Mr. Shawn Khunkhun reports

DOLLY VARDEN SILVER ANNOUNCES CLOSING OF SECOND TRANCHE OF BOUGHT-DEAL OFFERING FOR A TOTAL OF $32.2 MILLION

Dolly Varden Silver Corp. has closed the second and final tranche of its previously announced bought deal financing for additional gross proceeds of $4.5-million from the issuance of 3.6 million flow-through shares (as defined herein). The aggregate gross proceeds to the company from the completion of the offering (including the gross proceeds raised from the completion of the first tranche of the offering on Sept. 4, 2024) are $32.2-million, from the issuance of:

• 11.5 million common shares of the company at a price of $1 per common share for gross proceeds of $11.5-million, issued under a prospectus supplement dated Aug. 21, 2024, to the company's final short form base shelf prospectus dated April 25, 2023, including the full exercise of the overallotment option under the prospectus offering;
• 16.56 million common shares that 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 flow-through share for gross proceeds of $20.7-million, on a bought deal private placement basis, including the full exercise of the overallotment option under the private placement offering.

The offering was completed on a bought deal basis pursuant to an underwriting agreement dated Aug. 21, 2024, between the company and a syndicate of underwriters co-led by Research Capital Corp., as co-lead underwriter and sole bookrunner, and Haywood Securities Inc., as co-lead underwriter, and including Raymond James Ltd. Eventus Capital Corp. is a special adviser to the company.

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 flow-through shares will be used for further exploration, mineral resource expansion and drilling in the combined Kitsault Valley project, located in northwestern British Columbia, Canada, or any other eligible Canadian property of the company; 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 tax act, and flow-through mining expenditures as defined in Subsection 127(9) of the tax act 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 no later than Dec. 31, 2024, to the initial purchasers of flow-through shares.

The flow-through shares issued pursuant to the closing of the second tranche of the private placement offering are subject to a hold period in Canada expiring on Jan. 28, 2025. The common shares issued pursuant to the prospectus offering are not subject to a statutory hold period.

In connection with the closing of the second tranche of the offering, the underwriters received a cash fee equal to $225,000, representing 5 per cent of the gross proceeds of the second tranche of the private placement 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 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.