Mr. Clynton Nauman reports

ALEXCO INITIATES 2016 BERMINGHAM EXPLORATION AND OTHER WORK AT KENO HILL

Alexco Resource Corp. has begun site preparations for an expanded surface exploration diamond drilling program at its Bermingham prospect in the Keno Hill silver district, Yukon territory. The objective of the 2016 exploration drill program is to infill and expand the 2014/2015 high-grade silver discovery, as well as collect the necessary geotechnical, metallurgical and hydrogeological data required to support an updated resource estimate for the Bermingham deposit, expected to be completed in the fourth quarter of 2016. In addition to exploration work, Alexco will undertake construction and initial development to collar and establish the underground ramp portal and infrastructure necessary for the future development of the Flame and Moth deposit.

Bermingham 2016 exploration program highlights:

• An initial 8,000-metre surface drill program will be completed at the Bermingham prospect through September, 2016. The Bermingham target is a blind, steeply plunging zone of high-grade silver mineralization approximately 160 m from surface outlined in several discovery drill holes in 2014/2015 (see news release dated Sept. 17, 2015), estimated to extend approximately 140 m downplunge, approximately 40 m along strike and ranging in thickness from 0.4 to 6.4 m with assay grades ranging between 1,200 and 10,100 grams per tonne silver. The discovery zone is open updip and downdip, and is located immediately to the northeast and adjacent to previously outlined Bermingham silver mineralization comprising an indicated 377,000 tonnes of 430 g/t silver, or approximately 5.2 million ounces of contained silver (see news release dated April 29, 2015).
• A minimum of $3-million will be spent to initially drill 25 to 30 holes to define the limits of the Bermingham high-grade zone. The program will also explore deeper beneath the discovery where projected mineralization may extend down into the highly productive siliceous quartzites that host the historic Hector-Calumet mine deposit located approximately one kilometre to the northeast of Bermingham and historically produced approximately 96 million ounces of silver at a reported grade of 1,090 g/t silver.
• Up to an additional amount of approximately $500,000 will be spent at Bermingham to collect and test metallurgical response of the high-grade mineralization, and to gather important geotechnical and hydrology information to support an updated Bermingham resource estimate, as well as provide necessary data for future exploration decisions regarding the Bermingham deposit, as warranted.
• Results from the 2016 exploration program are expected to be released in the third or fourth quarter of 2016 and will provide the basis to complete an updated Bermingham resource estimate to be included in an updated preliminary economic assessment in the fourth quarter 2016. The updated PEA will also include revised and optimized development and mining plans for the company's Flame and Moth, Bellekeno, and Lucky Queen deposits.

Mining, other work at Keno Hill in 2016:

• Surface construction and preliminary underground development work to collar and establish an engineered portal for the Flame and Moth deposit will commence in late June. This work will include provision of electrical, air and mine water services to the portal (adjacent to the district mill) to support development of the initial 25 m of the Flame and Moth production ramp. This ramp will ultimately be driven approximately 460 additional m to the upper production levels of the Flame and Moth silver deposit. Based on prior work (see the Dec. 10, 2014, Alexco Resource Corp. PEA technical report entitled "Updated Preliminary Economic Assessment for the Eastern Keno Hill Silver Project -- Phase 2, Yukon Canada"), the Flame and Moth deposit has approximately 585,000 tonnes of potentially minable material grading 693 g/t silver, 2.19 per cent lead, 5.35 per cent zinc and 0.52 g/t gold. Similar to the Bermingham resource estimate, the potentially minable tonnes and grade at Flame and Moth will be revised in the updated PEA in the fourth quarter 2016.
• In addition to construction and development activity at Flame and Moth, routine equipment condition assessments and maintenance will be conducted on equipment and facilities including camp and infrastructure throughout the district to assure acceptable standards are maintained during the continuing suspension of production in the district.

Signing of amended co-operation agreement with first nation of Na-Cho Nyak Dun

• Alexco and the first nation of Na-Cho Nyak Dun have entered into an amended and restated comprehensive co-operation and benefits agreement (CCBA) relating to exploration, mine development, mining and environmental activities of Alexco and its subsidiaries in the Keno Hill silver district.
• The amended and restated CCBA was signed on May 4, 2016, marking the completion of a routine five-year review of the original CCBA signed in May, 2008. The revised agreement includes enhanced language in respect of project implementation, the co-operative environmental engagement process, business opportunities and wealth sharing.

Alexco's strong financial position as of May 26, 2016 (including the equity financing completed on May 17, 2016), totalling approximately $18-million of unrestricted cash, will enable the company to complete the currently planned 2016 work programs at Keno Hill.

Qualified person

The disclosure in the news release of scientific and technical nature regarding exploration projects on Alexco mineral properties has been reviewed and approved by Alan McOnie, FAusIMM, vice-president of exploration for Alexco, a qualified person as defined by National Instrument 43-101.

We seek Safe Harbor.