Mr. Shawn Khunkhun reports

DOLLY VARDEN SILVER ANNOUNCES $15 MILLION BOUGHT-DEAL PUBLIC OFFERING, WITH PARTICIPATION BY ERIC SPROTT

Dolly Varden Silver Corp. has entered into an agreement with Research Capital Corp., as the sole bookrunner and co-lead underwriter, together with Haywood Securities Inc. as co-lead underwriter, on behalf of a syndicate of underwriters, including Raymond James Ltd., pursuant to which the underwriters have agreed to purchase, on a bought-deal basis, 14,285,700 flow-through shares of the company to be sold to charitable purchasers that will qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada) at a price of $1.05 per charity FT share, for aggregate gross proceeds to the company of $14,999,985. Eric Sprott, through 2176423 Ontario Ltd., has indicated his intention to participate in the transaction.

The gross proceeds from the sale of charity FT shares will be used for further exploration, mineral resource expansion and drilling in the combined Kitsault Valley project, located in Northwestern British Columbia, Canada, as well as for working capital as permitted, as Canadian exploration expenses as defined in paragraph (f) of the definition of Canadian exploration expense in Subsection 66.1(6) of the Income Tax Act (Canada) and flow-through mining expenditures as defined in Subsection 127(9) of the Income Tax Act (Canada) that will qualify as flow-through mining expenditures and B.C. flow-through mining expenditures, as defined in Subsection 4.721(1) of the Income Tax Act (British Columbia), which will be renounced with an effective date no later than Dec. 31, 2024, to the initial purchasers of charity FT shares.

The closing of the offering is expected to occur on or about March 21, 2024, or on such date as may be determined by the underwriters, and is subject to the company receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange, to list, on the date of closing, the charity FT shares.

In connection with the offering, the company intends to file a prospectus supplement to the company's short-form base shelf prospectus dated April 25, 2023, with the securities regulatory authorities in all provinces of Canada, except Quebec. Copies of the shelf prospectus and the supplement to be filed in due course in connection with the offering will be available on SEDAR+. The shelf prospectus contains, and the supplement will contain, important detailed information about the company and the offering. Prospective investors should read the supplement and the accompanying shelf prospectus and the other documents the company has filed on SEDAR+ before making an investment decision.

In connection with the offering, the underwriters will receive an aggregate cash fee equal to 5.0 per cent of the gross proceeds of the offering. Eventus Capital Corp. has been appointed as a special adviser to the company.

Pursuant to existing agreements with the company, Hecla Canada Ltd. and Fury Gold Mines Ltd. will be entitled to acquire common shares of the company in connection with the offering at a price of 80 cents per common share to maintain their pro rata equity interest in the company. If Hecla or Fury exercise their pro rata rights, any common shares issued will be in addition to those issued as part 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.