Mr. Clynt Nauman reports

ALEXCO REPORTS THIRD QUARTER 2015 FINANCIAL RESULTS

Alexco Resource Corp. has released its financial results for the third quarter of 2015. For the third quarter of the year Alexco reported a net loss of $1.6-million, or two cents per share, on revenue of $3.4-million.

Third quarter highlights

• Alexco completed a surface exploration drill program of 2,595 metres focused on extension and expansion of the previously identified Bermingham resource at Keno Hill. Significant true width intercepts from the program included 4.98 metres grading 7,462 grams per tonne (g/t) (240 ounces per ton) silver, 4.76 metres grading 2,357 g/t (75.8 ounces per ton) silver, 2.35 metres of 3,774 g/t (121.3 ounces per ton) silver and ranging down to 1.81 metres grading 794 g/t (25.5 ounces per ton) silver were returned from drill holes in the 2015 program.
• Alexco Environmental Group (AEG) was selected by the United States Environmental Protection Agency (EPA) as the interim water treatment contractor to design, construct and automate an interim water treatment plant at the Gold King mine near Silverton, Colo. The project commenced on Oct. 1, 2015, and on Oct. 20, 2015, the company announced that it completed the construction and initiated operation of a 1,200-gallon-per-minute interim water treatment facility. The bulk of the work on this construction project and the transition to plant operation is anticipated in the fourth quarter of 2015.
• Cash and cash equivalents at Sept. 30, 2015, totalled $5.9-million compared with $8.6-million at Dec. 31, 2014, while net working capital totalled $11.1-million compared with $11.3-million for the same dates, respectively. Working capital includes $3.96-million of restricted cash from the Globeville security that was reclassified from non-current to current assets.
• Net loss of $1.6-million, or two cents per share. Loss before deferred taxes was $2.0-million. Revenues of $3,408,000 were recognized in the third quarter of 2015 for a gross profit of $869,000 and a gross margin of 25.5 per cent.

Alexco president and chief executive officer Clynt Nauman said: "At the end of the third quarter the company is well positioned. On the exploration front, our new discoveries at Bermingham are likely to be very important for the future of the Keno Hill silver district. And in the environmental business unit, the selection of AEG by the EPA to construct and commission an interim water treatment plant at the Gold King mine in Colorado underscores the confidence in AEG's technical and operating ability to meet high-profile environmental challenges. We are attentively managing our cash position, and you will note that our working capital position at $11.1-million is little changed from a year ago."

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

                                     Three months ended   Nine months ended
                                              Sept. 30,           Sept. 30,
                                         2015      2014      2015      2014

Revenue                                $3,408    $4,651   $10,534   $11,147
Gross profit                              869     1,835     2,640     3,989
Loss before taxes                       1,986       827     4,851     4,495
Net loss                                1,649       667     4,007     3,747
Total comprehensive loss                1,834       568     4,498     3,461
Loss per share -- basic and diluted     $0.02     $0.01     $0.06     $0.06
Cash flows (consumed) from operating
activities                            (1,483)     (235)   (3,486)   (1,266)

Alexco Environmental Group (AEG)

AEG recognized revenues of $3.4-million in the third quarter of 2015 for a gross profit of $869,000 and a gross margin of 25.5 per cent compared with revenues of $4.7-million for a gross profit of $1.8-million and a gross margin of 39.5 per cent in the third quarter of 2014. The decrease in gross margin from the prior-year period is mainly due to one of AEG's major projects, Globeville smelter project, completing active remediation and phasing to monitoring status with lower revenue and profits. In addition, AEG has ramped up its business development efforts in an attempt to win more project-related work and has added specific professional positions to begin reducing reliance on third party contractors.

Exploration

Alexco completed a surface exploration drill program of 2,595 metres focused on extension and expansion of the previously identified Bermingham resource. Significant true width intercepts include 4.98 metres grading 7,462 g/t (240 ounces per ton) silver, 4.76 metres grading 2,357 g/t (75.8 ounces per ton) silver, 2.35 metres of 3,774 g/t (121.3 ounces per ton) silver and ranging down to 1.81 metres grading 794 g/t (25.5 ounces per ton) silver were returned from drill holes in the 2015 program. Total costs incurred on the exploration program as of the date of this MD&A totalled approximately $1.4-million.

Engineering and development

During the third quarter, Alexco continued to work on re-engineering and optimizing the mine plan for Flame and Moth, incorporating the expanded mineral resource from April 30, 2015. Mine plans will be updated and optimized based on geotechnical information and the Flame and Moth economic model will be revised using current consensus pricing and updated estimated costing. Once results from this work are compiled, the study will move to develop an optimized multimine model which should be complete early in the second quarter of 2016.

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 first quarter of 2016.

Financial position

Alexco's cash and cash equivalents at Sept. 30, 2015, totalled $5.9-million, compared with $8.6-million at Dec. 31, 2014, while net working capital totalled $11.1-million compared with $11.3-million for the same dates, respectively. During the third quarter of 2015 $4.0-million of restricted cash relating to the Globeville security was reclassified from non-current to current assets. The decrease in cash and cash equivalents compared with the end of 2014 is mainly due to expenditures attributed to the previously disclosed 2015 exploration drill program at the Bermingham prospect in the Keno Hill silver district and working capital requirements for the Gold King mine interim water treatment plant project in Colorado. Care and maintenance costs at Keno Hill and general and administration expenditures including severance costs, as well as the foreign exchange impact related to U.S.-dollar-denominated administrative costs also impacted the cash position. Furthermore, AEG experienced lower profits in the first nine months of 2015 with some scheduled fee-for-service and project work delayed into the second half of 2015.

Financial report and conference call for third quarter 2015

Full details of the financial and operating results for the third 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, on SEDAR and on 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 Friday, Nov. 13, 2015. To participate in the live call, please use one of the following methods:

Dial toll-free from Canada or the U.S.:  1-866-233-4585

Dial from outside Canada or the U.S.:  1-416-640-5946

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 Nov. 27, 2015, a replay of the call will be available by telephone at the following:

Dial toll-free from Canada or the U.S.:  1-866-245-6755

Dial from outside Canada or the U.S.:  1-416-915-1035

Replay pass codes:  conference ID No. 261440

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.