Mr. Shawn Khunkhun reports

DOLLY VARDEN SILVER CLOSES $34 MILLION BOUGHT-DEAL FINANCING

Dolly Varden Silver Corp. has closed its previously announced bought deal private placement for aggregate gross proceeds to the company of $33,973,000, including the full exercise of the overallotment option, pursuant to which Dolly Varden sold:

1. 2,906,000 common shares of the company at a price of $6.50 per common share for gross proceeds of $18,889,000, issued on a prospectus-exempt basis pursuant to the listed issuer financing exemption (LIFE) under applicable Canadian securities laws (the LIFE offering);
2. 750,000 common shares that qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and were issued as part of a charity arrangement (each, a CFT share) at a price of $9.42 per CFT share for gross proceeds of $7,065,000, issued under the LIFE offering;
3. 990,000 common shares that qualify as flow-through shares within the meaning of Subsection 66(15) of the tax act (each, an FT share) at a price of $8.10 per FT share for gross proceeds of $8,019,000, issued on a prospectus exempt basis other than LIFE.

The offerings were completed on a bought deal private placement basis pursuant to an underwriting agreement dated Oct. 23, 2025, between the company and a syndicate of underwriters co-led by Haywood Securities Inc. and Research Capital Corp., as joint bookrunners, and including Raymond James Ltd.

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 CFT shares and FT shares will be used for further exploration, mineral resource expansion and drilling at 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, 2025, to the initial purchasers of CFT shares and FT shares.

The common shares and CFT shares issued pursuant to the LIFE offering are not subject to a statutory hold period. The FT shares issued pursuant to the private placement offering are subject to a hold period in Canada expiring on Feb. 24, 2026.

In connection with the closing of the offerings, the underwriters received a cash fee equal to $1,698,650, representing 5.0 per cent of the gross proceeds of the offerings. Eventus Capital Corp. acted as a special adviser to the company.

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. Including the Kitsault Valley project, the company has consolidated approximately 100,000 hectares of prospective tenure in the Golden Triangle with five past-producing high-grade silver mines including Dolly Varden, Torbrit, Porter Idaho, Mountain Boy and Esperanza historic mines. The 163-square-kilometre Kitsault Valley 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, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

We seek Safe Harbor.