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KLONDEX MINES LTD.
              CORPORATE PRESENTATION !  !                            March 2013"FIRE CREEK: Poised for ...
FORWARD-LOOKING STATEMENTS"Forward-Looking Statements"This presentation may include certain statements that may be deemed ...
KLONDEX: GOLD EXPLORATION AND DEVELOPMENT"●  NEW operations-focused management team"●  FULLY-FUNDED into the bulk sample" ...
MANAGEMENT: OPERATIONS-FOCUSED"  Paul Huet – President, CEO and Director!   ●  25 years high-grade mining experience, part...
FIRE CREEK – LOCATION & EXCELLENT INFRASTRUCTURE"                            Fire Creek Portal                            ...
FIRE CREEK – INITIATING THE BULK SAMPLE IN 2013"                                                                          ...
FIRE CREEK – RESOURCE MODEL"●  Current resource of 1.6M ozs Indicated and 458k ozs                              Klondex Mi...
EXPLORATION: MAIN ZONE CONTINUITY, WEST ZONE DISCOVERY"Main Zone (east of drift): A-Vein shows increase of width and grade...
2013 UNDERGROUND IN-FILL DRILLING PROGRAM""    Underground infill drill program"    ●  16 easterly drill fans, 3 - 4 holes ...
FIRE CREEK BULK SAMPLE PERMITS"●  Issued Permits!     §    BLM permit # N-56088 Amendment allowing NV Energy to connect t...
KLONDEX ROAD MAP"                                                         Cost Est.!                                      ...
ATTRACTIVE VALUATION VS. JUNIOR GOLD PEERS"Klondex sells at a significant discount to
its peer group on an EV/resource basi...
KDX SHARE PRICE PERFORMANCE VS. PEERS"                            3-mo Average Trading Volume: 36,400" Source: Morningstar...
KLONDEX SPONSORSHIP"●  Klondex’s top shareholders include leading resource investors and substantial management ownership....
KLONDEX CAPITALIZATION"                                     TSX: KDX Symbol!                         OTCQX: KLNDF! Share P...
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Klondex Mines IR Presentation

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Klondex Mines IR Presentation

  1. 1. KLONDEX MINES LTD.
 CORPORATE PRESENTATION ! ! March 2013"FIRE CREEK: Poised for Growth "in the Heart of Nevada, Gold "Country" 1 1
  2. 2. FORWARD-LOOKING STATEMENTS"Forward-Looking Statements"This presentation may include certain statements that may be deemed “forward-looking statements." All statements inthis 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 explorationare forward-looking statements. Although the Company believes the expectations expressed in such forward-lookingstatements are based on reasonable assumptions, such statements are not guarantees of future performance and actualresults or developments may differ materially from those in the forward-looking statements. Factors that could causeactual 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, changesin the availability of funding for mineral exploration, unanticipated changes in key management personnel, unavailabilityof 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 workprograms 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, investorsshould 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 Instrument43-101. While such terms are recognized and required by Canadian Securities laws, the United States Securities andExchange Commission does not recognize them. Under the United States standards, mineralization many not beclassified as a “reserve” unless the determination has been made that the mineralization could be economically andlegally produced or extracted at the time the reserve calculation is made. “Inferred Resources” have a great amount ofuncertainty as to their economic and legal feasibility and readers are cautioned not to assume that all or any part of theinferred resources exists or is economically mineable." 2"
  3. 3. KLONDEX: GOLD EXPLORATION AND DEVELOPMENT"●  NEW operations-focused management team"●  FULLY-FUNDED into the bulk sample" Fire Creek!●  Significant infrastructure onsite and in region"●  Huge exploration potential (11,200 acres/
 17.5 sq mi of fee based and claim land, in Lander County, Nevada)"●  Permitting substantially in place "" Updated BEGIN! Re-logging core" PEA" Resource" FIRE CREEKCritical Path to Cash Flows: BULK ! Final Milling Power-Line Vent-raise SAMPLE in Agreement" Connect" Access" Q3 2013! 3
