KLONDEX MINES LTD. DEFERRED SHARE UNIT PLAN EFFECTIVE MAY 13, 2016 ARTICLE ONE DEFINITIONS AND INTERPRETATION

Section 1.01    Definitions: For the purposes of this Plan, unless such word or term is otherwise defined herein or the context in which such word or term is used herein otherwise requires, the following words and terms with the initial letter or letters thereof capitalized shall have the following meanings:

"Account" has the meaning ascribed to such term in Section 2.04;

"Act" means the Business Corporations Act (British Columbia) or its successor, as may be amended from time to time;

"Affiliate" means an affiliate of the Corporation, as the term "affiliate" is defined in paragraph 8 of the Canada Revenue Agency's Interpretation Bulletin IT-337R4, Retiring Allowances (Consolidated) [Archived] or any successor publication thereto;

"Applicable Withholding Taxes" has the meaning ascribed to such term in Section 4.01(c);

"Associate" where used to indicate a relationship with any person or company is as defined in the Securities Act (British Columbia), as may be amended from time to time;

"Beneficiary" means, subject to applicable laws, an individual who has been designated by an Eligible Director, as contemplated by Section 3.05, to receive benefits payable under the Plan upon the death of the Eligible Director or, where no such designation is validly in effect at the time of death or where the designated individual does not survive the Eligible Director, the Eligible Director's estate;

"Blackout Period" means a period when an Eligible Director is prohibited from trading in the Corporation's securities pursuant to the Corporation's written policies then applicable or a notice in writing to an Eligible Director by a senior officer or a director of the Corporation;

"Board" means the Board of Directors of the Corporation;

"Business Day" means each day other than a Saturday, Sunday or statutory holiday in Vancouver, British Columbia, Canada or Reno, Nevada;

"Canadian Eligible Director" means an Eligible Director who is resident in Canada for purposes of the Tax Act and/or who is subject to taxation under the Tax Act in respect of any Deferred Share Units awarded under the Plan;

"Cease Trade Date" has the meaning ascribed to such term in Section 3.04(f);

"Change of Control" means the occurrence of any one or more of the following events:

of a reorganization of the assets of the Corporation and its Affiliates;

For the purposes of the foregoing, "Voting Securities" means Shares and any other shares entitled to vote for the election of directors and shall include any security, whether or not issued by the Corporation, which are not shares entitled to vote for the election of directors but are convertible into or exchangeable for shares which are entitled to vote for the election of directors including any options or rights to purchase such shares or securities;

"Code" means the United States Internal Revenue Code of 1986, as amended;

"Committee" means the Board or, if the Board so determines in accordance with Section 2.03 of the Plan, the committee of the Board authorized to administer the Plan which includes any compensation committee of the Board;

"Corporation" means Klondex Mines Ltd., a corporation existing under the Act, and includes any successor corporation thereof;

"Deferred Share Unit" means a notional unit credited by the Corporation to the Account of an Eligible Director by way of a bookkeeping entry in the books of the Corporation and administered pursuant to the terms of the Plan, the value of which on a particular date shall be equal to the Market Value at that date;

"Deferred Share Unit Award" means an award of Deferred Share Units under the Plan to an Eligible Director;

"Deferred Share Unit Grant Letter" has the meaning ascribed to such term in Section 3.08;

"Dividend Payment Date" has the meaning ascribed to such term in Section 3.03;

"Dividend Record Date" has the meaning ascribed to such term in Section 3.03;

"Dual Participant" has the meaning ascribed to such term in Section 3.04(k);

"Eligible Director" means a director of the Corporation who does not receive employment income within the meaning of the Tax Act in respect of services rendered to the Corporation or any Affiliate, otherwise than in his or her capacity as a member of the Board or a member of the board of directors of an Affiliate;

"Exchange" means the TSX and any other stock exchange on which the Shares are listed for trading, provided that when used with reference to Market Value, Exchange shall mean the TSX unless otherwise specified by the Board or Committee;

"Market Value" means, with respect to any particular date, the weighted-average trading price of Shares on the Exchange for the five (5) consecutive Trading Days immediately prior to the date as of which Market Value is determined, provided that: (i) where the Market Value would be determined with reference to a period commencing after a fiscal quarter end of the Corporation and

ending prior to the public disclosure of interim financial statements for such quarter (or annual financial statements in the case of the fourth quarter), the calculation of the Market Value will be made with reference to the fifth (5th) Trading Day immediately following the date of public disclosure of the financial statements for that quarter; and (ii) in the event of a Cease Trade Date, Market Value shall be such other value as may be determined pursuant to Section 3.04(f);

"NYSE MKT" means the NYSE MKT;

"Payment Date" has the meaning ascribed to such term in Section 3.04(b);

"Plan" means this Deferred Share Unit Plan, as same may be amended from time to time;

"Redemption Date" has the meaning ascribed to such term in Section 3.04(a);

"Related Company" means a corporation which is related to the Corporation for the purposes of the Tax Act;

"Section 409A" means section 409A of the Code and the Treasury Regulations and Internal Revenue Service guidance promulgated thereunder as in effect from time to time;

"Separation from Service" means a separation from service as defined under Section 409A.

