Scotia Capital Appointed by Klondex as Financial Advisor to Review Silvercorp Bid and Alternatives

VANCOUVER--(Business Wire)--
Klondex Mines Ltd. (TSX: KDX) announced today that its independent Special
Committee of the Board of Directors has appointed Scotia Capital Inc. as
financial advisor to advise it on the offer by Silvercorp Metals Inc. (TSX: SVM;
NYSE Amex: SVM) to acquire all outstanding shares of Klondex (for 0.5 of a
common share of Silvercorp for each share of Klondex) as well as any alternative
transactions, and to make recommendations to the Board thereon.

The Board of Directors of Klondex recommends that shareholders defer tendering
their shares or making any decision on the Silvercorp Offer until the Board,
Special Committee and its financial advisor have had an opportunity to fully
review the offer and to make a formal recommendation on its merits. Shareholders
will be notified by the Board of its recommendation through news releases and
circulars in accordance with applicable securities laws.

Klondex has been engaged in discussions for some time with potential 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 will utilize the services of Scotia Capital to develop and review
potential alternative transactions from these and other potential parties.

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 approximately CDN $2.05 per Klondex share. Yesterday`s closing price
of Klondex common stock was CDN $1.99.

About Scotia Capital:

As a member of the Scotiabank Group, Scotia Capital offers corporate and
investment banking and capital markets products to corporate, government and
institutional clients. It provides full-service coverage across the NAFTA
region, as well as a niche focus in select markets globally. Scotia Capital has
28 offices and more than 300 relationship managers organized around industry
specialties. Scotiabank is one of North America's premier financial institutions
and Canada's most international bank. With more than 69,000 employees,
Scotiabank Group and its affiliates serve approximately 12.8 million customers
in some 50 countries around the world. Scotiabank offers a diverse range of
products and services including personal, commercial, corporate and investment
banking. With more than $509 billion in assets (as at January 31, 2009),
Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more
information please visit www.scotiabank.com or www.scotiacapital.com.

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 11,098 acres of fee land and unpatented mining claims. In March 2009
Klondex defined and disclosed in a technical report entitled "Updated Report on
the Fire Creek Gold Property Lander Co., Nevada" dated March 25, 2009, an
Indicated Mineral Resource at Fire Creek estimated at 5,043,033 tonnes grading
10.11 grams per metric ton (gpt) containing 1,639,822 ounces of gold and an
Inferred Mineral Resource Estimated at 1,833,423 tonnes grading 8.63 gpt for
508,799 ounces of gold equivalent. 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 metric ton in
hole FC0417. Richard Kern (P.Geo), Project Manager, of Reno, Nevada, is the
Company`s qualified person on the project as required under NI 43-101and has
reviewed the technical information contained in this press release.

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.
75-80 percent of Klondex`s known resource is on private land. For more
information, please visit www.klondexmines.com.

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.

Jaffoni & Collins Incorporated
David Collins, 212-835-8500
KDX@jcir.com

Copyright Business Wire 2009