Dolly Varden Announces $3.5mm Financing And Strategic Investment By Eric Sprott

Press Release

August 26, 2019 – Vancouver, BC: Dolly Varden Silver Corporation (TSX.V: DV | U.S.: DOLLF) (the “Company” or “Dolly Varden”) is pleased to announce that the Company intends to undertake a private placement financing (the “Offering”) to raise gross proceeds of up to $3.5 million from the sale of up to 5,714,286 common shares that qualify as “flow-through shares” (“Flow-Through Shares”), as defined under the Income Tax Act (Canada), at a price of $0.35 per share and up to 5,000,000 common shares (“Common Shares”) at a price of $0.30 per share. The Offering is expected to be fully subscribed and includes a strategic investment by Mr. Eric Sprott.

Gary Cope President and CEO stated “We are very pleased to welcome Mr. Eric Sprott as a strategic investor in Dolly Varden. The significant investment from Mr. Sprott is a strong endorsement of our high grade silver assets in the Golden Triangle, British Columbia. This financing puts us in a very strong financial position and allows the Company to continue expanding its silver mineral resource with new high grade silver discoveries on the property.”

The Company has agreed to pay a finder’s fee in respect of those purchasers under the Offering introduced to the Company by Mackie Research Capital Corporation (the “Finder”). The Finder will receive (the “Finder’s Fee”) common shares in the Company equal to 5% of the gross proceeds received from purchasers under the Offering who were introduced to the Company by the Finder.

The issuance of the Flow-Through Shares, the Common Shares and payment of the Finder’s Fee, are subject to the approval of the TSX Venture Exchange (“TSXV”), receipt of any other required regulatory approvals and other customary closing conditions. Closing of the Offering is anticipated to occur on or about September 6, 2019. Securities issued under the Offering will be subject to a four-month and one day statutory hold period.

The net proceeds of the Offering will be used for further exploration and mineral resource expansion and drilling of the Dolly Varden silver property in northwestern British Columbia, Canada and ongoing working capital.

Pursuant to the ancillary rights agreement between Hecla Canada Ltd. (“Hecla”) and the Company dated September 4, 2012 (the “ARA”), Hecla will be entitled to acquire Common Shares at a price of $0.30 per share to maintain its pro-rata equity interest in the Company. If Hecla exercises its pro-rata rights under the ARA, any Common Shares issued to Hecla will be in addition to those issued as part of the Offering.

About Dolly Varden

Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. Dolly Varden has two projects, the namesake Dolly Varden silver property and the nearby Big Bulk copper-gold property. The Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other high-grade deposits (Eskay Creek, Brucejack). The Big Bulk property is prospective for porphyry and skarn style copper and gold mineralization similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

Ben Whiting, P.Geo., Vice President of Exploration and Robert van Egmond, P.Geo., Chief Geologist for Dolly Varden, serve as ‘Qualified Persons’ under National Instrument 43-101, and have approved the scientific and technical information contained in this news release.

The Company’s Common Shares are listed and traded on the TSXV under the symbol “DV” and on the OTCBB system under the symbol “DOLLF”.

Contact Information:

Dolly Varden Silver Corporation
Gary Cope, President and CEO
1-604-687-8566
www.dollyvardensilver.com

Dolly Varden Silver Corporation
Alex Tsakumis, Vice President – Corporate Development
1-604-687-8566
Email: alex@belcarragroup.com

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