Alexco Receives Final Water Use License For Keno Hill

VANCOUVER, BC - Alexco Resource Corp. has received from the Yukon Water Board the final amended and renewed Water Use License (the "WUL") for the Keno Hill Silver District (the "District" or "Keno Hill"). The Company also provided an update on Keno Hill mining operations, exploration and other corporate matters.

With the recent announcement of the Company's decision to move to production at Keno Hill, site activities have rapidly ramped up and are progressing according to plan. With the increasing activity, Alexco's primary focus continues to be the health and safety of our employees, contractors and the communities in which we operate and our COVID-19 management plan continues with strict prevention measures in place, consistent with the guidelines of the Yukon Government and health officials.

Underground activities are currently focused on rehab and services at the Bellekeno mine, which will be the first mine to deliver ore to the mill in Q4, 2020. Underground development at Flame & Moth will begin in August, and Bermingham in September once surface facilities including the water treatment plant are commissioned. Initial delivery of the new underground mining fleet including loaders, trucks, jumbos, and bolters has begun and all major underground equipment units are on schedule for delivery consistent with the underground development schedule. The current focus of surface construction activities is the completion of camp expansion facilities, administration complex and support facilities as well as mill upgrades and modifications. The secondary ball mill has been set and the concentrate regrind mills and tailings filter press have been delivered to the site. All other long lead time equipment, both surface and underground, is either on order or in transit and delivery and construction timelines remain consistent with the overall development schedule.

Surface exploration drilling targeting the down plunge extensions of the high grade Bermingham deposit has begun. The initial 4,200 meters (m) drilling campaign will test for extensions of the previously discovered silver mineralization approximately 200 m vertically below the NE Zone of the Bermingham deposit, which overall contains an Indicated Mineral Resource of 32.9 million ounces of silver at an average grade of 930 grams per tonne (g/t) silver. The 2020 exploration drilling program will be focused at depth, approximately 250 m along strike northeast of the silver mineralization discovered in 2019, where best results returned 1,414 g/t silver over an estimated true width of 8.15 m in the Bermingham Footwall vein structure.

The Yukon Water Board issued the final WUL authorizing Alexco to source and use water as well as deposit designated waste streams into approved facilities in and around planned production centers at the Bellekeno, Flame & Moth, and Bermingham mines as well as the District's mill facility. The term of the License is 17 years and the conditions of the final WUL are substantially the same as the draft WUL previously reported.