Klondex Enters Agreement with Newmont Mining

Klondex Mines

is pleased to announce that it has entered into an agreement with Newmont Mining Corp.

to begin processing Klondex's higher grade mineralized material from the Fire Creek gold and silver project in Nevada this month.Under the agreement, Newmont is responsible for the handling, milling and refining of minerals as well as tailings disposal, and Klondex is responsible for delivering the material. Shipments will be in lots of 1,000 tons up to 9,000 tons in 2013; the shipments may continue as needed through the end of 2014 as high grade material is generated. The first shipment of 1,000 tons is scheduled to begin in August 2013 and processing is expected to follow immediately upon receipt of the first lot.An initial partial upfront payment of 60% will be paid to Klondex by Newmont, based on Newmont assays. The 40% balance will be paid based upon finalization of settlement assays. The first payment from processing is expected in August 2013.Paul Huet, Klondex President and CEO, commented, "Testing this high-grade material not only gives us the much needed metallurgical information on Fire Creek mineralization, but