Mr. Clynt Nauman reports

ALEXCO REPORTS THIRD QUARTER 2018 RESULTS

Alexco Resource Corp. has released financial results for the third quarter ended Sept. 30, 2018. For the third quarter of 2018, Alexco recorded a net loss of $1.5-million or one cent per share.

Third quarter highlights

Corporate:

• Over all, Alexco reported a net loss of $1.5-million (one cent per share) for the three-month period ended Sept. 30, 2018, and a loss before tax expense of $370,000, including non-cash income adjustments totalling $714,000.
• The company's cash and cash equivalents at Sept. 30, 2018, totalled $14.1-million compared with $17.9-million at Dec. 31, 2017, while net working capital totalled $14.1-million compared with $18.7-million at Dec. 31, 2017. The company's restricted cash and deposits at Sept. 30, 2018, totalled $2.6-million compared with $7.1-million at Dec. 31, 2017.

Mine operations and exploration:

• During the quarter, Alexco continued advancing the underground ramping system at the Flame & Moth deposit. By Oct. 31, the company had completed the targeted Flame & Moth underground development program for 2018 with 452 metres driven in total, comprising 371 m of linear decline advance and 81 m included in supporting infrastructure.
• During the quarter, Alexco completed the underground and surface infill and extension drilling campaign at the Bermingham deposit. The 2018 program was a combination of 4,213 m in 24 holes completed underground from the Bermingham exploration decline and 4,369 m in 12 holes completed from surface for a total of 8,582 m of HQ diamond core drilling. Results were released on Aug. 9, 2018, and Sept. 17, 2018, and included true width intercepts of the Bear and Bermingham veins ranging up to 12.28 m grading 1,019 grams per tonne (32.8 ounces per tonne (oz/t)) silver in hole BMUG18-012 and 4.17 m grading 5,373 g/t (172.8 oz/t) silver in drill hole BMUG18-015.
• On Sept. 20, 2018, Alexco announced an updated and expanded mineral resource estimate for the Bermingham deposit. The indicated mineral resources expanded from 17.3 million ounces to 33.3 million ounces of contained silver at an average silver grade of 628 grams per tonne while inferred mineral resources increased from 5.4 million ounces to 10.4 million ounces of contained silver at an average silver grade of 526 g/t.
• The company has been advised that the likely timeline to complete the currently active water use licence (WUL) process (which includes authorization for water use and waste deposition from the Bermingham deposit) will be later in the second quarter of 2019. This is a delay of approximately five months in the originally targeted timeline for receipt of the renewed WUL. Accordingly, the company has elected to extend the timeline to complete a prefeasibility study (PFS) into first quarter 2019, allowing additional time for the company to work with its independent consultants to optimize mine design and district mining strategies, including strategies related to extraction of the expanded silver resource in the Bermingham deposit.
• During the quarter, the corporation completed a total of 15,390 m of surface exploration diamond drilling (including the 4,369 m in 12 holes at Bermingham noted above) focused on testing further extensions of known silver resources and deeper structural zones in the vicinity of the Bermingham deposit, along with preliminary testing of other mineralized structures in the historical No Cash-Townsite mine areas adjacent to the Hector-Calumet mine, as well as fault offsets of the mineralized structure(s) on the western side of the major postmineral Brefalt fault. Other drilling was completed at the Black Cap prospect on Keno Hill, as well as on two other property areas subject to third party option agreements. Comprehensive results from the balance of the 2018 surface drilling campaign are expected to be available in late fourth quarter 2018.

Alexco Environmental Group:

• Alexco Environmental Group (AEG) recognized revenues of $4,669,000 in the third quarter of 2018 for a gross profit of $1.78-million, achieving a gross margin of 38 per cent compared with revenues of $3,786,000 for the third quarter of 2017 for a gross profit of $1,545,000 achieving a gross margin of 41 per cent.

Alexco's chairman and chief executive officer, Clynt Nauman, said: "I am very pleased with the progress we have made internally to advance Keno Hill back towards production. Factors beyond our control have slowed our schedule, but we remain steadfast in our target of re-establishing silver production in 2019, market conditions considered. Earlier this year, we set aggressive goals for our summer underground development and surface exploration programs, all of which have been achieved. Most importantly, our recent exploration successes at the Bermingham deposit, essentially doubling the size of the indicated resource at unchanged silver grade, will provide an opportunity to revisit the overall silver mining strategy for the district. It is also pleasing to see the growth in our AEG business, which I expect will continue to add value alongside our Keno Hill district development strategy."