  4. 4. MANAGEMENT: OPERATIONS-FOCUSED" Paul Huet – President, CEO and Director! ●  25 years high-grade mining experience, particularly in narrow vein gold mining in Nevada" ●  Led team taking Hollister Mine to 80k-100k gold equivalent oz/year; Mine Manager of Newmont’s Midas Mine; COO at Premier Gold" ●  Extensive experience/knowledge in Mine Operations, Engineering, Geology, Exploration, Permitting and Safety" Larry Phillips – Chairman of the Board (effective April 1, 2013)! ●  IAMGOLD co-founder, EVP and General Counsel; built company into one of the world’s largest gold mining companies" ●  Former Director of The World Gold Council; was Managing Partner of Toronto-based law firm specializing in corporate commercial law" ●  Currently President of Corplex Management Services, Toronto, international business and governmental affairs advisory services" " Jorge Avelino – Chief Financial Officer! ●  25+ years of accounting and financial management experience across range of industries and public companies" ●  Public resource company experience since 1986" Mike Doolin – General Manager! ●  25-year veteran with extensive experience in design and permitting of mining projects" ●  Substantial experience in milling, metallurgy and assay operation; successfully managed large and small teams on multiple projects" ●  Most recently served with Great Basin Gold as Esmeralda Mill Manager" Steve McMillin – Chief Geologist! ●  25 years experience including grass-roots, near-mine exploration and underground production" ●  Previously with US Steel, Newmont Exploration Ltd., Anglo Gold Jerritt Canyon, Queenstake Resources, Midway Gold" " Sid Tolbert – Mine Superintendent! ●  20 years of mining experience with extensive knowledge in the extraction of narrow, high-grade gold vein systems in Nevada" ●  14 years with Newmont, including Mine Superintendent and Foreman at the Midas Mine and its Vista project at Twin Creeks" ●  Extensive knowledge and understanding of underground mining methods, ground conditions, budgets and dilution management" 4"
  5. 5. FIRE CREEK – LOCATION & EXCELLENT INFRASTRUCTURE" Fire Creek Portal ●  Strategically situated at the heart of the Nevada gold trend" §  At the intersection of Northern Nevada Rift & Battle Mountain Trend" §  Ken Snyder (Midas) and Hollister Mines, and Fire Creek deposit" §  Narrow vein epithermal gold deposits" ●  Accessible via federal and state roads" ●  Several regional mills " ●  Substantial mining infrastructure on site and in region" ●  Favorable regulatory environment" 5
  6. 6. FIRE CREEK – INITIATING THE BULK SAMPLE IN 2013" N ●  Infrastructure and logistics onsite!   13 opt Au intercept   §  5000 ft+ of underground workings (ramp, decline   cut and cross cuts)" c ross Vent raise access 5730     cut §  Power substation complete, connection to Nevada Visible gold cr oss found 5400 Past power imminent " g drillin 1 01 §  All new equipment and buildings onsite" and 2 ce r resou te ●  Tremendous exploration growth potential:" a estim §  Gold resources on 7% of the land package; east of drift" §  East of drift: Underground in-fill drilling to define Portal continuity" Ø  32,000 ft u/g infill drill program - 2013" §  West of drift: mineralization discovered by excavating the vent raise access" Water treatment ponds ●  Permits in place for small-scale production! Office buildings ●  Bulk Sample to begin in Q3 2013! and core shack §  Milling agreement under negotiation" §  Permitted for 120,000 tons" ●  Begin environmental assessment and baseline 500 ft 1000 ft studies in 2013! 6
  7. 7. FIRE CREEK – RESOURCE MODEL"●  Current resource of 1.6M ozs Indicated and 458k ozs Klondex Mines Ltd.! ● Source: Technical Report Data as of May 21, 2011; Inferred, dated May 2011" NI 43-101 Compliant Resource! Released September 12, 2011
●  Updated resource estimate targeted mid-2013, by Note: *At variable Au prices we Metric Gold Cutoff" " can selectively mine areas Grade" Gold" Micon International" and remain economic" (g/t)" Category" Tonnes" (g/t)" (0z)" §  240,000 ft of core re-logging & geology review" 4.0" Indicated" 5,176,050" 9.9" 1,647,052" §  May lead to similar amount of ounces, better 4.0" Inferred" 1,732,810" 8.2" 458,084" grade, and fewer tonnes " 7.0! Indicated! 2,145,283! 17.6! 1,215,019! 7.0! Inferred! 555,043! 12.5! 223,794! Underexplored on strike and at depth 7
  8. 8. EXPLORATION: MAIN ZONE CONTINUITY, WEST ZONE DISCOVERY"Main Zone (east of drift): A-Vein shows increase of width and grade from 5400 drift to 5370 drift!●  496.7 g/t (14.5 oz/ton) gold over 1.82m (6ft) (press release: Jan. 2, 2013)"●  True width at 5370-ACC crosscut estimated at 1.7m (5.5ft)"West Zone: discovered while excavating for vent raise access!●  5ft intercept at 528ft – 123.9 g/t Au "●  Found approximately 400ft west of decline"●  Visible gold found in drill hole & blast hole" 1cmRecent Discovery! 8
