Klondex Files Permit to Allow Underground Bulk Sampling and Begins 2007 Development Drilling Program at Fire Creek Project



    - Bulk Sampling Would Enable Extraction and Processing of up to 33,113
Metric Tonnes of Ore Per Year -

    VANCOUVER, BRITISH COLUMBIA, March 30 /CNW/ - Klondex Mines Ltd. (TSX:
KDX) today announced that has filed an Amendment to the Exploration Plan of
Operations and a Permit for Reclamation with the Bureau of Land Management
(BLM) and the Nevada Division of Environmental Protection (NDEP) for its Fire
Creek Property in the Battle Mountain-Eureka Trend in Northern Nevada. Later
in April the Company plans to file a Water Pollution Control Permit
Application with the NDEP. The Plan Amendment and Permit, once approved, will
allow underground access to the Main Zone mineralization, Fire Creek's largest
and highest-grade zone, for the purpose of close-spaced definition drilling
and bulk sampling. Additionally, Klondex announced that it has begun its 2007
exploratory drilling program at Fire Creek with the goal of expanding the Main
Zone resource and exploring targets identified outside of the Main and Far
North Zones.

    James L. Balagna III, B.A. (Geology), Klondex's Senior Geologist and
manager of the Company's underground development program, commented, "Fire
Creek is at a turning point in its development. We are moving full speed ahead
on an active drilling program to further confirm and expand our mineral
resource, and we are putting in place the plans and infrastructure to pursue
underground development later this year. We believe both of these efforts
should provide attractive returns to our shareholders in the coming quarters."

    Underground Development

    Granting of the permits by the BLM and NDEP would allow the test mining
and processing of not more than 33,113 metric tonnes (36,500 short tons) of
ore per year and no more than 108,864 metric tonnes (120,000 short tons) in
total. Based on the information received in the NI 43-101-compliant resource
estimate (September 2006), Klondex estimates the average grade of Fire Creek
Main Zone bulk sampling targets could be in excess of 60 grams per tonne
(approximately 2 ounces per tonne). The Amendment to Fire Creek's current Plan
of Operations includes about 3,800 meters of underground workings to access to
the Main Zone on two levels. The underground levels would facilitate in-fill
drilling to improve knowledge regarding grade and vein continuity at a
substantially lower cost than through surface drilling. Subject to obtaining
approval of the permits, and the availability of contractors, the underground
development work is scheduled to commence in the fall of 2007. Klondex
anticipates test processing of bulk samples would be completed at one of the
existing mills within trucking distance of Fire Creek.

    2007 Drilling Program

    Klondex plans to invest CDN $3,700,000 in its 2007 drilling program,
which contemplates approximately 54,350 feet of drilling. The program is
intended to expand the resource in the Main Zone as well as to test induced
polarization (IP) anomalies (possible ore bearing structures) identified
outside of the Main and Far North zones.

    Exploration drilling has commenced with the initiation of reverse
circulation pre-collar drilling. One core rig will start drilling in early
April, and a second core rig will begin work in May. Klondex expects a
substantial increase in drilling productivity this year as it used only one
core rig for a majority of last year's exploration.

    Richard Kern (P.Geo) of Reno, Nevada, is the Company's qualified person
on the project as required under NI 43-101 and has reviewed the technical
information contained in this press release.

    About Klondex Mines Ltd.

    Klondex Mines is a gold exploration company focused on the development of
its high grade Fire Creek deposit where to date the Company has identified an
Indicated Mineral Resource in excess of 1,000,000 ounces of gold. Fire Creek
is located in the Battle Mountain-Eureka Trend in the Northern Nevada Rift, in
North Central Nevada, an area of substantial mining activity that has produced
in excess of 100 million ounces of gold. The Company's property portfolio
contains five gold exploration projects, all in Nevada.

    Klondex's current working capital position is approximately CDN$9.5
million and currently 22.5 million shares are issued and outstanding. Dilution
to 26.9 million shares through the exercise of existing options and warrants
would result in an additional CDN$8.1 million in working capital. For more
information, please visit www.klondexmines.com.

    This news release includes certain statements that may be deemed
"forward-looking statements." All statements in this release, other than
statements of historical facts, including the likelihood that bulk sampling
will generate significant revenues and the possible results of future
exploration are forward-looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from
those in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking statements include
unsuccessful exploration results, inability to obtain necessary permits and
regulatory approvals, changes in metals prices, currency fluctuations, changes
in the availability of funding for mineral exploration, unanticipated changes
in key management personnel, unavailability of necessary equipment and
contractors, and general economic conditions. Mining is an inherently risky
business. There is no guarantee that the Company will be able to carry out its
work program or that the results of that work program will be successful.
Accordingly the actual results may differ materially from those projected in
the forward-looking statements. For more information on the Company and the
risks and challenges of its business, investors should review the Company's
filings available at www.sedar.com

    
    ON BEHALF OF KLONDEX MINES LTD.

    "William J. Solloway"                                  "Bob Sibthorpe"
    President                                           Technical Director
    




For further information:

For further information: Jaffoni & Collins David Collins or Steven
Hecht, 212-835-8500 KDX@jcir.com

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Klondex Mines Ltd.

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