APRIL 11 & 12, 2017...CORPORATE PRESENTATION NEW YORK/BOSTON MARKETING TRIP APRIL 11 & 12, 2017. ......

CORPORATE PRESENTATION

NEW YORK/BOSTON MARKETING TRIPAP RIL 1 1 & 1 2 , 2 017

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 of actual mineral resources and mineral reserves; the degree to which factors which would

make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial

capital requirements and 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 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 SEC’s 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. However, Klondex’s estimated

proven and probable reserves previously reported under NI 43-101 for Fire Creek, Midas and True North are equivalent to those determined under SEC Industry Guide 7.

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. 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, 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.

2

Three Flagship Assets in

Nevada – Aurora provides

additional optionality

True North developing

into our third significant

operation in North America

Consolidating in Northern

Nevada – three mines serviced

by one central mill

GAINING SCALE IN NORTH AMERICASTRONG UPSIDE POTENTIAL IN A SAFE JURISDICTION

3

CONSOLIDATED

STATISTICSFIRE CREEK MIDAS

NEVADA

TOTAL

TRUE

NORTHTOTAL

Production (GEOs) 102,383 48,623 151,007 10,199 161,289

Sales (GEOs) (1) (2) 100,022 50,977 151,004 8,028 159,118

Cash costs

(per GEO sold)(1) $462 $981 $637 $1,552 $683

Mining cost per ton $301 $221 $252 $193 $242

All-in-costs

(per Au oz)(2) – – – – $1,335

Tons per day milled 330 tpd 523 tpd 854 tpd 262 tpd 1,116 tpd

Mill head grade

(AuEq)0.91 opt 0.28 opt 0.52 opt 0.11 opt 0.43 opt

4

2016 OPERATIONAL HIGHLIGHTS

• No lost time injuries at any of our operations

• Annual production of 161,289 GEOs, increase of ~26% YoY

• Achieved full year production and cost guidance

(1)This is a non-GAAP measure; refer to the Non-GAAP Performance Measures section of this Press Release for additional detail.(2) Gold equivalent measures are the gold measure plus the silver measure divided by a GEO ratio. GEO ratios are computed by dividing

the average realized gold price per ounce by the average realized silver price per ounce received by us in the respective period and

match the ratios used to determine the production cash costs per GEO sold. Refer to the Non-GAAP Performance Measures section of

this Press Release for additional detail.

LOW HIGH

CORPORATE G&A (millions) $15 $17

HOLLISTER DEVELOPMENT & PROJECT COSTS (millions) $7 $9

REGIONAL EXPLORATION EXPENSE (millions) $3 $5

ALL-IN COSTS PER GOLD OZ SOLD(1) $1,070 $1,130

GEO Production Cash Costs per GEO Sold(1) CapEx (millions)

LOW HIGH LOW HIGH LOW HIGH

MIDAS (2) 42,000 45,000 $925 $950 $15 $17

FIRE CREEK 97,000 100,000 $475 $500 $27 $29

HOLLISTER(3) 30,000 35,000 $935 $960 – –

NEVADA TOTAL 169,000 180,000 $670 $700 $42 $46

TRUE NORTH(4) 41,000 45,000 $725 $750 $15 $16

CONSOLIDATED TOTAL 210,000 225,000 $680 $710 $57 $62

• ~36% production

growth YoY

• Operating 4 mines,

2 mills in 2 countries

• Flexible capital

allocation strategy

2017 OPERATIONAL GUIDANCE

(1) This is a Non-GAAP measure; refer to the Non-GAAP Performance Measures section of this Presentation for additional detail.(2) Includes CapEx from Midas mill of $4-5 M.(3) The guidance will be updated, as required, upon completion of a technical report for the Gloria zone, expected to be completed in the second quarter of 2017.(4) Based on an estimated CDN:US dollar exchange rate of 0.75:1. *See press release dated January 18, 2017

