Mr. Clynton Nauman reports

ALEXCO REPORTS INCREASED REVENUE, CASH FROM OPERATIONS, EARNINGS AND PRODUCTION FOR FISCAL 2011 FULL YEAR AND FOURTH QUARTER

Alexco Resource Corp. has dramatically improved its revenue, gross profit, earnings and production for its fiscal year ended June 30, 2011, as a result of the first six months of commercial production at its Bellekeno mine in the Keno Hill silver district, Yukon.

2011 fiscal year highlights

• Net income for year of $3.5-million (six cents basic and diluted earnings per share) and pretax income of $4.1-million on combined mining and environmental services revenue of $45.1-million;
• Cash flows from operating activities of $10.7-million;
• Bellekeno mine revenue of $38.3-million and gross profit of $15.8-million over its first six months of commercial production, on sales of 7,956 tonnes of lead-silver and zinc concentrate;
• Production of 911,848 ounces silver, 7,756,426 pounds lead and 3,104,303 pounds zinc;
• Realized metal prices averaging $37.45 (U.S.) per ounce silver, $1.16 (U.S.) per pound lead and $1.02 (U.S.) per pound zinc;
• Cash costs of production (1) over Bellekeno's first six months of operation of $7.57 per ounce of payable silver produced, net of byproduct credits, and $6.30 per ounce in the fourth fiscal quarter (second quarter calendar 2011);
• Bellekeno ramp-up continuing to progress, with production for calendar year 2011 estimated to be 2.2 million to 2.5 million ounces silver, 14 million to 16 million pounds lead and six million to seven million pounds zinc.

(1) Cash costs of production per ounce of payable silver produced is a non-GAAP (generally accepted accounting principles) measure with no standardized meaning prescribed under Canadian GAAP.

Alexco president and chief executive officer Clynt Nauman said: "During the second full quarter of commercial production our Bellekeno mining operation continued to make steady progress on all fronts including mill throughput, ore tonnes mined, improved recoveries and increased overall metal production. These improvements are reflected in our financial performance with increased cash from operations and a greater than 25-per-cent reduction in silver production cost to $6.30 per ounce of silver net of byproduct credits. With our steadily increasing silver production, an expanding resource base and additional mine development in the district, Alexco is well positioned to take advantage of the continued buoyancy in the silver markets."

                  SUMMARY FINANCIAL RESULTS AND INFORMATION
         (Expressed in thousands of dollars, except per share amounts)   
                                             
                                         Three months ended      Fiscal year ended 
                                                   June 30,               June 30,
                                          2011         2010       2011        2010

Revenue                                $21,245         $910    $45,102      $4,641
Gross profit                             5,428          433     15,781       1,771
Income (loss) before taxes               1,945       (2,300)     4,143      (6,629)
Net income (loss)                        1,145       (1,519)     3,498      (5,219)
Earnings (loss) per share -- basic
and diluted                               0.03        (0.03)      0.06       (0.11)
Cash flows from operating
activities (loss)                        7,196       (1,620)    10,714      (4,765)

Bellekeno mine operations

The 2011 fiscal year saw Alexco's transition from mine developer to producer, with commercial production at its new Bellekeno silver-lead-zinc underground mine and ore processing complex having commenced Jan. 1, 2011. Located in the Keno Hill silver district in Canada's Yukon, through its first six months of commercial operation the Bellekeno mine produced 7,847 tonnes of concentrate comprising 5,059 tonnes of lead-silver concentrate and 2,788 tonnes of zinc concentrate, recognized revenue of $38,269,000 on sales of 7,956 tonnes of concentrate, and yielded a gross profit of $15,845,000. Metal prices for revenue recognized in that period, weighted by dollar of revenue recognized, averaged $37.45 (U.S.) per ounce for silver, $1.16 (U.S.) per pound for lead and $1.02 (U.S.) per pound for zinc. Ramp-up of mine and mill operations to full optimized levels is continuing, with production from Bellekeno for the full calendar year of 2011 currently forecast to be between 2.2 million and 2.5 million ounces of silver, 14 million to 16 million pounds of lead and six million to seven million pounds of zinc.

Operations at Bellekeno during the first six months of commercial production reflect the typical initial ramp-up phase following a mine start-up, coupled with the normal challenges of ramping up a new ore processing facility during a winter period. Mine operations in this period generally maintained pace with processing activity, but with significant inventoried ore from the preproduction phase locally impeding ore production in the mine, Alexco used the opportunity to undertake additional mine development at Bellekeno, particularly in the initial months of operation. The majority of this was ramp-up phase primary development, but some was in preparation for a trial of local mechanized long-hole stoping, a more efficient mining method not historically used within the Keno Hill district.

