Mr. Clynton Nauman reports

ALEXCO DRILLS 8.9 METERS OF 20.2 OUNCES PER TON SILVER AT FLAME & MOTH, CONTINUES TO CONFIRM AND EXPAND MINERALIZATION

Alexco Resource Corp. has released final results from the 2011 drilling program at its recently discovered Flame & Moth prospect, located immediately adjacent to Alexco's milling complex within the Keno Hill silver district in Canada's Yukon. Over all, the drilling has increased confidence in the continuity and thickness of silver mineralization at Flame & Moth, with results to date returning average grades from 16 to 21 ounces per ton silver over true widths averaging 5.5 metres within the mineralized Flame vein structure. The structure is now traced with confidence along a 500-metre strike length to a depth of 350 metres below surface. In addition, within the thicker zones of mineralization noted below, higher-grade intervals ranging from approximately 30 ounces per ton silver over 1.15 metres to more than 100 ounces per ton silver over 0.14 metre are present. The mineralization is open at depth and down plunge. Mineralization also remains open up plunge between 150 metres depth and the bedrock surface present beneath extensive alluvial gravels.

Alexco president and chief executive officer Clynt Nauman said: "Clearly we have a significant discovery at Flame & Moth, with a continuity, style and thickness which may be unique for Keno Hill. At this juncture we have two objectives at Flame & Moth, firstly to calculate an initial silver resource which should be available in the second quarter 2012, and secondly to accelerate and expand our 2012 drilling program to both infill and extend mineralization such that by the end of 2012, the ranking of Flame & Moth within the mine development pipeline at Keno Hill can be better assessed."

Highlights

Results at Flame & Moth to date include the following composite assay intervals:

• K-11-0362 intersected mineralized vein material over 8.90 metres true width from 266.90 metres with a composite interval of 693 grams per tonne (20.2 ounces per ton) silver that included a bonanza interval over 0.14 metre true width at 3,880 grams per tonne (113.2 ounces per ton) silver.
• K-11-0367 intersected veining over 11.07 metres true width from 323.00 metres with an average assay interval of 320 grams per tonne (9.4 ounces per ton) silver that included an interval of 1.15 metres true width at 1,348 grams per tonne (39.3 ounces per ton) silver.
• K-11-0371a intersected mineralization with an assay of 1,060 grams per tonne (30.9 ounces per ton) silver over 0.59 metre true width from 328.28 metres, within veining with a composite assay of 430 grams per tonne (12.6 ounces per ton) silver over 3.96 metres true width from 328.28 metres.
• K-11-0374 intersected an 11.08-metre true width vein structure from 342.52 metres with a composite assay of 311 grams per tonne (9.1 ounces per ton) silver, that included an interval of 0.60 metre true width at 1,450 grams per tonne (42.3 ounces per ton) silver.
• K-11-0387 intersected veining over 5.05 metres true width from 212.47 metres, with a composite assay of 454 grams per tonne (13.2 ounces per ton) silver that included an interval over 0.21 metre true width at 1,535 grams per tonne (44.8 ounces per ton) silver.
• K-11-0391 intersected mineralized veining over 6.92 metres true width from 231.94 metres, with a composite assay of 563 grams per tonne (16.4 ounces per ton) silver that included an interval over 0.82 metre true width at an average grade of 1,168 grams per tonne (34.1 ounces per ton) silver.

2011 Flame & Moth geology update and results

The above results complete the reporting of 2011 drilling at the Flame & Moth prospect, discovered in 2010 at depth adjacent to the recently constructed Bellekeno mill. These are in addition to those previously announced (see news release dated Sept. 7, 2011, entitled Alexco intersects 6.04 metres of 31.5 ounces per ton silver at Flame & Moth, significantly expands mineralized zone). Alexco has now drilled a total of 11,143 metres in 46 diamond drill holes (with 38 of these reaching target depths) since the discovery of blind mineralization, with 7,155 metres completed in 2011.

The northeast-trending, moderately southeast-dipping mineralized Flame vein structure has now been identified over a total strike length of approximately 500 metres within two fault offset segments. The deepest drill intersect is 350 metres below surface and the structure is open at depth down plunge and along strike. The updip portion of the structure between approximately 150 metres depth and bedrock surface also remains undrilled. The mineralized section of the Flame & Moth structure varies between 2.3 and 11.7 metres true width and averages approximately 5.5 metres.

