of gold. This belt is of the same greenstone metavolcanic rocks as the Red
Lake and Birch-Uchi Belts which together host multiple >1M oz lode gold deposits.

GEOLOGY
HISTORY

The geology of the Rice Lake area is composed of a North Dipping succession of felsic to mafic
volcaniclastic rocks with intermediate and mafic intrusive components. To date the three main
lithologies that host deposits are:
1. The SAM unit (gabbro) True North and Cartwright
2. Mafic and Int Volcanics (basalts) 007, L10, 710/711, 6163, SG1
3. Intermediate Volcanics Hinge, L13, Cohiba, Wingold
New discoveries were made in the other host rocks (Int Mafic Volcanics) disproving that all gold
mineralization occurred only in the SAM

True North

TRUE NORTH STRUCTURAL CONTROL

The general N-NE shortening of the
mine trend produced a conjugate
set of NE and NW shears and
tensional components
16 type shears are generally
higher grade and show more
continuity
38 type tensional sets are
stockowk in nature and have
better widths an contribute
significantly larger tonnages

GEOLOGY
NEW MODEL

Shears were modeled by projecting them from Lidar, UG mapping and Drill hole data
Favorable mafic and intermediate volcanic lithologies were modeled in the district
The discovery of the 710 zone confirmed: a productive structure (98 vein) can leave one
lithology (SAM), continue into another (MV) where it is productive again (710)
True North Claims

True North
Shaft and Mill

MINERALIZALIZED STRUCTURAL EXTENSIONS

26 Level - 710/711

710 CROSS SECTION

16 Level

Drilling from multiple platforms

concurrently to maximize the
increase 710 resource/reserves
in 2017
HG results from preliminary
drilling, PR on June 30, shows
HG ore continues up-dip
extensions on 710

16 Level exploration
drilling looking for the up
dip extension of 710

7,601

6350 & 6400 drilling to convert to

measured up to 6600 elevation

13,537

26 Level
6160 & 6100 infill drilling to
convert measured down to 5850

31,611

10

17,868

32 Level exploration drilling for

the down dip extension of 710

32 Level

711 CROSS SECTION

24 Level drilling to add
measured up to 6900 elevation

25,696

6220 -16 Drill Results

588 - 16 Drill Results

10,119
28 Level drilling ongoing to add
measured down to 5700 elevation
11

2016 TRUE NORTH

UNDERGROUND DRILLING UPDATE
Highlights 711 and Cohiba
967-16-004
60.4 g/t over 0.3 m

967-16-005
167.7 g/t over 0.7 m

620-16-013
32.7 g/t over 1.8m

588-16-024
42.4 g/t over 1.5m

711 up-dip drilling 24

Level Q4
588-16-018
12.2 g/t over 2.8 m
And
22.1 g/t over 2.4 m
588-16-028
19.2 g/t over 2.7 m
And
28.8 g/t over 1.5 m

12

710 down-dip drilling 32

Level Q4

007 DEEP EXTENSION INTO SAM UNIT

13

EXPLORATION TO FIND NEW ZONES

No Drilling in the area where the 007 Projection enters the SAM unit

38 Type Structure

16 Type Structure

14

150 m

TRUE NORTH - PROGRESS TO DATE

No Lost Time Accidents since acquired

Shaft repair project complete, 100% of

the guides replaced

Track repair 100% completed

Completed silling at Cohiba; drilling and

blasting long-hole stopes

Mining at the 710 6300 level

Before Klondex

Now

Mill has undergone major repairs

Mineral resource estimate complete(1)
Recovering gold from tailings

Positive production decision made

15

(1) See press release dated September 12, 2016

Coarse gold on shaker

table

SUMMARY
Near Term Production Drilling
Down-dip 710/711 on 32 level
Down-dip extension on Cohiba
Follow up on new mineralized zones in the 710 FW
Underground Exploration Drilling
Drill the SAM unit to the east where 007 project down-dip and test
other favorable structures
Drill where NE shears project into the south gabbro

Remodel of all local lithologies and known producing structures to use

in district-wide exploration

Utilize Klondex Nevada teams experience to assist in improving mining methods

to minimize dilution, efficiencies to maximize profit

16

THANK YOU!

17

For More Information

John Seaberg
SVP Investor Relations and
Corporate Development
Office 775.284.5757
Cell 303.668.7991
jseaberg@klondexmines.com