Mr. Clynton Nauman reports

ALEXCO CLOSED C$13 MILLION NON-BROKERED EQUITY FINANCING

Alexco Resource Corp. has closed the previously announced non-brokered private placement of units of the company at a price of $1.20 per unit, pursuant to which the company issued 10,839,972 units for aggregate gross proceeds of $13,007,966.

Each unit consisted of one common share and one-half of one non-transferable common share purchase warrant, each warrant entitling the holder to purchase one additional common share of the company at a price of $1.75 until May 17, 2018. If, commencing on Sept. 18, 2016, the closing price of company's common shares on the Toronto Stock Exchange is higher than $2.50 for 10 consecutive trading days, the expiry date of the warrants may be accelerated to the date that is 10 trading days after the trigger date by the issuance of a news release within two trading days of the trigger date announcing such acceleration.

In connection with the private placement, the company has paid a finder and certain of its affiliates a cash commission equal to 5 per cent of the gross proceeds from the sale of 7.51 million units sold to purchasers introduced by the finder. The finder also received an aggregate of 225,300 warrants. Each finder warrant is exercisable for one common share of the company at a price of $1.49 until May 17, 2018, subject to the acceleration provision. The company also paid finders' fees of $176,110 to other arm's-length finders, representing a cash commission equal to 5 per cent of the gross proceeds received in respect of the sale of 2.94 million units to purchasers introduced to the company by such finders.

The net proceeds from the private placement are expected to be used by the company for exploration and development activities on the company's assets, and for general corporate purposes.

The securities issued and issuable upon the exercise of warrants under the private placement are subject to a hold period and may not be traded until Sept. 18, 2016, except as permitted by applicable securities legislation, and the rules and policies of the Toronto Stock Exchange.

Certain directors and senior officers of the company participated in the private placement by purchasing an aggregate of 50,000 units. Accordingly, the private placement constituted to that extent a related party transaction under applicable Canadian securities laws. The company did not file a material change report more than 21 days before the expected closing of the private placement as the details of the private placement and the participation therein by related parties of the company were not settled until shortly prior to closing, and the company wished to close on an expedited basis for sound business reasons.

We seek Safe Harbor.