5

6

EVOLVING INTO A MID-TIER PRODUCER

*See original guidance in the press release dated January 18, 2017

*

*See press releases dated September 14, 2016 & March 29, 2017

FIRE CREEK

• Extending the veins in the main workings

• Expanding district-wide mineralization

using geophysics as a targeting tool

• Fire Creek District remains open in all

directions and at depth

7

SIGNIFICANT EXPLORATION POTENTIAL

TRUE NORTH

• Continue to extend mineralization

in the 710 and 711 zones

• New discovery in the SAM zone

• New Mineral Resource estimate

expected in Q2 2017

8

FIRE CREEK UG DRILLING RESULTSEXTENDING THE MAIN VEINS

FCU-068824.1’ @ 0.20 opt Au

Modeled Vein

VeinExtension

Inferred Vein Extension

Drill Hole showing Intercepts > 0.1 optAu

New Drill Hole Intercept (drilled thickness)

FCU-70933.0’ @ 0.84 opt Au

Including 3.0’ @ 1.06 opt Au

FCU-07141.7’ @ 96.92 opt Au


FCU-07041.8’ @ 2.16 opt Au

FCU-068918.3’ @ 1.08 opt Au


FCU-06928.0’ @ 1.47 opt Au


FCU-056212.7’ @ 0.33 opt Au

Including 3.0’ @ 0.90 opt AuFCU-0662

5.0’ @ 2.50 opt Au

FCU-06948.0’ @ 0.84 opt Au

FCU-71653.8’ @ 0.45 opt Au


N

*See Press Release dated February 8, 2017

FIRE CREEK SURFACE DRILLING SUCCESSEXTENDS DISTRICT-WIDE MINERALIZATION TO THE WEST, EAST, AND NORTH

9*See Press Release dated February 24, 2017

FIRE CREEK SURFACE EXPLORATION RESULTSEXPLORATION POTENTIAL ACROSS THE DISTRICT

FCC-0061: 1.9ft @ 0.56 opt Au

*FCC-0020: 10ft @ 0.53 opt AuPreviously Reported

*FCC-0068: 17ft @ 0.43 opt Au

*FCC-0067: 1.8ft @ 0.12 opt Au

*Drill holes projected

into cross sectionResistivity Map

10*See Press Release dated February 24, 2017

Currently ~1,800 ft of strike,

and vertical extension of

~1,200 ft

GLOR15 – 034:

18.36 opt AuEq over

1.7ft

Gloria West

Vein SystemOpen

500 ft

Hatter Graben Vein System

Open In All Directions

H8 – 285:

0.47 opt Au

over 12.5 ft

Currently ~1,800 ft of strike

and vertical extension

of ~1,200 ft

H8 – 269:

1.77 opt Au

over 2.1 ft

GLOR15 – 034:

18.36 opt AuEq

over 1.7ft

11

HOLLISTER PROPERTYHATTER GRABEN VEIN SYSTEM

Cohiba Vein+9.2 kozs MI (33.5ktons @ 0.274opt Au)+31.2 kozs Inf (124.8ktons @ 0.250opt Au)

16L Veins-4.9kozs MI (18.2ktons @ 0.269opt Au)+8.4 kozs Inf (22.8ktons @ 0.370opt Au)

710/711 Veins+56.3 kozs MI (228.1ktons @ 0.247opt Au)+81.2 kozs Inf (343.6ktons @ 0.236opt Au)

Deep East Veins+21.9 kozs MI (126.8ktons @ 0.173opt Au)+84.1 kozs Inf (377.7ktons @ 0.223opt Au)

SAM Veins+12.2 kozs MI (41.2ktons @ 0.296opt Au)+3.5 kozs Inf (14.1ktons @ 0.250opt Au)

26L

16L

Measured + Indicated

Inferred

TRUE NORTHMINERAL RESOURCE ESTIMATE

12 *See Press Releases dated March 29 & January 24, 2017

New Discovery26-16-001

0.36 opt Au over 15.0 ft12.3 g/t over 4.6 m

007

MILESTONES ACHIEVED TO DATE

NO LOST TIME INCIDENTS

ACQUIRED THE TRUE NORTH MINE AND MILL IN MANITOBA, CANADA

POSITIVE PRODUCTION DECISION MADE AT TRUE NORTH; SUCCESSFULLY RECOVERING

GOLD FROM TAILINGS

ADDED TO THE GDX, GDXJ, AND TSX COMPOSITE INDICES

COMPLETED C$129.5M BOUGHT DEAL EQUITY FINANCING; ACQUIRED HOLLISTER AND AURORA

ACHIEVED 2016 FULL YEAR PRODUCTION AND COST GUIDANCE

ADDITIONAL OBJECTIVES

ADVANCE DISTRICT EXPLORATION AT FIRE CREEK AND MIDAS

MINERAL RESERVE UPDATE AT TRUE NORTH – Q2 2017

MINERAL RESOURCE ESTIMATE AND DETAILED MINE PLAN FOR THE GLORIA ZONE

AT HOLLISTER – Q2 2017

DELIVER 2017 OPERATING GUIDANCE

DELIVERING ON OUR COMMITMENTS

13

For More Information

John SeabergSVP Investor Relations and

Corporate Development

Office 775.284.5757

Cell 303.668.7991

[email protected]