Mill ramp-up activities during the first six months of operations have included optimization of pumping, piping and screening circuits and the grinding and classification balance and improvements to feed systems, as well as process refinements to improve zinc recoveries. As of August, the mill was achieving a sustained average daily throughput rate in excess of 250 tonnes per day. Average mill throughput during the first three months of operations was 201 tonnes per day, with daily throughputs as high as 320 tonnes per day and average mill availability at greater than 90 per cent by quarter-end. Production during the following quarter was hampered by a series of grid power outages in June. Nine separate outages resulted in a 15-per-cent reduction of mill throughput for the month, as well as a disruption in progress through the ramp-up phase. During the second three months of operations, average mill throughput was 208 tonnes per day, though still with daily throughput highs in excess of 300 tonnes per day. The frequency of power outages subsequent to June has reduced significantly, with an accompanying increase in the rate of throughput. Alexco is currently conducting engineering and economic studies to determine whether construction of an alternative form of secondary power is merited.

Operating statistics for Bellekeno since the commencement of commercial production on Jan. 1, 2011, are summarized in the associated table.

                           OPERATING STATISTICS
                                                    Total     Q4 2011      Q3 2011

Ore tonnes mined                                   38,627      22,166       16,461
Ore tonnes processed                               36,978      18,928       18,050
Grade of ore processed
Silver (grams per tonne)                              826         822          829
Lead                                                10.2%       10.5%        10.0%
Zinc                                                 5.8%        6.5%         5.0%
Recoveries
Silver                                                93%         93%          93%
Lead in lead concentrate                              92%         93%          90%
Zinc in zinc concentrate                              61%         65%          56%
Concentrate production
Lead concentrate
Tonnes produced                                     5,059       2,683        2,376
Concentrate grade
Silver (grams per tonne)                            5,390       5,164        5,645
Lead                                                  69%         69%          68%
Zinc concentrate
Tonnes produced                                     2,788       1,687        1,101
Concentrate grade
Silver (grams per tonne)                              393         348          462
Zinc                                                  47%         48%          46%
Production -- contained metal
Silver (ounces)                                   911,848     464,324      447,524
Lead (pounds)                                   7,756,426   4,074,122    3,682,304
Zinc (pounds)                                   3,104,303   1,770,159    1,334,144
Sales volumes by payable metal
Silver (ounces)                                   856,106     470,023      386,083
Lead (pounds)                                   7,299,785   4,119,866    3,179,919
Zinc (pounds)                                   2,471,019   1,761,119      709,900
Cash costs of production (1)
Per ounce of payable silver produced                $7.57       $6.30        $8.88

Note
(1) Cash costs of production per ounce of payable silver produced is a 
non-GAAP measure with no standardized meaning prescribed under Canadian GAAP.   

Keno Hill exploration

Alexco wrapped up the 2010 field exploration program at its Keno Hill properties by mid-December, completing approximately 25,000 metres of surface drilling for calendar year 2010 in addition to 4,900 metres of underground diamond drilling at Bellekeno. Major areas of focus for the 2010 surface exploration program included the historic mine areas of Lucky Queen, Onek, Silver King and Flame & Moth, as well as new target areas including the McQuesten Valley and a mineralized structural zone near the historic Bermingham mine, and all results from the 2010 program have been fully released. The 2011 surface exploration program was initiated during March, and is expected to complete drilling of approximately 15,000 metres of diamond drilling at a number of targets across the district with surface exploration expenditures anticipated to be approximately $8-million. Approximately 10,300 metres have been drilled to date, and the program is expected to continue through at least October. As announced in the news release of Sept. 7, 2011, with the successful results at Flame & Moth an additional exploration drill rig has been mobilized as of early September to help accelerate work elsewhere in the district, especially at the Bermingham property, while enabling drilling at Flame & Moth to continue.

