Mr. Clynton Nauman reports

ALEXCO REPORTS FOURTH QUARTER AND YEAR-END 2014 RESULTS

Alexco Resource Corp. has released financial results for the fourth quarter and year ended Dec. 31, 2014. All figures are expressed in Canadian dollars unless otherwise stated.

For the fourth quarter of 2014, Alexco recorded an adjusted net loss of $1.6-million or two cents per share, including $800,000 in depreciation and other non-cash costs. Alexco Environmental Group (AEG), a wholly owned subsidiary of Alexco, recognized revenues of $4.1-million in the fourth quarter and $14.9-million for the year ended Dec. 31, 2014, with an annual gross profit of $4.9-million, achieving a gross margin of 32.8 per cent. For the full-year 2014, Alexco recorded an adjusted net loss of $5.4-million or eight cents per share. The consolidated net loss for the year was $32.8-million, including the impact of non-cash asset writedowns of $29.9-million, along with an offsetting $2.6-million deferred income tax recovery recorded in the fourth quarter. The writedowns were primarily due to significantly depressed silver prices in 2014 and the continued interim suspension of mining operations.

Highlights in 2014:

• Adjusted net loss of $5.4-million or eight cents per share; consolidated net loss was $32.8-million, including a non-cash charge of $29.9-million, reflecting the impact of depressed silver prices in 2014 and the continued interim suspension of mining operations;
• Cash and cash equivalents at Dec. 31, 2014, of $8.6-million and net working capital of $11.3-million compared with $8.6-million and $15.3-million, respectively, at Dec. 31, 2013;
• AEG full-year gross profit of $4.9-million on revenues of $14.9-million, achieving a gross margin of 32.8 per cent;
• Completed 18,267 metres of surface exploration drilling with continued success; Alexco drilled its best hole ever at Keno Hill, intersecting 5,667 grams per tonne silver over 6.39 metres of true width at Bermingham, while also enjoying continued success with infill and extension drilling at Flame & Moth;
• Achieved a 32-per-cent decrease in general and administrative costs in 2014 compared with the previous year;
• Completed a bought-deal financing in August, 2014, for net cash proceeds of $7.2-million;
• Extended by one year, to Dec. 31, 2015, the date by which Alexco may make a $20-million (U.S.) payment to Silver Wheaton to implement an amendment to its silver streaming agreement;
• Completed a positive preliminary economic assessment encompassing Bellekeno, Flame & Moth and the Lucky Queen deposits, in addition to outlining resources at the Onek and Bermingham deposits;
• Moved forward with the permitting process required for development and future production from the Flame & Moth deposit; a decision document has been issued by the government of Yukon, which is a necessary step toward amending the Quartz mining licence and the water use licence.

Alexco's president and chief executive officer, Clynt Nauman, said: "Although 2014 will be remembered as a year of challenges in the silver business, Alexco was able to move forward with a substantial and very successful exploration program, renegotiate our silver streaming agreement, advance permitting and development activities for our Flame & Moth deposit, and position Alexco for a restart of silver mining operations when market conditions strengthen. We are further encouraged to report that by cutting our expenses and prudently applying the cash flow from the Alexco Environmental Group, we have good flexibility and resilience for the foreseeable future while we continue to optimize our future operating plans."

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

                                    Three months ended         Year ended
                                            Dec. 31,             Dec. 31,
                                        2014      2013       2014       2013

Revenue from mining operations            --      $665       $361    $43,114
Gross profit (loss) from mining
operations                                --       200        361        (29)
Revenue from environmental
services                              $4,139     4,498     14,925     16,319
Gross profit from environmental
services                               1,260     2,418      4,888      8,849
Revenue from all operations            4,139     5,163     15,286     59,433
Gross profit from all operations       1,260     2,618      5,249      8,820
(Loss) before taxes                  (31,113)     (505)   (35.608)   (62,079)
Net (loss)                           (29,025)   (1,131)   (32,772)   (50,450)
Adjusted net (loss)                   (1,616)   (1,131)    (5,363)    (4,313)
Total comprehensive (loss)           (29,263)   (1,197)   (32,724)   (50,633)
(Loss) per share -- basic and
diluted                            $   (0.44) $  (0.01) $   (0.50) $   (0.81)
Adjusted (loss) per share          $   (0.02) $  (0.02) $   (0.08) $   (0.07)
Cash flows (consumed) generated
from operating activities                543     4,154       (723)     3,407
Recognized metal prices 
Silver (U.S.$ per ounce)                  --  $  19.63         --  $   23.94
Lead (U.S.$ per pound)                    --  $   0.95         --  $    0.98
Zinc (U.S.$ per pound)                    --  $   0.88         --  $    0.88

