Mr. Clynton Nauman reports

ALEXCO REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS

Alexco Resource Corp. is releasing its financial results for the second quarter of 2015. All figures are expressed in Canadian dollars unless otherwise stated. For the second quarter of the year, Alexco reported a net loss of $1.9-million, or three cents per share, on revenue of $2.6-million, while increasing its unrestricted cash balance from the end of the first quarter to $7.5-million.

Second quarter highlights:

• Net loss of $1.9-million, or three cents per share. Loss before deferred taxes was $1.9-million, including non-cash costs of $500,000 for depreciation and $100,000 for share-based compensation;
• Cash and cash equivalents at June 30, 2015, totalled $7.5-million, compared with $7.2-million at March 31, 2015, while net working capital totalled $9.6-million, compared with $10.9-million for the same dates, respectively;
• Exploration work is continuing at Keno Hill, including the completion of 1,355 metres of diamond drilling at the end of the second quarter, with a focus in the vicinity of the historical Bermingham mine workings. The drilling program, which will be largely completed by the end of August, is following up on significant silver intercepts drilled in 2014. Consolidated results from the current drill program should be available in the fourth quarter of 2015;
• Alexco Environmental Group (AEG) recognized revenues of $2.6-million in the second quarter of 2015, for a gross profit of $579,000 and a gross margin of 22.2 per cent;
• A milestone was achieved by AEG with a finding of no further active remediation from the state of Colorado at the Globeville smelter project, clearing the way for AEG to submit documents supporting the release of a portion of the $3.3-million (U.S.) of restricted cash originally posted by AEG as security for the project.

Alexco president and chief executive officer Clynt Nauman said: "We're holding our own in terms of our cash position despite the difficult markets and the fact that we have supported a modest but effective exploration program. We have certainly made good exploration progress at Bermingham this season and anticipate results from all work to be consolidated in the fourth quarter. AEG is closing in on completion of its extremely successful and publicly lauded project at the Globeville smelter in Denver, Colo. Meanwhile, in addition to further business development at AEG, our focus is on conserving cash, and moving forward with permitting and engineering on the Flame and Moth deposit, which is proceeding on schedule."

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

                                          Three months           Six months
                                         ended June 30,       ended June 30,
                                         2015     2014        2015     2014

Revenue from environmental services    $2,610   $3,064      $7,126   $6,135
Gross profit from environmental
services                                  579      812       1,771    1,793
Revenue from mining operations              -      105           -      361
Gross profit from mining operations         -      105           -      361
Revenue from all operations             2,610    3,169       7,126    6,496
Gross profit from all operations          579      917       1,771    2,154
Loss before taxes                       1,920    1,769       2,865    3,668
Net loss                                1,866    1,661       2,358    3,080
Total comprehensive loss                2,019    2,041       2,664    2,893
Loss per share, basic and diluted      $ 0.03   $ 0.03      $ 0.03   $ 0.05
Cash flows (consumed) from operating
activities                              (183)  (1,171)     (2,003)  (1,031)

AEG

AEG recognized revenues of $2.6-million in the second quarter of 2015, for a gross profit of $579,000 and a gross margin of 22.2 per cent, compared with revenues of $3.1-million for a gross profit of $812,000 and a gross margin of 26.5 per cent in the second quarter of 2014. The decrease in gross margin from the prior-year period is a result of one of AEG's major projects, the Globeville smelter project, completing active remediation and phasing to monitoring status with lower revenue and profits. In addition, AEG has been outsourcing a significant amount of specialty work to external consultants, incurring lower margins. In response, AEG has ramped up its business development efforts for bringing on more project-related work and has added specific professional positions to begin reducing reliance on third party contractors.

Exploration

Alexco's exploration plans for 2015, originally budgeted at approximately $2-million with 5,000 metres of diamond drilling, has been revised to approximately $1.6-million with 3,000 metres of diamond drilling, which largely meets the geology and exploration objectives of the 5,000-metre plan. The focus of the program is to follow up on the successful 2014 results at Bermingham. As of June 30, 2015, Alexco had drilled a total of 1,355 metres, with 952 metres drilled at Bermingham and 403 metres at Bellekeno North East. Consolidated results from this drill program should be available in the fourth quarter of 2015.

On April 30, 2015, Alexco announced updated mineral resource estimates for the Flame and Moth, and Bermingham deposits (see news release dated April 30, 2015). The Flame and Moth indicated mineral resource is estimated at 1,638,000 tonnes grading 506 grams per tonne (g/t) silver, 1.89 per cent lead, 5.40 per cent zinc and 0.40 g/t gold, plus another 348,000 tonnes of inferred mineral resource grading 366 g/t silver, 0.47 per cent lead, 4.37 per cent zinc and 0.30 g/t gold. The Bermingham mineral resource is estimated at 377,000 tonnes of indicated mineral resource grading 430 g/t per tonne silver, 1.59 per cent lead and 1.74 per cent zinc, plus another 52,000 tonnes of inferred mineral resource grading 477 g/t silver, 1.22 per cent lead and 1.88 per cent zinc.

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

                    UPDATED MINERAL RESOURCE ESTIMATES

                                    Ag     Au    Pb    Zn             Ag
Deposit   Class (1,2,3)    Tonnes (g/t)  (g/t)   (%)   (%)  (troy ounces)

Flame and
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

During the second quarter, Alexco continued to work on re-engineering and optimizing the mine plan for Flame and Moth, incorporating the current mineral resource from April 30, 2015. Mine plans will be further refined based on recommendations from a more detailed geotechnical review by SRK Consulting (Canada), with anticipated completion in the third quarter of 2015. The Flame and Moth economic model will then be updated using current consensus pricing and updated estimated costing. Once the results from the work above are completed, a new optimized multiple mine economic model will be developed incorporating Flame and Moth, Lucky Queen, and Bellekeno deposits.

The company continues its progress with the Yukon Water Board on the amendment of a current water use licence for the Flame and Moth deposit. Management expects a water licence amendment hearing to occur in the fourth quarter of 2015.

Financial position

Alexco's cash and cash equivalents at June 30, 2015, totalled $7.5-million, compared with $7.2-million at March 31, 2015, and $8.6-million at Dec. 31, 2014, while net working capital totalled $9.6-million, compared with $10.9-million and $11.3-million for the same dates, respectively. The decrease in cash and cash equivalents, compared with the end of 2014, is mainly attributed to the 2015 exploration drill program, care and maintenance costs at Keno Hill, and corporate overhead costs, offset by AEG profits. Furthermore, AEG experienced lower profits in the first six months of 2015, with some scheduled work delayed into the second half of 2015, as well as more work being completed by external consultants.

Financial report and conference call for second quarter 2015

Full details of the financial and operating results for the second quarter of 2015 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, and on SEDAR and EDGAR.

Alexco is holding an audio webcast conference call to discuss these results at 11 a.m. Eastern Time (8 a.m. Pacific Time) on Wednesday, Aug. 12, 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:  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 Sept. 12, 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. 13615534

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.