Keno Hill exploration and development

2018 Flame & Moth development

During the quarter, the company continued advancing the underground ramping system at the Flame & Moth deposit. On Oct. 31, the corporation completed the targeted Flame & Moth underground development program for 2018 with 452 m driven, including supporting remuck bays and sumps. Approximately 336 m of ramp and infrastructure development remain to reach the first ore level access at the Lightning zone. In addition, a 100-metre ventilation raise to surface will be required before commercial ore production can be achieved. Completion of the remaining ramp development, raise and infrastructure is pending completion of an optimized mine plan as part of the prefeasibility study.

The Flame & Moth decline is being constructed at a design of 15-per-cent grade and sized 3.7 m wide by 4.0 m high and will accommodate new underground drilling headings, as well as haulage up to 250 to 400 tonnes of ore per day to the primary crusher, which is located within 200 m of the mine portal.

Exploration

i. 2018 advanced exploration program -- Bermingham

In May, 2018, the company completed the 550-metre advanced exploration decline at the Bermingham deposit and, from established underground drilling stations, completed an underground drilling program designed to provide 10- to 15-metre-spaced intercepts in the upper portion of the high-grade Bear vein.

The underground drilling program was completed with 4,213 m in 24 holes in late August, with most holes being extended beyond the Bear vein to also intersect the adjacent mineralized Bermingham and Bermingham Footwall veins.

At the same time, surface drilling continued to infill and extend mineralization in areas peripheral to the resources with a total of 4,369 m completed in 12 holes.

Initial 2018 results from this underground drilling campaign were announced on Aug. 9, 2018 (see news release dated Aug. 9, 2018, entitled "Alexco Drills up to 12 Metres (True Width) of 1,019 Grams Per Tonne Silver at Bermingham Deposit, Provides Update on Permitting and Underground Development"), and further results were announced on Sept. 17, 2018 (see news release dated Sept. 17, 2018, entitled "Alexco Drills Intersects 4.3 Metres (True Width) of 3,605 Grams Per Tonne Silver at Bermingham, Completes Underground Infill/Exploration Drill Program").

The drill results confirm the previously anticipated silver grades and vein thickness with significant intercepts reported such as the Bear vein over a 4.29-metre true width grading 3,605 grams per tonne (115.91 ounces per ton) silver in hole BMUG18-018 and 12.28 m grading 1,019 g/t (32.8 oz/t) silver in hole BMUG18-012. Other significant intercepts were reported from the associated Bermingham and Bermingham Footwall veins, including a 4.17-metre true width grading 5,373 g/t (172.8 oz/t) Ag in hole BMUG18-015.

ii. Updated mineral resource estimate -- Bermingham

The results from the 2017 and 2018 exploration drilling programs were incorporated into the updated and expanded mineral resource estimate for the Bermingham deposit prepared by SRK Consulting (Canada) Inc. and announced on Sept. 20, 2018 (see news release dated Sept. 20, 2018, entitled, "Alexco Updates Bermingham Mineral Resource").

The indicated mineral resources expanded from 17.3 million ounces to 33.3 million ounces of contained silver at an average grade of 628 g/t silver, while inferred mineral resources have increased from 5.4 million ounces to 10.4 million ounces of contained silver at an average grade of 526 g/t silver. This updated and expanded mineral resource estimate will be used as the basis for the PFS currently being prepared.

iii. 2018 -- other exploration areas

In October, 2018, the company completed its 2018 surface exploration program as planned, drilling a total of 15,390 m in 55 drill holes (including the 4,369 m in 12 surface holes at Bermingham noted above).

In addition to the exploration drilling that was focused on the Bermingham prospect, other generative programs were undertaken on historically mined sites at the Husky, No Cash, Townsite, Eagle, Bellekeno South and Black Cap occurrences with 24 holes completed in 7,865 m. The assay results from these holes are pending and are expected in December, 2018.

