Mr. Shawn Khunkhun reports

DOLLY VARDEN SILVER ANNOUNCES UPSIZE OF BOUGHT-DEAL FINANCING TO $28 MILLION, WITH PARTICIPATION BY ERIC SPROTT

Dolly Varden Silver Corp. has entered into an amended agreement with Research Capital Corp. (as the sole bookrunner) and Haywood Securities Inc., as co-lead underwriters, on behalf of a syndicate of underwriters, including Raymond James Ltd., to increase the size of its previously announced bought deal financing, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, a combination of securities of the company for aggregate gross proceeds to the company of $28-million, consisting of:

1. 10 million common shares of the company at a price of $1 per common share for gross proceeds of $10-million, to be issued under a prospectus supplement to the company's final short form base shelf prospectus dated April 25, 2023;
2. 14.4 million common shares that will qualify as flow-through shares, within the meaning of Subsection 66(15) of the Income Tax Act (Canada), at a price of $1.25 per FT share for gross proceeds of $18-million, to be issued under a private placement.

Eric Sprott, through 2176423 Ontario Ltd., has indicated his intention to participate in the offerings.

The company has granted to the underwriters an option to increase the size of the offerings by up to an additional number of offered securities that, in aggregate, would be equal 15 per cent of the total number of offered securities to be issued under the offerings, to cover overallotments, if any, and for market stabilization purposes, exercisable at any time and from time to time up to 30 days following the closing of the offerings.

The net proceeds from the sale of common shares will be used for working capital and general corporate purposes. The gross proceeds from the sale of FT shares will be used for working capital (as permitted), mineral resource expansion and drilling at the combined Kitsault Valley project, located in northwestern British Columbia, Canada, as well as for exploration expenditures that qualify as Canadian exploration expenses, as defined in paragraph (f) of the definition of Canadian exploration expenses 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 British Columbia flow-through mining expenditures, as defined in Subsection 4.721(1) of the Income Tax Act (British Columbia), which will be incurred on or before Dec. 31, 2025, and renounced with an effective date of no later than Dec. 31, 2024, to the initial purchasers of FT shares.

The first tranche of the offerings is expected to close on or about Sept. 4, 2024, or such earlier or later date as may be determined by the underwriters. A portion of the private placement offering will close in a second tranche that is expected to occur in mid-September, 2024. Closing 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 common shares and the FT shares.

In connection with the prospectus 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 prospectus offering, will be available on SEDAR+. The shelf prospectus contains, and the supplement will contain, important detailed information about the company and the offerings. Prospective investors should read the supplement, the accompanying shelf prospectus and the other documents the company has filed on SEDAR+ before making an investment decision.

The FT shares will be offered to accredited investors in each of the provinces of Canada pursuant to applicable prospectus exemptions, in accordance with National Instrument 45-106 -- Prospectus Exemptions, and will have a statutory hold period of four months and one day from closing. In connection with the offerings, the underwriters will receive an aggregate cash fee equal to 5 per cent of the gross proceeds of the offerings. Eventus Capital Corp. is 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 in connection with the offerings at a price of $1 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 offerings.

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 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 and Red Chris).

We seek Safe Harbor.