Mr. Clynton Nauman reports

ALEXCO REPORTS FIRST QUARTER 2015 FINANCIAL RESULTS

Alexco Resource Corp. is releasing its financial results for the first quarter of 2015. All figures are expressed in Canadian dollars unless otherwise stated. For the first quarter of the year, Alexco reported a net loss of $500,000, or one cent per share, on revenue of $4.5-million. The loss was primarily related to non-cash items.

First quarter highlights:

• Net loss of $500,000, or one cent per share. Loss before deferred taxes was $900,000, including non-cash costs of $600,000 for depreciation and $300,000 for share-based compensation;
• Cash and cash equivalents at March 31, 2015, of $7.2-million was affected by timing of receivables, $1.3-million of which were delayed into April. Net working capital at March 31, 2015, was $10.9-million.
• Alexco Environmental Group (AEG) recorded revenues of $4.5-million in the first quarter of 2015, for a record quarterly gross profit of $1.2-million, with a gross margin of 26.3 per cent. Cash flows from AEG largely offset cash used during the quarter during the interim suspension of mining operations;
• Announced a 17-per-cent increase in indicated silver resource at Flame & Moth to 26.7 million ounces and an increase of 37 per cent in indicated silver resource at Bermingham to 5.2 million ounces. Keno Hill district-wide indicated resources increased 10 per cent to 50.4 million ounces of silver.

Alexco president and chief executive officer Clynt Nauman said: "Our focus in the first quarter was to recalculate the indicated silver resources at Flame & Moth and Bermingham, based on exploration completed in 2014. We remain dedicated to our objectives of expanding resources, optimizing our development plan and working to reduce any remaining hurdles which may stand in the way of a restart of operations at Keno Hill. In addition, we continue to support the business of AEG, which is now clearly on its own growth trajectory. We are keeping a good handle on our cash outflow and are looking forward to getting drills on the ground for this year's exploration program in the Yukon at Keno Hill."

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

                                                         Three months ended 
                                                                   March 31,
                                                           2015        2014 
                                                                            
Revenue from environmental services                   $   4,516   $   3,071 
Gross profit from environmental services                  1,192         981 
Revenue from mining operations                                -         256 
Gross profit from mining operations                           -         256 
Revenue from all operations                               4,516       3,327 
Gross profit from all operations                          1,192       1,237 
(Loss) before taxes                                        (945)     (1,899)
Net (loss)                                                 (492)     (1,419)
Total comprehensive (loss)                                 (645)       (852)
(Loss) per share, basic and diluted                   $   (0.01) $    (0.02)
Cash flows (consumed) from operating activities          (1,820)        140 

Alexco Environmental Group

AEG continued its growth during the first quarter, reporting all-time record quarterly revenues and gross profit. AEG recorded revenues of $4.5-million in the first quarter of 2015, with a gross profit of $1.2-million and a gross margin of 26.3 per cent. In the first quarter of 2014, AEG revenues totalled $3.0-million with a gross profit of $1.0-million, for a gross margin of 31.9 per cent. The decrease in gross margin during the first quarter is partly capacity related with AEG outsourcing work to external consultants and partly cyclical as some turnkey projects move from engineering to earthwork, which typically earns lower margins.

Exploration

Alexco is currently planning a 2015 exploration program of approximately 5,000 metres of surface diamond drilling primarily to follow up on the successful results at Bermingham, and also possibly test other tier 1 targets as time, financing and budget allow. Most of the 2015 effort will be focused at Bermingham, where, in 2014, Alexco drilled its best hole ever intersecting 6.39 metres (true width) of 5,667 grams per tonne (g/t) silver. This hole is downplunge from the existing (recalculated) resource and indicates a possible trend of high-grade silver mineralization toward a stratigraphic horizon which has been identified as a prolific ore producer in the district.

On April 30, 2015, Alexco announced updated mineral resource estimates for the Flame & Moth and Bermingham deposits, both located within the Keno Hill silver district in Canada's Yukon Territory. These resources have resulted in an approximate 10-per-cent increase from 50.2 million ounces to 55.4 million ounces of contained silver in Alexco's combined indicated mineral resources at its Keno Hill properties (see news release dated April 30, 2015, entitled "Alexco Announces Indicated Silver Resource Estimate Increases of 17 per cent at Flame & Moth and 37 per cent at Bermingham, Resulting in a 10-per-cent Increase Overall for Keno Hill Silver District"). The Flame & Moth indicated mineral resource estimate expanded to 26.7 million ounces of contained silver, representing a 17-per-cent increase, while at Bermingham, indicated mineral resources have expanded 37 per cent to 5.2 million ounces of contained silver.

The updated mineral resource estimates were prepared by SRK Consulting (Canada) Inc.

          SUMMARY OF UPDATED MINERAL RESOURCE ESTIMATES

Deposit              Class     Tonnes     Ag     Au    Pb     Zn    Ag (troy
                                        (g/t)  (g/t)   (%)    (%)     ounces)

Flame & Moth     Indicated  1,638,000    506   0.43  1.89    5.4  26,650,000
                  Inferred    348,000    366   0.26  0.47   4.37   4,095,000
Bermingham       Indicated    377,000    430   0.07  1.59   1.74   5,212,000
                  Inferred     52,000    477   0.12  1.22   1.88     797,000

Engineering and development

The recalculation and expansion of mineral resources at Keno Hill, especially at Flame & Moth, require further engineering review relative to existing development and mining plans. Accordingly, Alexco has tasked its engineering group to undertake a detailed review of the development and mining options for Flame & Moth in the context of the current silver market.

Financial position

Alexco's cash and cash equivalents at March 31, 2015, totalled $7.2-million, compared with $8.6-million at Dec. 31, 2014, while net working capital at March 31, 2015, totalled $10.9-million, compared with $11.3-million at Dec. 31, 2014. The decrease in cash and cash equivalents in the 2015 period is mainly attributed to increased accounts receivable from $3.9-million at Dec. 31, 2014, to $4.8-million at March 31, 2015, relating to a timing issue of collection of receivables from certain AEG customers, which were subsequently collected in April. This brought the accounts receivable balance down to approximately $3.5-million and correspondingly increased the cash balance subsequent to the end of the first quarter.

Financial report and conference call for the first quarter of 2015

Full details of the financial and operating results for the first quarter of 2015 are described in Alexco's interim condensed consolidated financial statements with accompanying notes, and the related management's discussion and analysis. These documents and additional information on Alexco are available on the company's website, and on SEDAR and EDGAR.

Alexco will hold an audio webcast conference call to discuss these results at 11 a.m. Eastern Time (8 a.m. Pacific Time) on Thursday, May 14, 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 U.S.:  1-201-689-8031

Live audio webcast:  At 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 on the company's website. Through June 14, 2015, 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 passcodes:  Conference ID No. 13608992

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.