Early Warning Report News Release in respect of Klondex Mines Ltd.

TORONTO, Feb. 28, 2018 /CNW/ - Waterton Global Resource Management, Inc. ("WGRM Inc."), on behalf of Waterton Mining Parallel Fund Offshore Master, LP ("Waterton Mining LP"), Waterton Nevada Splitter, LLC ("Waterton Nevada"), Waterton Precious Metals Fund II Cayman, LP ("Waterton Fund II") and related entities (collectively, "Waterton"), announced today that Waterton acquired 164,985 common shares of Klondex Mines Ltd. ("Klondex"), representing approximately 0.09% of the outstanding common shares, through market purchases on the Toronto Stock Exchange and NYSE American on February 27, 2018 at an average price of approximately C$1.83 per common share or C$302,158 in the aggregate.

Immediately prior to giving effect to the acquisition, Waterton owned and exercised control or direction over, in the aggregate, 13,439,829 common shares (excluding 5,000,000 common shares issuable upon the exercise of warrants (the "Warrants") to purchase common shares beneficially owned by a Waterton entity), representing approximately 7.48% of the outstanding common shares. Immediately after giving effect to the acquisition, Waterton owns and exercise control or direction over 13,604,814 common shares (excluding 5,000,000 common shares issuable upon the exercise of the Warrants), representing approximately 7.57% of the outstanding common shares. If the Warrants were exercised: (i) immediately before the acquisition Waterton would have owned and exercised control or direction over approximately 9.99% of the outstanding common shares on a partially diluted basis; and (ii) immediately after the acquisition, Waterton would own and exercise control or direction over approximately 10.08% of the outstanding common shares on a partially diluted basis.

The common shares were acquired for investment purposes. Waterton may, depending on market and other conditions, acquire additional common shares through market transactions, private agreements, treasury issuances, exercise of warrants, or otherwise, or may sell all or some portion of the common shares, or may continue to hold the common shares.

For further information and to obtain a copy of the early warning report filed by Waterton under applicable Canadian securities laws in connection with the acquisitions, please see Klondex's profile on the SEDAR website www.sedar.com or contact Richard Wells, Chief Financial Officer at 416-504-3507.

The head office address of WGRM Inc. is Commerce Court West, 199 Bay Street, Suite 5050, Toronto, Ontario, M5L 1E2, Canada. The head office address of each of Waterton Mining LP and Waterton Fund II is Ugland House, Grand Cayman, Cayman Islands, KY1-1104. The head office address of Waterton Nevada is 9650 Gateway Drive, Suite 202, Reno, Nevada, USA 89521.

The head office address of Klondex is 6110 Plumas Street, Suite A, Reno, Nevada, USA.

SOURCE Waterton Global Resource Management

Richard Wells, Chief Financial Officer, 416-504-3507