"Shares" means the common shares in the capital of the Corporation, as adjusted in accordance with the provisions of Section 5.07;

"Specified Employee" has the meaning ascribed to such term in Section 3.04(d);

"Tax Act" means the Income Tax Act (Canada) and any regulations thereto, as may be amended from time to time;

"Termination Date" means, in respect of an Eligible Director, the earliest date on which both of the following conditions are satisfied: (i) the Eligible Director is not a member of the Board nor a member of the board of directors of an Affiliate; and (ii) the Eligible Director is not an employee, within the meaning of the Tax Act, of the Corporation or an Affiliate ;

"Trading Day" means any date on which the TSX is open for the trading of Shares;

"Treasury Regulations" means the tax regulations issued by the United States Internal Revenue Service;

"TSX" means the Toronto Stock Exchange;

"U.S. Eligible Director" means an Eligible Director subject to tax under the Code in respect of Deferred Share Units awarded under the Plan; and

"Vested Deferred Share Units" has the meaning ascribed to such term in Section 3.02.

Section 1.02    Headings: The headings of all articles, sections and paragraphs in the Plan are inserted for convenience of reference only and shall not affect the construction or interpretation of the Plan.

Section 1.03    Context, Construction: Whenever the singular or masculine are used in the Plan, the same shall be construed as being the plural or feminine or neuter or vice versa where the context so requires.

Section 1.04    References to this Plan: The words "herein", "hereby", "hereunder", "hereof" and similar expressions mean or refer to the Plan as a whole and not to any particular article, section, paragraph or other part hereof.

Section 2.01    Purpose of the Deferred Share Unit Plan: The purpose of the Plan is to assist the Corporation in the recruitment and retention of qualified persons to serve as directors of the Corporation and to align the interests of Eligible Directors with the long-term interests of the shareholders of the Corporation.

Section 2.02    Administration of the Deferred Share Unit Plan: The Plan shall be administered by the Committee and the Committee shall have full authority to administer the Plan including the authority to interpret and construe any provision of the Plan and to adopt, amend and rescind such rules and regulations for administering the Plan as the Committee may deem necessary in order to comply with the requirements of the Plan. All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and conclusive and shall be binding on the Eligible Directors and the Corporation. No member of the Committee shall be personally liable for any action taken or determination or interpretation made in good faith in connection with the Plan and all members of the Committee shall, in addition to their rights as directors of the Corporation, be fully protected, indemnified and held harmless by the Corporation with respect to any such action taken or determination or interpretation made in good faith. The appropriate officers of the Corporation are hereby authorized and empowered to do all things and execute and deliver all instruments, undertakings and applications and writings as they, in their absolute discretion, consider necessary for the implementation of the Plan and of the rules and regulations established for administering the Plan. All costs incurred in connection with the Plan shall be for the account of the Corporation.

Section 2.03    Delegation to Committee: All of the powers exercisable hereunder by the Board may, to the extent permitted by applicable law and as determined by resolution of the Board, be exercised by a committee of the Board comprised of not less than three (3) directors of the Corporation, including any compensation committee of the Board.

Section 2.04    Record Keeping: The Corporation shall maintain an account for each Eligible Director (an "Account") in which shall be recorded:

Section 2.05    Determination of Eligible Directors and Participation: The Committee shall from time to time determine the Eligible Directors who may participate in the Plan. The Committee shall from time to time determine the Eligible Directors to whom Deferred Share Units shall be granted and the provisions and restrictions with respect to such grant, all such determinations to be made in accordance with the terms and conditions of the Plan, and the Committee may take into consideration the present and potential contributions of and the services rendered by the particular Eligible Director to the success of the Corporation and any other factors which the Committee deems appropriate and relevant.

Section 3.01    Deferred Share Unit Plan: The Plan is hereby established for Eligible Directors.