Initial resource estimates for the Lucky Queen and Onek properties were completed and announced in the news release of July 27, 2011, and metallurgical testing and preliminary mine planning and engineering studies have been initiated at both properties. Rehabilitation of the historic Lucky Queen workings has been commenced, and plans to access the historic Onek workings are nearing completion, both with the objective of enabling advanced exploration drilling from underground to support mine planning and development decisions. This work, which also commenced in March and is currently estimated to cost approximately $10-million, is expected to include approximately 1,500 metres of surface definition drilling in the vicinity of the historic Onek mine, approximately 1,500 metres of underground rehabilitation and development work at the historic Lucky Queen mine, in advance of approximately 2,500 metres of underground definition drilling, and a review of underground ore definition and mining options at the historic Silver King mine. This advanced exploration program is being planned and conducted with the objective of enabling Alexco to make production decisions for each property some time in calendar 2012.

In addition, engineering work and feasibility-related work are continuing on Alexco's Elsa tailings project, where approximately 9.5 million ounces of silver have been defined within approximately 2.5 million tonnes of historic Elsa tailings as reported in the news release dated May 6, 2010, entitled Alexco announces initial Elsa tailings resource estimate, Keno Hill.

Alexco Environmental Group

Separately, the corporation's environmental services business, the Alexco Environmental Group (AEG), recognized revenues of $6,833,000 during fiscal 2011 compared with $4,641,000 in fiscal 2010. AEG recorded a gross loss for fiscal 2011 of $64,000 compared with a gross profit in fiscal 2010 of $1,771,000, which included a loss of $1,486,000 in fiscal 2011 and a gain of $237,000 in fiscal 2010 resulting from reassessments of the estimated environmental services contract loss provision. Excluding the impact of these provision reassessments, AEG recorded a gross profit for fiscal 2011 of $1,422,000 for a margin of 20.8 per cent, compared with $1,534,000 and 33.1 per cent in fiscal 2010. The increase in revenues over the prior year is attributed primarily to increased services provided to government within the Keno Hill district, particularly accelerated closure reclamation activities and increased closure reclamation plan development activities, as well as to growth in the level of services provided to AEG's private sector clients not only in the Yukon but in the United States market as well. The reduced margins in fiscal 2011 are due primarily to relatively high third party costs incurred on Keno Hill district reclamation plan development activities which were only partially recoverable, a relatively higher level of such reclamation plan development activity, which further averages down overall margins, plus significant upfront costs incurred on the inception of certain new AEG private sector contracts.

Financial position

Alexco's cash and cash equivalents at June 30, 2011, totalled $50,443,000 compared with $27,615,000, including current restricted cash and deposits, at June 30, 2010, while net working capital totalled $52,957,000 compared with $20,669,000 for the same dates, respectively. The increases in cash and net working capital primarily reflect net cash proceeds of $38.9-million received from a bought deal equity financing completed in December, 2010, plus the results of operations from the Bellekeno mine since the commencement of commercial production. These increases were partially offset by expenditures on the calendar 2010 and 2011 exploration programs within the Keno Hill district, as well as expenditures made by Alexco pertaining to the development, construction and commissioning of Bellekeno in excess of amounts financed through deposit amounts received from Silver Wheaton Corp.

Full 2011 fiscal year financial report and conference call

Full details of Alexco's 2011 fiscal year financial and operating results are described in the June 30, 2011, audited consolidated financial statements with accompanying notes and related management's discussion and analysis. These documents and additional information on Alexco are available on the company's website and on SEDAR.

Alexco is holding an audio webcast conference call to discuss these results at 11 a.m. Eastern Standard Time (8 a.m. Pacific Standard Time) on Thursday, Sept. 15, 2011. To participate in the live call, please use one of the following methods:

Dial toll-free from Canada or the U.S.:  1-877-407-8031

Dial from outside Canada or the U.S.:  1-201-689-8031

Participants should connect five to 10 minutes before the call.

The conference call will be recorded, and an archived audio webcast will be available at the company's website. Through Sept. 20, 2011, a replay of the call will be available by telephone at the following:

Dial toll-free from Canada or the U.S.:  1-877-660-6853

Dial from outside Canada or the U.S.:  1-201-612-7415

Replay pass codes:  Account No. 286, conference ID No. 378739

Qualified persons

The disclosure in this news release of scientific and technical information regarding exploration projects on Alexco's mineral properties has been reviewed and approved by Alan McOnie, FAusIMM, vice-president, exploration, with Alexco, while that regarding mine development and operations has been reviewed and approved by Thomas Fudge, PE, senior vice-president, engineering and corporate development, for Alexco, both of whom are qualified persons as defined by National Instrument 43-101 -- standards of disclosure for mineral projects.

We seek Safe Harbor.