  9. 9. 2013 UNDERGROUND IN-FILL DRILLING PROGRAM"" Underground infill drill program" ●  16 easterly drill fans, 3 - 4 holes per fan" ●  ~ 9,754m (32,000 ft) of drilling" ●  Drilling on 23m (75ft) spacing" ●  Prior surface was on drilling on 50m (164ft) spacing" Will be included in the resource due mid-2013! ●  Heavy red lines: Phase 1 u/g drill program" 9
  10. 10. FIRE CREEK BULK SAMPLE PERMITS"●  Issued Permits! §  BLM permit # N-56088 Amendment allowing NV Energy to connect to offsite substation: 12/12" §  Class II Air Quality Operating Permit #AP1041-2774 (State): 3/17/11 & 7/3/12" §  Water Pollution Control Permit #NEV2007104 (State): 3/1/11, 11/7/11 & 6/20/12" §  BLM Notice to Proceed (Fed): 9/29/10 " §  NDEP application for 6-month temporary discharge permit submitted 1/15/13" Ø Addresses water until Rapid Infiltration Basin (RIB) completed"●  Future Permits! §  RIB Permit – in process" Ø Geotechnical work begun to complete final RIB design" §  Easements to bring power on site – in process" §  Revised Plan of Operations (BLM) and Water Pollution Control Permit (State) – in process" §  EA to expand project to full production" " 10"
  11. 11. KLONDEX ROAD MAP" Cost Est.! 2012! 2013! 2014! US $M! Q3" Q4" Q1" Q2" Q3" Q4" Q1" Q2" Q3" Q4"Strengthen Board! -"New CEO and Operations Team" -" ✔ ✔ ✔Funding ($23M Equity, $7M Debt)" -" ✔ ✔Infill drilling – underground! $ 2.9"Mine infrastructure! $ 1.0" ✔Examine, re-log core, pictures and metallurgy! $ 1.0"Prepare new resource! $ 0.3"Prepare PEA" $ 0.3"Vent raise construction! $ 1.4"Milling agreement! -"Power line installation! $ 1.3"Remaining drifting underground! $ 3.2"Temporary Discharge Permit" -" ✔Water management (RIB)! $ 0.8"Full scale Production Permit - EA! $ 0.5"Initiate Bulk Sample" -" Total Estimated Costs" $12.7" 11"
  12. 12. ATTRACTIVE VALUATION VS. JUNIOR GOLD PEERS"Klondex sells at a significant discount to
its peer group on an EV/resource basis, EV / Total Resources ($/oz Au)!yet Klondex has:" $200.00 $185.92 $185.72" $180.00 §  strong management & Board" $160.00 §  funding in place" $140.00 EV/ Total Resources (US$/oz Au) §  great location" $120.00 $86 - Peer Average §  impressive grade" $100.00 excluding KDX §  significant resource potential" $80.00 $56.72 $46.89* §  permitting largely in place" $60.00 $37.52 $32.93 $32.67 §  direct site grid power imminent" $40.00 $17.16 $20.00 §  water management system underway" $0.00 §  access to mills" RMX CNL VG DNA ATN KDX PVG §  near-term production" * based on 1.6M Indicated gold oz; Excludes 0.4M Inferred oz." 12
  13. 13. KDX SHARE PRICE PERFORMANCE VS. PEERS" 3-mo Average Trading Volume: 36,400" Source: Morningstar.com! 13
  14. 14. KLONDEX SPONSORSHIP"●  Klondex’s top shareholders include leading resource investors and substantial management ownership." Top Shareholders! Coverage! % FD! Ownership*! Equity Research! Analyst! Outstanding!K2 & Associates" 11.5M" 13.5%" Fraser Mackenzie" Sasha Bukacheva"Glenn Pountney" 7.5M" 8.8%" Mackie Research Capital" Barry Allan"William Solloway" 3.8M" 4.4%" MGI Securities" Marc Pais"U.S. Global Investors" 3.4M" 4.0%" GMP Securities" George Albino"William Matlack, Director" 1.4M" 1.7%"Sprott Asset Management" 1.3M" 1.5%" Churchill Research" Mike Churchill"Paul Huet, CEO" 1.1M" 1.3%" Gold Energy & Tech Stocks" Jay Taylor"Brendan Donohoe" 1.1M" 1.3%" The Mining Speculator" Greg McCoach"LDIC" 0.6M" 0.8%"* Includes shares, warrants, options" 14"
  15. 15. KLONDEX CAPITALIZATION" TSX: KDX Symbol! OTCQX: KLNDF! Share Price! C$1.12" 52 Week Range! C$1.07 to C$2.44" Average Volume (3M) ! 38K" Shares Issued and Out! 64.4M" Fully Diluted! 85.3M" Market Cap! C$72M" Enterprise Value! C$67M" Cash! C$14M" Debt:" " Jones Gable – Short Term"As of January 23, 2013" C$1.58M" Long-Term – due June 2015" C$7.00M" View of Fire Creek Assay Bags, looking east, Crescent Valley in distance" 15"
  16. 16. CONTACT INFORMATION"!!!Klondex Mines Ltd.!Suite 600, 595 Howe Street"Vancouver, British Columbia"V6C 2T5"www.klondexmines.com!!Paul Huet, President & CEO"807-939-2841"investors@klondexmines.com""Alison Tullis, Manager, IR"647-233-4348"atullis@klondexmines.com"!Investors & Media:!David Collins, Toni Trigiani"Catalyst Global LLC"212-924-9800"KDX@catalyst-ir.com" "" View of Fire Creek Operations Looking South! 16"

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