• Power costs significantly reduced when

connected to the grid

• Powerline and surface exploration now

possible with EIS on hand

• EIS includes permitting for secondary

ramp at Hatter Graben

• Drifting extended Gloria zone

~1,200 ft to the West

• New and improved dewatering system

HOLLISTER/ AURORA ACQUISITION

A-1

Shorter Trucking Distance to Mill – Lower Transportation Costs

• Hollister to Aurora mill (~277 miles @ ~$100/t) vs Midas mill

(~19 miles @ ~$10/t); Realizable saving of ~$90/t

Lower Milling Costs

• Aurora milling cost (~$96/t) vs Midas mill cost (~$46/t);

Realizable saving of ~$50/t

Lower Power Costs

• $17M spent on completing power line; expected to reduce power costs to

~$0.07/kWh from ~$0.66/kWh; Realizable saving of ~$50/t

Reduced G&A Costs

• Will share G&A associated with established Midas and Fire Creek operations

HOLLISTER/AURORA ACQUISITIONPOTENTIAL SYNERGIES OF ~$15M ANNUALLY

A-2

TRACK RECORD OF OPERATIONAL EXCELLENCEMIDAS POST-ACQUISITION IMPROVEMENTS

• Reduced workforce by 50%

• Transferred 25% of the equipment

for use at Fire Creek – reduced

2014 capex by ~$7 million

• Increased resource, doubled grade

to the mill

• Pre-KDX AuEq grade: 0.15 opt

vs. 2015 head grade 0.30 opt

• 2 yard scoops, from 4 yard scoops

• Jumbo’s replaced by handheld drills

• 6-8’ wide ore drifts, down from 12’

• Apply cut and fill mining from raises

in appropriate locations

Note: Please see the press release dated September 16, 2015 and the technical report titled "Preliminary Feasibility Study for the Midas Mine,

Elko County, Nevada", as amended and re-filed April 2, 2015 (effective date of January 31, 2014) on SEDAR for details regarding the mineral

resources disclosed herein, including details regarding the key assumptions, parameters and methods used to estimate the mineral resources.

A-3

2016 2015

Revenue $198.2M $154.1M

Income from Operations $15.1M $23.4M

Net (loss) Income ($1.7M) $44.3M

Net (loss) Income Per Share

(Basic)($0.01) $0.33

Average Realized

Gold Price (US$/oz)$1,245 $1,156

Average Realized

Silver Price (US$/oz)$17.44 $15.72

Capital Expenditures $61.7M $36.6M

(1) See Non--GAAP Performance Measures” at the end of the presentation

• Revenue was an all-time

high totaling $198.2 million,

increase of ~29% YoY

• Sold a record 159,118 GEOs (1),

an increase of 19.4% from the

prior year.

• A successful transition from

IFRS to US GAAP

SELECTED FINANCIAL DATASOLID FINANCIAL RESULTS

A-4

(US$M) Q4 2016 FY 2016 FY 2015

Cash Flow

from

Operations

$14.6 $45.3 $41.3

Cash Balance $47.6 $47.6 $59.1

Working

Capital $33.2 $33.2 $60.5

(1) Metal inventory is the value of the estimated recoverable gold and silver ounces

contained in our Inventories if sold at December 31, 2016 period-end prices.

(2) LOC was increased by $10M to $35 in October 27, 2016. December 31, 2016, the

Company drew $12M from the Revolver to retire the Promissory Note.