Alexco Environmental Group

AEG achieved another strong year, recording revenues of $14.9-million and a gross profit of $4.9-million, compared with revenue of $16.3-million in 2013 and a gross profit of $8.8-million. The increased revenues and gross profit in 2013 included $2.0-million in additional revenues and an $850,000 reduction in cost of sales recognized on completion of a renegotiated agreement with the government of Canada. In 2014, AEG achieved a solid gross margin of 32.8 per cent, compared with 42.5 per cent in 2013. The decrease in gross margin from the prior year is primarily a result of capacity constraints at AEG and consequent outsourcing of work to external consultants incurring lower margins.

Mr. Nauman said: "AEG again performed impressively in 2014 and is now actively repatriating to Alexco the capital deployed to AEG in its early years. We will continue to focus on growth at AEG. The business is well branded, has strong margins and is currently operating close to capacity. Further growth in the business will likely require capital and additional professional staff, and the AEG management team therefore remains focused on strategic repositioning of the business to capitalize on a string of recent successes."

Keno Hill exploration and development

Alexco completed its 2014 surface exploration program in October, 2014, drilling 68 holes for a total of 18,267 metres. The company incurred exploration expenditures of $5.1-million. The drill program focused on the infill, definition and extension drilling on the Flame & Moth and Bermingham deposits.

Mr. Nauman said: "Our exploration work in 2014 underscored our confidence at Flame & Moth, with much of the infill and peripheral drilling revealing higher grades and better thicknesses of mineralization than in previous models. Flame & Moth could very well be the cornerstone of silver production at Keno Hill into the 2020s. Further, our results at Bermingham were very impressive, in fact, some of the best results we have seen at Keno Hill since our acquisition of the district in 2006."

Alexco is currently planning a 2015 exploration program, budgeted at approximately $2-million, to follow up successful results returned from the 2014 surface drilling program. Focus in 2015 will be on Bermingham, where robust silver mineralization encountered in 2014 appears to be vectoring toward a stratigraphic-structural setting similar to that occupied by the Hector-Calumet deposit that historically produced 96.2 million ounces of silver at an average grade of 35.4 ounces per ton.

Flame & Moth results

Results from the drill program at Flame & Moth were reported in mid-January, 2015 (see news release dated Jan. 20, 2015, entitled "Alexco drills 6.1 m of 1,483 g/t Ag at Flame & Moth"), with respect to 15,133 metres of infill, definition and extension drilling completed. The northerly Christal zone returned results of a maximum true width of 13.3 metres (average of 6.5 metres) of mineralization, with a best composite silver assay of 1,483 grams per tonne silver (47.7 ounces per tonne) over a 6.2-metre true width. The total drilled strike length of the Flame & Moth vein system in the area about the existing resource now measures approximately 1,150 metres.

Bermingham results

Results from the drill program at Bermingham were reported in early November, 2014 (see news release dated Nov. 5, 2014, entitled "Alexco drills 6.39 m of 5,667 g/t Ag at Bermingham"), with respect to 2,667 metres of drilling completed in eight holes to both infill and extend Bermingham mineralization to the northeast. Results from this drilling include an intercept of 6.39 metres (true width) with a composite silver grade of 5,667 g/t silver (165.3 ounces per ton), which included 1.81 metres (true width) assaying 18,270 g/t (532.9 ounces per ton) silver. Over all, work in 2014 has systematically extended mineralization at Bermingham approximately 400 metres northeasterly beyond the existing Etta zone resource, toward the inferred unique stratigraphic and structural setting occupied by the adjacent Hector-Calumet mine.

Extension of payment date for silver streaming amendment

In June, 2014, Alexco announced it had come to an agreement with Silver Wheaton Corp. to amend the silver streaming agreement originally dated Oct. 2, 2008, such that the fixed $3.90-(U.S.)-per-ounce silver streaming production payment can be replaced with a variable production payment based on the spot price of silver, with significant positive implications for Alexco and the Keno Hill silver district in general (see news release dated June 16, 2014, entitled "Alexco Resource agrees to variable silver royalties"). The amendment is subject to the payment of $20-million (U.S.) by Alexco to Silver Wheaton, and the date by which the payment is currently due is set at Dec. 31, 2015. (See news release dated Nov. 3, 2014, entitled "Alexco gains extra year for Silver Wheaton buy-down.")

