Forward Looking Statements - Toronto Stock …43-101. While such terms are recognized and required...

KLONDEX MINES LTD.

TSX: KDXOTCQX:KLNDF

Gold Exploration and Development in the Heart of Nevada Gold Country

TMX/Equicom “On The Radar”June 19, 2012

Forward Looking Statements

Forward-Looking Statements. This presentation may include certain statements that may be deemed “forward-looking statements." All statements in this presentation or those made by Klondex management or representatives, 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 their work programs or that the results of those work programs 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 their businesses, investors should review the Company filings available at www.sedar.com and www.klondexmines.com.

CAUTIONARY NOTE TO U.S. INVESTOR CONCERNING RESOURCES

This presentation uses the terms “Indicated and Inferred” resources as defined in accordance with National Instrument 43-101. While such terms are recognized and required by Canadian Securities laws, the United States Securities and Exchange Commission does not recognize them. Under the United States standards, mineralization many 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 calculation is made. “Inferred Resources” have a great amount of uncertainty as to their economic and legal feasibility and readers are cautioned not to assume that all or any part of the inferred resources exists or is economically mineable.

2www.klondexmines.com

Company OverviewGold exploration company with 4 properties in Northern Nevada

Fire Creek, Reef, Hot Springs Point and Maggie Creek13,600 acres (21.3 sq. mi) of fee & claim landAll located in the Heart of the Northern Nevada Gold Belt

Fire Creek is the flagship propertyIndicated resource of 1.65 million oz. of gold at 9.9 GPT*Inferred resource of 0.46 million oz. of gold at 8.2 GPT*Resource update planned: completion targeted for Q3 201211,200 acres (17.5 sq. mi.) of fee & claim land 100% owned by Klondex2009 IP (induced polarization) survey identified 15 new resource targetsFurther exploration potential surrounding Fire Creek depositActive surface and underground exploration programs

Transitioning from surface to underground explorationPermitted for underground in-fill drilling and bulk samplingCompleted first full year of underground operationsBulk sampling slated to commence by end of Q3 2012Preliminary metallurgical testing completed and positive (90% RR)

* NI 43-101 Compliant, May 2011


Fire Creek - Project Location

100% owned project in heart of Nevada Gold District

Area is host to world class gold deposits

Large land package of 11,208 acres (17.5 sq miles)

Accessible via federal & state roads

Close to electrical grids; fresh water well on-site

Significant mining infrastructure and talent pool in area


Pipeline Cortez/Barrick: 29 miles

Carlin mills/Newmont: 48 miles

Battle Mountain: 51 miles

Mule Canyon mine: 16 miles

Elko: 64 miles

Fire Creek – Mineral Zones


Fire Creek – Resource as of May 21, 2011

Gold Cut Off(g/t) Category

Metric Tonnes

Grade(g/t)

Gold(0z)

4.0 Indicated 5,176,050 9.9 1,647,052

4.0 Inferred 1,732,810 8.2 458,084

7.0 Indicated 2,145,283 17.6 1,215,019

7.0 Inferred 555,043 12.5 223,794


Reference: Technical Report released September 12, 2011

Longitudinal Section


Fire Creek Deposit – Exploration Potential


Fire Creek 2012 Surface Exploration


Fire Creek – Surface Drill Program


2012 Surface Exploration:Surface drilling program begunFocus on Main Zone mineralizationSupport underground in-fill drillingTargeting over 15,000 meters (49,000 ft.)Micon International Limited engaged to assist in preparation of updated technical report

2011 Surface Exploration Results:Results in 33 holes totalling 15,726 meters (51,599 ft)Extended Main Zone Veins to East (FC1126 & 27)

Discovered Two Vein extensions in north Main Zone (FC1104, 24, 36)

Discovered New Vein zone between Main and Far North Zones (FC1107RC)

Key intercepts:30.9 g/t Au over 4.9m, incl. 109.3 g/t Au over 1.2 m (FC1126)

10.2 g/t Au over 16.3m, incl. 36.1 g/t Au over 1.2 m (FC1104)

13.3 g/t Au over 1.3m, incl. 19.4 g/t Au over 0.6m (FC1107RC)

Fire Creek – Main Zone Core


Visible Gold

Underground Strategy


Completed first year of operations in April ’12

Developing 3.7m x 4.3m (12x14 ft) ramp to mineralized zones

Decline enables underground in-fill drilling and initial production via bulk sampling:

In-fill drilling is more accurate and efficient

“Small scale facility” designation allows “exploration bulk sampling” of 120,000 short tons (36,500 short tons/year)

Will target higher-grade Main Zone material to generate cash flow to help fund operations.

