Sun Valley Gold LLC: Disposition of Common Shares of Klondex Mines Ltd.

SUN VALLEY, IDAHO--(Marketwired - Aug. 7, 2015) - Sun Valley Gold LLC ("Sun Valley") announced today that on August 6, 2015 it sold 750,000 common shares ("Common Shares") of Klondex Mines Ltd. ("Klondex") on behalf of client accounts over which Sun Valley has discretionary trading authority. The Common Shares, which were beneficially owned by the client accounts, were sold in the open market over the facilities of the Toronto Stock Exchange at a price of $3.30 per Common Share. Following completion of the sale, Sun Valley exercises control and direction over 12,501,800 Common Shares for and on behalf of client accounts, representing approximately 9.75% of the issued and outstanding Common Shares. As a result of such sale, Sun Valley is no longer an insider of Klondex for purposes of Canadian securities laws.

The securities of Klondex were acquired for investment purposes. Sun Valley may increase or decrease its ownership of securities of Klondex depending upon future market conditions.

FOR FURTHER INFORMATION, OR TO OBTAIN A COPY OF THE EARLY WARNING REPORT FILED BY SUN VALLEY UNDER APPLICABLE SECURITIES LEGISLATION, PLEASE SEE THE CONTACT INFORMATION BELOW.