Mr. Clynt Nauman reports

ALEXCO REPORTS FOURTH QUARTER AND YEAR END 2017 RESULTS

Alexco Resource Corp. has released financial results for the fourth quarter and year ended Dec. 31, 2017. For the fourth quarter of 2017, Alexco recorded a net loss of $1.7-million or two cents per share. Alexco Environmental Group (AEG), a wholly owned subsidiary of Alexco, recognized revenues of $2.5-million with a gross profit of $993,000. For the full-year 2017, Alexco recorded a net loss of $7.6-million or eight cents per share, including $4.5-million in depreciation, share-based compensation expense and other non-cash costs. The working capital position at year-end was $18.4-million.

2017 highlights:

• The corporation's cash and cash equivalents at Dec. 31, 2017, totalled $17,906,000 compared with $20,382,000 at Dec. 31, 2016, while net working capital totalled $18,414,000 compared with $23,443,000 at Dec. 31, 2016. In addition, the corporation's restricted cash and deposits at Dec. 31, 2017, totalled $7,092,000 compared with $6,948,000 at Dec. 31, 2016.
• Alexco Environmental Group recognized revenues of $10,732,000 in 2017 for a gross profit of $4-million and a gross margin of 37 per cent compared with revenues of $11,361,000 in 2016 for a gross profit of $2,866,000 and a gross margin of 25 per cent.
• In March 30, 2017, the corporation announced the release of an independent technical report dated March 29, 2017, with an effective date of Jan. 3, 2017, entitled "Preliminary economic assessment of the Keno Hill silver district project, Yukon, Canada," and announced the amended SPA with Wheaton (see news release dated March 30, 2017, entitled "Alexco and Silver Wheaton amend silver purchase agreement and Alexco announces positive preliminary economic assessment for expanded silver production at Keno Hill").
• On March 30, 2017, 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.
• The corporation received an 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 & Moth deposit.
• In August, 2017, the corporation received an amended Class 4 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 430 metres of the ramp and decline with completion expected in April of 2018.
• On Nov. 7, 2017, the corporation announced comprehensive results from its 2017 surface diamond drilling exploration program, drilling a total of 13,832 metres in the immediate vicinity of the Bermingham deposit at a cost of approximately $3.6-million.
• On May 30, 2017, the corporation closed a flow-through private placement whereby the corporation issued 4,205,820 flow-through shares at a price of $2.15 per share for aggregate gross proceeds of $9,042,513.
• The corporation disposed of investments in marketable securities for proceeds of $2,003,000 and a pretax realized gain of $1,204,000.

Highlight subsequent to 2017:

• Subsequent to year-end, the corporation entered into a definitive credit agreement with Sprott Private Resource Lending (Collector) LP to provide a $15-million (U.S.) credit facility.

Alexco's chairman and chief executive officer, Clynt Nauman, said: "Two thousand seventeen was a pivotal year in which we started the transition from explorer developer to developer producer. This evolution began in September, 2017, at the Bermingham deposit with initiation of a 580-metre underground exploration decline, which is now approximately 75 per cent complete. Following completion of mining work, two underground drills will be positioned to complete 5,000 metres of infill and extension drilling of the high-grade Bermingham silver deposit. Concurrently, our mining crews will relocate to Flame & Moth, where an additional 965 m of decline ultimately needs to be driven to access the Flame & Moth deposit. Optimization of development and mine plans, new resource calculations, and expanded metallurgical testing will be ongoing in anticipation of a prefeasibility study to be complete in Q3 2018. As we move through Q2, we will be very focused on market conditions, commercial terms and final permitting progress as part of our disciplined progress toward a final production decision."

