Mr. Clynton Nauman reports

ALEXCO REPORTS FIRST QUARTER 2013 FINANCIAL RESULTS

Alexco Resource Corp. has released its financial results for the first quarter of 2013. For the three months ended March 31, 2013, Alexco recorded a net loss of $2.3-million, or four cents per share, primarily due to decreased silver production during the quarter. As reported previously, the three-month first quarter production from the Bellekeno mine was 379,616 ounces of silver. During April, mine volumes increased as mining began sequencing toward higher-grade areas of the Southwest and 99 zones.

Highlights of first quarter

• Bellekeno mine revenue of $14.5-million on payable metal sales of 391,593 ounces of silver, 3.3 million pounds of lead and one million pounds of zinc;
• Contained metal production of 379,616 ounces silver, three million pounds lead and one million pounds zinc;
• Recognized metal prices during the quarter averaged $28.70 (U.S.) per ounce silver, $1.03 (U.S.) per pound lead and 93 U.S. cents per pound zinc;
• First quarter cash costs of production of $16.67 per ounce of payable silver produced, net of byproduct credits;
• Flame and Moth deposit estimated resources expand to 22.9 million ounces indicated;
• Alexco Environmental Group (AEG) first quarter 2013 gross profit of $807,000, with a 37-per-cent gross margin.

Alexco president and chief executive officer Clynt Nauman said: "Our decreased production during the first quarter has resulted in predictably disappointing financial results. Fortunately, we are now moving out of the lower-grade areas of the mine and have already seen improved production rates through April. Because of the narrow-vein, low-volume nature of our Bellekeno mine, about 85 per cent of our costs are fixed, therefore I expect to see cash costs improve as we return to more normal levels of silver production.

"Metals prices have taken a sharp drop in the second quarter, and we are closely examining our cost structure and evaluating our options to preserve margin in a sustained lower metal price environment, while continuing on our path to add value. We believe the demand for silver, both industrial and investment, is a strong argument for the price of precious metals to increase, but we also understand that weathering an extended period of lower metals prices will require more rigorous cost and operating discipline."

                SUMMARY FINANCIAL RESULTS AND INFORMATION
                      (In thousands, except per share)

                                                Three months ended March 31,
                                                          2013         2012

Revenue from mining operations                        $ 14,508     $ 23,161
Gross profit from mining operations                         32        7,157
Revenue from environmental services                      2,207        1,584
Gross profit (loss) from environmental services            807           57
Revenue from all operations                             16,715       24,745
Gross profit from all operations                           839        7,214
Income (loss) before taxes                              (3,354)       2,978
Net income (loss)                                       (2,332)       1,340
Total comprehensive income (loss)                       (2,753)       1,333
Earnings (loss) per share -- basic and diluted          ($0.04)       $0.02
Cash flows from operating activities                     1,400        7,221

Bellekeno mine operations

Mine production and grades were low in the first quarter due to sequencing of mining through lower-grade areas of the SW zone, whereas mining in the comparative quarter of 2012 sequenced through higher-grade central areas of the SW and 99 zones, which are also the general areas scheduled for mining later in 2013. The areas mined during the first quarter were peripheral to the main SW and 99 resource at Bellekeno, and although of notably lower grade than the overall Bellekeno life-of-mine plan, these areas remained economic on a cash recovery basis and would otherwise have been sterilized by future mining interior to the deposit. Commencing in April, 2013, and as mining progresses through the second and third quarters, operations are sequencing back into higher-grade areas of the mine.

Average mill throughput in the three-month period ended March 31, 2013, was 223 tonnes per day compared with 234 tpd in the first quarter of calendar 2012 and 291 tpd during the three months ended Dec. 31, 2012. From the fourth quarter of 2012, mill throughput capability began to strongly outpace mine production rates, resulting in relatively low levels of ore inventory at the start of 2013.

Although production levels during the first quarter of 2013 were significantly lower than the historical norm for Bellekeno, the high fixed-cost nature of the Bellekeno operating cost structure resulted in total cash production costs remaining substantially unchanged from typical quarterly levels. Consequently, costs per unit of payable metal were accordingly high in the quarter, with cost of sales for the quarter totalling $14,476,000 and cash costs per ounce of silver for the quarter at $16.67 increased from $11.01 in the first quarter of calendar 2012 and $11.13 in the fourth quarter of 2012. Compared with the same period last year, the lower silver production volume accounts for an approximately $5.50 increase in the cash cost per ounce of silver in the first quarter of 2013.

Comparative operating statistics for Bellekeno for the quarter are summarized in the table.

