Mr. Clynt Nauman reports

ALEXCO ESTABLISHES US$15 MILLION CREDIT FACILITY

Alexco Resource Corp. has entered into a definitive credit agreement with Sprott Private Resource Lending (Collector) LP to provide a $15-million (U.S.) credit facility to be used for the development of the Keno Hill silver projects located in Yukon, Canada.

Clynt Nauman, Alexco's chief executive officer and chairman, commented: "With the credit facility established, Alexco continues underground development of the Bermingham and Flame & Moth deposits as well as refurbishment of the district mill at Keno Hill, confident that funds are available to fulfill our goal of near-term production. The credit facility carries a total interest charge of approximately 8.5 per cent on funds drawn down, has no minimum drawdown requirement and does not carry a standby charge. The credit facility is essentially a backstop allowing the company to manage project risk while minimizing dilution to our shareholders."

Narinder Nagra, managing partner of Sprott, commented: "As one of the largest investors dedicated to the natural resource sector, Sprott is excited to partner with Alexco on the restart of the project. Our partnership with the Alexco team is consistent with our strategy of providing innovative and flexible capital to maximize the value of exceptional projects."

Key terms of the credit facility:

• Term of three years, maturity date -- Feb. 23, 2021;
• $15-million (U.S.);
• Interest rate on funds drawn down -- the greater of:
  • 7 per cent plus U.S.-dollar three-month LIBOR (London interbank offered rate);
  • 8 per cent per year, payable monthly;
• Repayable in quarterly instalments from Oct. 31, 2019, through to the maturity date;
• Upon drawdown of funds, a 3-per-cent charge of the drawdown is charged;
• One million share purchase warrants were issued to Sprott with a five-year term, an exercise price of $2.25 per share and a right by the company to accelerate the expiry date to 30 days following the closing price of the shares exceeding $5.63 for more than 20 consecutive trading days;
• Repayable in whole or in part, without penalty, provided not less than 12 months of interest has been paid on any outstanding amount;
• The company has the option to extend the availability period of drawdown from 12 to 18 months by issuing to Sprott 171,480 Alexco common shares.

About Alexco Resource Corp.

Alexco owns 100 per cent of the high-grade Keno Hill silver district (KHSD) in Canada's Yukon. Alexco published an updated preliminary economic assessment in March, 2017, which anticipates the sequential development of four high-grade silver deposits over an eight-year mine life to produce more than a million tonnes with an average grade of 843 grams per tonne silver, 3.3 per cent lead and 4.6 per cent zinc. Silver production is anticipated to be approximately 3.5 million ounces per year.

Employing a unique business model, Alexco also provides mine-related environmental services, remediation technologies, as well as reclamation and mine closure services to both government and industry clients.

We seek Safe Harbor.