Mr. Clynton Nauman reports

ALEXCO COMPLETES BERMINGHAM DECLINE, COMMENCES 20,000 METER SURFACE AND UNDERGROUND EXPLORATION AND IN-FILL DRILLING CAMPAIGNS

Alexco Resource Corp. has completed the Bermingham underground exploration decline and pending installation of two diamond drill stations and mobilization of underground drilling crews, plans to complete an initial 5,000 metres of infill and exploration drilling in and around the upper portion of the high-grade Bermingham silver deposit. At the same time the company is mobilizing two surface exploration drills to initiate a minimum 15,000 m surface exploration program with a third surface rig to be added midsummer. The surface exploration program will test a number of relatively shallow silver deposit targets in the vicinity of the Bermingham deposit as well as commencing a deeper exploration program to test structural zones with the potential to host large Hector-Calumet-style silver deposits.

Clynt Nauman, Alexco chief executive officer and chairman, commented: "With the finalization of the Bermingham decline we will have completed approximately 40 per cent of the underground development work required for future production at Keno Hill. Once complete at Bermingham, mining crews will relocate to Flame & Moth where an approximate 520 m ramp remains to be driven. Concurrent with underground ramp development at Flame & Moth, we will complete an approximate two-month 5,000 m infill drilling program at the Bermingham deposit and also get our expanded surface exploration program under way. Available results from this work will be uploaded to a prefeasibility study slated for completion in the third quarter of 2018. On the permitting front, we remain in the environmental assessment process in anticipation of a water licence amendment to allow extraction and processing of Bermingham ore; we expect to receive this final permit amendment either late 2018 or early 2019."

2018 Bermingham underground drilling program

Two diamond drill rigs will be positioned to complete 5,000 m of infill drilling on approximate 10 m centres for anticipated mining blocks in the upper portion of the Bermingham deposit. The targeted infill area contains an estimated 110,000 tonnes of potentially minable ore with an estimated head grade of 1,560 grams per tonne (g/t) silver, 4.2 per cent lead and 2.2 per cent zinc comprising the anticipated first two years of production.

The majority of the targeted zone is in the newly discovered Bear vein, a steeply plunging approximately three m thick and 50 m wide zone of high-grade silver mineralization which tops out approximately 160 m below surface and extends 230 m down dip where it remains open to depth. Some holes will extend through the Bear vein into the Bermingham footwall vein which is similarly mineralized.

The proposed drilling program is scheduled to be completed in July. Results from the 2018 underground drilling and the 2017 surface exploration drilling will be incorporated in a new Bermingham resource calculation to be included in the prefeasibility study targeted for completion late in the third quarter of 2018.

2018 surface exploration program

Alexco will initiate an expanded 15,000 m, $4-million surface exploration diamond drilling program in the first week of May. The program will comprise at least 45 holes and start with two drills with a third to be added midsummer.

Since 2013 Alexco has focused its surface exploration on discovery and follow-up drilling to quickly establish grade and size of two new silver deposits (Bermingham and Flame & Moth). In this manner the company has identified approximately 44 million ounces of indicated silver in those deposits with an average grade of 498 grams per tonne silver at Flame & Moth and 628 g/t silver at Bermingham. For 2018 the company is changing its exploration strategy to identify new areas likely to host apparent higher-level silver-rich deposits (typified by the Bermingham discovery), as well as initiating a new program targeting apparent deeper-level silver and base metal rich deposits (typified by the historic Hector Calumet deposit) containing upward of 50 million ounces of silver. The historic Hector-Calumet mine located approximately one kilometre northeast of Bermingham produced approximately 96 million ounces of silver at a reported grade of 1,090 g/t silver.

The surface exploration program will extend through to October, 2018, with results expected to be finalized in the fourth quarter of 2018.

Flame & Moth development, optimization studies

Engineering and optimization work at the Flame & Moth deposit has resulted in a plan to reposition the primary ramp resulting in an approximate 200 m reduction in preproduction development to approximately 520 m to reach the first ore level access. This change will compress the underground development schedule by up to two months. The company is currently assessing the implications of this favourable change, including options to co-ordinate with or increase the amount of underground preproduction work pending award of final production-related permits related to the Bermingham deposit.

The Flame & Moth decline will be driven on an approximate 15-per-cent grade and sized 3.7 m by 3.7 m, and will accommodate new exploration drill headings as well as haulage of a planned 260 tonnes of ore per day to the primary crusher which is located within 200 m of the mine portal.

Other corporate updates

On April 30, 2018, the company replaced $6,304,508 of cash placed as reclamation security for its Keno Hill property with a surety bond. The company provided collateral to the surety company totalling $2,364,191 with a net result of $3,940,317 being reclassified to unrestricted cash. In addition, cash security in the amount of $499,000 ($398,000 (U.S.)), originally posted by Alexco Environmental Group's U.S. subsidiary, in support of the Globeville smelter environmental remediation project in Colorado, United States, has been released to the company.

Qualified persons

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, 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.

We seek Safe Harbor.