A new exploration initiative was undertaken to explore the western side of the major postmineral Brefalt fault to locate indication of the offset part of the Bermingham vein, with 1,986 m completed in five drill holes, and the results are pending.

At the Flame & Moth deposit, an additional 11 drill holes for 1,170 m were completed for metallurgical sampling and geotechnical purposes.

In addition, during the quarter, the company completed a high-resolution helicopter electromagnetic-magnetic geophysical survey totalling 1,100 line kilometres over the Galena Hill area. The data are currently being processed and, when available, will assist with geological interpretation and correlation of known mineralized structures and identify new prospective zones.

Permitting update

Alexco has the requisite permits and authorizations for future ore production from the Bellekeno, Flame & Moth, Lucky Queen and Onek deposits. Permitting for ore production from the Bermingham deposit is continuing with a positive decision document issued by the Yukon government on July 27, 2018. The decision document outlines a number of standard terms and conditions for development and mine production from the Bermingham deposit.

With the issuance of the decision document, Alexco submitted a water licence amendment and renewal application to the Yukon Water Board for processing and milling ore and discharging treated water from the Bermingham mine.

The company had originally expected the final permits for operations at the Bermingham deposit to be awarded in first quarter 2019. Subsequent delays in the Yukon permitting process have extended the time expected for award of final permits to the end of the second quarter of 2019.

Prefeasibility study

During the quarter, the company continued to work with independent consultants on the PFS. As a result of delayed permitting timelines in the Yukon, Alexco has chosen to take further time completing the PFS, which is now anticipated in the first quarter of 2019. The PFS will address optimization of underground development and mining strategies for the restart of commercial mining operations in the KHSD, including strategies related to extraction of the recently expanded Bermingham resource.

Financial

Alexco's cash and cash equivalents at Sept. 30, 2018, totalled $14.1-million compared with $17.9-million at Dec. 31, 2017, while net working capital totalled $14.1-million compared with $18.7-million at Dec. 31, 2017.

With its cash resources and net working capital on hand at Sept. 30, 2018, 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 service business, and corporate offices and administration as planned for the next 12 months.

Alexco Environmental Group and ERDC (Elsa Reclamation and Development Company Ltd.)

In the third quarter of 2018, AEG recorded revenues of $4.7-million and a gross profit of $1.8-million for a gross margin of 38 per cent, compared with revenue of $3.8-million and a gross profit of $1.5-million for a gross margin of 41 per cent in the third quarter of 2017. The increase in gross profit during the 2018 period was primarily due to services provided to U.S. customers that utilized a higher portion of internal labour.

Under the contract with the government of Canada on the historical cleanup at Keno Hill, Alexco's wholly owned subsidiary, Elsa Reclamation and Development Company, submitted the existing state of mine reclamation plan for environmental assessment application by the Yukon Environmental and Socio-economic Assessment Board. In addition, ERDC continued with detailed engineering related to the closure plan.

Financial report and conference call for third quarter 2018 results

Full details of the financial and operating results for the third quarter ended Sept. 30, 2018, 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 12:30 p.m. Eastern Time (9:30 a.m. Pacific Time) on Nov. 14, 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 U.S.:  1-604-638-5340

Conference ID:  ask to join the Alexco conference call

Live audio webcast:  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 Alexco Resource website.

To receive, free of charge, printed copies of Alexco's financial statements, management's discussion and analysis, annual information form, and Form 40-F for any reporting period, shareholders may contact Alexco's corporate Office directly.

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 Neil Chambers, PEng, mine superintendent, both of whom are qualified persons as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

About Alexco Resource Corp.

Alexco owns the majority of the historical high-grade Keno Hill silver district in Canada's Yukon Territory as detailed in its preliminary economic assessment entitled "Preliminary Economic Assessment of the Keno Hill Silver District Project, Yukon, Canada," which is dated March 29, 2017, with an effective date of Jan. 3, 2017, and anticipates the sequential development of four high-grade silver deposits over an eight-year mine life producing more than one 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.

Alexco also operates a wholly owned subsidiary business, Alexco Environmental Group, that provides mine-related environmental services, remediation technologies, and reclamation and mine closure services to both government and industry clients in North America and elsewhere.

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