Mr. Clynt Nauman reports

ALEXCO REPORTS YEAR END AND FOURTH QUARTER 2013 RESULTS

Alexco Resource Corp. has released its financial results for its 2013 year-end and its 2013 fourth quarter. For the year ended Dec. 31, 2013, Alexco recorded an adjusted net loss of $4.3-million or seven cents per share. (Adjusted net loss excludes amounts recorded with respect to impairment charges, and is a non-IFRS (international financial reporting standards) measure with no standardized meaning prescribed under IFRS.) The consolidated net loss for the year was $50.5-million, including the effect of non-cash asset writedowns recorded in the second quarter primarily due to the effect of significantly lower silver prices in 2013. For the fourth quarter of 2013, Alexco recorded a net loss of $1.1-million or one cent per share, primarily related to care-and-maintenance costs at the Keno Hill silver district, Yukon, where silver production was suspended for the winter. Alexco Environmental Group (AEG), a wholly owned subsidiary of Alexco, posted record financial performance in 2013, nearly tripling gross profit to $8.8-million and more than doubling revenues to $16.3-million compared with 2012.

Highlights of 2013

• Contained metal production was 1.4 million ounces silver, 10.3 million pounds lead and 3.4 million pounds zinc in a shortened operating year comprising 245 operational days. Gross operating results from the Bellekeno mine were essentially breakeven on approximately $43-million of revenue, reflecting a more-than-23-per-cent decline in silver prices over the course of 2013.
• An interim suspension of mine and mill operations was completed in September, as previously announced. The current focus is on permitting and restructuring Keno Hill operations to accommodate the Flame & Moth deposit for future production.
• In December, 2013, the eastern Keno Hill silver district preliminary economic assessment (PEA) outlined a revised production plan focused on Flame & Moth and incorporating supplemental production from Bellekeno and Lucky Queen, yielding an after-tax 38-per-cent internal rate of return over the development and operating period through 2020.
• During the year, exploration drilling extended the Flame & Moth mineralized strike length to more than 900 metres and identified a significant mineralized structure at the new (2012) Flame & Moth West discovery approximately one-half kilometre west of Flame & Moth. Exploration will continue to focus on further potential resource expansion in 2014.
• AEG's full-year gross profit was $8.8-million on revenues of $16.3-million, up strongly over the 2012 gross profit of $2.9-million on revenues of $8-million. Included in gross profit was approximately $2.8-million in gains related to the announced amended and restated environmental subsidiary agreement with Canada in July, 2013.
• Cash and cash equivalents at Dec. 31, 2013, totalled $8.6-million and net working capital was $15.3-million, compared with $7.9-million and $15.4-million, respectively, at Sept. 30, 2013.

Alexco's president and chief operating officer, Clynt Nauman, said: "The business decision to suspend mining operations at Keno Hill in the face of declining silver prices and shrinking margins has proven to be correct, especially in light of the increasing significance of the larger Flame & Moth deposit, which has the potential to underpin production at Keno Hill beyond 2020. Flame & Moth has an estimated indicated silver resource of 22.9 million ounces of silver and is currently calculated to contain 1.4 million tonnes of 516 grams per tonne silver, 0.4 g/t gold, and approximately 7.4 per cent combined zinc and lead. Furthermore, the deposit is shallow, adjacent to existing infrastructure, remains open and potentially opens the way for sustained higher throughput of 400 tonnes per day at lower fixed costs on a unit basis going forward. We are using this interim winter period to review and restructure both the underlying cost framework at Keno Hill and our third party contracts and obligations. Upon achieving those goals, and assuming conducive market and other conditions, our objective is to restart capital development work at Flame & Moth. Meanwhile, we're pleased to announce that in ongoing dialogue with Silver Wheaton, the deadline included in our silver-streaming agreement for achieving production throughput of 400 tonnes per day over a 30-day period has been extended to June 30, 2015."

               SUMMARY FINANCIAL RESULTS AND INFORMATION
                   (expressed in thousands of dollars, 
           except per-share and recognized metal price amounts)

                                          Three months                  Year
                                         ended Dec. 31,        ended Dec. 31,
                                       2013       2012       2013       2012

Revenue from mining operations     $    665   $ 18,897   $ 43,114   $ 76,725
Gross profit (loss) from mining
operations                              200      3,043        (29)    15,034
Revenue from environmental
services                              4,498      1,412     16,319      7,983
Gross profit from environmental
services                              2,418        888      8,849      2,886
Revenue from all operations           5,163     20,309     59,433     84,708
Gross profit (loss) from all
operations                            2,618      3,931      8,820     17,920
Income (loss) before taxes             (505)       737    (62,079)     7,979
Net income (loss)                    (1,131)      (519)   (50,450)     3,420
Adjusted net income (loss)(1)        (1,131)      (519)    (4,313)     3,420
Total comprehensive income
(loss)                               (1,197)      (836)   (50,663)     3,411
Earnings (loss) per share --
basic and diluted                    ($0.01)    ($0.01)    ($0.81)     $0.06
Cash flows from operating
activities                            4,154     (2,065)     3,407     14,057
Recognized metal prices(2)
Silver (USD per ounce)             $  19.63   $  30.71   $  23.94   $  31.54
Lead (USD per pound)               $   0.95   $   1.01   $   0.98   $   0.95
Zinc (USD per pound)               $   0.88   $   0.91   $   0.88   $   0.89

(1) Non-IFRS measure.
(2) Recognized metal prices represent average metal prices for revenue
    recognized over the period, weighted by dollar of revenue recognized.