~$96.8 Million of Available Liquidity

BALANCE SHEET STRENGTHIMPROVING LIQUIDITY AND WORKING CAPITAL

$47.6M

$23M

$26.2M

A-5

BUY-SIDE OUTREACHSHIFTING FOCUS TO INSTITUTIONAL INVESTORS

CURRENT SHAREHOLDERS LOCATION % OWNERSHIP

VAN ECK ASSOCIATES New York, NY 13.56%

SENTRY INVESTMENTS Toronto, ON 8.18%

U.S. GLOBAL INVESTORS San Antonio, TX 6.76%

OPPENHEIMER New York, NY 4.17%

FIDELITY (CANADA) AM Toronto, ON 3.74%

K2 & ASSOCIATES Toronto, ON 3.85%

BMO AM Toronto, ON 2.65%

TOCQUEVILLE AM New York, NY 2.53%

O'SHAUGHNESSY AM Stamford, CT 2.28%

SPROTT AM Toronto, ON 2.12%

DEUTSCHE BANK New York, NY 1.77%

*Source: FactSet – April 10, 2017

A-6

MINERAL RESERVES

Fire Creek Mineral Reserves

A-7

Category Tons (k) Au opt Au g/t Au koz

Proven 153 0.241 8.26 36.7

Probable 199 0.245 8.40 48.8

Total P&P 352 0.243 8.33 85.5

Category Tons (k) Au opt Au g/t Ag opt Ag g/t AuEq opt AuEq g/t Au koz Ag koz AuEq koz

Proven 121 1.703 58.40 1.37 47.1 1.722 59.05 206 166 208

Probable 119 0.715 24.51 0.50 17.0 0.722 24.74 85 59 86

Total P&P 240 1.213 41.59 0.94 32.2 1.226 42.03 291 225 294

Midas Mineral Reserves

True North Mineral Reserves


Proven 141 0.261 8.95 9.18 314.8 0.388 13.31 37 1,295 55

Probable 307 0.335 11.47 3.84 131.6 0.388 13.29 103 1,180 119

Total P&P 449 0.311 10.68 5.52 189.2 0.388 13.30 140 2,475 174

Note: See Notes to Mineral Reserves and Mineral Resources on slide A - 7.


Probable 1,170 0.028 0.96 32.4

True North Tailings Mineral Reserves


Measured 521 0.220 7.54 115

Indicated 1,276 0.214 7.34 273

Total M&I 1,797 0.216 7.40 388

Inferred 3,676 0.182 6.24 668


Measured 180 1.637 56.12 1.30 44.7 1.655 56.74 294 234 298

Indicated 346 0.591 20.27 0.51 17.5 0.598 20.50 205 176 207

Total M&I 526 0.948 32.52 0.78 26.8 0.959 32.89 499 411 505

Inferred 931 0.538 18.43 0.48 16.4 0.544 18.66 501 446 507


Measured 417 0.400 13.72 7.97 273.4 0.511 17.51 167 3,325 213

Indicated 697 0.362 12.41 4.73 162.1 0.428 14.66 252 3,295 298

Total M&I 1,114 0.376 12.90 5.94 203.7 0.459 15.73 419 6,620 511

Inferred 671 0.303 10.39 2.93 100.5 0.344 11.79 203 1,966 231

Note: See Notes to Mineral Reserves and Mineral Resources on slide A - 7.

Fire Creek Mineral Resources

Midas Mineral Resources

True North Mineral Resources

A-8

MINERAL RESOURCES


Indicated 2,138 0.024 0.82 51.0

Inferred 47 0.022 0.75 1.1

True North Tailings Mineral Resources

Notes to Nevada’s Mineral Reserve and Resource1. Mineral Resource is inclusive of Mineral Reserve.

2. Fire Creek and Midas Mineral Reserves are calculated at a gold price of US$1,200 per ounce and a silver price of US$17.00 per ounce.

3. Fire Creek and Midas Mineral Resources are calculated at a gold price of US$1,400 per ounce and a silver price of US$19.83 per ounce.

4. Metallurgical recoveries for gold and silver are 94% and 92%, respectively, at all properties.

5. One ounce of gold is equivalent to 72.12 ounces of silver.

6. Mineral Resources include resource dilution to a minimum mining width of four feet or the vein width plus two feet, whichever is greater.

7. Cut off grades for the Mineral Resources at Fire Creek and Midas are 0.228 and 0.196 opt AuEq, respectively.

8. Cut off grade for the Mineral Reserves at Fire Creek and Midas are 0.343 and 0.305 opt AuEq, respectively.

9. The effective date for the Fire Creek and Midas Mineral Resource is June 30, 2016 and May 31, 2016, respectively.

10. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental,

permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

11. The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an

Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

12. The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves,

Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

Notes to True North Mineral Reserve and Resource1. Mineral Resource is inclusive of Mineral Reserve.

