Alexco Announces US$6.5 Million Bought Deal Equity Financing

Press Release

June 3, 2019 – Alexco Resource Corp. (NYSE AMERICAN: AXU; TSX: AXR) (“Alexco” or the “Company”) is pleased to announce that it has entered into an agreement with Cantor Fitzgerald Canada Corporation as sole bookrunner (the “Underwriter”), pursuant to which the Underwriter has agreed to purchase, on a bought deal basis, 6,500,000 common shares (the “Offered Shares”) at a price of US$1.00 per Offered Share for aggregate gross proceeds of approximately US$6,500,000 (the “Offering”).

The Company has granted the Underwriter an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part, on and for a period of up to 30 days following the Closing Date (as defined below), to purchase up to an additional 975,000 Offered Shares (the “Underwriter’s Option Shares”) on the same terms and conditions as the Offering.

The Company shall pay the Underwriter a commission equal to 7.0% of the gross proceeds of the Offering, including proceeds received from the exercise of the Over-Allotment Option, plus issue non-transferable common share purchase warrants in an amount equal to 4.0% of the number of Offered Shares sold in the Offering (the “Underwriter Warrants”). Each Underwriter Warrant shall entitle the Underwriter to purchase one common share of the Company at an exercise price of US$1.00 for 12 months from the Closing Date (as defined below).

Gross proceeds from the sale of the Offered Shares will be used to fund continuing development of the Keno Hill Silver Project and for general corporate and working capital purposes.

The closing of the Offering is expected on or about June 7, 2019 (the “Closing Date”) and is subject to regulatory approval including that of the Toronto Stock Exchange and NYSE American.

The Offering will be made by way of a prospectus supplement (the “Prospectus Supplement”) to the Company’s existing Canadian base shelf prospectus (the “Base Shelf Prospectus”) and related U.S. registration statement on Form F-10 (SEC File No. 333-227024) (the “Registration Statement”). The U.S. form of Base Shelf Prospectus is included in the Registration Statement. The Prospectus Supplement has been filed with the securities commissions in each of the provinces of British Columbia, Alberta, Ontario, Saskatchewan and Manitoba and the United States Securities and Exchange Commission (the “SEC”). The Canadian Prospectus Supplement (together with the related Canadian Base Shelf Prospectus) is available on SEDAR at www.sedar.com. The United States Prospectus Supplement (together with U.S. Base Shelf Prospectus and the Registration Statement) will be available on the SEC’s website at www.sec.gov. Alternatively, the Canadian Prospectus Supplement (together with the related Canadian Base Shelf Prospectus) may be obtained, when available, upon request by contacting the Company or Cantor Fitzgerald Canada Corporation in Canada, attention: Equity Capital Markets, 181 University Avenue, Suite 1500, Toronto, ON, M5H 3M7, email: ecmcanada@cantor.com; the United States Prospectus Supplement (together with the related United States Base Shelf Prospectus and the Registration Statement) may be obtained, when available, upon request by contacting the Company or Cantor Fitzgerald & Co., Attention: Equity Capital Markets, 499 Park Avenue, 6th Floor, New York, New York, 10022 or by email at prospectus@cantor.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon by the accuracy or adequacy of the Prospectus Supplements, the Base Shelf Prospectuses or the Registration Statement.

About Alexco

Alexco owns the majority of the historic high-grade Keno Hill Silver District in Canada’s Yukon Territory. Alexco also operates a wholly-owned subsidiary business, Alexco Environmental Group, that provides mine-related environmental services, remediation technologies and reclamation and mine closure services to both government and industry clients in North America and elsewhere.

Contact

Clynton R. Nauman, Executive Chairman and Chief Executive Officer
Kettina Cordero, Director of Investor Relations
Phone:  (778) 945-6577
Email:  kcordero@alexcoresource.com

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