Mineralization within the structure comprises multiphase quartz and siderite containing significant and locally massive, galena, sphalerite, pyrite and pyrrhotite with associated silver sulphosalts, arsenopyrite and chalcopyrite mineralization. Gold is locally present within the vein structure, with gold grades to 2.1 grams per tonne over intervals up to 1.03 metres as present in K-11-0362 from 266.90 metres. The continuity and consistency in silver grade of the vein mineralization have now been confirmed at approximately 60-metre drill centres and provide a sufficient level of confidence for Alexco to proceed to an estimate calculation to be undertaken by SRK Consulting (Canada) Inc. during the second quarter of 2012.

The discovery of this significant new blind deposit in the Keno Hill silver district gives Alexco confidence that continued exploration investment will continue to successfully add new resources, as the geology of the district becomes better understood.

Updated composite assay tables, along with a drill hole location map and a long section plot, for drill holes completed at the Flame & Moth prospect are available for review on the company's website.

Notes

The 2011 exploration drill program and sampling protocols have been reviewed, verified and compiled by Alexco's geologic staff under the supervision of Alan McOnie, vice-president, exploration, for Alexco and a qualified person as defined by National Instrument 43-101. A rigorous quality control and quality assurance protocol is used on the project, including blank, duplicate and standard reference samples in each batch of 20 samples delivered to the assay lab. Drill core samples were shipped to ALS Minerals Labs at Whitehorse, Yukon, for preparation, with fire assay and multielement ICP analyses completed at the ALS Minerals facility in North Vancouver, B.C. The disclosure of scientific and technical information about Alexco's mineral projects contained in this news release has also been reviewed and approved by Mr. McOnie.

                                              DRILL RESULTS

                                                 True                
Drill               From      To   Interval     width       Ag        Ag      Ag     Au     Pb     Zn    Cu
hole                 (m)     (m)        (m)       (m)    (g/t)    oz/ton  oz/ton  (g/t)    (%)    (%)   (%)

K-11-0362         266.90  276.82       9.92      8.90    693.4     22.29   20.22   0.69   1.53   7.19  0.17
Including         268.59  269.13       0.54      0.49  2,627.4     84.47   76.63   0.63   5.11   2.47  0.27
That included     268.59  268.75       0.16      0.14  3,880.0    124.75  113.17   0.75  10.85   2.04  0.39
And including     275.13  276.43       1.30      1.17  1,071.5     34.45   31.25   0.65   3.13  15.98  0.25
K-11-0367         323.00  335.00      12.00     11.07    320.4     10.30    9.35   0.43   0.98   3.97  0.12
Including         323.00  324.25       1.25      1.15  1,348.1     43.34   39.32   0.75   4.55  10.58  0.32
K-11-0371a        328.28  332.52       4.24      3.96    430.4     13.84   12.55   0.17   3.06   9.35  0.18
Including         328.28  328.91       0.63      0.59  1,060.0     34.08   30.92   0.16  14.25  15.55  0.21
K-11-0374         342.52  354.86      12.34     11.08    311.2     10.00    9.08   0.11   0.59   8.75  0.13
Including         351.80  352.47       0.67      0.60  1,450.0     46.62   42.29   0.12   0.41  16.55  0.58
K-11-0377         362.23  363.93       1.70      1.54     52.5      1.69    1.53   0.07   0.23   3.20  0.04
K-11-0379         382.21  390.98       8.77      7.19    277.1      8.91    8.08   0.30   0.62  14.11  0.13
K-11-0383         417.05  417.34       0.29      0.26     77.4      2.49    2.26   0.11   0.39   2.23  0.04
K-11-0387         212.47  218.00       5.53      5.05    454.0     14.60   13.24   0.14   4.16   5.60  0.17
Including         212.94  213.17       0.23      0.21  1,535.0     49.35   44.77   0.22  14.70  18.80  0.41
K-11-0387         250.18  251.00       0.82      0.74     35.1      1.13    1.02  -0.01   0.64   0.25  0.01
K-11-0387         254.43  257.50       3.07      2.79     61.0      1.96    1.78   0.08   0.13   0.70  0.07
K-11-0387         271.73  272.11       0.38      0.35    461.0     14.82   13.45   0.07   4.36   2.98  0.06
K-11-0387         282.25  286.55       4.30      3.92     92.9      2.99    2.71   0.03   1.41   3.76  0.03
K-11-0391         231.94  240.61       8.67      6.92    562.8     18.09   16.41   0.65   0.79   4.38  0.25
Including         232.50  233.32       0.82      0.66  1,168.3     37.56   34.08   0.55   0.70   7.83  0.41

Notes  
Assay composites calculated for Flame & Moth drill holes completed September to November, 2011. 
Using 30 g/t silver cut-off with a maximum of two metres unmineralized internal dilution.                                                          

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