Alexco Environmental Group

AEG achieved another record year, recording revenues of $16.3-million and a gross profit of $8.8-million, compared with revenue of $8-million in 2012 and a gross profit of $2.9-million. Mr. Nauman said: "Without doubt, our business strategy to organically grow Alexco Environmental Group has met with continuing success. We now have a well-branded environmental business active in Canada and the U.S. focused on consulting services, water-treatment solutions related to our proprietary technologies and an operating strategy which aligns our interests with those of our clients."

In July, 2013, an amended and restated subsidiary agreement (ARSA) was executed with the government of Canada. As a result of that execution, included in AEG's 2013 revenues is $2-million in retroactive fees, and included in cost of sales is an almost $900,000 reduction in Alexco's environmental services contract loss provision. The additional improvement in AEG revenues is attributed primarily to growth in AEG's client base within the U.S. market. Excluding the effects from the execution of the ARSA and from changes in the estimate of the environmental services contract loss provision, in 2013 AEG achieved a solid gross margin of 42.5 per cent, compared with 40.3 per cent in 2012.

Bellekeno mine operations

Bellekeno operating results for 2013 reflect a shortened operating period of 245 days, with suspension of operations starting in early September. During the fourth quarter, a temporary and orderly suspension of operations was achieved at Bellekeno prior to the onset of winter, and care-and-maintenance activities have continued through the winter months, maintaining the mine in an essentially production-ready state.

Cash costs of production for 2013 were $14 per ounce of payable silver, compared with $11.89 in 2012. The increase in cash costs per ounce was due primarily to reduced mine production and lower grades in the first quarter, due to sequencing of mining through lower-grade peripheral areas in the SW zone, resulting in fewer production ounces to absorb the high-fixed-cost structure of the mine. Additionally, cost-per-ounce gains during the third quarter from a 27-per-cent increase in production throughput relative to the first two quarters of the year were largely offset by lower absorption of fixed costs by reduced sustaining development activity in that quarter, as well as costs associated with the orderly suspension of operations.

Comparative operating statistics for Bellekeno for the full year are summarized in the accompanying table.

                                                             2013(1)    2012

Ore tonnes mined                                           65,206     86,354
Ore tonnes processed                                       66,297     94,810
Mill throughput (tonnes per day)                              271        260
Grade of ore processed
Silver (grams per tonne)                                      705        760
Lead                                                          7.7%       9.6%
Zinc                                                          3.8%       4.8%
Recoveries
Silver                                                         94%        93%
Lead in lead concentrate                                       92%        90%
Zinc in zinc concentrate                                       61%        56%
Concentrate production:
Lead concentrate
Tonnes produced                                             7,796     13,000
Concentrate grade
Silver (grams per tonne)                                    5,458      4,965
Lead                                                           60%        63%
Zinc concentrate
Tonnes produced                                             3,450      5,685
Concentrate grade
Silver (grams per tonne)                                      360        413
Zinc                                                           45%        45%
Production -- contained metal
Silver (ounces)                                         1,408,164  2,150,959
Lead in lead con (pounds)                              10,324,978 18,183,755
Zinc in zinc con (pounds)                               3,443,855  5,676,284
Sales volumes by payable metal
Silver (ounces)                                         1,456,925  2,033,821
Lead (pounds)                                          10,930,186 17,207,146
Zinc (pounds)                                           3,190,850  4,771,416
Cash costs of production(2)
Per ounce of payable silver produced                       $14.00     $11.89

(1) The year ended Dec. 31, 2013, represents a shortened operating period
    encompassing 245 days.
(2) Non-IFRS measure.

Eastern Keno Hill silver district PEA

In December, 2013, Alexco completed a National Instrument 43-101-compliant PEA for certain of its holdings in the eastern portion of the Keno Hill silver district (EKHSD) (see news release dated Dec. 5, 2013). The EKHSD PEA is focused on production from the Flame & Moth deposit and consolidates supplemental production initially from the Bellekeno deposit and subsequently from the Lucky Queen deposit. It reflects one of a number of production strategies considered, and work is continuing to optimize the plan inputs. It is anticipated that one of the most significant factors that may lead to an improvement in the underlying fixed-cost structure of the Keno Hill district mining operations will be an increase in mill throughput to full capacity of 407 tonnes per day.

