Mr. Clynton Nauman reports

ALEXCO REPORTS FIRST QUARTER 2016 RESULTS

Alexco Resource Corp. is releasing its financial results for the first quarter ended March 31, 2016. All figures are expressed in Canadian dollars unless otherwise stated. For the first quarter of 2016, Alexco recorded a net loss of $2.1-million or three 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 $2.3-million with a gross profit of $600,000, achieving a gross margin of 24 per cent.

First quarter highlights:

• Cash and cash equivalents at March 31, 2016, of $7.1-million, and net working capital of $10.7-million, compared with $8.1-million and $12.2-million, respectively, at Dec. 31, 2015.
• On Feb. 17, 2016, the company was granted an amended quartz mining licence (QML) for the development of the Flame & Moth deposit.
• On April 27, 2016, the company announced that it entered into an indicative term sheet for a non-brokered private placement of up to 8.34 million units of the company at a price of $1.20 per unit for gross proceeds of up to $10,008,000. Each unit will consist of one common share and one-half of one non-transferable warrant, each whole such warrant entitling the holder to purchase one additional common share of the company at a price of $1.75 per share for a period of 24 months following the date of issuance. The company has since increased the size of this private placement by up to 2.5 million additional units for gross proceeds of up to $3-million, for a total of up to 10.84 million units to raise total gross proceeds up to $13,008,000.

Alexco's president and chief executive officer, Clynt Nauman, said: "In the first quarter, we focused on implementing plans to continue exploration at our high-grade Bermingham discovery, as well developing a plan to return to operations incorporating production from the Bellekeno, Flame & Moth and Lucky Queen silver deposits. Alongside this, we intend to modestly expand maintenance and other equipment evaluation activities at site. We are cautiously optimistic that recent strengthening in the metals markets will continue, and want to ensure that the condition of our plant, equipment and infrastructure is satisfactory in the face of potentially improving market conditions."

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

                                                         Three months ended 
                                                                   March 31,
                                                            2016       2015 

Revenue from environmental services                    $   2,348  $   4,516 
Gross profit from environmental services                     565      1,192 
(Loss) before taxes                                       (2,018)      (945)
Net (loss)                                                (2,110)      (492)
Total comprehensive (loss)                                (1,903)      (645)
(Loss) per share, basic and diluted                    $   (0.03) $   (0.01)
Cash flows (consumed) from operating activities           (1,083)    (1,820)

Alexco Environmental Group

AEG recorded revenues of $2.3-million and a gross profit of $600,000, compared with revenue of $4.5-million and a gross profit of $1.2-million in the first quarter of 2015. The decrease in gross margin from the prior period is mainly due to one of AEG's major projects, the Globeville smelter project, being completed and thinner realized margins on other continuing Colorado-based environmental projects, primarily construction, modification and operation of a number of water treatment plants. Furthermore, the nature of specialized engineering design related to the Keno Hill reclamation plan required AEG to outsource a significant portion of work to third party contractors during 2016.

At the Gold King project in southern Colorado, the U.S. Environmental Protection Agency (EPA) has recently extended the operations contract with AEG to the end of September, 2016, as well as authorized an interim expansion of the plant to approximately double the plant capacity. Construction related to this expansion is continuing.

Mr. Nauman said: "Our fee-for-service business in Canada continues to lead the way in steady profitability. Project and turnkey work in the U.S. is much lumpier in terms of revenue and earnings. Although our first quarter was slow, we expect to see a pickup in project activity over the balance of the year."

Keno Hill exploration

The company has planned an exploration program of at least 8,000 metres in 25 to 30 surface diamond drilling holes to follow up on the successful 2015 high-grade silver results at the Bermingham deposit. The exploration program is budgeted to cost $3-million and is fully financed by way of the $3-million flow-through funds that were raised in December, 2015. The surface drilling program is expected to run between June and September, 2016, with results to be released as received but no later than the fourth quarter of 2016. The company will expend additional funds to gather important geotechnical and hydrogeological information, as well as undertake a preliminary metallurgical program to test the Bermingham mineralization.

Keno Hill silver district preliminary economic assessment

The company plans to provide an updated National Instrument 43-101-compliant preliminary economic assessment (PEA) for its 100-per-cent-owned Keno Hill silver district in the fourth quarter of 2016, which will incorporate the re-engineering and optimization of the mine plan, along with an updated mineral resource estimate for the Bermingham deposit.

In February, 2016, the company received the amended QML for the Flame & Moth deposit, and expects a water licence amendment hearing to occur in the second quarter 2016.

Financial

Alexco's cash and cash equivalents at March 31, 2016, totalled $7.1-million, compared with $8.1-million at Dec. 31, 2015, while net working capital totalled $10.7-million, compared with $12.2-million for the same dates. With its cash resources and net working capital on hand at March 31, 2016, 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, as planned for 2016 and into 2017.

Financial report and conference call for first quarter of 2016

Full details of the financial and operating results for the first quarter ended March 31, 2016, 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, including its annual information form, 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 Thursday, May 12, 2016. To participate in the live call, please use one of the following methods:

Dial toll-free from Canada or the United States:  1-866-233-4585

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

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 at the company's website.

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 the information 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.