Mr. Shawn Khunkhun reports

DOLLY VARDEN SILVER ANNOUNCES FULL EXERCISE OF UNDERWRITERS' OPTION IN BOUGHT-DEAL FINANCING FOR TOTAL OF $28.76 MILLION, WITH PARTICIPATION BY ERIC SPROTT

In connection with the previously announced bought deal offering announced on June 9, 2025, Research Capital Corp., as the sole bookrunner and co-lead underwriter, together with Raymond James Ltd. as co-lead underwriter, on behalf of a syndicate of underwriters, including Haywood Securities Inc., has provided notice to the company to exercise the underwriters' option in full for $3,750,500 in gross proceeds, resulting in aggregate gross proceeds of $28,755,500 to the company, from the sale of a combination of securities of the company, consisting of:

• 2,445,500 common shares of the company at a price of $4.60 per common share for gross proceeds of $11,249,300, to be issued on a prospectus-exempt basis pursuant to the listed issuer financing exemption under applicable Canadian securities laws;
• 1,128,000 common shares that will qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada) that will be issued as part of a charity arrangement at a price of $6.65 per charity FT share for gross proceeds of $7,501,200, to be issued under the LIFE offering; and
• 1.74 million common shares that will qualify as flow-through shares within the meaning of Subsection 66(15) of the tax act at a price of $5.75 per FT share for gross proceeds of $10,005,000, to be issued on a prospectus exempt basis.

Eric Sprott, through 2176423 Ontario Ltd., has indicated his intention to participate in the transaction.

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 charity FT shares and FT shares will be used for further exploration, mineral resource expansion and drilling in the combined Kitsault Valley project, located in northwestern British Columbia, Canada, 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 Income Tax Act (Canada) and flow-through mining expenditures as defined in Subsection 127(9) of the Income Tax Act (Canada) that will qualify as flow-through mining expenditures and B.C. flow-through mining expenditures as defined in Subsection 4.721(1) of the Income Tax Act (British Columbia), which will be renounced with an effective date no later than Dec. 31, 2025, to the initial purchasers of charity FT shares and FT shares.

The offerings are expected to close on June 26, 2025, or such earlier or later date as may be determined by the underwriters. Closing is subject to the company receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange and NYSE American, to list, on the date of closing, the common shares, the charity FT shares and the FT shares.

The LIFE offering will be made in accordance with the listed issuer financing exemption in Part 5A of National Instrument 45-106 (Prospectus Exemptions), to purchasers in any province of Canada, except Quebec. The common shares can also be offered in other jurisdictions where the LIFE offering can lawfully be made, including the United States under applicable private placement exemptions. The common shares and charity FT shares issued and sold under the LIFE offering will not be subject to a hold period pursuant to applicable Canadian securities laws. There is an offering document related to the LIFE offering that can be accessed under the company's issuer profile at SEDAR+ and on the company's website. Prospective investors should read this offering document before making an investment decision.

The FT shares will be offered to accredited investors in each of the provinces of Canada pursuant to applicable prospectus exemptions in accordance with National Instrument 45-106, and will have a statutory hold period of four months and one day from closing.

In connection with the offerings, the underwriters will receive an aggregate cash fee equal to 5.0 per cent of the gross proceeds of the offerings. Eventus Capital Corp. is a special adviser to the company.

Pursuant to existing agreements with the company, Hecla Canada Ltd. and Fury Gold Mines Ltd. will be entitled to acquire common shares in connection with the offerings at a price of $4.60 per common share to maintain their pro rata equity interest in the company. If Hecla or Fury exercise its pro rata rights, any common shares issued will be in addition to those issued as part of the offerings.

About Dolly Varden Silver Corp.

Dolly Varden 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.