Mr. Nauman emphasized: "This amendment to the silver streaming agreement is an opportunity -- not an obligation -- for Alexco, and while I believe it is very important for Alexco to implement a redefined streaming agreement, I am not willing to do so at the cost of diluting our shareholders in the current market. We will continue to look for additional solutions to this issue."

Permitting

The key to the future mining operation at Keno Hill is the Flame & Moth deposit, which under Yukon regulations required Alexco to undertake an environmental reassessment under the Yukon Environmental and Socio-economic Assessment Act, and seek additional amendments to its existing quartz mining licence (QML) and water use licence (WUL). This process was initiated in December, 2013. In October, 2014, the designated office evaluation report under the Yukon Environmental and Socio-economic Assessment Board recommended that the Flame & Moth project be allowed to proceed under certain terms and conditions, many of which were subsequently modified or rejected by the decision body (Yukon government) in the decision document received by the company on Nov. 4, 2014. The decision document outlines the terms and conditions for modification of the existing QML and WUL. A WUL is considered by Alexco to be necessary for the development of the Flame & Moth deposit. Thus, subsequent to the QML amendment, the company is proceeding to complete a process to amend its WUL to incorporate conditions related to development, future production and milling of ore from Flame & Moth. It is anticipated that a further six months is required to amend the WUL, a process which was initiated in October, 2014. Total anticipated permitting time for Flame & Moth from initiation of the process in December, 2013, is estimated to be approximately 20 to 24 months, with final permits anticipated in the second half of 2015.

Keno Hill silver district preliminary economic assessment

In December, 2014, Alexco released an updated National Instrument 43-101-compliant preliminary economic assessment for its 100-per-cent-owned Keno Hill silver district in Canada's Yukon Territory (see news release dated Dec. 23, 2014, entitled "Alexco Resource releases NI 43-101 Keno Hill PEA"). This PEA consolidates into one report updated information related to construction and operation of a new underground mine at the Flame & Moth silver deposit, and includes current resource statements for the Bellekeno, Flame & Moth, Lucky Queen, Onek and Bermingham deposits. The PEA reflects one of a number of production strategies being considered in the eastern Keno Hill silver district.

The KHSD PEA outlines a mining project with an initial nine-month construction period followed by a 5.75-year period of silver production anchored by the Flame & Moth deposit. The PEA provides for annual silver production of approximately three million ounces per year, significant lead and zinc production, and a 3.75-year payback period (see news release dated Dec. 23, 2014, entitled "Alexco Resource releases NI 43-101 Keno Hill PEA").

Financial

As at Dec. 31, 2014, the carrying amount of the corporation's net assets exceeded its market capitalization, which was considered an indicator of potential impairment of the carrying amount of its non-current non-financial assets. In addition, metal prices have been volatile, and silver has experienced a significant decline through 2014. As a result, the company recorded a consolidated impairment charge totalling $29.9-million on its mining assets and exploration and evaluation properties during the fourth quarter, offset by the accompanying deferred income tax recovery of $2.6-million.

Alexco's cash and cash equivalents at Dec. 31, 2014, totalled $8.6-million compared with $8.6-million at Dec. 31, 2013, while net working capital totalled $11.3-million compared with $15.3-million for the same dates. The decrease in net working capital is mainly attributed to a reclassification of inventory, where $4.3-million of ore in stockpiles has been classified as a non-current asset. Cash and net working capital decreased by $1.9-million and $6.7-million, respectively, over the fourth quarter, mainly due to a reduction in payables, the reclassification of ore in stockpiles to non-current and fixed overhead expenses. With its cash resources and net working capital on hand at Dec. 31, 2014, Alexco anticipates it will have sufficient capital resources to carry out all of 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 will require additional capital investment.

Financial report and conference call for year ended Dec. 31, 2014

Full details of the financial and operating results for the year ended Dec. 31, 2014, 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, are available on the company's website and on SEDAR and on EDGAR. Shareholders may contact Alexco at Suite 1150, 200 Granville St., Vancouver, B.C., V6C 1S4, 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. Eastern Time (8 a.m. Pacific Time) on March 26, 2015. 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 Alexco Resource 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 website. Through April 26, 2015, 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 passcode:  Conference ID No. 13604061

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 (standards of disclosure for mineral projects).

We seek Safe Harbor.