Mr. Shawn Khunkhun reports

DOLLY VARDEN ANNOUNCES CLOSING OF THE ACQUISITION OF HECLA'S KINSKUCH PROPERTY

Dolly Varden Silver Corp., further to its news release dated May 5, 2025, has completed the acquisition of the Kinskuch property in northwestern British Columbia's Golden Triangle. The Kinskuch property is adjacent to the company's Kitsault Valley project and dramatically increases the Kitsault Valley project size to approximately 77,000 hectares, covering some of the most underexplored and prospective rocks for silver, gold and copper mineralization in the Golden Triangle.

Dolly Varden completed its acquisition of the Kinskuch property from Hecla Mining Company for consideration of $5-million, which was satisfied by Dolly Varden issuing 1,351,963 common shares of the company to Hecla. Hecla will also retain a 2-per-cent net smelter return (NSR) royalty on the Kinskuch property area. The NSR will include a 50-per-cent buyback right, for $5-million, that will allow Dolly Varden to reduce the royalty to 1 per cent at any time. As per an existing agreement between Dolly Varden and Hecla, Hecla will maintain a designated position on Dolly Varden's technical committee, working together to unlock the potential of the underexplored areas.

About the Kinskuch property

The Kinskuch property is contiguous on the east and south of Dolly Varden's Kitsault Valley project, and through the acquisition Dolly Varden will increase the mineral tenure holdings and triple the total strike length of favorable Jurassic-age Hazelton-group volcanic rocks and associated Red Line by adding the Illiance trend to the Kitsault Valley trend. Both the Kitsault Valley and the Illiance trends are interpreted to be part of a district-scale, subbasin of the Eskay Rift period. The Illiance trend has seen little modern exploration work, limited to localized diamond drilling by Hecla on the three-kilometre-long, north-south-trending Illy epithermal system.

Also included within the acquisition area is the past-producing Esperanza mine (1910), interpreted as quartz-carbonate veins with similar silver grades to the historic Dolly Varden mine (1920) hosted in Upper Hazelton sedimentary rocks. The Esperanza mine is located along the Kitsault Valley access road, two kilometres north of Dolly Varden's camp in Alice Arm, B.C.

The southwestern portion of the acquired claims covers Hazelton Group rocks that trend to within seven kilometres of Goliath Resources Ltd.'s recently discovered Surebet zone gold mineralization.

The area within the Kinskuch property that trends south of Big Bulk has the potential to host additional gold-copper porphyry systems along the south trend toward the Kitsault molybdenum porphyry deposit, which is being actively advanced by New Moly LLC.

Further information

Hecla is considered a related party of the company pursuant to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, on account of Hecla owning 10,606,374 common shares of Dolly Varden, representing approximately 13.3 per cent of the outstanding common shares. As such, the transaction is considered a related party transaction pursuant to MI 61-101. The transaction is exempt from the formal valuation requirements and minority shareholder approval requirements of MI 61-101 pursuant to Section 5.5(a) and Section 5.7(1)(a), respectively, as the value of the common shares issuable pursuant to the transaction will not exceed 25 per cent of the company's market capitalization.

The transaction was negotiated by disinterested members of management of Dolly Varden and Hecla. The transaction was unanimously approved by the disinterested members of the Dolly Varden board of directors.

The common shares issuable to Hecla will be subject to a four-month statutory hold period in accordance with applicable securities laws. No finders' fees or commissions are payable by the company in connection with the transaction.

Qualified person

Rob van Egmond, PGeo, vice-president of exploration for Dolly Varden, the qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this news release. Rob van Egmond, PGeo, is not independent of the company in accordance with NI 43-101.

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 property, the Homestake Ridge property and the Kinskuch property), located in the Golden Triangle of B.C., Canada, 25 kilometres by road to tide water. The 770-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, 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 that trends south onto the Kinskuch project. This porphyry belt is similar in age and mineralization style to other such deposits in the region (Red Mountain, KSM, Red Chris). Approximately 20 kilometres northwest of the Kitsault Valley project, Dolly Varden also has the Porter property, which hosts the past-producing Porter Idaho silver mine and potential for additional high-grade silver in epithermal veins.

We seek Safe Harbor.