2. Mineral Reserve is calculated at a gold price of C$1,500 per ounce.

3. Mineral Resource is calculated at a gold price US $1,400 per oz.

4. US$:CDN$ exchange rate is 0.80.

5. Metallurgical process recovery for gold is 94%.

6. Mine and Mill Cost C$141.52 per ton.

7. The effective date for True North mineral resources is February 14, 2017.

8. CIM definitions were followed for the Mineral Resource Estimate.

9. Mineral Resource include resource modeling dilution to a minimum width of four feet or the vein width, whichever is greater.

10. Mineral Reserve includes mining dilution and is constrained to a five foot minimum mining width.

11. Cut off grade for the Resource is 0.09 opt Au (3.09 grams per tonne).

12. Cut off grade for the Reserve is 0.13 opt Au which includes a mining cost of C$69/ton, processing cost of C$28/ton, G&A cost of C$45/ton and sustaining development cost of C$42/ton.

13. Mineral Resource and Reserve tonnage calculations used a bulk density 0.086 tons/cu. ft.

14. Mining losses of 2% have been applied to the designed mine excavations, and no additional unplanned dilution has been applied.

15. The effective date for Mineral Reserve and Resource is June 30, 2016.

16. Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental,

permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an

Indicated or Measured Mineral Resource as a result of continued exploration.

17. The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an

Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

18. The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves,

Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

(1)See press releases dated September 12 & 14, 2016, & March 29, 2017

A-9

NOTES TO MINERAL RESERVES AND RESOURCES

Notes to True North Tailings Mineral Reserve1. Tailings Mineral Resource is inclusive of Mineral Reserves.

2. Tailings Mineral Reserve estimate is based on tailings located at True North produced by previous operators to Klondex.

3. Tailings Mineral Reserve was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions

and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

4. No mining losses have been applied to the designed historic tailing excavations and no additional unplanned dilution has been included.

5. Contained metal may differ due to rounding.

6. Cut-off grade = 0.026 opt Au (0.89 g/t Au) for 2016 to 2018 and 0.020 opt Au (0.69 g/t Au) for 2019 to 2023

7. A dry bulk density of 0.044 tons per cubic foot was utilized in the tailings Mineral Reserve tonnage calculation.

Notes to True North Tailings Mineral Resource1. Tailings Mineral Resource is inclusive of Tailings Mineral Reserve.

2. Tailings Mineral Resource estimate is based on tailings located at True North produced by previous operators to Klondex.

3. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental,

permitting, legal, marketing, or other relevant issues.

4. Mineral Resource was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and

Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

5. The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred

Mineral Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral

Resource category.

6. Contained metal may differ due to rounding.

7. Cut-off grade = 0.015 opt Au (0.51 g/t Au).

8. A dry bulk density of 0.044 tons per cubic foot per cubic foot was utilized in the tailings Mineral Resource estimate tonnage calculation.

(1)See press releases dated October 27, 2016

A-10

NOTES TO MINERAL RESERVES AND RESOURCES

Non-GAAP Performance Measures

We have included the non-GAAP measures "Production cash costs per gold equivalent ounce sold" and "All-in costs per gold ounce sold"

in this MD&A (collectively, the "Non-GAAP Measures"). These Non-GAAP Measures are used internally to assess our operating and

economic performance and to provide key performance information to management. We believe that these Non-GAAP Measures, in

addition to conventional measures prepared in accordance with GAAP, provide investors with an improved ability to evaluate our

performance and ability to generate cash flows required to fund and sustain our business. These Non-GAAP Measures are intended to

provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in

accordance with GAAP. These Non-GAAP Measures do not have any standardized meaning prescribed under GAAP, and therefore may

not be comparable to or consistent with measures used by other issuers or with amounts presented in our financial statements.

Our primary business is gold production and our current and future operations, development, exploration, and life-of-mine plans

primarily focus on maximizing returns from such gold production. As a result, our Non-GAAP Measures are calculated and disclosed on a

per gold or gold equivalent ounce basis.

