Mr. Shawn Khunkhun of Dolly Varden reports

DOLLY VARDEN AND FURY ANNOUNCE THE SALE OF DOLLY VARDEN COMMON SHARES TO AN INSTITUTIONAL INVESTOR

Dolly Varden Silver Corp.'s largest shareholder, Fury Gold Mines Ltd., with the approval and consent of Dolly Varden, has entered into an agreement to sell 17 million common shares at 40 cents in the capital of the Dolly Varden, representing approximately 7.4 per cent of the outstanding common shares, to a well-known institutional investor.

Fury approached Dolly Varden about the sale of a portion of its common shares as a way for Fury to finance continued exploration at the Eau Claire and Eleonore South joint venture projects in Quebec and for general working capital. Following completion of the transaction, Fury will continue to hold approximately 26 per cent of the common shares and will be well capitalized for its upcoming exploration activities. While Dolly Varden will receive no proceeds from the transaction, the company is pleased to be welcoming a new financial institutional investor.

Shawn Khunkhun, chief executive officer of Dolly Varden said: "We are pleased to have been involved in discussions regarding the transaction and to consent to the sale by Fury of a portion of its holdings in Dolly Varden to a new institutional investor for Dolly Varden. We believe the transaction is mutually beneficial for Dolly Varden and Fury, as it brings another experienced institutional investor to Dolly Varden while providing Fury with funding for its Eau Claire and Eleonore South joint venture projects in Quebec. We consider Fury to be our partner in the exploration and development of the company's proposed Kitsault Valley project, and we are happy to be able to support a transaction that benefits both companies."

Tim Clark, CEO and director of Fury, added: "We would like to thank Dolly Varden for the support on this mutually beneficial transaction. We view this as a prudent and strategic joint decision that will provide capitalization for Fury's exciting potential at its Eau Claire and Eleonore South joint venture projects, and also add a significant institutional investor to Dolly Varden's current share ownership. Going forward, Fury is still the largest investor in Dolly Varden at 26 per cent and we remain confident in both their management team and projects. We believe that success in this industry is about working well with your partners and are thrilled about the opportunities ahead for both companies."

Fury acquired the common shares of Dolly Varden in February, 2022, when Dolly Varden acquired, through the acquisition of Fury's wholly owned subsidiary, Homestake Resource Corp., a 100-per-cent interest in the Homestake Ridge gold-silver project, located adjacent to the Dolly Varden project in the Golden Triangle, British Columbia.

At that time, Dolly Varden and Fury also entered into an investor rights agreement granting Fury certain board nomination and participation rights as well as providing for customary resale restrictions, voting and standstill conditions, and a one-year hold period. Dolly Varden has provided its consent under the investor rights agreement to the transaction.

Dolly Varden understands that Fury intends to file a Form 45-102F1 Notice of Intention to Distribute Securities under Section 2.8 of National Instrument 45-102 -- Resale of Securities later today to facilitate the sale. Closing of the transaction is anticipated to occur on the business day following the expiry of the seven-day notice period under NI 45-102. It is not anticipated that the purchaser will become a 10 per cent or greater shareholder of Dolly Varden upon completion of the transaction.

Upon completion of the transaction, the ownership interest of Fury in Dolly Varden will be reduced from the current 76,504,590 shares, representing 33 per cent of the outstanding common shares of Dolly Varden, to 59,504,590 Dolly Varden shares, representing 26 per cent of the outstanding common shares of Dolly Varden. Fury will file an amendment to its current early warning report on SEDAR to reflect its change in ownership position. Fury will continue to have two nominees on Dolly Varden's board of directors under the investor rights agreement following completion of the transaction as Fury's ownership will remain above the 20 per cent level. Fury will continue to hold its shares in Dolly Varden for investment purposes and will evaluate its investment in Dolly Varden on a continuing basis and may increase or decrease its holdings in Dolly Varden in the future, subject to its rights and obligations under the investor rights agreement, a copy of which has been filed under Fury's and Dolly Varden's SEDAR profile.

About Dolly Varden Silver Corp.

Dolly Varden Silver is a mineral exploration company focused on advancing its 100-per-cent held Kitsault Valley project (which combines the Dolly Varden project and the Homestake Ridge project) located in the Golden Triangle of British Columbia, Canada, 25 kilometres by road to tide water. The 163 square km project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past-producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley project also contains the Big Bulk property which is prospective for porphyry- and skarn-style copper and gold mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

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