Keno Hill exploration and development

Alexco's current focus is to restart mining operations at Keno Hill, subject to several considerations, including commodity prices and market conditions. Alexco has the requisite permits and authorizations for future ore production from the Bellekeno, Flame & Moth, Lucky Queen and Onek deposits, as well as the necessary authorization to drive the Bermingham decline, currently continuing. In November, 2017, a project proposal for environmental assessment was submitted to Yukon Environmental and Socio-economic Assessment Board (YESAB) for future production and processing of ore from the Bermingham deposit. It is anticipated that this application process, including completion of the amendments to Alexco's Quartz mining licence (QML) and WUL will be completed by the end of 2018 or early 2019.

In December, 2017, the company received an amendment to its WUL from the Yukon Water Board for the development and operation (and eventual closure) of the Flame & Moth deposit.

2017 exploration program

In early June, the corporation commenced a surface diamond drilling exploration program to further explore potentially mineralized structural targets in the immediate vicinity of the Bermingham deposit. In September, 2017, the corporation completed its 2017 exploration program as planned, drilling a total of 13,832 m. Program costs were $3.6-million. Comprehensive drill results were released on Nov. 7, 2017.

The corporation also commenced an underground exploration program at the high-grade Bermingham silver deposit. In August, 2017, the corporation received the required amended Class 4 permit allowing the corporation to commence the 580-metre underground exploration decline. As of the date of this news release, the corporation has completed 430 m of the ramp and decline with completion expected in April, 2018. Subsequent to completion of the Bermingham decline, a 5,000-metre underground drill program will be initiated to tighten up spacing to upgrade the existing inferred resources to indicated resources and to upgrade existing indicated resources to measured resource while also increasing the confidence in the geological model. The total estimated cost of the underground exploration development and drilling project is $8.7-million, which includes capital purchases related to underground equipment.

Financial

Alexco's cash and cash equivalents at Dec. 31, 2017, totalled $17.9-million compared with $20.4-million at Dec. 31, 2016, while net working capital totalled $18.4-million compared with $23.4-million for the same dates. With its cash resources and net working capital on hand at Dec. 31, 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.

                                      SELECTED ANNUAL INFORMATION
                    (expressed in thousands of dollars, except per-share amounts) 
  
                                                                     As at and for the year ended Dec. 31,
                                                                           2017         2016         2015

Revenue from environmental services                                     $10,732      $11,361      $14,662
Gross profit from environmental services                                  4,000        2,866        3,251
Revenue from all operations                                              10,732       11,361       14,662
Gross profit from all operations                                          4,000        2,866        3,251
Net (loss)                                                               (7,648)      (4,359)      (5,509)
(Loss) per share
Basic                                                                    ($0.08)      ($0.05)      ($0.08)
Diluted                                                                  ($0.08)      ($0.05)      ($0.08)
Dividends declared                                                          nil          nil          nil
                                                                       ========     ========     ========            

Alexco Environmental Group

In the fourth quarter of 2017 AEG recorded revenues of $2.5-million and a gross profit of $993,000 for a gross margin of 40 per cent, compared with revenue of $2.9-million and a gross profit of $881,000 for a gross margin of 30 per cent in the fourth quarter of 2016. The increase in 2016 revenue was attributed to the AEG completion of the expansion of an interim water treatment plant at the Gold King project.

Alexco continues to pursue opportunities to expand its environmental services business while ensuring that it limits Alexco's balance sheet exposure to this actively growing business.

Financial report and conference call for fourth quarter and year-end 2017 results

Full details of the financial and operating results for the fourth quarter and year ended Dec. 31, 2017, are described in Alexco's interim condensed 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 Alexco's website and on SEDAR and EDGAR.

Alexco is holding an audio webcast conference call to discuss these results at 11:30 a.m. Eastern Time (8:30 a.m. Pacific Time) on March 15, 2018. To participate in the live call, please use one of the following methods.

Dial toll-free from Canada or the United States:   1-800-319-4610

Dial from outside Canada or the United States:  1-604-638-5340

Conference ID No.:  ask to join the Alexco conference call

Live audio webcast:  at the Alexco Resource 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, while that regarding mine development and operations has been reviewed and approved by Scott Smith, PEng, mine manager, both of whom are qualified persons 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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