Production Cash Costs Per Gold Equivalent Ounce Sold

Production cash costs per gold equivalent ounce sold presents our cash costs associated with the production of gold equivalent ounces

and, as such, non-cash depreciation and depletion charges are excluded. Production cash costs per gold equivalent ounce sold is

calculated on a per gold equivalent ounce sold basis, and includes all direct and indirect operating costs related to the physical activities

of producing gold, including mining, processing, third-party refining expenses, on-site administrative and support costs, royalties, and

cash portions of net realizable value write-downs on production-related inventories (State of Nevada net proceeds and other such taxes

are excluded). We believe that converting the benefits from selling silver ounces into gold ounces is helpful to analysts and investors as

it best represents the way we operate, which is to maximize returns from gold production. Gold equivalent ounces are computed as the

number of silver ounces required to generate the revenue derived from the sale of one gold ounce, using average realized selling prices

(in thousands, except ounces sold and per ounce amounts):

NON-GAAP PERFORMANCE MEASURES

A-11


A-12

Three months ended December 31, 2016

Fire Creek Midas Nevada Total True North Total

Average realized price per gold ounce sold $ 1,181 $ 1,185 $ 1,182 $ 1,139 $ 1,175

Average realized price per silver ounce sold $ 16.69 $ 16.73 $ 16.73 $ 16.41 $ 16.73

Silver ounces equivalent to revenue from one gold

ounce70.8 70.9 70.7 69.4 70.2

Silver ounces sold 22,103 351,946 374,049 853 374,902

GEOs from silver ounces sold 312 4,964 5,291 12 5,340

Gold ounces sold 27,035 8,354 35,389 7,016 42,405

Gold equivalent ounces 27,347 13,318 40,680 7,028 47,745

Production costs $ 12,961 $ 12,815 $ 25,776 $ 9,932 $ 35,708

Add: Write-down of production inventories (cash

portion)— 405 405 1,918 2,323

$ 12,961 $ 13,220 $ 26,181 $ 11,850 $ 38,031

Production cash costs per GEO sold $ 474 $ 993 $ 644 $ 1,686 $ 797

(1) Nevada Total includes Fire Creek and Midas.

Years ended December 31,

2016 2015 2014

Consolidated Nevada Total(1) True North Total Nevada Total(1) Nevada Total(1)

Average realized price per gold ounce sold $ 1,250 $ 1,164 $ 1,245 $ 1,156 $ 1,258

Average realized price per silver ounce sold $ 17.44 $ 16.41 $ 17.44 $ 15.72 $ 18.47

Silver ounces equivalent to revenue from one gold ounce 71.7 70.9 71.4 73.6 68.1

Silver ounces sold 1,470,139 853 1,470,992 1,708,548 1,117,288

GEOs from silver ounces sold 20,504 12 20,602 23,214 16,407

Gold ounces sold(2) 130,500 8,016 138,516 110,058 73,100

Gold equivalent ounces 151,004 8,028 159,118 133,272 89,507

Production costs $ 95,845 $ 10,544 $ 106,389 $ 83,318 $ 54,430

Add: Write-down of production inventories (cash portion) (see

Note 5 - Inventories)405 1,918 2,323 1,016 —

$ 96,250 $ 12,462 $ 108,712 $ 84,334 $ 54,430

Production cash costs per GEO sold $ 637 $ 1,552 $ 683 $ 633 $ 608(1) During 2015 and 2014, production was only from Fire Creek and Midas. Details for Nevada are presented in the following table.


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2016 2015 2014

Nevada Total Fire Creek MidasNevada

Total(1) Fire Creek MidasNevada

Total(1) Fire Creek MidasNevada

Total(1)

Average realized price per gold

ounce sold$ 1,250 $ 1,252 $ 1,250 $ 1,156 $ 1,156 $ 1,156 $ 1,261 $ 1,245 $ 1,258

Average realized price per silver

ounce sold$ 17.00 $ 17.48 $ 17.44 $ 15.77 $ 15.71 $ 15.72 $ 18.32 $ 18.48 $ 18.47

Silver ounces equivalent to

revenue from one gold ounce73.5 71.6 71.7 73.3 73.6 73.6 68.8 67.4 68.1

Silver ounces sold 95,454 1,374,685 1,470,139 81,441 1,627,107 1,708,548 56,015 1,061,273 1,117,288

GEOs from silver ounces sold 1,299 19,200 20,504 1,111 22,107 23,214 814 15,746 16,407