Small Mines Development (SMD) is underground contractor

Underground Decline


Total advance to date 3,305 ft. or 1,007 meters, including 2,433 ft. or 742 meters of decline

On target of goal to start bulk sampling

Initial bulk sampling expected by end of Q3 2012

Underground definition drilling started Q3 2011

Goal is to tighten drill spacing and further define Main Zone mineralization

2012 targets 20,000 meters of drilling29 holes for 7,024 meters completed to dateApproximately 5 holes remain to be drilledProgram will yield ongoing drill results reporting

2011 completed 18 holes for 3,774 metersGold mineralization encountered in 16 holes reportedInitial results suggest apparent continuity of gold mineralization between surface holes

Underground In-Fill Drill Program


Positive Underground In-Fill Results


FC�11�002�U 12.20 2.45

FC�11�003�U 3.00 3.03

FC�11�004�U 9.10 5.29

including 1.50 11.16

FC�11�005�U 33.50 7.61


FC�11�006�U 6.10 2.76

FC�11�009�U 9.10 4.69

FC�11�010�U 6.10 6.16


FC‐11�011U 7.62 6.72


FC�11�012 18.30 3.95

including 7.60 6.19

FC‐11‐013U 13.72 4.66


FC�11�014�U 9.10 3.11

FC‐11‐015U� 12.19 5.27


FC‐11‐016U 15.24 5.45


FC‐11‐017U� 10.67 3.48

including 1.52 9.88

FC‐11‐018U� 12.34 3.85


FC‐11‐019U 6.10 6.76


2011 Underground Drilling Highlights

through April 12, 2012

Klondex Fire Creek Project

(≥ 2.0�g�Au�per�tonne�cut‐off)

Grade�(g�

Au/tonne)

Length�

(meters)*Hole�No.

90�percent�of�the�tabulated�length�based�on�preliminary�modeling.

*Apparent�“true�widths”�of�the�mineralized�zones�range�from�50�‐

Length Grade

(meters)* (g�Au/Tonne)

FC‐12‐001U 7.041 8.145


including 0.61 14.8

and 18.136 2.978


including 0.61 6.62

including 0.61 8.46

including 0.61 3.59

including 0.61 3.52

FC12‐02U 1.676 4.1

and 3.81 5.84


including 1.676 5.5

FC12‐31U

FC12‐33U 6.096 1.96


and 2.286 12.476



and 2.073 4.16


and 1.829 8.43

FC‐12‐034U 3.2 3.968



and 7.681 3.723


including 1.524 4

FC‐12‐035U 3.048 1.644


FC‐12‐036U 1.524 3.32

and 4.572 2.471

including 1.92 3.9

and 3.536 1.354

and 1.92 4.74

*Apparent�"true�widths"�of�the�mineralized�zones�range�from�

50‐90%�of�the�tabulated�length�based�on�preliminary�modeling.

Hole�No.

Klondex�Fire�Creek�Project

2012�Underground�Drilling�Highlights

through�June�4,�2012

(�>1�gram�Au�per�Tonne�cut‐off)

Vulcan Plan Views


Fire Creek Mineralized Zones with Faults and Underground Design

Decline face location

April 12, 2012

Mineralized Zones with Topography and Underground Design

Decline


June 10•Total decline 2,200 ft.•Distance to vent raise 500 ft.


