Hecla Mining Co (HL)

[NYBob]

Klondex Announces Securityholder Approval of Proposed Acquisition by Hecla
VANCOUVER, British Columbia, July 12, 2018 (GLOBE NEWSWIRE) --

Klondex Mines Ltd. (TSX:KDX) (NYSE American:KLDX) ("Klondex",
the "Company") today announced that its shareholders and securityholders approved the proposed statutory plan of arrangement (the "Plan of Arrangement") with Hecla Mining Company (NYSE:HL) ("Hecla") at the Klondex annual and special meeting of securityholders held today. Under the approved Plan of Arrangement, Hecla will acquire all of the issued and outstanding Klondex shares (the "Arrangement").

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Of the Klondex shareholders who voted, approximately 99.62% Klondex shareholders voted in favor of the special resolution approving the Plan of Arrangement. Of the Klondex shareholders and securityholders who voted, approximately 99.61% Klondex shareholders and securityholders (voting as a single class) voted in favor of the special resolution approving the Plan of Arrangement.

All matters presented for approval at the meeting were duly authorized and approved, as follows:

approval of the Arrangement by special resolution of the Klondex shareholders and securityholders;
approval of a share option plan for Havilah;
election of all management nominees to the board of directors of the Company for the ensuing year or for the period up to the effective time of the Arrangement;
appointment of PricewaterhouseCoopers LLP as auditors of the Company for the ensuing year and authorization of the directors to fix their remuneration; and
approval of a non-binding advisory resolution on the Company's approach to executive compensation.
Detailed voting results for the election of directors were as follows:

Name Shares Voted For % Voted For Shares Withheld % Withheld
Rodney Cooper 121,262,375 98.98% 1,252,579 1.02%
Mark Daniel 116,114,429 94.78% 6,400,525 5.22%
James Haggarty 121,262,137 98.98% 1,252,817 1.02%
Richard J. Hall 121,130,372 98.87% 1,384,582 1.13%
Paul Huet 121,026,444 98.79% 1,488,510 1.21%
William Matlack 119,014,878 97.14% 3,500,076 2.86%
Charles Oliver 121,078,547 98.83% 1,436,407 1.17%
Blair Schultz 120,847,691 98.64% 1,667,263 1.36%

Subject to customary closing conditions in accordance with the Plan of Arrangement, the transaction is expected to close on or about July 20, 2018.

In connection with the closing of the Plan of Arrangement, Klondex is expected to concurrently complete the spin-out of its Canadian assets into Havilah Mining Corporation ("Havilah"), a newly formed company to be listed on the TSX Venture Exchange ("TSXV"). The TSXV listing application and other important disclosure pertaining to Havilah are available on SEDAR at www.sedar.com under Havilah's issuer profile.

Contact

Mike Beckstead
Director, Investor Relations
775-284-5757
[e-mail]

About Klondex Mines Ltd. (www.klondexmines.com)

Klondex is a junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine, the Midas Mine and ore milling facility, and the Hollister Mine, all of which are located in the state of Nevada, USA. The Company also has a 100% interest in the True North Mine and mill in Manitoba, Canada and the Aurora Mine and ore milling facility, located in Nevada, USA.

Cautionary Note Regarding Forward-looking Information

This news release contains certain information that may constitute forward-looking information ---- Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.

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