Mr. Clynton Nauman reports

ALEXCO REPORTS THIRD QUARTER 2017 RESULTS

Alexco Resource Corp. has released its financial results for the third quarter ended Sept. 30, 2017. All figures are expressed in Canadian dollars unless otherwise stated. For the third quarter of 2017, Alexco recorded a net loss of $2.3-million or two cents per share, including $400,000 in share-based compensation expense and $400,000 in depreciation. Alexco Environmental Group (AEG), a wholly owned subsidiary of Alexco, recognized revenues of $3.8-million with a gross profit of $1.5-million.

Third quarter highlights:

• In August, 2017, the corporation received an amended Class IV permit allowing the corporation to commence a 580-metre underground exploration decline into the high-grade Bermingham silver deposit. To date, the corporation has completed 125 metres of the ramp and decline with completion expected in the first quarter of 2018.
• The corporation has received a draft amended Type A water use licence (WUL) from the Yukon Water Board, authorizing, subject to certain conditions, the use and discharge of treated water and deposition of dry stacked tailings from the Flame and Moth deposit. A final amended WUL is expected prior to year-end. This amendment is the final required authorization for ore production from the Flame and Moth silver deposit.
• In September, 2017, the corporation completed its 2017 surface diamond drilling exploration program as planned, drilling a total of 13,800 metres in the immediate vicinity of the Bermingham deposit. Program costs were $3.1-million with comprehensive results expected to be available in the second week of November.
• The Sept. 30, 2017, unrestricted cash and cash equivalent position is $21.4-million and net working capital of $22.9-million, compared with $20.4-million and $23.4-million, respectively, at Dec. 31, 2016.
• AEG recognized revenues of $3.8-million in the third quarter, recording a gross profit of $1.5-million, approximately twice the gross profit for the same period in 2016.

Alexco's chairman and chief executive officer, Clynt Nauman, said: "Our site operations are scaling up as planned with increasing underground activity related to the Bermingham ramp, the scheduled wind-down of surface exploration activity and routine completion of numerous winterization projects. Installation of portal facilities and subsequent underground work to drive the 580-metre Bermingham exploration decline was delayed approximately 45 days over summer awaiting final permit authorization. The first quarter of 2018 remains our target completion date for this important first phase of our restart program. Subsequent to completion of the Bermingham decline, a 5,000-metre underground drill program will be initiated to tighten up spacing and confidence in our mine design for this very high-grade silver deposit. The underground drill program will also include further exploration drill holes proximal to planned mining areas. Finally, we expect that in Q1 2018, we will make key decisions regarding the commencement of the Flame and Moth decline, which is expected to take approximately eight months to complete at a cost of $10.6-million. As we move through these processes, we will upload our data into a prefeasibility study, which is expected to be completed in the third quarter of 2018."

Keno Hill exploration and development

In early June, the corporation commenced a surface exploration diamond drill program to further explore potentially mineralized structural targets in the immediate vicinity of the Bermingham deposit. Utilizing three drills, the 13,800-metre drill program was completed at a cost $3.1-million with results expected to be available in the second week of November.

Underground activity related to establishment and driving of the Bermingham exploration decline began in September following receipt of an amended Class IV permit. Approximately 125 metres of the 580-metre decline have been completed to date. Nearing completion of this decline (expected in Q1 2018), underground drill stations will be established to allow an approximate-5,000-metre infill and exploration drill program to be executed with information from this work to be used to increase definition of existing resources as well as refine mine design for the anticipated early production periods. Total cost of the Bermingham project is estimated to be $8.7-million, including direct mining and underground exploration costs, rebuilds and purchase of underground equipment, and installation of necessary surface facilities to support underground activity.

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

                                                       Three months ended Sept. 30    Nine months ended Sept. 30
                                                              2017            2016           2017           2016

Environmental services revenue                            $  3,786        $  3,243       $  8,225       $  8,422
Gross profit from environmental services                     1,545             710          3,007          1,985
(Loss) before taxes                                         (1,684)           (246)        (5,336)        (2,388)
Net (loss)                                                  (2,272)           (640)        (5,899)        (2,598)
Total comprehensive (loss)                                  (2,288)         (1,819)        (5,849)        (2,218)
(Loss) per share -- basic and diluted                     $  (0.02)       $  (0.01)      $  (0.06)      $  (0.03)
Cash flows (consumed) from operating activities             (2,151)           (492)        (4,532)        (3,452)

Permitting detail

An amendment to Alexco's quartz mining licence (QML) and WUL will be required for future production and processing of ore from Bermingham. The environmental assessment for the Bermingham mine operations phase of permitting will begin in November, 2017, and the entire permitting process for Bermingham production is anticipated to be complete by the end of 2018.

The Flame and Moth deposit is permitted to be developed under the QML. Prior to processing ore or discharging water from the Flame and Moth mine, an amendment to the WUL is required, which is granted through the Yukon Water Board. A public hearing for the WUL amendment was held in late May, 2017, a draft of the amended WUL is in hand, and an amended final WUL is expected to be granted in the fourth quarter of 2017.

Financial

Alexco's cash and cash equivalents at Sept. 30, 2017, totalled $21.4-million, compared with $20.4-million at Dec. 31, 2016, while net working capital totalled $22.9-million, compared with $23.4-million for the same dates. With its cash resources and net working capital on hand at Sept. 30, 2017, 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 the next 12 months.

Alexco Environmental Group (AEG)

In the third quarter of 2017, AEG recorded revenues of $3.8-million and a gross profit of $1.5-million for a gross margin of 41 per cent, compared with revenue of $3.2-million and a gross profit of $700,000 for a gross margin of 22 per cent in the third quarter of 2016. The increase in revenues and gross profits relates to increased contract work at AEG's U.S. operations and also increased activity on the Keno Hill contract with the federal government.

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

Alexco continues to review options to optimize its environmental services business with the aim of enhancing the business opportunities of AEG while at the same time reducing Alexco's balance sheet exposure to this actively growing business.

Financial report and conference call for third quarter of 2017

Full details of the financial and operating results for the third quarter ended Sept. 30, 2017, are described in Alexco's interim condensed consolidated financial statements, with accompanying notes and the related management's discussion and analysis. These documents and additional information on Alexco, including its annual information form, are available on Alexco's website, and on SEDAR and EDGAR.

Alexco is holding an audio webcast conference call to discuss these results at 12 p.m. Eastern Time (9 a.m. Pacific Time) on Friday, Nov. 3, 2017. To participate in the live call, please use one of the following methods.

Dial toll-free from Canada or the United States:  1-833-297-9918

Dial from outside Canada or the U.S.:  1-647-689-4525

Conference ID No.:  3997146

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, who is a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Alexco Resource Corp.

Alexco Resource holds the historical high-grade Keno Hill silver district 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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