Gold ounces sold(2) 98,723 31,777 130,500 81,080 28,978 110,058 59,352 13,748 73,100

Gold equivalent ounces $ 100,022 $ 50,977 $ 151,004 $ 82,191 $ 51,085 $ 133,272 $ 60,166 $ 29,494 $ 89,507

Production costs $ 46,246 $ 49,599 $ 95,845 $ 37,394 $ 45,924 $ 83,318 $ 25,156 $ 29,274 $ 54,430

Add: Write-down of production

inventories (cash portion) (see

Note 5 - Inventories)

— 405 405 — 1,016 1,016 — — —

$ 46,246 $ 50,004 $ 96,250 $ 37,394 $ 46,940 $ 84,334 $ 25,156 $ 29,274 $ 54,430

Production cash costs per GEO

sold$ 462 $ 981 $ 637 $ 455 $ 919 $ 633 $ 418 $ 993 $ 608

The following table presents a reconciliation of Fire Creek and Midas to the "Nevada Total" for the years 2016, 2015, and 2014 (in thousands, except ounces

sold and per ounce amounts):

All-in Costs Per Gold Ounce Sold

Our calculation of all-in costs per gold ounce sold is consistent with the June 2013 guidance released by the World Gold Council, a non-regulatory, non-profit

market development organization for the gold industry. All-in costs per gold ounce sold reflect the varying costs of producing gold over the life-cycle of a mine

or project, including costs required to discover and develop new sources of production; therefore, capital amounts related to expansion and growth projects are

included.

All-in costs per gold ounce sold includes all: (1) direct and indirect operating cash costs related to the physical activities of producing gold, including mining,

processing, third-party refining expenses, on-site administrative and support costs, royalties, and cash portions of net realizable value write-downs on

production-related inventories (2) general and administrative expenses, (3) asset retirement and accretion expenses, and (4) capital expenditures, the total of

which is reduced for revenues earned from silver sales. Certain cash expenditures, including State of Nevada net proceeds and other related taxes, federal tax

payments, and financing costs are excluded (in thousands, except ounces sold and per ounce amounts):


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2016 2015 2014

Nevada Total(1) True NorthHollister, Aurora,

and CorporateTotal Nevada Total(1) Nevada Total(1)

Production costs $ 95,845 $ 10,544 $ — $ 106,389 $ 83,318 $ 54,430

Add: Write-down of production inventories (cash portion)

(see Note 5 - Inventories)405 1,918 — 2,323 1,016 —

96,250 12,462 — 108,712 84,334 54,430

General and administrative 15,804 12,375 8,818

Exploration 12,765 9,813 3,415

Development and projects costs 8,953 — 15,467

Asset retirement and accretion 2,653 871 628

Expenditures on mineral properties, plant and equipment 61,716 36,598 7,882

Less: silver revenue (25,660) (26,850) (20,639)

All-in costs 184,943 117,141 70,001

Gold ounces sold 130,500 8,016 — 138,516 110,058 73,100

All-in costs per gold ounce sold $ 1,335 $ 1,064 $ 958

(1) Nevada Total includes Fire Creek and Midas. During 2015 and 2014, production was only from Nevada.

For a listing of our total capital expenditures see the Investing cash flows part of the Financial position, liquidity, and capital resources section.

Three months ended December 31, 2016

Nevada Total(1) True NorthHollister, Aurora,

and CorporateTotal

Production costs $ 25,776 $ 9,932 $ — $ 35,708

Add: Write-down of production inventories (cash portion) 405 1,918 — 2,323

26,181 11,850 — 38,031

General and administrative 4,368

Exploration 4,502

Development and projects costs 3,423

Asset retirement and accretion 1,898

Expenditures on mineral properties, plant and equipment 15,874

Less: silver revenue (6,271 )

All-in costs 61,825

Gold ounces sold 35,389 7,016 — 42,405

All-in costs per gold ounce sold $ 1,458(1) Nevada Total includes Fire Creek and Midas.

Klondex has not reconciled forward-looking full year non-GAAP performance measures contained in this presentation to their most

directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require

unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components,

including for example those related to future production costs, realized sales prices and the timing of such sales, timing and amounts of

capital expenditures, metal recoveries, and corporate general and administrative amounts and timing, or others that may arise during

the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures,

which may differ significantly from their non-GAAP counterparts.


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