Mr. Clynton Nauman reports

ALEXCO REPORTS FOURTH QUARTER AND YEAR END 2016 RESULTS

Alexco Resource Corp. has released financial results for the fourth quarter and year ended Dec. 31, 2016. For the fourth quarter of 2016, Alexco recorded a net loss of $1.8-million or two cents per share, including $700,000 in depreciation and other non-cash costs. Alexco Environmental Group (AEG) recorded revenues of $11.4-million for the year ended Dec. 31, 2016, with an annual gross profit of $2.9-million, achieving a gross margin of 25.2 per cent. For the full-year 2016, Alexco recorded a net loss of $4.4-million or five cents per share, including $3.2-million in depreciation, share-based compensation expense and other non-cash costs offset by a gain of $2.7-million on investments held. The working capital position at year-end was $23.4-million.

2016 highlights:

• Improving and strong unrestricted cash position with cash and cash equivalents at Dec. 31, 2016, of $20.4-million and net working capital of $23.4-million compared with $8.2-million and $12.6-million, respectively, at Dec. 31, 2015;
• The corporation completed its 2016 Bermingham diamond drill program at Keno Hill with 50 holes for a total of 17,371 metres; drill results extended the previously defined Arctic zone of silver mineralization and outlined a new zone of high-grade silver mineralization beginning approximately 160 metres from surface and extending at least 270 m down plunge;
• On May 17, 2016, the corporation closed a non-brokered private placement of units of the corporation at a price of $1.20 per unit pursuant to which the corporation issued 10,839,972 units for aggregate gross proceeds of $13,007,966;
• 4,364,575 warrants exercised for proceeds of $6.2-million;
• Investments in marketable securities were disposed of for proceeds of $1.8-million and a pretax realized gain of $1.5-million; in addition, warrants held as an investment had a pretax fair value measurement adjustment increase of $1.2-million;
• AEG recognized revenues of $11.4-million in 2016 for a gross profit of $2.9-million and a gross margin of 25.2 per cent;
• A performance bond was released to Alexco in the amount of $3.8-million ($2.9-million (U.S.)) related to the AEG's Globeville smelter project in Denver, Colo.

Highlights subsequent to 2016:

• The corporation announced an updated mineral resource estimate for the Bermingham deposit, expanding the indicated mineral resources from 5.2 million ounces to 17.3 million ounces while inferred mineral resources increased from approximately 700,000 ounces to 5.5 million ounces of contained silver.
• Alexco released an updated National Instrument 43-101-compliant preliminary economic assessment for its 100-per-cent-owned Keno Hill silver district in Canada's Yukon Territory (KHSD PEA) and announced an amended silver purchase agreement with Silver Wheaton Corp. (see news release dated March 29, 2017, entitled "Alexco and Silver Wheaton amend silver purchase agreement and Alexco announces positive preliminary economic assessment for expanded silver production at Keno Hill).
• Investments in marketable securities were disposed of for proceeds of $2.0-million and a pretax realized gain of $1.8-million.
• Alexco entered into a non-binding letter agreement with Banyan Gold Corp. to option up to 100 per cent of Alexco's McQuesten property located in the KHSD. In three stages, Banyan may earn up to 100 per cent of the McQuesten property, by incurring a minimum of $2.6-million in exploration expenditures, issuing 1.6 million shares, paying a total of $2.6-million in cash or shares, and granting Alexco a 6-per-cent net smelter return (NSR) royalty with buybacks totalling $7-million to reduce to a 1-per-cent NSR royalty on gold and 3-per-cent NSR royalty on silver.

Alexco's president and chief executive officer Clynt Nauman said: "A lot was accomplished by Alexco in 2016, nothing more important than our exploration success at Bermingham along with raising additional capital, establishing the portal for our Flame and Moth underground access, and commencing an updated Keno Hill preliminary economic assessment subsequently completed in March, 2017. With the March 29, 2017, announcement of a Silver Wheaton amended silver purchase agreement, Alexco launches into 2017 squarely focused on moving forward with additional surface exploration, underground exploration and development, mill upgrades, and preparation of a prefeasibility-level study, all necessary steps on the way to a final production decision."

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

                                                           Three months ended Dec. 31,            Year ended Dec. 31,
                                                                 2016            2015             2016          2015
                                                                                                                 
Environmental services revenue                                  2,939           4,128           11,361        14,662
Gross profit from environmental services                          881             611            2,866         3,251 
(Loss) before taxes                                            (1,579)         (1,765)          (3,967)       (6,616)
Net (loss)                                                     (1,761)         (1,502)          (4,359)       (5,509)
Total comprehensive (loss)                                     (1,893)         (1,539)          (4,111)       (6,037)
(Loss) per share -- basic and diluted                          ($0.02)         ($0.02)          ($0.05)       ($0.08)
Cash flows consumed from operating activities                  (1,156)           (905)          (4,608)       (4,391)
                                                              =======         =======          =======       ======= 

Keno Hill silver district PEA

On March 29, 2017, Alexco announced the release of an independent technical report with an effective date of Jan. 3, 2017, prepared by Roscoe Postle Associates Inc. entitled "Preliminary economic assessment of the Keno Hill silver district project, Yukon, Canada."

