Mr. Shawn Khunkhun reports

DOLLY VARDEN SILVER ANNOUNCES CLOSING OF $10M STRATEGIC INVESTMENT BY HECLA

Dolly Varden Silver Corp., further to its news release dated Oct. 30, 2023, completed the sale of 15,384,616 common shares of the company to Hecla Canada Ltd. on Nov. 1, 2023, at a price of 65 cents per common share for gross proceeds of $10-million. As a result of the offering, Hecla has increased its shareholding in the company to 15.7 per cent from 10.6 per cent, calculated on an undiluted basis.

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

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 G&A (general and administrative) costs.

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 was a related party transaction. The company relied 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 can be found in the material change report that will be filed by the company in due course.

About Dolly Varden Silver Corp.

Dolly Varden 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 tidewater. 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).

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