Underground Workings with Mineralization and Faults

Processing Strategy


Initial processing plan:Toll-mill bulk sample at nearby custom facility

Phase 2 processing plan:Purchase mill within trucking distance

Considering four mills within 75 - 350 milesCapacities of 250, 400, 750 or 3,500 tpdUtilize excess capacity for KDX toll-milling

Alternative processing plan:Construct 1,000 tpd facility onsite

Share Data


Symbol TSX: KDX; OTCQX: KLNDFShare Price C$1.70 at 6/12/12

52 Week Range C$1.67 to C$3.33Average Volume (3M) 57KShares Issued and Out 47.0MFully Diluted 59.1MMarket Cap C$79.9MManagement Ownership 14% of Fully DilutedCash Position C$17M as of 3/31/12

Debt: Gold Loan + Note C$16M as of 3/31/12

Current share price implies valuationof $48.32 per indicated gold ounce.

Management & Board


Blane W. Wilson President and CEO / Director

Jorge Avelino CFO

Brendan J. Donohoe Treasurer

William J. Solloway Chairman/Director

Robin Goad Director

Ken Stowe Director

Andre Douchane Director

Warren Moysey Director

Chad Williams Director

Staff and Consultants


Doug Carter Surface Superintendent Fire Creek

Jim Newton Underground Mine Superintendent Fire Creek

Larry Wilson Environmental and Permitting Coordinator Fire Creek

Rick Magness Nevada Controller Fire Creek

Steve McMillin Chief Geologist Fire Creek

David Bixler Safety and Security Supervisor Fire Creek

Richard Seidl Senior Geologist Fire Creek

Hazel Reynolds Geologist Fire Creek

Zachary Williams Geologist Fire Creek

David Fox Financial Consultant Toronto

Richard Kern Consulting Geologist Reno

Jeff Phinesey Consulting Geologist Fire Creek

Keith Jones SMD Mine Engineer Fire Creek

Dave Joggerst SMD Project Manager Fire Creek

Fire Creek Milestones


Raised over $50M to fund Fire Creek since Q4 ‘10

Received all remaining permits for bulk sampling program Q1 ‘11

Mobilized Underground Mining Contractor Q1 ‘11

Began Advance of the Underground Decline Q2 ’11

Installed Ground Water Monitoring Wells #2 & #3 Q3 ’11

Initiated underground in-fill drilling Q3 ‘11

BLM OKed for surface exploration south of Fire Creek Q4 ’11

Geo Technical holes for vent raise completed by AMEC Q1 ’12

File for full scale mining permits Q2 ’12

Complete connection to high-voltage power grid Q3 ‘12

Bulk sampling targeted start Q3 ’12

Anticipated Technical Report Update via Micon Int’l Q3 ’12

Klondex Catalysts


Ideal location: North Central Nevada

Gold resource: 1.6M oz. indicated and 0.46M oz. inferred

Grade: Average indicated grade 9.9 g/t gold (0.29 oz./ton)

Timing: Potential for cash generation starting Q4 2012

Low Risk: Permitted, negligible geopolitical, well drilled

Well Funded: ~$14M cash + bulk sampling proceeds

Proven Mgmt. & Board: Deep Nevada gold mining/milling experience

Blue Sky: ~25% of property explored to date

Mining Contractor: SMD highly skilled underground contractor

Small Share Base: 46.8M shares out / 59.1M fully diluted

Favorable Gold Pricing: Gold prices at all time high ranges

Attractive Valuation: Market Cap of C$79.6M (C$1.70/share)

Research Coverage


Fraser Mackenzie Limited Michael Starogiannis www.frasermackenzie.com

Mackie Research Capital Barry Allan www.mackieresearch.com

MGI Securities Marc Pais www.mgisecurities.com

Very Independent Research John Tumazos www.veryindependentresearch.com

Churchill Research, Inc. Mike Churchill www.churchillresearch.com

Gold Energy & Tech Stocks Newsletter Jay Taylor www.miningstocks.com

The Mining Speculator Greg McCoach www.miningspeculator.com

THANK YOU FROM YOURKLONDEX TEAM


Investor Contacts:

David Collins / Antonia TrigianiCatalyst Global [email protected]

Forward Looking Statements - Toronto Stock …43-101. While such terms are recognized and required...

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