Section 3.02    Grant of Deferred Share Units: The Committee may from time to time grant Deferred Share Units to an Eligible Director in such numbers, at such times and on such terms and conditions, consistent with the Plan, as the Committee may in its sole discretion determine to be appropriate in respect of the services the Eligible Director renders as a member of the Board. For greater certainty, the Committee shall, in its sole discretion, determine any and all conditions to the vesting of any Deferred Share Units granted to an Eligible Director, which conditions shall be set out in the Deferred Share Unit Grant Letter. The Committee may in its sole and absolute discretion accelerate and/or waive any vesting or other conditions for all or any Deferred Share Units for any Eligible Director at any time and from time to time, subject to the requirements of paragraph 6801(d) of the regulations to the Tax Act for Canadian Eligible Directors, and provided that any such acceleration of vesting or waiver of any vesting or other conditions shall not accelerate the settlement/payment of such Deferred Share Units, which shall occur upon the Eligible Director's Separation from Service or Termination Date, as the case may be, in accordance with Section 3.04. Deferred Share Units that are fully vested at the time of grant as set forth in the applicable Deferred Share Unit Grant Letter, or that become vested through the satisfaction of any applicable vesting or other conditions or the waiver of such vesting or other conditions by the Committee, are referred to as "Vested Deferred Share Units".

Section 3.03    Payment of Dividend Equivalents: If determined by the Committee in its sole discretion and if set out in the applicable Deferred Share Unit Grant Letter, on the payment date for cash dividends paid on Shares (the "Dividend Payment Date"), the Account for each Eligible Director shall be credited with additional Deferred Share Units in respect of the number of Deferred Share Units credited to the Eligible Director's Account as of the record date for payment of such dividends (the "Dividend Record Date"). In such case, the number of additional Deferred Share Units will be equal to (computed to two (2) decimal places) the aggregate amount of dividends that would have been paid to the Eligible Director if the Deferred Share Units in the Eligible Director's Account on the Dividend Record Date had been Shares divided by the Market Value of a Share on the Dividend Payment Date. However, no Deferred Share Units will be credited to an Eligible Director's Account in respect of dividends paid on Shares where the Dividend Record Date relating to such dividends falls after such Eligible Director's Termination Date. Any Deferred Share Units granted pursuant to this Section 3.03 shall have the same vesting and settlement/payment conditions as the underlying Deferred Share Units in the Eligible Director's Account.

Section 3.04    Redemption of Deferred Share Units

Section 3.05     Designation of Beneficiary: Subject to the requirements of applicable laws, an Eligible Director shall designate in writing a person who is a dependant or relation of the Eligible Director as a Beneficiary to receive any benefits that are payable under the Plan upon the death of such Eligible Director. The Eligible Director may, subject to applicable law, change such designation from time to time. Such designation or change shall be in such written form as may be determined by the Corporation from time to time. The initial designation of each Eligible Director shall be executed and filed with the Committee: (a) in the case of an existing director, within thirty (30) days following the effective date of this Plan, or (b) in the case of a new director, within thirty (30) days after the Eligible Director's appointment to the Board.

Section 3.06     Death of Eligible Director: In the event of an Eligible Director's death prior to Separation from Service or Termination Date, as applicable, any and all Deferred Share Units then credited to the Eligible Director's Account shall become payable to the Eligible Director's Beneficiary in accordance with Section 3.05 and, for greater certainty, the date of death shall be deemed to be the date of the Eligible Director's Separation from Service or Termination Date, as applicable.

Section 3.07    Market Fluctuation: For greater certainty, no amount will be paid to, or in respect of, an Eligible Director or any person with whom the Eligible Director does not deal at arm's length, within the meaning of the Tax Act, under the Plan or pursuant to any other arrangement, and no additional Deferred Share Units will be granted to an Eligible Director, to compensate the Eligible Director for any downward fluctuations in the price of a Share nor will any other form of benefit be conferred upon, or in respect of, an Eligible Director or any person with whom the Eligible Director does not deal at arm's length, within the meaning of the Tax Act, for such a purpose.

Section 3.08     Deferred Share Unit Grant Letter: Each grant of a Deferred Share Unit Award under the Plan shall be evidenced by a Deferred Share Unit grant letter to the Eligible Director from the Corporation (a "Deferred Share Unit Grant Letter"). Such Deferred Share Unit Grant Letter shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Deferred Share Unit Grant Letter. The provisions of the various Deferred Share Unit Grant Letters issued under the Plan need not be identical.

Section 3.09    Change of Control: If there is a Change of Control, all Deferred Share Units outstanding shall immediately vest on the date of such Change of Control. In any event, upon a Change of Control, Eligible Directors shall not be treated any more favourably than shareholders of the Corporation with respect to the consideration that the Eligible Directors would be entitled to receive for their Shares.

Section 3.10    Termination of Unvested Deferred Share Units: All Deferred Share Units that have not vested prior to the Eligible Director's Separation from Service or Termination Date, as applicable, will terminate and be of no further force and effect.

Section 4.01    Taxes and Other Source Deductions:

credited to such Eligible Director (or Beneficiary).

