Mr. Shawn Khunkhun reports

DOLLY VARDEN SILVER CLOSES $28.76 MILLION BOUGHT-DEAL FINANCING, WITH PARTICIPATION BY ERIC SPROTT

Dolly Varden Silver Corp. has closed its previously announced bought deal private placement for aggregate gross proceeds to the company of $28,755,500, pursuant to which Dolly Varden sold: (a) 2,445,500 common shares of the company at a price of $4.60 per common share for gross proceeds of $11,249,300, issued on a prospectus exempt basis pursuant to the listed issuer financing exemption (LIFE) under applicable Canadian securities laws; (b) 1,128,000 common shares that qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and were 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 (c) 1.74 million common shares 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., acquired common shares under the LIFE offering.

The offerings were completed on a bought deal private placement basis pursuant to an underwriting agreement dated June 26, 2025, between the company and a syndicate of underwriters co-led by Research Capital Corp., as sole bookrunner, and Raymond James Ltd., and included Haywood Securities Inc.

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 and other mineral properties, 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 tax act, and flow-through mining expenditures, as defined in Subsection 127(9) of the tax act, which 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 common shares and charity FT shares issued pursuant to the LIFE offering are not subject to a statutory hold period. The FT shares issued pursuant to the private placement offering are subject to a hold period in Canada expiring on Oct. 27, 2025.

In connection with the closing of the offerings, the underwriters received a cash fee equal to $1,437,775, representing 5.0 per cent of the gross proceeds of the offerings. Eventus Capital Corp. is a special adviser to the company.

About Dolly Varden Silver Corp.

Dolly Varden Silver is a mineral exploration company focused on advancing its 100-per-cent-held Kitsault Valley project (which combines the Dolly Varden property, the Homestake Ridge property and the Kinskuch property), located in the Golden Triangle of British Columbia, Canada, 25 kilometres by road to tidewater. The 770-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, on-trend, 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 that trends south onto the Kinskuch project. This porphyry belt is similar in age and mineralization style to other such deposits in the region (Red Mountain, KSM and Red Chris). Approximately 20 kilometres northwest of the Kitsault Valley project, Dolly Varden also has the Porter property, which hosts the past-producing Porter Idaho silver mine and potential for additional high-grade silver in epithermal veins.

We seek Safe Harbor.