                      BELLEKENO OPERATING STATISTICS

                                                  Three months ended March 31,
                                                          2013           2012

Ore tonnes mined                                        20,421         21,395
Ore tonnes processed                                    20,069         21,251
Mill throughput (tonnes per day)                           223            234
Grade of ore processed
Silver (grams per tonne)                                   636            899
Lead                                                       7.5%          11.3%
Zinc                                                       3.4%           5.7%
Recoveries
Silver                                                      93%            94%
Lead in lead concentrate                                    90%            93%
Zinc in zinc concentrate                                    69%            57%
Concentrate production
Lead concentrate
Tonnes produced                                          2,253          3,376
Concentrate grade
Silver (grams per tonne)                                 5,020          5,144
Lead                                                      60.4%            66%
Zinc concentrate
Tonnes produced                                          1,053          1,583
Concentrate grade
Silver (grams per tonne)                                   470            460
Zinc                                                        45%            43%
Production -- contained metal
Silver (ounces)                                        379,616        581,808
Lead in lead concentrate (pounds)                    3,001,005      4,929,079
Zinc in zinc concentrate (pounds)                    1,034,145      1,515,960
Sales volumes by payable metal
Silver (ounces)                                        391,593        540,942
Lead (pounds)                                        3,340,520      4,654,814
Zinc (pounds)                                        1,005,298      1,440,442
Cash costs of production 
Per ounce of payable silver produced                    $16.67         $11.01

Keno Hill exploration and development

In January, 2013, Alexco announced an updated resource estimate for the Flame and Moth property incorporating drill results from the 2012 exploration program (see news releases dated Jan. 31, 2013, and March 15, 2013). The current resources estimated for Flame and Moth comprise 1,378,000 tonnes indicated grading 516 grams per tonne silver, 1.72 per cent lead and 5.70 per cent zinc, plus another 107,000 tonnes inferred grading 313 grams per tonne silver, 0.86 per cent lead and 4.21 per cent zinc.

At Onek and Lucky Queen, the quartz mining licence authorizing mining at both was issued in January, 2013, and approximately $500,000 in reclamation security was posted shortly thereafter. With respect to the water licence amendment authorizing milling of material from both mines, a routine water board hearing was completed in February, 2013, and issuance of the licence amendment is anticipated in May of 2013.

Alexco Environmental Group (AEG)

AEG continues to build on its successful 2012 performance. The wholly owned subsidiary has an agreement with the government of Canada to clean up the Keno Hill silver district, and also works with private sector clients in the United States and Canada. In the first quarter of 2013, AEG continued to provide benefit to Alexco with revenue of $2.2-million and gross profit of $807,000, compared with revenue of $1.6-million in the first quarter of 2012 and gross profit of $57,000.

Outlook

Despite decreased production from Bellekeno in the first quarter due to the mine sequencing issues described above, full year guidance for Bellekeno remains unchanged in the range of 1.9 million to 2.1 million ounces of silver as operations are sequencing back into higher-grade areas of the Bellekeno mine.

At Onek, surface facilities are in place and the primary decline has been advanced to within 20 metres of the mineralization. Initial production from the Onek mine is subject to receipt of the requisite water licence amendment. Lucky Queen production later in the year is dependent on submission of an updated waste rock management plan to eliminate rehandling and to provide more efficient long-term storage of waste rock closer to the mine. In both cases, commencement of production is subject to final positive development decisions, which will be made in the context of then-current metal markets.

Alexco's exploration plans in 2013 are of smaller scale than 2012, with a budget of between $3-million to $5-million. This will be financed by a $7-million flow-through share financing completed in April, 2013, and includes the drilling of priority holes to better define the limits of mineralization, and add immediate resources at the Flame and Moth deposit, as well as the technical review of all exploration results to identify new exploration targets for future drill programs. Additionally, Alexco is initiating baseline geotechnical, metallurgical and environmental work, as well as preliminary engineering on the Flame and Moth deposit, and this work is expected to include studies of future potential production options in context with existing mines and other opportunities in the district.

Financial position

Alexco's cash and cash equivalents at March 31, 2013, totalled $13,706,000 compared with $23,088,000 at Dec. 31, 2012, while net working capital totalled $15,847,000 compared with $25,727,000 for the same dates, respectively. The decreases in cash and net working capital primarily reflect the net positive though substantially reduced cash inflows from Bellekeno mining operations in the quarter due to lower production. Expenditures during the first quarter included $7.0-million for work on exploration and development activities within the Keno Hill district, some of which actually occurred during previous quarters, including rehabilitation and access development activity at the historical Onek and Lucky Queen mines. Other expenditures included normal Bellekeno mine development, the posting of reclamation security in connection with the issuance of the quartz mining licence for Onek and Lucky Queen in the amount of $500,000, an investment of approximately $1.3-million in the buyout of certain mining equipment from the contract miner at Bellekeno, and the expenditure of $1.9-million on the purchase of Alexco shares on the open market in connection with annual grantings of awards under the corporation's restricted share unit plan.

Financial report and conference call for year ended Dec. 31, 2012

Full details of the financial and operating results for the first quarter of 2013 are described in Alexco's interim condensed 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, SEDAR and EDGAR.

Alexco is holding an audio webcast conference call to discuss these results at 11 a.m. ET (8 a.m. PT) on Thursday, May 9, 2013. To participate in the live call, please use one of the following methods:

Dial toll-free from Canada or the United States:  1-877-407-8031

Dial from outside Canada or the United States:  1-201-689-8031

Live audio webcast:  The company's website

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 May 17, 2013, a replay of the call will be available by telephone at the following:

Dial toll-free from Canada or the United States:  1-877-660-6853

Dial from outside Canada or the United States:  1-201-612-7415

Replay passcodes:  Account No. 286, conference ID No. 412333

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, while that regarding mine development and operations has been reviewed and approved by Scott Smith, PEng, Bellekeno mine manager, both of whom are qualified persons as defined by National Instrument 43-101.

We seek Safe Harbor.