Klondex Mines Issued Temporary Water Discharge Permit for Fire Creek Gold Project

ELKO, NV - Klondex Mines Ltd. has been issued a temporary water discharge permit by the Nevada Department of Environmental Protection. The 180-day permit will assist Klondex in managing the underground water treatment system at its Fire Creek gold project in Lander County, Nevada. Klondex is advancing the project towards bulk sampling in the third quarter.

Mike Doolin, Fire Creek's GM, said, "Based on past experiences of treating 350 gallons per minute water flows within the Northern Nevada Rift, Fire Creek's water needs are lower and quite manageable at 25 gpm. However, the water discharge needs at Fire Creek is a critical path item for the mine's development, and we are appreciative of the NDEP's support of our plans." He continued, "The six month temporary discharge permit gives us ample time to complete our long-term water management solution: a rapid infiltration basin (RIB) system designed to handle up to 3000 gpm water. We are making good progress in the application process to permit the RIB and expect the RIB to be permitted, constructed and operational in 2013."

Paul Huet, President and CEO, affirmed, "During my career, I've been fortunate to work with the Nevada regulators in building successful mining operations within the Northern Nevada Rift. We're quite pleased to be working with a group that has such a great understanding of the projects and are keen to work with the different mining groups."