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Re:   News - Wednesday, June 17, 2009
      Klondex Appoints Special Committee to Review Silvercorp Takeover
      Offer and other Strategic Alternatives for its "Fire Creek" 1.6
      Million Ounce Indicated Gold Resource in Nevada
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- Reports Exercise of Share Purchase Warrants -

Vancouver, British Columbia - June 17, 2009 - Klondex Mines Ltd. (TSX:
KDX) announced today that it has formed a special committee of the
Board of Directors to review the unsolicited takeover bid for Klondex
by Silvercorp Metals Inc. (TSX: SVM; NYSE Amex: SVM).  The Special
Committee is chaired by Robert Sibthorpe and includes John Pollock, P.
Eng. and Ronald Shorr, CFA; brief bios of the committee are provided
below.  Klondex also reported that a number of holders of its share
purchase warrants have exercised their warrants, generating additional
cash to fund the Company's operations.

Klondex has been engaged in discussions with prospective mining
industry and financial partners concerning a range of possible
strategic or financial transactions aimed at enabling the continued
exploration of Klondex's Fire Creek high-grade gold deposit in North
Central Nevada both from the surface and via a proposed underground
in-fill drilling and bulk sampling program.  Klondex's dialogues have
focused on strategic equity and/or debt investments, related technical
services agreements, proposals for the sale or merger of some or all of
the company and other complementary transactions.  Discussions of this
nature have been ongoing for some time.

Robert Sibthorpe, Chairman of the Special Committee, stated: "Many of
our shareholders have held Klondex shares for many years and have paid
substantially more for their shares than the current price.  They
recognize the value we have developed at Fire Creek, as well as the
substantial potential that still remains in further expanding and
developing the resource.  We believe they have been attracted to our
singular focus on Nevada gold exploration as well as our efforts to
limit the risk and capital investment required to initiate our bulk
sampling program.  Recent shareholder conversations confirm their
support for management and the Board taking sufficient time to review
all possible strategic alternatives prior to choosing the best path
forward."

The Silvercorp bid, commenced by advertisement in the Globe and Mail on
June 15, 2009, is not a "Permitted Bid" under Klondex's 2007
Shareholder Rights Plan (the "Rights Plan").  In the absence of a
waiver of the application of the Rights Plan which is under
consideration by the Board, the rights issued under the Rights Plan
(the "Rights") will separate from the common shares and become
exercisable after the close of business on Monday, June 22, 2009 (the
"Separation Time").  At the Separation Time, each Right will entitle
the holder to purchase one common share of Klondex for $100.  If after
the Separation Time, an event occurs which could result in a person
becoming the holder of greater than 20% of the outstanding shares, then
10 business days after such event, each Right will entitle the holder
to purchase for $100 common shares of Klondex having an aggregate
market price of CDN $200.

Based on yesterday's closing share price, Silvercorp's all-stock bid of
0.5 of a share of Silvercorp common stock for each share of Klondex
common stock was valued at CDN $1.83 per Klondex share, or
approximately CDN $48.9 million, based on 26,719,804 shares issued and
outstanding as of March 31, 2009.  Yesterday's closing price of Klondex
common stock was CDN $1.78.

Klondex recommends that its shareholders defer making any decision on
the Silvercorp offer until the Board has reviewed all potential
opportunities and is able to make a formal recommendation.

SPECIAL COMMITTEE MEMBERS
Mr. Sibthorpe, a director of Klondex, is a geological consultant (MBA,
B. Sc (Geol)) with extensive experience in the mineral exploration
sector working in geology and business development with senior mining
companies including Noranda, Falconbridge and Ivanhoe Mines.  He also
served as a research and corporate finance analyst in the securities
industry for Midland Doherty Ltd., Yorkton Securities Inc. and
Canaccord Capital Corp.  Mr. Sibthorpe is also a Director of Madison
Minerals Inc. (TSX-V: MMR) and Oromin Resources (TSX-V: OLE).

Mr. Shorr, a director of Klondex, has over 30 years of experience in
the precious metals industry and is President and CEO of Maudore
Minerals Ltd. (TSX-V: MAO).  Mr. Shorr is also a director of: Longview
Capital Partners Incorporated (TSX-V: LV) and Tournigan Energy
Corporation (TSX-V: TVC).  Mr. Shorr was a senior mining analyst with
Bear, Stearns & Co. and Morgan Stanley Dean Witter.  Mr. Shorr earned
his BA from the University of Michigan, his MBA from Harvard Business
School, and did post-graduate work at Columbia University's Henry Crumb
School of Mines.

Mr. Pollock, a director of Klondex, has served as a Professional Mining
Engineer since 1970 and is President and CEO of Newstrike Resources
Ltd. (TSX-V: NR).  Previously, he worked for various mining companies,
primarily for Pioneer Consultants Ltd. and was a founder of several
TSX-listed companies, including Warren Explorations Limited, Jonpol
Explorations Ltd, Northway Explorations Ltd., T&H Resources Ltd. and
Aurado Explorations Limited.  Mr. Pollock currently serves as a
director of Premier Gold Mines Limited (TSX: PG).  He received his
Ontario Prospector License in 1950 and attended Michigan Technological
University of Houghton, Michigan.

About Klondex Mines:
Klondex Mines Ltd. is a gold exploration company focused on the
development and expansion of its 100%-owned, high-grade Fire Creek
deposit in Nevada which consists of 10,708 acres of fee and lease land.
 In March 2009 Klondex defined an Indicated Mineral Resource at Fire
Creek estimated at 5,043,033 tonnes grading 10.11 grams per tonne
containing 1,639,822 ounces of gold.  The Fire Creek deposit is
classified as a "bonanza" grade epithermal gold deposit characterized
by high-grade drill intervals including 1.52 meters grading 411 grams
(13 oz.) per tonne in hole FC0417.

Fire Creek is located in North Central Nevada, an area of prolific gold
production, at the intersection of the Battle Mountain-Eureka Trend and
the Northern Nevada Rift.  The Company was founded over 35 years ago,
and its property portfolio consists of four gold exploration projects,
all in Nevada.  Eighty percent of Klondex' known resource is on private
land.  For more information, please visit www.klondexmines.com.

ON BEHALF OF KLONDEX MINES LTD.

"William Solloway"
President

"Bob Sibthorpe"
Director


Investor Contact:
David Collins, Ratula Roy Velez
Jaffoni & Collins Incorporated
KDX@jcir.com, (212) 835-8500

Cautionary Statement:
This news release may contain forward-looking statements.  Actual
results may differ materially from those indicated by such statements.
All statements, other than statements of historical fact, included in
this news release, are forward looking statements that involve various
risks and uncertainties.  There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements.

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Copyright (c) 2009 KLONDEX MINES LIMITED (KDX)  All rights reserved.
For more information visit our website at http://www.klondexmines.com/
or send mailto:info@klondexmines.com
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