Alexco Extends Draw Down Availability Period on US$15 Million Credit Facility

Press Release

February 14, 2019 – Alexco Resource Corp. (NYSE American: AXU, TSX: AXR)(“Alexco” or the “Company”) is pleased to announce that it has extended the draw down availability period on its previously established definitive credit agreement (the “Agreement”) with Sprott Private Resource Lending (Collector), L.P. to provide a US$15 million credit facility (the “Credit Facility”) to be used for the development of the Keno Hill Silver projects located in Yukon, Canada (see press news release dated February 26, 2018, entitled “Alexco Establishes US$15 Million Credit Facility”). Pursuant to the terms of the Agreement, Alexco has issued 171,480 common shares of the Company to extend the draw down availability period by six months.

Clynt Nauman, Alexco CEO and Chairman commented, “With the extension of the draw down availability period of the Credit Facility, we are simply maintaining this back-stop and financing alternative while waiting for final permitting for the Bermingham deposit to be completed – currently anticipated at the end of Q2-2019. We remain on target to announce the results of our pre-feasibility study before the end of Q1 and continue to target a production decision in the first half of 2019 subject to market conditions. The Credit Facility carries a total interest charge of approximately 9.75% on funds drawn down, has no minimum drawdown requirement and does not carry a stand-by charge. Retaining the Facility as a back-stop allows the Company to easily move to a production decision while managing project risk and minimizing shareholder dilution.”

Key Terms of the Credit Facility

• Term of 3 years, Maturity Date – February 23, 2021
• US$15 million
• Interest rate on funds drawn down of 7% plus US Dollar 3 month LIBOR, payable monthly
• Repayable in quarterly installments from October 31, 2019 through to the Maturity Date
• Upon draw down of funds a 3% charge of the draw down is charged
• Repayable in whole or in part, without penalty, provided not less than twelve (12) months of interest has been paid on any outstanding amount

About Alexco

Alexco owns the majority of the historic high-grade Keno Hill Silver District in Canada’s Yukon Territory as detailed in its preliminary economic assessment (the “PEA”) entitled “Preliminary Economic Assessment of the Keno Hill Silver District Project, Yukon, Canada”, which is dated March 29, 2017, with an effective date of January 3, 2017, and anticipates the sequential development of four high grade silver deposits over an eight year mine life producing more than one million tonnes with an average grade of 843 g/t silver, 3.3% lead and 4.6% zinc. Silver production is anticipated to be approximately 3.5 million ounces per year. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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, Chairman and Chief Executive Officer
Lisa May, Director of Investor Relations
Phone: (778) 945-6577
Email: lmay@alexcoresource.com

Please visit the Alexco website at www.alexcoresource.com

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