Mr. Shawn Khunkhun reports

DOLLY VARDEN SILVER ANNOUNCES $10M STRATEGIC INVESTMENT BY HECLA

Dolly Varden Silver Corp. has entered into an agreement for a further strategic investment by Hecla Canada Ltd. whereby Hecla has agreed to subscribe for 15,384,616 common shares of the company at a price of 65 cents per common share for gross proceeds of $10-million. Upon completion of the offering, Hecla will increase its shareholding in the company to 15.7 per cent from 10.6 per cent, calculated on an undiluted basis.

Closing of the offering is anticipated to occur on or about Nov. 1, 2023. Closing of the offering remains subject to customary closing conditions, including the approval of the TSX Venture Exchange.

Shawn Khunkhun, chief executive officer of Dolly Varden Silver, remarked: "Hecla's support for Dolly Varden Silver's high-grade Kitsault Valley project in B.C.'s prolific Golden Triangle is validated with today's financing news. Hecla is the world's fastest-growing established silver producer, the largest in the U.S. and soon to be in Canada. We celebrate Hecla agreeing to increase their stake in Dolly from 10 per cent to 15 per cent and want to extend our gratitude for their financial and technical support of the company and the project."

In connection with the offering, Dolly Varden has agreed with Hecla that the company will not complete any further debt or equity financings for the remainder of 2023. Additionally, Dolly Varden has agreed that between Jan. 1, 2024, and Sept. 1, 2024, without the prior consent of Hecla, it will not complete any debt or equity financings other than equity financings for net proceeds to the company of up to $15-million and provided that the issue price under such financing is greater than 65 cents per security. These restrictions do not capture customary exceptions such as the issuances of securities related to the company's equity based incentive compensation, the exercise of existing convertible securities and strategic transactions for non-cash consideration.

Of the net proceeds from the offering, $6-million will be used for exploration expenditures, mineral resource expansion and related costs in the Kitsault Valley project, located in northwestern British Columbia, Canada, with the balanced to be used for working capital and general and administration costs.

No bonuses, finder's fee or commissions were paid in connection with the offering. The common shares issued pursuant to the offering will be subject to a four-month hold period from the closing of the offering in addition to any other restrictions under applicable law.

Hecla is considered a related party of the company under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions as a result of its ownership of more than 10 per cent of the currently issued and outstanding common shares. As a result, the issuance of common shares to Hecla pursuant to the offerings would be considered a related party transaction. The company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that participation in the offering by Hecla does not exceed 25 per cent of the fair market value of the company's market capitalization. The company did not file a material change report in respect of the related party transaction 21 days prior to the closing of the offering as the details of the participation of insiders of the company had not been confirmed at that time. Further details will be provided in a material change report to be filed by the company subsequent to the dissemination of this news release.

The common shares to be acquired by Hecla will be acquired for investment purposes by Hecla. Hecla does not have any present intention to acquire ownership of, or control over, additional securities of Dolly Varden. It is the intention of Hecla to evaluate its investment in Dolly Varden on a continuing basis and such holdings may be increased or decreased in the future.

On Oct. 30, 2023, Hecla entered into the subscription agreement. The 15,384,616 common shares to be acquired by Hecla represent approximately 6.04 per cent of the 254,681,283 common shares outstanding immediately prior to when the subscription agreement was entered into (calculated on an undiluted basis). Prior to entering into the subscription agreement, Hecla held 27,040,880 common shares representing 10.62 per cent of the outstanding common shares. Hecla does not hold any securities convertible into common shares. After completion of the subscription, Hecla will hold 42,425,496 common shares, representing 15.71 per cent of the then outstanding 270,065,899 common shares (calculated on an undiluted basis). The change in Hecla's percentage ownership is therefore an increase of 5.09 per cent on an undiluted basis.

Pursuant to the investor rights agreement between Fury Gold Mines Ltd. and the company dated Feb. 25, 2022, Fury has waived its anti-dilution right in respect of the offering.

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-kilometre 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, 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).

We seek Safe Harbor.