The EKHSD PEA outlines a project with an initial nine-month construction period followed by a 5.5-year period of silver production anchored by the Flame & Moth deposit. It provides for an annual delivery of an average of 3.1 million ounces of payable silver, 6.8 million pounds of lead, 6.6 million pounds of zinc and 1,050 ounces of gold from approximately 150,000 tonnes per year of consolidated mine and mill production. The after-tax internal rate of return is 38 per cent and the after-tax net present value at a 5-per-cent discount rate is $29.6-million, with a 3.5-year payback period, based on metal prices of $24 (U.S.) per ounce for silver, 95 U.S. cents per pound for lead, 85 U.S. cents per pound for zinc and $1,300 (U.S.) per ounce for gold. In order to finance the $45.3-million initial capital program envisioned in the EKHSD PEA, an initial investment of approximately $25-million will be required, with the balance forecast under the EKHSD PEA to be financed from operating cash flows. Roughly half of the $45-million capital program will be deployed to drive an initial decline and raise and establish underground infrastructure at the Flame & Moth deposit. Approximately 17 per cent or 163,000 tonnes of minable resource, primarily at Bellekeno and Flame & Moth, has been eliminated from the PEA mine plan and could be reconsidered should underlying costs and obligations be further optimized.

The consolidated mine production under the EKHSD PEA is primarily derived from indicated mineral resources, though approximately 6 per cent is derived from inferred mineral resources. Readers are cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability. Furthermore, the PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.

Keno Hill exploration and development

Alexco's exploration plans for 2014 are currently budgeted at approximately $5-million, and mobilization is currently under way. Exploration totalling at least 10,000 metres of surface drilling will be focused on better defining the potential limits of mineralization and adding immediate resources at the Flame & Moth deposit, and further defining the nearby Flame & Moth West discovery. Additional surface exploration work at Bellekeno and Bermingham is also under consideration.

Exploration drilling carried out at Flame & Moth during the summer of 2013 confirmed a 220-metre extension of the mineralized Flame vein to the southwest of the currently defined resource (see news release dated Sept. 18, 2013). According to Mr. Nauman: "Two thousand thirteen continued to highlight the emerging importance of the Flame & Moth deposit, which I see as the likely cornerstone of silver production at Keno Hill into the 2020s. Accordingly, the majority of our 2014 exploration budget will focus on growing this opportunity."

The deposit remains open down plunge to the southwest, and the hosting structure to the northeast. In addition, results from 2013 surface drilling at the Flame & Moth West prospect (formerly called the Bulldozer prospect), approximately one-half kilometre west of the Flame & Moth deposit, returned up to 28.7 ounces per ton silver over 0.85 metre (true width) on a separate but probably related structure. This confirmation of the 2012 discovery indicates the presence of a locally mineralized, north-northeast-south-southwest-trending corridor that is prospective over two kilometres in the immediate Christal Lake area and that may extend another six kilometres northeast to the Sadie Ladue deposit.

Financial position

Alexco's cash and cash equivalents at Dec. 31, 2013, totalled $8.6-million, compared with $23.1-million at Dec. 31, 2012, and $7.9-million at Sept. 30, 2013, while net working capital totalled $15.3-million, compared with $25.7-million and $15.4-million for the same dates, respectively. The decrease in cash and net working capital since 2012 primarily reflects the effect of substantially reduced cash inflows from Bellekeno mining operations due to the decline in silver prices, as well as capital expenditures primarily in the first half of the year on underground rehabilitation and access development activities at the Lucky Queen and Onek deposits, exploration in the Keno Hill District, the buyout of certain mining equipment from the contract miner at Bellekeno, and the purchase of settlement shares in connection with annual grantings of awards under the company's restricted share unit plan, offset by net cash proceeds of $6.5-million from the issuance of flow-through shares in April, 2013. Cash and net working capital were slightly up over the fourth quarter, reflecting the cash-flow positive windup of Bellekeno mining operations, the one-time benefits realized from the execution of the ARSA and profitable operations at AEG in general.

With its cash resources and net working capital on hand at Dec. 31, 2013, Alexco anticipates it will have sufficient capital resources to carry out all its currently anticipated exploration programs and service the working capital requirements of its exploration activity, environmental services business, and corporate offices and administration for at least the current 12-month period, although a restart of mining operations and new mine development is likely to require additional capital investment.

Financial report and conference call for year ended Dec. 31, 2013

Full details of the financial and operating results for the year ended Dec. 31, 2013, are described in Alexco's audited consolidated financial statements with accompanying notes and related management's discussion and analysis. These documents and additional information on Alexco, including its annual information form and U.S. Form 40-F, are available on the company's website, on SEDAR and on EDGAR. Shareholders may contact Alexco to request, free of charge, hard copies of the audited consolidated financial statements and related management's discussion and analysis.

Alexco is holding an audio webcast conference call to discuss these results at 11 a.m. ET (8 a.m. PT) on Wednesday, March 26, 2014. To participate in the live call, please use one of the following methods:

Dial toll-free from Canada or the United States:  1-877-407-0778

Dial from outside Canada or the United States:  1-201-689-8565

Live audio webcast:  Company 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 on the company's website. Through April 26, 2014, 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:  13578718

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, former Bellekeno mine manager, both of whom are qualified persons as defined by National Instrument 43-101.

We seek Safe Harbor.