Section 5.01    Effective Time of Deferred Share Unit Plan: The Plan shall be effective on May 13, 2016. The Plan shall remain in effect until it is terminated by the Board.

Section 5.02     Amendment and Termination of Deferred Share Unit Plan: Subject to this Article Five, the Plan may be amended, suspended or terminated in whole or in part at any time by the Board or the Committee, as the case may be, provided that no amendment shall be made which would cause the Plan, or any Deferred Share Units granted hereunder, to cease to comply with the requirements of paragraph 6801(d) of the regulations to the Tax Act (as applicable to Canadian Eligible Directors) or any successor provision thereto or with Section 409A (as applicable to US Eligible Directors).

The Board or the Committee may, in its sole discretion, make the following amendments to the Plan:

Section 5.03    Assignment and Transfer: Rights and obligations under the Plan may be assigned by the Corporation to a corporate successor in the business of the Corporation, any corporation resulting from any amalgamation, reorganization, combination, merger or arrangement of the Corporation, or any corporation acquiring all or substantially all of the assets or business of the Corporation. In no event may the rights or interests of an Eligible Director under the Plan be assigned, encumbered, pledged, transferred or alienated in any way, except to the extent that certain rights may pass to a Beneficiary upon death of an Eligible Director pursuant to the terms of the Plan. Deferred Share Units are non-transferable.

Section 5.04    Rights as a Shareholder: No holder of any Deferred Share Units shall have any rights as a shareholder of the Corporation.

Section 5.05    Unfunded and Unsecured Plan: The Corporation will not contribute any amounts to a third party or otherwise set aside any amounts to fund the benefits that will be provided under the Plan. To the extent any Eligible Director or his or her Beneficiary holds any rights by virtue of a grant of Deferred Share Units under the Plan, such rights (unless otherwise determined by the Board) shall be no greater than the rights of an unsecured creditor of the Corporation.

Section 5.06    No Contract of Employment: Nothing contained in the Plan shall confer or be deemed to confer upon any Eligible Director the right to continue in the employment of, or to provide services to, the Corporation or its Affiliates nor interfere or be deemed to interfere in any way with any right of the Corporation or its Affiliates to discharge any Eligible Director at any time for any reason whatsoever, with or without cause. Participation in the Plan by an Eligible Director shall be voluntary.

Section 5.07    Adjustments and Reorganization: In the event of any subdivision, consolidation or distribution of Shares to the shareholders of the Corporation (excluding by way of dividend payment in the ordinary course or a distribution of Shares under any compensation arrangement of the Corporation or any of its subsidiaries or other Affiliates, that contemplates the issuance of Shares from treasury), or upon a capital reorganization, reclassification, exchange, or other change with respect to the Shares, or a consolidation, amalgamation, arrangement or other form of business combination of the Corporation with another person, or a sale, lease or exchange of all or substantially all of the property of the Corporation or other distribution of the Corporation's assets to shareholders (other than by way of dividend payment in the ordinary course), then the Account of each Eligible Director and the Deferred Share Units outstanding under the Plan shall be adjusted in such manner, if any, as the Board or the Committee deems appropriate in order to preserve, proportionally, the interests of the Eligible Directors under the Plan, provided that the dollar value of Deferred Share Units credited to an Eligible Director's Account immediately after such an adjustment shall not exceed the dollar value of the Deferred Share Units in such Eligible Director's Account immediately prior thereto and provided further that the value of Deferred Share Units shall always depend on the fair market value of Shares (or shares of a Related Company). All adjustments under this Section 5.07 shall, at all times, be in compliance with the provisions of paragraph 6801(d) of the regulations to the Tax Act and Section 409A.

Section 5.08    Securities Exchange Take-over Bid: In the event that the Corporation becomes the subject of a take-over bid (within the meaning of the Securities Act (British Columbia)) pursuant to which 100% of the issued and outstanding Shares are acquired by the offeror either directly or as a result of the compulsory acquisition provisions of the incorporating statute and where consideration is paid in whole or in part in equity securities of the offeror, the Committee may send notice to all holders of Deferred Share Units requiring them to surrender their Deferred Share Units within ten (10) days of the mailing of such notice, and the holders of Deferred Share Units shall be deemed to have surrendered such Deferred Share Units on the tenth (10th) day after the mailing of such notice without further formality, provided that:

Section 5.09    Compliance with Applicable Law: If any provision of the Plan or any Deferred Share Unit contravenes any law or any order, policy, by-law or regulation of any regulatory body having jurisdiction, then such provision shall be deemed to be amended to the extent necessary to bring such provision into compliance therewith.

Section 5.10    Interpretation: This Plan shall be governed by and construed in accordance with the laws of the Province of British Columbia.