Klondex Mines Ltd. (TSX: KDX) (OTCQX: KLNDF) a Nevada gold exploration and development company, is pleased to announce the successful completion of two major milestones at its Fire Creek Project: the first shipment of mineralized material delivered to Newmont Mining Corporation for processing, and the conversion of Fire Creek to electrical grid power from generator power.

The initial shipment of 1000 tons of Fire Creek material to Newmont began on August 5, 2013. Processing is scheduled to begin today. Klondex expects to receive payment for this shipment in the third quarter.

The power line is now fully connected and energized by way of the Klondex-owned substation built in 2012. The substation was connected to the NV Energy electrical grid earlier this year. As a result of this achievement, Klondex expects increased efficiencies in its development work, in addition to a significant reduction in unit cost for electricity.

Mike Doolin, Fire Creek General Manager, stated, “We’re extremely pleased with the timely progress the team is making during this pivotal year for Klondex. Processing the Fire Creek material through Newmont’s milling facility allows us the opportunity to monetize the mineralized material from the underground development program.”

He continued, “Energizing Fire Creek with grid power allows greater flexibility and support for our increasing power needs as we continue to develop Fire Creek. Assuming our consumption increases on average by 30% and the unit cost decreases to $0.12/kWh, we expect to realize a savings of approximately 25% of the current power costs.”

About Klondex Mines Ltd.

Klondex Mines is focused on the exploration and development of its Fire Creek gold deposit in North-Central Nevada. Fire Creek is a compelling gold project located in a mining-friendly jurisdiction, near major producers, power, transportation, mining infrastructure and its milling facility. At August 12, 2013, Klondex had 64.4M shares issued and outstanding and 86.8M shares, fully diluted.