Highlights of the revised PEA include:

• Alexco's project pretax and after-tax net present value is $104.3-million and $79.4-million (at a 5-per-cent discount rate), respectively, and pretax and after-tax internal rate of return is 89 per cent and 75 per cent, respectively, at assumed silver prices of $18.60 (U.S.) per ounce in 2018 and $19.35 (U.S.) per ounce in 2019 through 2025.
• At current spot metal prices and U.S./Canadian foreign exchange rate (as of March 27, 2017), the project has a pretax and after-tax net present value of $121.1-million and $90.5-million (at a 5-per-cent discount rate), respectively, and a pretax and after-tax IRR of 92 per cent and 78 per cent, respectively.
• Average annualized mill throughput is 143,000 tonnes per year over an eight-year period at an average feed grade of 843 grams per tonne silver, 3.3 per cent lead, 4.6 per cent zinc and 0.39 g/t gold.
• Payable production is anticipated to be a total of approximately 25.1 million ounces of silver, 77.3 million pounds of zinc, 67 million pounds of lead and 4,870 ounces of Au over an eight-year mine life. Average annualized payable silver production is 3.5 million ounces per year, with the initial three years of annualized payable silver production averaging 4.1 million ounces per year.
• Initial capital costs of $27-million are estimated to achieve production and positive cash flow with less-than-one-year payback.

In addition, upon achieving commercial production, Alexco has calculated all-in sustaining costs (contained silver, byproduct basis) over LOM to be $13.51 (U.S.) per ounce of silver (including direct operating costs, sustaining capital, the Silver Wheaton stream, corporate general and administrative, and continuing surface exploration costs), and AISC over the first full three years of production to be $12.18 (U.S.) per ounce of silver.

Amended silver purchase agreement with Silver Wheaton

On March 29, 2017, the corporation and certain of its subsidiaries and Silver Wheaton entered into an amendment agreement to the silver purchase agreement pursuant to which, among other things, the following amendments were made to the silver purchase agreement:

• Silver Wheaton will continue to receive 25 per cent of the life-of-mine payable silver from the KHSD. The production payment (originally $3.90 (U.S.) per ounce) will be based on the monthly silver head grade and monthly silver price.
• The actual monthly production payment will fall within a defined grade and pricing range governed by upper and lower numeric criteria (ceiling grade/price and floor grade/price) pursuant to the formula found at the company's website and herein.
• The date for completion of the 400-tonne-per-day mine and mill completion test date was extended to Dec. 31, 2019.
• The Silver Wheaton area of interest remains one kilometre around existing Alexco holdings in the KHSD.

                       FORMULA
(Ceiling grade-deemed           (Ceiling price-deemed 
shipment head grade)            shipment silver price)     Market
------------------------   X    ---------------------   X   price
(Ceiling grade-                        Ceiling price-
floor grade)                              floor price)

For clarification, using the PEA's average feed grade of 
843 grams per tonne and today's approximate silver spot 
price of $18 would result in the production payment from 
Silver Wheaton.

(1,400 g/t-843 g/t)     ($25 (U.S.)-$18 (U.S.))
-------------------  X  -----------------------  =  0.406 X $18 (U.S.) = $7.31 (U.S.) per ounce Ag
(1,400 g/t-600 g/t)     ($25 (U.S.)-$13 (U.S.))      (Cdn equivalent -- $9.78 per ounce Ag)

Floor grade equals 600 g/t Ag.
Floor price equals $13 (U.S.) per ounce silver.
Ceiling grade equals 1,400 g/t Ag.
Ceiling price equals $25 (U.S.) per ounce Ag.
Deemed shipment head grade equals calculated monthly mill silver head grade.
Deemed shipment silver price equals average monthly silver price.
Market price equals spot silver price prior to day of sale.

In consideration of the foregoing amendments, the corporation has agreed, subject to Toronto Stock Exchange and NYSE MKT approval, to issue three million shares to Silver Wheaton with a fair value of $4,934,948 (U.S.).

Keno Hill exploration and development

2017 exploration program

The corporation has planned a surface exploration program of approximately 12,000-metre surface diamond drilling budgeted to cost $3.2-million primarily to further explore structural targets in the immediate vicinity of the Bermingham area. The bulk of the surface exploration will be conducted in the summer with results expected to be released no later than the fourth quarter of 2017.

The corporation is also planning an underground exploration program at the Bermingham prospect. Subject to permitting, an exploration decline will be driven 600 metres, and approximately 5,000 m of infill and confirmation drilling will be completed for a total estimated cost of $8.7-million (including underground equipment rebuilds and purchase). The timeline and costs incorporate management's estimates for the necessary permits required to carry out the development of the Bermingham exploration decline, and permitting uncertainty and delays may cause timelines and costs to increase.

2016 exploration program

The corporation completed an exploration program totalling 50 holes for 17,371 m of surface diamond drilling to follow up on prior identification of high-grade silver results at the Bermingham prospect. A total of $3.4-million was invested in an expanded exploration program, the majority financed by way of a $3-million flow-through financing in December, 2015. The corporation expended an additional $300,000 to gather geotechnical and hydrogeological information, as well as undertake a preliminary metallurgical program to test the Bermingham mineralization. Interim drill results on 18 holes were released on Sept. 13, 2016 (see Sept. 13, 2016, press release entitled "Alexco confirms, expands high-grade silver zone at Bermingham deposit; drilling continues) with the final results of the final 32 of 50 drill holes released on Dec. 8, 2016 (see Dec. 8, 2016 press release entitled "Alexco expands Bermingham silver deposit, initial tests confirm excellent metallurgical performance").

Other development

In October, the company completed installation of the underground portal and infrastructure at the Flame and Moth deposit and drove the first 20 m of the production ramp. This will allow resumption of development activities to begin at full scale in the future. This ramp will ultimately be driven to the upper production levels of the Flame and Moth silver deposit.

The corporation also completed a mill maintenance program in 2016. Additionally, a mechanical assessment and maintenance of equipment were part of the routine process of maintaining operating assets in a condition where resumption of processing operations could be completed.

Permitting

As a result of the company filing an updated reclamation and closure plan for its current operations and the future development of the Flame and Moth deposit, the Quartz mining licence (QML) required that Alexco increase its posted security from $4.2-million to $6.3-million. On July 26, 2016, the corporation posted the additional $2.1-million in cash for security and is currently working with the Yukon government to substitute a portion of the cash posted in exchange for a pledge of assets.

The company expects a water use licence amendment hearing to occur in the second quarter of 2017, which is the final remaining permit required to commence mining operations at the Flame and Moth deposit.

The corporation plans to drive an underground exploration decline 600 m at the Bermingham deposit, which will require an amendment to its Class 4 permit. This is expected to be received by the end of the second quarter of 2017 although delays can occur in the Yukon permitting process as a result of changing laws, regulations and policies in the environmental assessment process.

Alexco Environmental Group

In 2016, Alexco Environmental Group (AEG) recognized revenues of $11.4-million in 2016 for a gross profit of $2.9-million and a gross margin of 25.2 per cent compared with revenues of $14.7-million in 2015 for a gross profit of $3.3-million and a gross margin of 22.2 per cent. The increase in gross margin from the prior year was primarily due to AEG reducing third party work on both external projects and for the Keno Hill reclamation plan. The reduction in revenue was primarily due to the bulk of Keno Hill reclamation plan being developed in 2015 and then entering the review stage of the process in 2016, which involved less billable work to be performed by AEG. Furthermore, in the United States, a decrease in revenues resulted from the substantial completion of the Globeville project in Colorado in 2015.

AEG is operating two major water treatment facilities in the U.S., the Gold King and Schwartzwalder plants, as well as four smaller water treatment facilities at Keno Hill in Canada.

At the Gold King project in southern Colorado, the U.S. Environmental Protection Agency authorized an expansion of the plant to approximately double the treatment capacity of the IWTP. Construction related to this and upgrades were completed in 2016. AEG has been awarded an extension to operate Gold King the IWTP to the end of 2017.

On the Globeville smelter project, a completion report, which documents the work completed at the site and the monitoring results, was submitted to the State of Colorado in July, 2016. The completion report triggered the release of $3.8-million ($2.9-million (U.S.)) to AEG with the remaining $522,000 ($398,000 (U.S.)) to be held as a performance bond for a period up to two years.

Financial

Alexco's cash and cash equivalents at Dec. 31, 2016, totalled $20.4-million compared with $8.2-million at Dec. 31, 2015, while net working capital totalled $23.4-million compared with $12.6-million for the same dates. In addition, the corporation's restricted cash and deposits at Dec. 31, 2016, totalled $6.9-million compared with $8.9-million at Dec. 31, 2015. With its cash resources and net working capital on hand at Dec. 31, 2016, Alexco anticipates it will have sufficient capital resources to carry out all of its currently anticipated exploration programs, environmental services business, and corporate offices and administration as planned for 2017.

Financial report and conference call for fourth quarter and year-end 2016

Full details of the financial and operating results for the year ended Dec. 31, 2016, are described in Alexco's 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 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 March 30, 2017. To participate in the live call, please use one of the following methods:

Dial toll-free from Canada or the U.S.:  1-888-504-7961

Dial from outside Canada or the U.S.:  1-647-792-1278

Conference ID No.:  4158221

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 Alexco 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, who is a qualified person as defined by National Instrument 43-101 (standards of disclosure for mineral projects).

About Alexco Resource Corp.

Alexco Resource owns the Bellekeno silver mine, one of several mineral properties held by Alexco which encompass substantially all of the historical KHSD located in Canada's Yukon Territory. Employing a unique business model, Alexco also provides mine-related environmental services, remediation technologies, and reclamation and mine closure services to both government and industry clients through the Alexco Environmental Group, its wholly owned environmental services division.

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